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OUR NAME IS INNOVATION ANNUAL REPORT 2009 2010
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Page 1: 2010 is innOvatiOn · 2019-07-04 · FPInnovatIons annual RePoRt 2009/2010 2 Table of conTenTs 04_ Message from the Chairman and the CEO 08_ Review of activities 24_ Financial review

Our name is innOvatiOn

AnnuAl RepoRt

20092010

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FPInnovatIonsannual RePoRt 2009 / 2010

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Table of conTenTs04_ Message from the Chairman and the CEO08_ Review of activities24_ Financial review25_Message from the Chief Financial Officer26_Financial results Corporate results Results by sector28_ Membership information29_List of members32_Researchadvisorysteering committees34_ Corporate information

innOvatiOnis the new name Of the game.

It Also hAppens to be ouRs.

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Over the last two decades, the transformation of the world economy and the globalization of trade have changed the lay of the land for manufacturing companies in the developed countries.

It is now a fact that their competitiveness depends on their ability to address needs that consumers feel are so important that they will pay a premium for the solutions that help meet them. In other words, their success is contingent upon their capacity to design a new value proposition for the consumer.

Locate the real consumer. Build a consistent value proposition. Deliver it more quickly, more efficiently and with greater impact than the competition. Start all over again. These are the new rules of the game: maximize the value for consumers and, consequently, for other stakeholders.

Those are the rules, and the game is called innovation.Conventional industries have already begun adapting to the shift

in the value chain away from the producer and towards the new consumer. It is a challenge that demands not only individual effort on the part of each company, but also a collective effort to seek innovative solutions to common problems.

To face that challenge, the Canadian forest industry has created a model that has no equivalent in the world: FPInnovations.

FPInnovations is the result of a joint effort on the part of industry and the federal and provincial governments. Its mission is to help the Canadian forest industry improve its value chain by developing new products based on the unique attributes of Canada’s forest resources and with a sustainable development approach.

To achieve that mission, we have built our entire innovation strategy around four flagship programs:

• Next-generation building and living solutionsWe are developing revolutionary new construction systems and working to change building codes to promote the use of wood in market segments where it is underutilized.

• Next-generation pulp and paper We are working with paper companies to develop pulps and papers with unique properties for use in new applications with a lesser environmental impact.

• Energy and chemicals from biomass We are developing new materials, new fuels and new energy- efficient solutions that will replace fossil fuels with materials based on a renewable resource with a small carbon footprint.

• Novel bioproducts We are working to create new wood fibre-based products with such remarkable properties that they could revolutionize numerous commercial applications in a variety of markets.

The projects launched under these programs are part of the Transformative Technologies Program (TTP), funded by Natural Resources Canada (Canadian Forest Service). Under the TTP, FPInnovations brings together governments, industry and academia to conduct research focused along the entire forest value chain to develop and adapt emerging and breakthrough technologies that could change the face of the forest industry and, by extension, part of the Canadian economy.

Concurrently, FPInnovations continues to widen and enrich its relationships with provincial departments. Collaborative support and funding from provincial governments are helping FPInnovations spearhead programs such as the BC Coastal Forest Sector Hem-Fir Initiative and revisions to Québec’s forest law regarding plantation site preparation.

FPInnovations is continuously gaining international respect for its research and discoveries, and its unique process of innovation is attracting interest across Canada and around the world.

Because innovation is the new name of the game.ANd our NAmE Is INNovATIoN.

innOvatiOnis the new name Of the game.

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message frOm the Chairman and the President and Chief exeCutive OffiCer_

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5 message FRom the ChaIRman and the Ceo_

BringingcompetitivenessbacktoasustainablelevelremainsasizeablechallengefortheCanadianforestindustry.Whilethepulpsectorhasseensignificant improvement, the same cannot be said for all sectors of theindustry,whichcontinuetofeeltherepercussionsofastrugglingeconomy(intheU.S.paperandconstructionmarkets,inparticular),theregulatorytighteningofrecentyearsandrelentlesscompetitionfromemergingecon-omies.Profitmarginsremainunderpressure,andtheindustryhastomakesome toughchoices toprotect its reinvestment capacity and improve itschancesforemergingfromthecrisiswithnewcompetitiveadvantages.Formanyintheforestindustry,thenexttwoorthreeyearswillbebothdifficultandcritical.

FPInnovations, itself a creation of various forest industry stakeholdersinCanada, isobviouslynot immune to thesituation.Over the last12 to18months,wehavebeenforcedtoquestionourselvesaboutourrole,ourprioritiesandthenatureofourcontributiontotheCanadianforestindustry,whichfacessuchenormousproblems.

Theverysignificantdeclineinmembershiprevenues–from$30millionto$9million–obviouslynecessitatedsustainedefforttoensurefederalandprovincial financing for our activities.We also had to renegotiate agree-mentswithourmembersthataremoreinlinewiththeirfinancialpositionandimmediateimperatives,yetstillmeettheindustry-wideneedforfirst-rateR&Dservicesthatwillallowmemberstomeettheirshort-andlong-termchallenges.

Most importantly, however, the situation sparked awealth of positivereflectiononouroperatingmodel,ourcontributiontothetransformationoftheCanadianforestindustry,and,byextension,theCanadianeconomyasawhole.Obviously,theveryhighlevelofintegrationinCanada’sforestindustryputsFPInnovationsinapositionthatisalmostuniqueintheworld:it is one of the rare organizations of its kind with the power to play aroleinitscountry’sentireforestproductvaluechain.Inaddition,thefibreextractedfromthedifferenttypesoftreesthatgrowinCanadahasuniquecharacteristics,making it possible to develop applications thatwouldbeunthinkableusingexoticspecies.Theseareimportantcompetitiveadvan-tages when formulating solutions for our members and developing newapproachesandproducts.

In2009–2010,FPInnovations,notunliketheCanadianforestindustryitselfinthepastdecade,wentthroughastrategicrealignmentdesignedtoidentifyitscorecompetitiveadvantagesanddevelopaplanfocusingonflagship,high-value-addedprograms.Theseprogramsaresopromisingthattheyarealreadyattractinginterestacrosstheindustry–andwellbeyond.

designing a new value PrOPOsitiOn foR the foRest sectoR _ And beyond.

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inn

Ov

at

iOn

Pierre Lapointe President and Chief executive officerJim Lopez Chairman of the Board

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FPInnovatIonsannual RePoRt 2009 / 2010

7 message FRom the ChaIRman and the Ceo_

WhatisevenmorestrikingaboutFPInnovationsisitspositioninwhatwecancalltheinnovationuniverse.Itisafactthat,whilethereisnoshortageofgoodideasinthebusinessworld,trueinnovationisrare.Innovationisnotaproduct;itisacomplexprocessthatmakesitpossibletodelivernewvaluebyusingresearchtodiscover,createandimplementnewproducts,newprocesses,newtechnicalmeansandnewservices.Feworganizationshave the structure, the networks, the partnerships, the know-how, thepersonnel, the integrative capacity and themarket intelligence todeploythatdynamiconanongoingbasis.FPInnovationsisoneofthem.

Inthisregard,theestablishmentofajoint-venturecompanywithDomtarto build and operate a commercial-scale nanocrystalline cellulose (NCC)demonstrationplantismosttelling.Bringingresearchteams,engineersandmarketintelligencespecialiststogetherinthesameprocesshasallowedustorealignourprioritiesandpositiontheprojectinrealtime.Thisintegra-tionofresourcesallowedustosignificantlyreducethetimeandinvestmentneededtobringtheprojecttocompletion,inspiteoftheveryhighleveloftechnologicalcomplexityinvolved–anachievementheretoforeunimagin-ableformostexpertsinthefield.Itisnoexaggerationtosaythatwetooktheworldbysurprisewiththeannouncement.Inaway,wehavebroughtourselves into theworld.Wehavemadeaname forourselves.And thatnameisinnovation.

TheNCCprojectisjustoneamongmanyothersonwhichourteamsaredemonstratingthisuniquecapacityforinnovation.Aspartofourstrategicplan, we are taking on four flagship programs: next-generation buildingandlivingsolutions;next-generationpulpsandpapers;energyandchem-icalsfrombiomass;andnovelbioproducts.

