Annual Public Meeting 2020/21

Hello and welcome to the Canadian Commercial Corporation’s Annual Public Meeting. My name is Douglas Harrison, I am the Chair of CCC’s Board of Directors.

With me today is Bobby Kwon, the President and CEO of CCC.

Together Bobby and I will highlight the results achieved by CCC for the 2020-2021 fiscal year, and to respond to any questions that were submitted by you. Once again, we are presenting our meeting online so we can reach the greatest number of Canadians.

Should you have questions that you would like to submit to us after this Annual Public Meeting, please send them to [email protected]. We will in turn respond to your questions by email.

The Board of Directors is responsible for the overall Governance of CCC, its performance, operations and financial results. Over the last several years the Board has been working closely with CCC Management to enhance its service offering and number of Canadian Businesses served to ensure we bring even more value to Canadian Companies and to Canada. We continue to be pleased with the progress and evolution of CCC as it undertakes this enhanced strategy.

[75th Anniversary]

I’d like to take a moment to recognize that on August 31st, 2021, the Canadian Commercial Corporation celebrated 75 years of delivering Canada to the world. As an integral part of Canada’s trade portfolio, the Canadian Commercial Corporation supports the execution of Canada’s trade and foreign policy agendas.

Today, we continue to bring Canadian businesses, and international government buyers together in commercial contracts that deliver quality solutions as well as environmental, social, and governance benefits. For 75 years we’ve delivered results for the Government of Canada, Canadian Businesses and for Canadians, bringing jobs and financial benefits to Canada.

When it comes to our primary public mandate of developing international trade and maintaining the Canada-U.S. defence trade relationship, we have an exceptional history of helping Canadian businesses succeed abroad. I encourage you to explore that history on our website.

[Our Purpose as a GOC Crown corporation]

For those of you less familiar with the Canadian Commercial Corporation, I’d like to touch on our purpose – why we exist as an instrument of government. At CCC, we believe that trade between Canada and other nations improves the lives of Canadians as well as our trading partners. That’s why we help Canadian Companies do business in challenging markets that might otherwise be beyond their reach or sole capabilities.

CCC takes leadership on arranging government-to-government commercial contracts –because some international sales need government advocacy to level the playing field. This is how we contribute to keeping well-paid jobs in Canada and growing the Canadian economy as we bring Canadian solutions to the challenges international governments are facing.

We also believe that collaboration between governments allows us to move the needle on trade, development, and international security goals – improving the lives of people around the world. In addition to our role in supporting international Government contracting, CCC plays a special role in delivering on Canada’s obligations under the Canada-U.S. Defence Production Sharing Arrangement, or DPSA.

Established in 1956, The DPSA gives Canadian companies privileged access to the world’s largest military procurement market: the U.S. Department of Defense. Each year, at the direction of our Minister, we execute on the Government of Canada’s policy agenda by helping Canadian companies win contracts with the U.S. Department of Defense.

[Report on CCC’s Performance for 2020-21]

Now turning to CCC’s performance during the fiscal year 2020-2021 – a year that coincided with the outbreak of the COVID-19 pandemic. The pandemic had an enormous impact on the global economy, causing widespread trade and supply-chain disruptions that continue to this day. Despite these challenges, CCC embraced its role in supporting supply-chain resiliency.

We adapted our business practices to support our Canadian exporters to deliver on international contracts and helped them access new international opportunities even as business development teams were grounded by COVID. We are by no means out of the woods yet: the COVID-19 pandemic continues to create business, personal and societal challenges at home and abroad.

CCC will continue to support the Government of Canada’s response such as the pandemic, domestically and internationally, including through special initiatives to delivering personal protective equipment and other critical supplies to international governments.

Despite COVID-19 challenges faced in 2020-2021, CCC served 345 Canadian exporters – helping them build capacity, find sales opportunities, and win contracts with foreign governments. This is compared to 157 Canadian Exporters served in the previous year. The contracts those exporters secured through CCC with governments around the world, allowed them to support more than 12,000 Canadian jobs across a diverse range of industries.

[Not Business-As-Usual]

The COVID-19 pandemic prompted CCC to accelerate several strategic initiatives to allow us to respond quickly to changing operational requirements as well as the needs of Canadian exporters. CCC sharpened its response to exporter feedback in order to provide even more value, we listened carefully to our customers. CCC provided timely and insightful advice, and international contracting support, tailored to the unique business challenges our customers were facing.

CCC also developed new products, like our Global Bid Opportunity Finder, to support post-pandemic recovery by connecting Canadian businesses with more export opportunities. Canada’s Global Bid Opportunity Finder, is a web app designed for Canadian businesses that gathers international sales opportunities, and automatically translates them to English and French, on an easy-to-use platform. CCC launched the app in January 2021, and by March 31, it had provided more than 1,000 Canadian companies—the vast majority of which were SMEs—with access to more than 600,000 tender opportunities, in 200 countries.