These flagship programs open up promising and ambitious areas ofresearchthatwillhelptheCanadianforestindustryrepositionitselfattheheart of a new bioeconomy. This research focuses on high-value-addedapplicationsbasedonarenewableresource–wood–whichhasasmallcarbon footprint and can be sustainably utilized. These are also areaswhere ourmembers can foresee becomingmore globally competitive inmanymorewaysthanthroughacostreductionstrategyalone.Thisisourmessagetotheindustry:wewillbethereintheshorttermtohelpyougetthrough thecomingyearswith innovativesolutions,andwewill alsobethereinthelongtermtohelpyougettothenextlevelwithsolutionsthatwillbringnewandever-increasingvaluetothemarket.

AsyouwillseeintheReviewofactivities,oureffortshaveprovedfruitfulonanumberofprojectsthroughouttheyear.Theseincludetheconstruc-tionof thenewFondactionheadoffice inQuébecCity, anon-residentialsix-storeybuildingbuiltprimarilyofwood;theproductionofbiomethanefromwoodpulpresidue;and,amongmanyotherprojects,theimprovementof forest-related transportation by increasing logging truck loads, whichinvolves a new system that could eventually be commercialized in othersectorsofthetransportationindustry.Weinviteyoutoreadaboutalltheseprojectsandseehowouractivitiesaretranslatingintoapplicationsthatarehelping Canada’s forest industry companies consolidate their position inconventionalmarketswhilealsotakingtheirplaceinnewones.

With theperiodof intensequestioningbehindus,we look forward toafutureofexcitingpossibilitiesforourmembers,personnelandpartners.OnbehalfofthemanagementteamandtheBoardofDirectors,wewouldlike to thank everyone for their support over the last year and the trusttheycontinuetoplaceinFPInnovations.Morethanever,management,theBoard and all FPInnovations personnel are speaking with one voice andworkingtowardsthesameobjective:toplanttheforestindustrysolidlyintheeconomyofthe21stcentury.

Wecanbeproudofwhatwehaveaccomplishedtogether–andwe’reenergizedbythechallengesthatawaitus.

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review Of aCtivities

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Cellulose at the nanocrystalline level.

Tiny parTicles, big possibiliTiesNanocrystalline cellulose (NCC), a wood-based nanomaterial that is

abundant,renewableandrecyclable, isoneof themostexcitingareasofwoodfibreR&D.Thepossibilitiesforthisinnovativeproductgofarbeyondtraditionalpulpandpaperapplications.

Formorethan15years,FPInnovationshasbeendevelopinganextensiveintellectual propertyportfolio aroundNCC, includingbothmanufacturingandapplications.NowFPInnovationsandDomtarCorporationhaveformedajointventuretobuildthefirstNCCdemonstrationplantintheworldonthesiteofDomtar’spulpandpapermillinWindsor,Québec.Thegovern-mentsofCanadaandQuébecarebothprovidingfinancialsupportforthis$40.8millionproject,whichwillcreateabout50jobsduringtheconstruc-tionphaseandabout10permanentpositionsoncetheplantisoperational.

ThedemonstrationplantwillproduceonemetrictonperdayofNCCbymillingandhydrolyzingwoodcellulose,thenseparatingandconcentratingthenanocrystallinecelluloseparticles.Chemicaltreatmentscancustomize

theNCC formany different uses. The huge commercial potential of thissustainableandbiodegradablematerialstemsfromthewiderangeofprom-isingapplicationsintheautomotive,aerospace,chemical,textile,forestryandmanyotherindustries.

NCC’suniqueoptical,electrical,magneticandstrengthpropertiesgiveitalmostlimitlesspotentialforuseinmanytypesofcommercialproducts,including high-durability paints and optically reflective films; improvedpaper, packaging and building products; advanced composite materials;andeveninnovativebioplasticsforbonereplacementandtoothrepair.

finding sOlutiOns.OPening uP new markets. embarking On an exCiting future. A summARy of ouR R&d pRojects In 2009–2010.

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1 wooden furniture and accents like these can help reduce stress and promote health.

2 wood is an integral part of the structure of the new six-storey Csn Fondaction building in Québec City.

_RevIew oF aCtIvItIes

subsTanTial progress on The hardwood iniTiaTive The Hardwood Initiative – Increasing the Profitability of the Eastern

Hardwood Industrywasdevelopedwith theCanadianWoodFibreCentre(CWFC).Twelveprojectshavebeenstartedaspartofthisinitiative,fourofwhichwerecompletedinsummer2010.

Asignificantamountofresearchhasbeenaccomplishedinthepastyear,includingthefollowing:

• A lifecycleanalysisofcertainhardwoodproducts isunderway toevaluatetheirenvironmentalimpact.

• An analysis of secondary and tertiary transformation has beencompleted,andneedsarenowbeing linkedwithsawmillproducts(preliminaryresultsshowsignificantimprovementinafewsectors).

• Trialsfortheuseofbiotechnologyincolorationanddiscolorationareinprogress,andinitialresultsareverypromising.

• TrialshavebeenconductedinOntario,QuébecandNewBrunswicktoproposenewharvestmethodsadaptedtolocalforests,theresultsofwhicharecurrentlybeingtestedandanalyzed.

• TrialshavebeenconductedinNewBrunswicktoevaluatethecapabilityofLiDARtechnology(seep.19)toimproveknowledgeofhardwoodforestsandtheimpactofpartialharvestingontreegradeprojection.

This research initiative is among the most important ever devoted tothehardwoodforest.ThefactthatseveralEasternCanadianprovincesareinvolved, the significant number of researchers participating from eachcontributing province and the contribution of universities conductingresearchonhardwoodsmakethisatrulyexceptionalundertaking.

bc coasTal iniTiaTiveThe BC Coastal Forest Sector Hem-Fir Initiative is a partnership with

the coastal forest industry and theBritishColumbia and Federal govern-mentstofindinnovativewaystoincreasetheefficiencyanddiversityofthewesternhemlockandamabilisfirprocessingsector.Theoverallobjectiveof thisfive-year initiative is todevelopnewproductsmanufactured fromthecoastalhem-firresourceorimprovethecharacteristicsofexistingones.

IntheInitiative’sthirdcalendaryear,workcontinuedonidentifyingandassessing opportunities along the value chain. Focus is shifting towardsmedium-andlong-termtargets,withsignificantprogressinareassuchasscaling, sawmilling, chip supply and supply chain.Therehavealsobeennotableachievementsintransportandproductdevelopment.

In theareaofhighway soundabatement fencing, for example, anew“hybrid” (wood and concrete) demoproduct is being testedwith a viewto regainingamarket thatwasonceheldbywood,buthasmigrated toconcreteandsteel.Thisinitiativewillprovideanew,highervalueend-useforalowvalue,fall-downlumbergradefromacommonpostproduct.

In addition, researchers are working on bio-energy opportunities bystudying the complex integration of available technologies with respecttospecificresources,technologicalviabilityandkeychallengesforemer-gingproducts or processes. Three emerging technologies – torrefaction,pyrolysisandgasification–showgoodpotential,witheachyieldinguniqueenergy products. In the coming year, opportunities for making use ofcoastalbiomasswillbepursuedatbothindustrialandcommunitylevels.

Otherprojectsincludetestingreducedsawplatewidthsindouble-arborgang saws, developing innovative scaling methods and determining theeffectofloglengthonaverageandmaximumpayloads.

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effecTs of wood in The builT environmenTThebenefitsofwoodandwoodproductsaremany,andnowthere is

growingevidencethatit’stimetoadd“humanhealth”tothelist.Researchonwoodandhumanhealth,performedattheUniversityofBritishColumbiabyanFPInnovations researcher forhisdoctoral thesis, shows thatwoodactually reduces stress and promotes health in the built environment.Amongotherfindings,exposuretooutdoornaturalenvironmentshasbeenshownto lowerbloodpressure,heartrateandskinconductance;reducethe frequency of common colds and flu and accelerate recovery fromillness; lowerpainperception;and increasetheability to focusattention.ThestudiesconductedatUBCshowedthattheapplicationofwoodinthebuiltenvironmentreducedsympatheticnervoussystemactivation,orstressresponse. This result indicates that wood could be used to bring someofthehealthbenefitsofnatureindoors,whichiswhereCanadiansspend88%oftheirtime.

Using the scientific approach to establishhealth as anewattributeofwoodsupportsevidence-baseddesign(EBD),whichisviewedbytheDesignFuturesCouncilasoneofthetoparchitecturaltrendsforthenewdecade.

wood use sTraTegyFPInnovationsissupportingtheWoodUseStrategyforConstructionin

Québec,underwhich theprovincial andmunicipalgovernments, aswellasotherorganizations,suchas labourunions,are leadingbyexampletoincrease the demand for wood in non-residential construction. The newCSNFondactionofficebuildinginQuébecCityistheperfectillustrationofthis. InauguratedonMay11,2010, thesix-storey,glue-laminatedstruc-turewithaconcretecoreisoneofthetallestofitskindinNorthAmerica.This remarkable achievement is the product of scientific research byFPInnovationsanditspartners–researchthatpavedthewayforwoodtobe used in commercial buildingswhere, previously, only othermaterialsmet themultiple technologicalandregulatoryrequirements.Theresult isawholenewbuildingparadigminwhichwoodnotonlypresentsasetofpropertiesequivalenttothoseofothermaterials,butalsocontributesnewcharacteristics and verydistinct advantages. FPInnovations alsoprovidedtechnicalassistanceforthedesignofthismulti-storey,heavy-framehybridbuilding, which was awarded two Prix d’excellence, including one forstructuraldesign,byCecobois, theCentred’expertisesur laconstructioncommercialeenboisinvolvedinthepromotionofwooduseinnon-residen-tialconstructioninQuébec.Thewoodusedinthebuildingstructuremaxi-mizestheperformanceofthewholelogrightuptothetips,apartofthetreethatusedtobeleftinthefellingarea.ThebuildingwasalsodesignedtoachieveLEED™certification.

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“wood firsT” awardInFebruary2010,theHonorablePatBell,B.C.’sMinisterofForestsand

Range,presentedFPInnovationswitha“WoodFirstChampion”awardforitscontributionofstaff,expertiseand innovation to thesix-storeywood-frame construction project. The organization’s input was critical in theprocessthatledtochangesintheB.C.BuildingCode,implementedinApril2009, which increased the maximum height for wood-frame residentialconstructionfromfourtosixstoreys.TheB.C.BuildingCodeisthefirstinNorthAmericatoallowsix-storeywoodbuildings.

FPInnovations’ activities included advanced computer modeling ofbuildingperformancetoassessseismicbehaviour,theprovisionofadetaileddesignexampleofasix-storeywood-framebuilding,andparticipation inthe design and performance assessment of a full-scale, six-storey woodplatform-framebuilding.ThebuildingfeaturedNorthAmericandesignsandmaterials,andafterconstruction,itwastestedontheworld’slargestshaketable in Miki City, Japan. The test building also featured the MIDPLY™wall system thatwasdevelopedby researchersatFPInnovationsand theUniversityofBritishColumbia.Whensubjectedtoaveryhigh-magnitudeearthquake, the building performed exceedinglywell, thus providing thenecessaryassurance tobuildingcodespecifiersanddesignersworldwidethatfive-andsix-storeywood-framebuildingscanbebuiltwitheconomicaldesignandconstructionmeasurestowithstandpowerfulearthquakes.

AWoodEnterpriseCoalition,ofwhichFPInnovationsisamember,hasbeenformedinB.C.tosupporttheprovince’s“WoodFirst”initiative,and20five-tosix-storeyprojectsarecurrentlyunderway.

enhanced daTa managemenT for foresT operaTions

FPDat™,anewdata loggingsystem, is improving theway that infor-mationismanagedinforestoperations.Inalimitednumberofprototypeinstallations in 2009, the FPDat data logger has proved itself to be aconsiderableimprovement,receivingextremelypositivefeedback.

The new-generation version of the eight-year-old MultiDAT® system,FPDatisanenhancedsolutiontotheage-olddatamanagementproblemsendemictoforestoperations.Theseincludethewidevarietyofequipmentbeing used, the remoteness of work sites and associated challenges tocommunications,aswell as theoverall complexityofcapturing informa-tion.Despitetheseissues,all themembersoftheforestoperationschain–fromequipmentoperatorstoforestcontractors,productionsupervisorsandcompanymanagement–needaccesstoasteadystreamofaccurate,real-timeproductiondata.

UnlikeMultiDAT,FPDathasafullyinteractivesystemthatincludesGPS,real-time updates of key performance indicators, message receiving andsending capability and data input screens for individual machine types.Forexample, ina forwarderoraskidderconfiguration, theoperatorwillbeable to recordanestimateofvolumebrought to roadsidebyproducttype, which will provide useful information both to him in terms of hisproductionlevels,andtothesupervisorregardingroadsideinventorylevels.FPDat configurations will be available for all forest machine types,includingfelling,extractionandprocessingequipment.

Thesystemrolloutwillcontinuewithmoreinstallationsin2010-2011,andanintegratedFPDatunitsetforcommercializationinearly2011.

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1 l-R: steven Kuan, Building and safety standards Branch, B.C. ministry of housing and social development; erol Karacabeyli, manager, FPInnovations wood Products division; Russ Kinghorn, association of Professional engineers and geoscientists of British Columbia; and Pat Bell, B.C. minister of Forests and Range.

2 the new interactive FPdat data management system is providing accurate, useful information and will soon be available on all forest machine types.

3 site preparation costs in Québec are now being reimbursed more fairly, thanks to FPInnovations research.

RevIew oF aCtIvItIes_

a level playing field for siTe preparaTion work in Québec

Findings released by FPInnovations after an intensive, two-year studyhaveledtochangesinthereimbursementratesforsitepreparationtreat-ments under Québec forest law. This study was the result of long-heldconcernsbyforestmanagersandcontractorsthatthepriorreimbursementmodel–whichofferedafixedratepertypeofmachineused,withouttakingoperating,productivityorregionalvariationsintoaccount–wasn’tasfairasitshouldbe.

More than 50,000 hectares of public land are prepared annually inQuébec for the planting of seedlings, and the increasingly remote anddiverseconditionsofthetreatmentsitesexacerbatedtheinequityofafixed-ratemodel.Togaugetheseriousnessoftheproblem,FPInnovationsstudied26,000 hectares of land treated by various site preparation equipment(73machines)in10differentregionsoftheprovince.FundedbyQuébec’sMinistryofNaturalResourcesandWildlifeandNaturalResourcesCanada(NRCan), these research studieshave led to revised reimbursement ratesthattakesiteandoperatingconditionsintoaccount.

This researchalso looked into therelative impactof fuelconsumptiononthe total treatmentcost forsitepreparation,with thefindings leadingto better compensation for contractors’ lost profit due to increasing fuelprices. The research studies have attracted a lot of attention fromotherprovinces, and workshops have already been held in New Brunswick,NewfoundlandandLabrador.

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improving safeTy on resource roadsInresponsetoconcernsaboutthesafetyofresourceroadsusedinforest

operations, FPInnovations has developed a cost-effective Road SafetyInspectionsystem.Theurgentneedforactioninthisareawasunderlinedina2009reportbyWorkSafeBC:“Resourceroadsarehazardous,high-riskworkplaces with an average of four industrial deaths per year in BritishColumbia.”SupportforthisresearchhasbeenprovidedbytheBCMinistryofForestsandRange,NaturalResourcesCanada,WorkSafeBC,andtheBCForestSafetyCouncil.

The system, using high-precision GPS, mobile videography and LightDetection and Ranging (LiDAR) technology, is mounted on an SUV thatdrivesdowntheresourceroad.TheresultingdataisthenprocessedusinganalysismodulesandsoftwaretoolsthatweredevelopedincollaborationwithTrimbleCanada.Since2008,FPInnovationshastestedthesystemonover300kmofmainlineroadsinB.C.,withrecommendationsfocusingonimprovingdesignspeedandpostedspeedlimits,stoppingsightdistance,geometricdesign,signageandanumberofother featuresaffectingroadusersafety.