[GOC Environmental, Social, and Governance Imperatives]

In 2020-2021, the Board of Directors continued to focus and enhance its Environmental, Social and Governance priorities, keeping environmental sustainability, social and governance considerations top of mind in our strategic planning and operations. We work with qualified Canadian businesses who have a strong commitment to responsible business practices.

[Board Governance]

From a governance perspective, board renewal is important in order to bring fresh perspectives and experience to the governance of the Corporation. Part of this renewal saw Bobby Kwon move from the Board of Directors to CEO of the Corporation. 

Bobby will continue to steer the corporation through its enhanced strategy to bring even more value to a greater number of Canadian Companies. We are grateful for his leadership. The Board welcomed Julian Ovens as its newest member and saw Daniela Bassan complete her term after 6 years on the Board. I want to thank Daniela for her significant contributions during those 6 years.

[Closing Remarks]

Overcoming the ongoing COVID 19 challenges has required resilience, adaptability and, above all, a spirit of constructive collaboration with all stakeholders. I would like to thank each of the Directors on CCC’s Board for their commitment, oversight and diligence during one of the most challenging periods in recent history. We have an excellent Board who are committed to best-in-class Governance.

On behalf of the entire Board, I want to thank the management team and all CCC staff members for their hard work and dedication to our Canadian exporters and their government buyers around the world.

I would also personally like to thank Minister Ng for her personal support of CCC and our Board.
CCC was established 75 years ago to help rebuild Canada’s post-war economy through global trade.

Today, we find ourselves in similar circumstances, emerging from an unprecedented global crisis that requires co-ordinated efforts to stimulate economic recovery. CCC remains committed to helping Canadian businesses of all sizes to grow through export, to supporting progressive and inclusive trade, to collaborating with partners across government, and to supporting governments around the world who are looking for Canadian solutions to their challenging problems.

At CCC, we believe that enabling successful commercial contracts between Canadian businesses and their government buyers around the world is an important contribution we make to economic diplomacy for Canada.

On that note, it is my pleasure to turn the podium over to Bobby Kwon, President and CEO of CCC, to deliver his report on our financial performance.

Thank you, Doug.

I feel privileged to have this opportunity to execute on the Board’s vision for this great organization.

I joined CCC as President and CEO during the pandemic – a challenging time for CCC, its customers and their government buyers around the world. We have been well supported by a strong Board under your leadership – thank you.

[Context]

At CCC, we help Canadian businesses compete in the increasingly complex and competitive global government procurement marketplace, where commercial deals are often at the crossroads of international relations and foreign policy. We deliver value through a government-to-government contracting arrangement that sees us enter into a prime contract with an international government buyer – guaranteeing delivery of goods and services – whilst at the same time enter into a contract with a Canadian company to supply and fulfill the contractual terms and conditions.

We reduce risk to all parties involved in government to government arrangements. We manage all performance oversight and financial administration of these arrangements. Further, CCC is the prime contractor for U.S. Department of Defence contracts with Canadian industry, providing dedicated contract management, risk mitigation and performance guarantee.

On behalf of the Government of Canada, CCC administers the Canada-U.S. Defence Production Sharing Agreement or DPSA signed in 1956 and its companion agreement the Defence Development Sharing Agreement or DDSA signed in 1962 – both of which ensures Canadian businesses can access U.S. DoD procurement and R&D opportunities as part of the integrated and barrier-free North American industrial base.

Canada is a uniquely trusted defence trade partner and Canadian companies provide a uniquely secure source of supply for the United States. As both countries look towards economic recovery, DPSA will continue to underpin the collective security and supply chain resilience of Canada and U.S. CCC also helps Government of Canada departments and agencies fulfill complex procurement needs related to various international commitments and programs, such as assisting with emergency disaster relief.

[Performance Report on 2020-21]

The central theme of fiscal year 2020-21 has been the disruptive impact of the COVID-19 pandemic on all facets of life, from how we live to how we do business.
We have met the challenges of this disruption with resilience, adaptability, and a collaborative spirit.

Throughout the year, we continued to take decisive steps to fulfill the key objectives of our Corporate Plan, including growing and diversifying our customer base, whilst also advancing inclusive international trade for Canadian companies of all sizes and ownership profiles. We improved our financial position by prudently managing expenditures, signing new contracts, and concluding arrangements to re-establish a Parliamentary appropriation for our public policy work.

These actions yielded positive results for Canadians.

[Contracts Delivered, New Contracts Signed, Customers Served]

In 2020-21, CCC customers across Canada delivered $2.9B of products and services to satisfy CCC government-to-government contracts—supporting an estimated 12,000 Canadian jobs.

CCC also signed $1.3B in new government-to-government contracts for Canadian customers, an increase of 8%, supporting businesses through COVID.

We served 345 Canadian businesses, of which 153 businesses won and delivered on contracts with governments around the world.

48% of those companies were Small and Medium sized Enterprises or SMEs.
[PAUSE – Section: Business Report on Sales to the U.S. Department of Defense]

Of the $1.3 billion in new contracts signed, $922 million was with the U.S. Department of Defense.

This surpassed our target for the second consecutive year.