TheRoadSafety Inspectionproject reduce thedirectcostof lost timeand production due to worker injuries, but will also greatly lower theindirectcostofresourceroad incidents; the impactof these incidentsonfamiliesandcommunities isestimated tobe four tofive times thedirectcost.ThesafetyinspectionswillbecarriedoutonotherBCTimberSales(BCTS)roadsin2010,withwiderrollouttootherprovincesandindustrialmembersplannedforthefuture.

invesTigaTing biodiesel for foresT operaTions and highway consTrucTion

In partnership with Natural Resources Canada’s National RenewableDieselDemonstrationInitiative,FPInnovationsisconductingademonstra-tion project of biodiesel use in forest operations and highway construc-tion.In2009–2010,biodieselimplementationinitiativeswereheldinfourlocations:ahighwayconstructionsite inCoquitlam,B.C.;asawmillyardoperation in Prince George, B.C.; and forest operations in Merrit, B.C.,andSt-LudgerdeMilot,Québec.Theobjectiveofthedemonstrationswasto better understand the various challenges involved in using renewabledieselinoff-roadoperationsinCanada;thentoidentifythebestmethodstoovercomethesechallenges.

Thedemonstrationprojecthasasignificanttechnicaltransfercomponent,withworkshopsplannedforeveryprovinceinCanada,inwhichtheresultswillbepresentedtotheconstructionandforestrycommunities.Biodieselimplementationguidesforbothconstructionandforestryaresetforpubli-cationin2010,andaWebpageontheFPInnovationsWebsitewillalsopresenttheresultsofthisimportantinvestigationintorenewablediesel.

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1 the new Road safety Inspection system, seen here mounted on an suv, is expected to greatly reduce the incidence and impact of accidents on resource roads.

2 Biodiesel may well play a significant part in building the highways of tomorrow.

3 new technology is increasing payload capacity, resulting in reduced fuel consumption and considerable cost savings.

promoTing increased payloads for foresTry Trucking

In response to the intensifying need to increase payloads in forestrytrucking operations, FPInnovations is expanding its decades-long workto promote higher payloadswithout compromising safety.Workingwithgovernment agencies, trucking operators and mills, FPInnovations isenablinghigher,moreefficientpayloadsbyconductingrigorousresearch.

Oneavenuebeingpursuedinthisareaistoimplementinnovativetech-nologies to existing platforms, enhancing dynamic stability – which, inturn,allowsforhigherpayloads.Theroll-coupledtrailerhitchisonesuchtechnology,whichFPInnovationshasbeendevelopingforseveralyears.Athree-phasetestingprocess–inwhichthehitch-enabledtruckisfirsttestedincomputersimulations,theninalab,andfinallyontheroad,withcarefulmonitoring–issetforcompletioninsummer2010inB.C.FPInnovationsisalsospearheadingtheintroductionofcompletelynewtruckingconfigura-tionsthatareinherentlymorestable,suchasthe9-AxlePoleB-Train,whichtakesadvantageofthelogsforroll-coupling.

In collaborationwithWestern government agencies, associations, andfleetownersandoperators,FPInnovationshas increasedaveragepayloadcapacityintheWesternprovincesby10%,withanestimatedtypicalfuelconsumption/greenhouse gas reduction of 5% and an estimated annualcost reductionof$1,500,000. The sameprocess that has succeeded inincreasingpayloads inAlberta,SaskatchewanandB.C. iscurrentlybeingappliedintheEast:FPInnovationsisworkingwiththeQuébecgovernmenttobringnewconfigurationstothenorthernpartoftheprovince.

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supporTing a greener indusTryGiven the shrinking market for traditional pulp and paper products,

increasingglobalcompetitionandgrowingpublicconcernfortheenviron-ment,FPInnovationsishelpingpositionCanadiancompaniestocapitalizeon new opportunities by ramping up a three-pronged approach to newproductdevelopment.Thisapproachincludesdevelopingcompetitivenext-generationpapersthatwillvieagainstplastics,glassandmetals;collabor-atingwiththeInnovativeGreenWoodFibreProductsNetwork,auniversityresearch network funded by NSERC; and working closely with membercompaniesonshort-termopportunities,focusingonproductsthatcanbebroughttomarketquickly.

Onevalue-addingproductopportunityidentifiedbyFPInnovationsisinflexiblepackaging.Aprototypepaperwithawater-basedbarriercoatinghas been developed and its performance has been improved. Such aproductmay be able to replace the fluorocarbon-treated oil and grease-resistant papers used in food packaging.Not only is it “greener,” it alsoeliminateshealthconcernsandincludesavapourbarrier.Theorganizationiscurrentlyworkingwithmembermillsandpartnersonthisnewproductincertainlimitedapplications,thoughtheeconomicsofthesolutionhavenotyetbeendetermined.Anotherexampleisthedevelopmentofaninkjetprintingpaperbasedon100%mechanicalpulpthatmatchestheperform-anceofanuncoatedfinepaper.FPInnovationshasdesignedanewcoatingrecipe tominimize theadverseeffectofcoarsemechanicalfibreand thehigher cationic chargeof calciumcarbonate-basedcoatings.Usinghigh-yieldmechanicalpulp insteadof low-yieldchemicalpulp tomakedigitalprintingpaperwillcontributetosustainability.

expanding The markeT for high-yield pulpHigh-yieldpulp(HYP)isableachedchemithermomechanicalpulpused

mainly in packaging and printing papers. However, with strong globalcompetitionandthedecliningNorthAmericandemandforprintingpapers,there isanurgentneedtodevelopnewapplications forHYP.Onesectorwithsignificantpotential is sanitarypapers, specifically tissueand towel.High-freenessHYPcanimprovebulkandabsorbency,whicharetwoofthemostimportantend-usepropertiesfortheseproducts.

FPInnovations, inpartnershipwith threemembercompanies andwithfinancialsupportfromtheQuébecMinistryofNaturalResourcesandWild-life,hasperformedaseriesofpilottrialstodemonstratetheadvantagesofusingHYPintissueandtowel,aswellastoidentifywhichHYPpropertiesrequireimprovementandwhichpapermaking/performanceissuesneedtobeaddressed.ThetrialsprovedthatHYPdidincreaseabsorbencyandthatpaperscouldbemadewithanHYPcontentashighas30 to40%.Thebasesheetproducedinthetrialshasbeenconvertedintoproductsamples,whicharenowavailable.

Asaresultofoureffortsinthisarea,tissueandtowelproducersareabletoreducecostsandimproveproductquality,whileHYPmanufacturerscanexpandfurtherintothehygieneproductsmarket.Thatmarkethasshownstronggrowthoverthelastdecadeandthetrendisexpectedtocontinueinthenearfuture.

_RevIew oF aCtIvItIes

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1 more foods may soon be wrapped in greener, safer paper like this, as a result of FPInnovations’ research.

2 this paper machine is turning out sanitary papers containing a higher percentage of high-yield pulp, which will help producers improve product quality and reduce costs.

3 medical drape is one of the specialty materials whose properties FPInnovations is quantifying in its search for new opportunities for Canadian pulp producers.

achieving beTTer performanceWiththedemandforprintingandwritingpapersdeclining,theCanadian

pulp and paper industrymust improve its performance to stay competi-tive.FPInnovationsisprovidingsupportinthatprocessbydevelopingnewproduct characterization tools to help mills boost product performance.Ouruniquefacilitiesandexpertiseinwebandrolltesting,printingevalua-tionandmicroscopicanalysisareinhighdemandfordiagnosingproductperformanceproblemsanddevelopingsolutions.

A growing number of mills are implementing FPInnovations’ productcharacterizationtoolsforpressroomrunnabilityandcoatedpaperquality,leading them to identify efficiency opportunities and develop effectivestrategies for enhancingproductperformance. Inone case,COATLAB™,a coating formulation softwarewedeveloped,wasused tohelpTembecPaperboard Group’s coated board mill improve its coating formulationto maximize the performance of the optical brightening agent (OBA).FPInnovationsprovidedtechnicalsupporttoconductthemilltrials,developcoatingstrategiesandvalidatetheCOATLAB™prediction,andanadvancedfluorescencemicroscopewasusedtogaininsightintohowOBAinteractswithbasepapers.Asa result, themill isnowpositioned to improve thecompetitivenessofitsproductsandevenlaunchnewproductstomeetthemarketdemand.

helping pulp producers explore new opporTuniTies

Toensuretheindustry’slong-termsuccess,newopportunitiesmustbefound for Canadian market pulps. Applications have to be developed toencompassawiderangeofproducts,particularlythosewithpotentialforhigher value, such as specialty papers – a key market for pulp produ-cers.DiversifiedCanadianmarketpulpscertainlysatisfytherequirementsofmanydifferent products.However,more information is needed aboutthestructuralandfunctionalroleofthefibrecomponentoftheseproducts,aswellastheuniqueadvantagesofourpulpsforspecificapplications.Todate,suchinformationhasbeenscarce.

FPInnovations is making progress in this field by using its advancedconfocal/two-photon microscope to generate high-quality images of awide range of specialty products, including cigarette filter plugs, trans-formerboards, crepepaper,medicaldrapeandgowns,filters and satur-atingpapers.Usingimageanalysis,manystructuralandqualityparameters,suchasporosity,canbereadilyquantifiedindetail,includingdistributionwithinthesheetandmeasurements,layerbylayer,whichcannotbeeasilydeterminedbyothertechniques.Thisworkisanimportantstepinidenti-fyingboththestructuralandfunctionalrolesoffibrecomponents,andtherequirementsoffibrequalityforspecialtypaperproducts,whichwouldleadtonewopportunitiesforCanadianmarketpulps.

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1 the pulp pad on the right has been modified using a new process to improve moisture resistance.

2 lidaR-predicted gross merchantable volume for the 625,000 ha Romeo malette Forest.

3 400 m2 prediction units.

moisTure-resisTanT pulpsScientists at FPInnovations have developed a new process for produ-

cinghydrophobicmechanicalandchemicalwoodpulpfibres.Theprocess,which could be implemented in most kraft or mechanical pulp mills,uses a unique aqueous approach to modify wood fibres, whereby thefibres retain theiroriginal shapebutbecomeenvelopedwithamoisture-resistantpolymer.

Improvingmoistureresistanceisacriticalfactorinimprovingthemarketopportunities for wood fibres. Pulp manufacturers can use the processto produce a new grade of pulp for use in niche markets for specialtypapers and wood products that require high dimensional stability andbettermoistureresistance.Manufacturersofcompositeswillbeabletousewoodfibres–whicharelighter,lessexpensiveand“greener”thanpolymerormineralfibres–toproducelightweightmaterialsfortheautomotiveandbuildingproductsindustries.

Tool for predicTing and comparing The performance of sofTwood markeT pulps

Inordertomaximizepulpvalueandapplicationsfocusingontheattrib-utes of Canadian northern bleached softwood kraft (NBSK) pulps, theindustryneedseffectivenewtools.FPInnovationshasdevelopedsoftwaretoolsbasedonmultivariatemodeling,whichprovidequickestimatesofthephysical andoptical properties of refined softwoodkraft pulp from theirunrefinedfibremorphologyanddegreeofrefining.Thesetools,whicharenowavailabletoourmembercompanies,canquantitativelycomparethefibreandpulppropertiesofaparticularuser’spulpagainstacomprehensivesetofworldmarketpulps.Thismeansthatmarketpulpproducerscanusethetoolstoguidethemincustom-tailoringtheirpulpsforspecificcustomerrequirements,whiletechnicalsalesstaffcanusethemtodemonstratethesuperiorperformanceof theirpulpsover those fromcompetitive regionssuchasScandinaviaorChile.Anotherapplicationispredictingtheimpactofachangingfibresupplyonpulpperformance.

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2

RevIew oF aCtIvItIes_

Theso-called“sidebenefits”ofLiDARareequallysignificant.Accuratedigitalelevationandsurfacemodels(DEMandDSM)optimizeblockdesign,roadlocation,riparianzonedefinitionandthemitigationofenvironmentaleffectsassociatedwithforestoperations.Infact,TembecestimatesthatthesavingsinroadconstructionaloneeasilyoffsetthecostoftheLiDAR.airborne lidar produces impressive resulTs

In their ongoing quest to develop new forest inventory tools, theCanadianWoodFibreCentre (CWFC)and theOntarioMinistryofNaturalResources(OMNR)havefoundenormouspotentialinLiDAR(LightDetec-tionandRanging).LiDARisanairbornemappingtechniquethathasbeenshown to produce remarkably accurate forest inventory data and digitalelevationmodelsthathavemultiplebenefitsfortheindustry.

Tembecwasoneof thefirst touse this technology toacquirea largeamount of inventory data, including tree height, tree diameter and treevolume,whenlow-densityLiDARwasflownoveritsRomeoMaletteForestin Ontario. With support from a CWFC-OMNR partnership, low-densityLiDARwasusedtobuildpredictivemodelsfortheentire625,000hectares.Tembecwasveryimpressedwhenactualharvestvolumescloselymatchedthepredictions.“OurinitialcomparisonofLiDAR-derivedblocklevelvolumeestimates is astounding,” said Chad St-Amand, GIS Analyst and ForestInformationServicesCoordinatorwithTembec.“ItappearsthattheLiDAR-estimated volumes per block are within 10% of what we realized fromscaling.”Diameterdistributionresultswerealsoexcellent,openingthedoortosuchpotentialusesasdeterminingharvestrates,marketrequirements(sawlogs vs. pulp), allocation selection during FMP planning, budgetingandmilldemands.AnewLiDAR-basedinventoryofTembec’s1.5-millionhectareHearstForestiscurrentlyinprogress.

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20_RevIew oF aCtIvItIes

1 members of the partners collaborating on the fibre research project in newfoundland and labrador.

2 Research assistant olivier van lier uses ground-based lidaR (light detection and Ranging) to capture scans of sample trees at forest inventory plots.

3 the 8-year-old short-rotation development site in edmonton.

collaboraTive fibre research in newfoundland and labrador

InNewfoundlandandLabrador, scientists are exploringnovelways tounderstand forest ecosystems. Because not all fibre is created equal, itis important for land managers and especially for industry to determinehow fibre varies over the landscape. This challenge is being addressedby a collaborative research team involving FPInnovations, the CanadianForestServiceofNaturalResourcesCanada,SirWilfredGrenfellCollegeofMemorialUniversity,theUniversityofSherbrooke,CornerBrookPulpandPaper,theNewfoundlandDepartmentofNaturalResourcesandtheAppliedGeomaticsResearchGroup.Theresearchteamisusingadvancedlaserandimagingtechnologiestomapthestructureofforeststandsandcanopies.Byrelatingthe3Dstructuretotheinternalfibrecharacteristicsoftrees,scien-tistsarehopingtolearnmoreaboutthetypeoffibreintheforests,wherethebestsitesareforfibrewithspecificcharacteristics,andhowindustrymightincreasetheuseofthatfibre.

“Agoodunderstandingofthefibrecharacteristicsofourforestresourceiskeytoallocatingtimbertoitsbestenduse.Itwillalsobeinstrumentalinfutureharvestplanningandhowwoodissortedatthestumpfordifferentproducts,” notes Tim Moulton, Silviculture and Continuous ImprovementSuperintendentatCornerBrookPulpandPaperLimited.

1

2

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norway spruce projecT shows Tangible resulTsFast-growing, weevil-resistant Norway spruce varieties with excel-

lentformareapromisingresultofalong-termcollaborationbetweentheCanadianWoodFibreCentre(CWFC)andJ.D.Irving,Limited.AsanactivememberoftheCWFC’sNationalNetworkofSomaticEmbryogenesisLabora-tories,J.D.Irvinghasbeenfocussingontheoperationalrefinementofthesomatic embryogenesis (SE) technologydeveloped inpart by theCWFC,forthepurposesofindustrialproduction.TheNorwayspruceprojectisacomponentofthiscollaboration,whichbeganinthemid-1990s.Inrecentyears,effortshaveresultedinthemassproductionofgeneticallytestedtreevarietiesforthecommercialimplementationofmulti-varietalforestry.

J.D. Irving has beenproducing improved varieties ofNorway spruceforthreeyears,andmorethan12,000treeshavebeengrownthroughSE.Testseriesatfourlocationswillbemeasuredthisyearforheight,diameter,currentweevilattack,visibleweevilattacksandothertraits.“ItisexcitingtoseethesetreesdevelopandbegintounderstandthevaluepropositioninSEproduction,”saysGregAdams,ManagerofResearchandDevelopmentforthecompany.

EarlierworkbytheCanadianForestService’sLaurentianForestryCentreis what led to the original Norway spruce selections, demonstrating thekindoflong-standingbiologicalresearchthathelpspowertheCWFCand,inturn,FPInnovations.

shorT-roTaTion woody crop projecT TheCanadianWoodFibreCentre(CWFC)hasestablishedanationaltech-

nicaldevelopmentsitenetworkof short-rotationwoodycropoptions forCanada, incooperationwith threeuniversities, fourprovinces,numerousprivate forest companies and landowners, First Nations and severalCanadian Forest Service (CFS) research scientists. Funded by the CWFC,ecoETI, Alberta Innovates – Bio Solutions, private forest companies andtheUniversityofGuelph,anationalnetworkofsiteshasbeenestablishedacrossCanada’sagriculturelandbaseinareassuitableforhigh-yieldfibreproduction.Plantationsofhybridandexotichardwoods(poplarandwillow)are being grown in area-based clonal designs to maximize volume andvalue: input operations and costs are compared to output volumes andvalues using developing fibre value simulation models. Numerous short-rotationwoodycropsystemshavebeendeployedtorefinebestpractices,assessthesuitabilityofvariousspeciesandclones,andcharacterizefibreattributes. Particular species, clones and system designs are also beingusedtoproducefibrewithattributesspecifictodesirablelocalproductsandvalues, includingstandingcarbon.Amongthetypicalproductsrecoveredfromshort-rotationwoodycropplantations arepulp andpaper,orientedstrandboard(OSB), lumber,biofuelsandbioenergy.FPInnovationsand itspartnersarecontributingtheattributeanalysisforthisproject.

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1 technicians maria Ricci (l) and tatyana Yurchuk (R) attend a diluter where water and effluent are mixed and metered out to the aquaria below, which contain breeding groups of fathead minnows.

2 a male fathead minnow guards eggs adhering to the underside of the spawning substrate.

from garbage To gold: pulp mill sludge Transformed inTo valuable biomeThane

A joint effort by FPInnovations, government and industry players hasdemonstrated that waste-activated sludge from mills can be a valuablesourceofgreenenergy.Usingwood-basedwastematerialsas feedstock,thisinitiativehassuccessfullytransformedthesludgeintogreenbiomethanefuel.TheconversionmethodinvolvestheMicroSludge™process,inwhichfeedsolidsarehomogenized, in tandemwithanaerobicdigestion,whichusesmicroorganismstobiologicallyconvertthewasteintomethane.

Seeingwaste-activatedsludgeasarenewablefeedstockisatotalpara-digm shift for both the industry and the public. Following a thoroughassessmentstudy,thetransformativetechnologyhasbeenapprovedforatrialatapulpandpapermillinBritishColumbia,withcollaborationfromfederal and provincial governments, as well as universities and industryplayers.EquipmentdesignandmanufacturingaresetforDecember2010,withthetrialunitupandrunningbyearlyspring2011.

developing more effecTive conTrols for pulp mill effluenTs

In collaboration with Environment Canada and Canadian universities,FPInnovationsisworkingtoestablishbetterpracticesforthemanagementofpulpandpapermilleffluents.TheeffortsfollowfindingsoftheregulatoryEnvironmentalEffectsMonitoring(EEM)programthatshowedasignificantissue: endocrine disruptions in fish living inwaters that contained efflu-entsfromnearbypulpmills.FPInnovationsconductedshort-termfishtestsandasurveyofkraftmillsthatshowedthehigherthebiochemicaloxygendemand(BOD)intheeffluent,thegreaterthenegativeeffectsonthefish.ThehighereffluentBODcanresultfromaccidentallossesofblackliquor,theleftovercookingliquorfromthepulp-makingprocess,aswellasupsetsorinefficientbiologicaltreatmentoftheeffluents.

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23RevIew oF aCtIvItIes_

In these tests, theNational InvestigationofCause (IOC) research team– consisting of FPInnovations and other industry/government/academicleaders–foundthateffluentswithBODoflessthan20mg/Lhadnoeffecton fish reproduction. Therefore, mills with good control of their blackliquorlossesandimprovedeffluentbiologicaltreatmentsshouldnotdisrupttheecologicalbalanceof the lakesand rivers surrounding them.AspartoftheIOC,FPInnovationsisfurtherinvestigatingthisissue,andtheroleofbiological treatmentofeffluents to resolve it.Final recommendationsareexpectedwithintwotothreeyears.

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finanCial review

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25FInanCIal RevIew_

a message frOm the Chief finanCial OffiCer

ContinuedfederalfundingoftheTransformativeTechnologiesProgram,alongwithothergovernmentstimuliand increasedfinancialparticipationbyprovincialgovernments,sustainedtotalrevenueatclosetoprevious-yearlevels(97%).Costreductioninitiatives,primarilyfrombenefitscurtailment,downsizingandsmallerbaddebtwrite-offs,easedoperatingexpensesto92%of2008–2009figures.

FPInnovations management successfully carried out the significantresearchinitiativesdescribedelsewhereinthisAnnualReport.Tosupportthefinancialmanagementandcontroloftheseprojects,thecompanyintroducedamodernEnterpriseResourcePlanning (ERP)systemonApril1,2009,replacingthreeantiquateddivisionalfinancialsystems.Thebenefitsofthisnewtoolaremanyanditisprovingtobeofsignificanthelptomanagers.In addition, our Human Resources management team has harmonizedthe various compensation programs, creating a single, uniform set ofjob descriptions and pay scales. Space rationalization, common signageand more multi-divisional projects are further signs of the merger’sgrowingeffect.

Inearly2009,thedeepeningeconomicdownturnthathadbegunthepreviousyearcauseddifficultyforourmembers.Inresponse,theBoardofDirectorsagreedtoadjusttheformulafordeterminingmembershipfeerates,creatingaslidingscalethatwouldriseandfallwiththeindustry’seconomicperformanceandproductprices.Bothhitnewlowsduringtheyear.Invoicingonthisnewratescaleforthe2009–2010financialyearthusresultedina70%declineinmembershipcontributionscomparedwiththepreviousyear.

Intermsofcashflow,wereliedheavilyonour$10millionlineofcreditwiththeRoyalBankofCanada,forwhichwepledgedoneofourbuildingsas collateral. During the year, our federal partner began to make somepaymentsinadvanceinsteadofinarrears,andbyyear-endMarch31,2010,we had drawn $5.1 million against the line of credit, down from$7.96million the previous year.By year-end,wehadgenerated a posi-tive operating EBITDA in excess of $3 million, which was used to fundpensionobligations.

Asreportedpreviously,significantefforthasbeenmadetoreverselastyear’sdeficit.Ourgoalwastobeinsurplusfor2009–2010andmanage-ment ispleasedtoreportthattheobjectivewasachieved,withasurplusof$1.39million.

Erik B. Peterson,C.a.Chief Financial officer

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coRpoRAte fInAncIAl Results

RevenuesouRces

Federal Core Contribution_ 5,2% Federal agreements_ 46.0% Provincial Core Contributions_ 1.3% Provincial agreements_ 18.2% other_ 9.9% Industry member agreements_ 9.3% Industry assessments_ 10.2%

Revenue($000)

93,96096,002

89,615

2009 Actual

2010 budget

2010 Actual

5,511

suRplus(deficit)befoReexceptionalitems($000)

(3,679)

1,3880

2009 Actual

2010 budget

2010 Actual

_FInanCIal RevIew

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fInAncIAl Results by sectoR

RevenuesouRces

0.0% _Federal Core Contribution

53.6% _Federal agreements

0.0% _Provincial Core Contributions

6.7% _Provincial agreements

16.6% _other

8.9% _Industry member agreements

14.2% _Industry assessments

RevenuesouRces

wood producTs

8.7% _Federal Core Contribution

37.4% _Federal agreements

2.0% _Provincial Core Contributions

27.9% _Provincial agreements

5.3% _other

12.2% _Industry member agreements

6.6% _Industry assessments

Revenue($000)

37,29737,492

33,720

2009 Actual

2010 budget

2010 Actual

suRplus(deficit)befoReexceptionalitems($000)

2009 Actual

2010 budget

2010 Actual

0

2,679(773)

371

RevenuesouRces

9.3% _Federal Core Contribution

46.2% _Federal agreements

2.6% _Provincial Core Contributions

23.6% _Provincial agreements

4.8% _other

4.9% _Industry member agreements

8.6% _Industry assessments

foresT operaTions

Revenue($000)

16,01217,20318,771

2009 Actual

2010 budget

2010 Actual

suRplus(deficit)befoReexceptionalitems($000)

0

2009 Actual

2010 budget

2010 Actual

1,527242

546

pulp and paper

Revenue($000)

40,65141,307

37,124

2009 Actual

2010 budget

2010 Actual

suRplus(deficit)befoReexceptionalitems($000)

2009 Actual

2010 budget

2010 Actual

0

1,305(3,148)

471

5,511

FInanCIal RevIew_

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membershiP infOrmatiOn

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FPInnovatIonsannual RePoRt 2009 / 2010

29memBeRshIP InFoRmatIon_

list Of membersAs At mARch 31, 2010

173827CanadaInc.A.Lapointe&FilsLtéeA.LandryFabricationLtéeAcadianTimber/ATLimitedPartnershipAcierEcan(DivisiondeAcierAGFInc.)ADFASTCorporation(AdchemAdhesives)AEFGlobalInc.AinsworthLumberCo.Ltd.AkzoNobelBoisPeinturesLtéeAlbertaNewsprintCompanyAlberta-PacificForestIndustriesInc.AlpaLumberInc.ArchWoodProtectionCanadaCorp.ArchitecturesTouboisInc.ArmoiresCuisinesActionArmoiresDistinctionArtopexAteliersSt-Jean1992Inc.AtelierNordikAtlanticIndustriesLimitedAutologInc.AVCellInc.AVNackawickBarrettEnterprisesLimitedBDM+Inc.Bégin&BéginInc.BerklineInc.BioWORTechnologiesInc.Boa-FrancInc.BoisB.S.L.Inc.BoisDittonInc.Boisd’oeuvreCédricoBoisExpansionBoisFrancModelInc.

BoisFrancMont-RoyalInc.BoisHuntingInc.BoisacoInc.BoiseCascadeAllJoistLtéeBoucherBrothersLumberLtd.BritishColumbiaTransmissionCorp.CamlenInc.CanadianForestService(NaturalResourcesCanada)CanforCanforPulpLimitedPartnershipCaribooPulp&PaperCo.ChemcoAcquisitionCorp.CoastTsimshianResourcesLtd.CollectionA2000/AlphavicInc.ColumbiaForestProductsCo.Ltd.ConceptFinimeubleConceptionR.P.Inc.Conférencerégionaledesélusdu

Bas-Saint-LaurentConférencerégionaledesélusdelaCôte-NordConférencerégionaledesÉlusdelaGaspésieet

desIles-de-la-Madeleine(CREGIM)CorporationInternationaleMasonite(La)CorporationSpringAirSommexCoopérativeForestièreNord-OuestCoopérativeForestièredeSteRoseCoopérativeForestièreFerland-BoilleauCoopérativeForestièreGirardvilleCoopérativeForestièredesHautes-LaurentidesCoopérativeForestièredelaMatapediaCoopérativeForestièredePetitParisCoopérativeLaterrièreCornerbrookPulp&Paper(Kruger)

CréationAlphaDesignInc.CuisinesExcelInc.CuisinesLaurierDamaboisInc.DavaInc.DetroitDeiselAllisonDiaconTechnologiesLtd.DistributionR.DésiletsInc.DK-SpecInc.DoepkerIndustriesDomtarCorporationDoucetMachineriesInc.DowChemicalCompany,TheDural,DivisionofMultibondInc.EastFraserFiberCo.Ltd.ÉloiMoisanInc.EnergieMitiEntreprisesD.M.(Les)–Div.de9143-

4316QuébecInc.ÉquipementsComactInc.EscaliersGillesGrenierInc.EstateHardwoodFloorsExpanderEnergyInc.FabricationDeltaInc.FederatedCo-operativesLimitedFélixHuardInc.FibrekInc.ForniramaInc.G.RomanoInc.GenicsInc.GestionCycloforGestionForestièreduSt-MauriceGestionForestièreLacroixGestionRémabec

membershiP infOrmatiOn

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FPInnovatIonsannual RePoRt 2009 / 2010

30_memBeRshIP InFoRmatIon

GovernmentofYukonGiguère&MorinInc.GroupeDutailierGroupeG.D.S.Inc.GroupeLebel(2004)Inc.GroupeNBGInc.GroupeSavoieGroupeServicomInc.HelmitinInc.HultdinsHuppéetFrèresLtéeHydro-QuébecIndustriesPerronInc.IndustriesLacwoodInc.IndustriesPHLInc.IndustriesT.L.T.Inc.InternationalForestProductsLtd.InnovProtectInterboisInc.IslandTimberlandsLPJ.D.IrvingLtdJ.O.NoëlHouleetFilsinc.JMChampeauInc.JacomauInc.JanssenPMPJunctionLumberProductsInc.KenoraForestProductsLtd.KisisTechnologiesKop-Coat,Inc.KrugerInc.L&MLumberLtd.L’AntreGaulois(MenuiseLafrenière)LaciematériauxdeconstructionBPCanada/

BPBuildingProductsofCanada

LaboratoirePrimatechInc.LaboratoiresBuckmanduCanadaLtéeLakelandMillsLtd.LandesForestièresUAPATSInc.LaurentideInnovationsetRevêtementsLauzonIndustriesInc.LedwidgeLumberCompanyLimitedLesAdhésifsADHPROInc.LesArmoiresdeCuisinesDenisCoutureLesChantiersdeChibougamauLtéeLesEntreprisesBIZIERInc.LesEnterprisesD.M.–Div.De9143-4316LesIndustriesA.P.Inc.LesIndustriesAmiscoLtéeLesIndustriesdelaRiveSudLtéeLesIndustriesGrandmontInc.LesIndustriesJSPInc.LesMeublesViaInc.LesPlanchersMercierInc.LesPortesBaillargeonInc.LesProduitsForestiersARBECs.e.n.c.LesProduitsForestiersDGLtéeLiebherrCanadaLtd.LignolInnovationsCorp.LincolnPaperLouisiana-PacificCorporationLPEngineeredWoodProductsLtd.M.C.ForêtInc.MachinerieLicoInc.MachinerieTanguayInc.MaibecInc.ManningDiversifiedForestProductsLtd.MarcelLauzonInc.MarwoodLtd.

MatériauxBlanchetInc.MatelasMirabelInc.McRaeLumberCompanyLtd.MeadowLakeOSBLimitedPartnershipMeubleIdéalLtéeMeublesBusch(1980)Inc.MeublesCanadelInc.MeublesConcordiaLtéeMeublesGoberInc.MeublesLaurierLtéeMeublesVal-MauricieMicrotecIndustriesNorthAmericanInc.Mill&TimberProductsLimitedMillarWesternMLTInternationalInc.MobilierdeBureauLogiflexInc.MoncriefRenewablesLtd.NEFABNicoboisInc.NokamicInc.NorteckNewPagePortHawesburyLtd.NorthlandForestProductsLtd.OlosforsInc.OSIMachinerieInc.OutilsGladuS.E.N.C.PacificCarbonTrustPanoliteParquetsAlexandrainc.PeintureCan-LakInc.Planchersdebois-francsWickham

(2639-1862QuébecInc.)PlanchersdesAppalachesLimitéePlanchersMistralInc.

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FPInnovatIonsannual RePoRt 2009 / 2010

31memBeRshIP InFoRmatIon_

PlanitCanadaPorterEngineeringLtd.PPGIndustriesInc.PrécitechInternationalInc.PrevercoInc.ProduitsforestiersArbecProduitsforestiersCanboInc.ProduitsforestiersLamcoInc.ProduitsforestiersSaguenayInc.ProduitsforestiersTemrexs.e.c.ProvinceofAlbertaProvinceofBritishColumbiaProvinceofManitobaProvinceofNewBrunswickProvinceofNewfoundlandandLabradorProvinceofNovaScotiaProvinceofOntarioProvinceofQuébecProvinceofSaskatchewanRCFCHoldingCompanyLtd.RénéSt-Cyr1996Inc.RichmondPlywoodCorporationLtd.RioTintoMinerals(U.S.Borax)RockyWoodPreserversLtd.RodiDesignInc.RolandBoulangeretCieLtéeRoméoLaflammeetFilsInc.RusticPortesetfenêtresSawquipInternationalInc.SealyCanadaLtéeScierieDuhamelScierieJeanRiopelInc.ScierieLeduc,DivisiondeStadaconas.e.c.ScierieSerDamInc.

ScierieSt-ElzéarScierieSt-FabienInc.ScierieTechInc.ScieriesChaleurSCSForestProducts,Inc.SéchoirMECInc.SevenIslandsLandCompanySignatureCuisinesA.C.Inc.SilvanaImportTradingInc.SimardcuisineetsalledebainsSimonLussierLtéeSherwin-WilliamsCompany(The)SimondsInternationalSlaveLakePulpSnowcapLumberLtd.SOCAMSoli-Meubles1997Inc.SoliveAjourée2000Inc.SolowaveDesignInc.SprayLakeSawmills(1980)Ltd.St.Mary’sPaperCorp.StadaconaS.E.C.(WhiteBirchPaper)StellaJonesCanadaStrachanForestProductsStructurlamProductsLtd.StuwixResourcesJointVentureSundanceForestIndustriesLtd.SylvicultureLaVérendryeSystechIndustriesInc.Teal-JonesGroup,TheTekmaHeatCanadaTeknion–Roy&BretonInc.TembecTembecResinGroup

ThermoStructureInc.TimberSpecialtiesCo.TimberWestForestCorp.TirePressureControlInternationalTolkoIndustriesLtd.TournageBeau-BoisLtéeTournagedeBoisDynastieLtéeTriangleKitchenLtd.TricaInc.Tri-TexCo.Inc.TruALLBuildingComponentsTruckbaseCorporationUniboardCanadaInc.Univ.ofNorthernBritishColumbiaUSNRVABSolutionsInc.ValsparInc.VanderwellContractors(1971)Ltd.VianceWestFraserTimberCo.Ltd.WesternArchribWesternForestProductsInc.WestmillIndustriesLtd.WeyerhaeuserWindsorTechnologyWintonGlobalWOLFTEKIndustriesInc.WoodPlusCoatingsZavishaSawmillsLtd.ZellstoffCelgarLimitedPartnership

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FPInnovatIonsannual RePoRt 2009 / 2010

32_memBeRshIP InFoRmatIon

on wood pRoduct-bAsed InItIAtIves

researCh advisOrY steering COmmittees

on foRest opeRAtIon-bAsed InItIAtIves

ChairmanVacantCatherine CobdenForestProductsAssociationofCanada

Joe CostantinoMillarWesternForestProducts

Sophie D’AmoursUniversitéLaval

Jyotsna DalviIndustryCanada

André DenisQuébecMinistryofNaturalResourcesandWildlife

Lynn Embury-WilliamsCanadianForestProducts

Bob FriesenBritishColumbiaMinistryofForestsandRange

Peter KofoedWesternForestProducts

Norbert MaltaisScieriesChaleur

Eric MichaudDomtar

Ryan OliverTolkoIndustries

Steve PriceAlbertaAdvancedEducationandTechnologyLifeSciencesInstitute

Dan PriceTolkoIndustries

Tom Rosser NaturalResourcesCanada

Dennis RounsvilleTembec

ChairmanDon BanksTolkoIndustries

Melanie BoyceBritishColumbiaMinistryofForestsandRange

Ronald BrizardQuébecMinistryofNaturalResourcesandWildlife

Bruce ChisholmNewPagePortHawkesbury

Catherine CobdenForestProductsAssociationofCanada

Ralph CourtWeyerhaeuserCompany

Jyotsna DalviIndustryCanada

Ken HigginbothamCanadianForestProducts

Frank KennedyOntarioMinistryofNaturalResources

Martin LandryKruger

Claude LebelNorbord

Scott MarleauWestFraserMills

Michael MartelTembec

Bob NicholAlberta-PacificForestIndustries

Michael O’BlenisDomtar

Robert PinetteJ.D.Irving

Tom RosserNaturalResourcesCanada

Doug SklarAlbertaMinistryofSustainableResourceDevelopment

Tat SmithUniversityofToronto

Dave WhiteleyTimberWestForestCorp.

Eric YoungNewfoundlandForestService

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FPInnovatIonsannual RePoRt 2009 / 2010

33memBeRshIP InFoRmatIon_

on pulp And pApeR-bAsed InItIAtIvesMike BradleyCanforPulpLimitedPartnership

Catherine CobdenForestProductsAssociationofCanada

André DenisQuébecMinistryofNaturalResourcesandWildlife

Yvon GirouxIndustryCanada

Al HitzrothZellstoffCelgarLimitedPartnership

Bob JonesNaturalResourcesCanada

Patrice ManginUniversitéduQuébecàTrois-Rivières–Centreintégréenpâtesetpapiers

Bruno MarcocciaDomtar

Guy MartinDomtar

Lois McNabbBritishColumbiaMinistryofForestsandRange

Daryl NicholAlberta-PacificForestIndustries

Yvon PelletierTembec

Martin PudlasCanadianForestProducts

Tom RosserNaturalResourcesCanada

Stéphane RousseauKruger

Marc-André TremblayFibrek(formerly-knownasSFKPulpFund)

Co-chairJim FarrellNaturalResourcesCanada

Co-chairKen HigginbothamCanadianForestProducts

Jorg BeyelerGovernmentofNovaScotia

Paul WatsonCanforPulpBlake BrunsdonJ.D.Irving

Francis ForcierQuébecMinistryofNaturalResourcesandWildlife

Keith DeeringNewfoundlandandLabradorDepartmentofNaturalResources

Cheryl LewisOntarioMinistryofNaturalResources

James FylesMcGillUniversity(SFMNetwork)

Michael MartelTembec

Keith McClainAlbertaMinistryofSustainableResourceDevelopment

Bob NicholAlberta-PacificForestIndustriesWinn Hays-BylBritishColumbiaMinistryofForestsandRange

on fIbRe-bAsed InItIAtIves

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FPInnovatIonsannual RePoRt 2009 / 2010

34 _CoRPoRate InFoRmatIon

PresidentandChiefExecutiveOfficerPierre Lapointe

ExecutiveVicePresidentJim A. Dangerfield

VicePresidentJean Hamel

ChiefFinancialOfficerErik B. Peterson

CorporateSecretaryNorine Young

COrPOrate infOrmatiOnAsatMarch31,2010

offIceRs of the coRpoRAtIon

ChairJim LopezTembec

Don BanksTolkoIndustries

Kent CampbellSaskatchewanMinistryofEnergyandResources

David LindsayOntarioMinistryofNaturalResources

Dana HaydenBritishColumbiaMinistryofForestsandRange

Jim FarrellNaturalResourcesCanada

Ken HigginbothamCanadianForestProducts

Hank Ketcham IIIWestFraserTimberCo.

Pierre LapointeFPInnovations

Avrim LazarForestProductsAssociationofCanada

Yvon PelletierTembec

Charles TardifIndustriesMaibec

Dan WilkinsonAlbertaMinistryofSustainableResourceDevelopment

Al WardAlberta-PacificForestIndustries

ObserverJyotsna DalviIndustryCanada

boARd of dIRectoRs

boARd membeRs who ResIgned oR RetIRed In 2009–2010David de LaunayNovember30,2009

John DybleSeptember8,2009

Phil LatosNovember30,2009

David PatersonNovember30,2009

FPInnovationswishestothanktheseformerBoardmembersfortheirvaluablecontributiontothecompany.

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Page 36: 2010 is innOvatiOn · 2019-07-04 · FPInnovatIons annual RePoRt 2009/2010 2 Table of conTenTs 04_ Message from the Chairman and the CEO 08_ Review of activities 24_ Financial review

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