CCC customers who sell to the U.S. Department of Defense are Canadian businesses in all regions of Canada, across a range of sectors, and of all sizes—I’d like to highlight two companies, starting with one of the Small and Medium sized Enterprises we support.

[Marathon Watch Company]

Marathon Watch Company is a Canadian-owned family business. Marathon has a military heritage dating back to 1941, when it manufactured field watches and stopwatches for the Canadian Armed Forces. Marathon has been working with CCC since the 1980s, providing an array of precision timepieces and optical equipment to the U.S. military. Over the last two years alone, CCC has supported Marathon Watch secure more than a quarter million dollars in sales.

[Canadian North]

Canadian North is an Inuit wholly-owned air transportation company that connects people and delivers essential goods throughout Canada’s North. Canadian North flies to 25 destinations within the Northwest Territories, Nunavik and Nunavut, from its Southern gateways of Ottawa, Montreal and Edmonton. Canadian North has been working with CCC to supply the North Warning System, which is key to North America’s continental security. The North Warning System spans 5,000 km across the vast Canadian North-from the Yukon to Labrador, with 47 radar sites and five logistic support sites—it’s a challenging undertaking to maintain and operate. A critical piece of this undertaking is the all-weather transportation that is provided by Canadian North.

[Business Report on Sales to Other Governments]

Moving to our other primary business line, International Prime Contracting, CCC signed over $400 million in government-to-government contracts on behalf of Canadian businesses. We were active in 79 countries as we supported Canadian businesses across all regions of Canada to pursue and win contracts in complex government procurement markets. Again, I would like to highlight two Canadian companies.

[Longview Aviation Services]

Longview Aviation Services, in partnership with Viking Air, provides the next generation of the world’s only purpose-built aerial firefighter and multi-mission amphibious aircraft – a true Canadian success story. Longview is working with CCC on a 168-million-dollar contract to supply the Kingdom of Morocco with aircraft to combat heat wave-related forest fires. Longview will provide the Royal Moroccan Air Force with three Enhanced Aerial Firefighting aircraft, training, spares, and in-country support services. 

[JV Driver International]

JV Driver International has a successful track record of delivering complex and challenging projects, particularly in difficult and remote locations. JV Driver worked with CCC to deliver a world-class inland truck container terminal for the Government of Ghana to support local economic growth. This $142-million-dollar handling and devanning port is expected to bolster the entire Ghanaian economy.

[Business Report on Support for GOC Program Objectives]

In addition to helping Canadian companies win contracts abroad, CCC directly contributed to the Government of Canada’s international COVID-19 relief efforts through our Sourcing business line. On behalf of Global Affairs Canada, CCC procured personal protective equipment from international vendors for global distribution. 

CCC delivered over $22 million dollars in-kind aid as part of Government of Canada’s international development efforts.

In 2020-21, we also worked with Global Affairs to enhance the health infrastructure of countries needing assistance to mitigate biological threats.

[Adapting as an Employer in COVID]

Throughout the 2020-21 fiscal year, supporting our employees through the pandemic has been paramount to our ability to serve Canadian businesses. During the year, CCC rapidly deployed new IT tools to enable employees to transition to remote work with minimal service disruption to our Canadian customers and their foreign government buyers. We established a Return and Remote Team for constant communication with our employees and to guide our thinking on return to the office post-pandemic.

We prioritized employee physical and mental health during this challenging period. We ensured 24/7 access to the Employee Assistance Program and offered mental health training to employees. We approved flexible work arrangements to meet employee needs and offered remote work training for employees and managers. We sent home available ergonomic equipment and provided guidance on set-up of home offices to ensure safe work environments.

We organized remote townhalls and facilitated coffee chats with senior executives to keep employees connected. Finally, we provided harassment and violence prevention training for employees and managers as part of our commitment to making CCC a safe place to work.

[Adapting to Better Service Customers in COVID]

CCC also adapted to meet the emerging challenges of COVID-19 to our Canadian customers and their foreign government buyers.

CCC established a new team dedicated to addressing small and medium-sized enterprise needs to drive the development of new products and services to reach more Canadian businesses.

The success of these new offerings—including knowledge products, advisory services, and Canada’s Global Bid Opportunities Finder platform—confirm there is room for CCC to grow and serve more customers. Expanding our reach to more Canadian businesses of all sizes and ownership profiles is an important feature of our contribution to Canada’s inclusive economic recovery and future growth.

[Adapting to Support Government Policy Direction]

Throughout the 2020-21, CCC adapted and aligned with the evolving Canadian government trade and foreign policy agendas. CCC worked closely with government officials and trade portfolio partners to ensure our business efforts aligned with Government of Canada trade priorities, and to provide seamless interdepartmental support for Canadian businesses.

CCC is an active member of the BETR Committee which stands for Business, Economic and Trade Recovery Committee, established by the Honourable Mary Ng, Minister of Small Business, Export Promotion, International Trade, and Economic Development. This whole-of-government collaboration is designed to improve trade supports to Canadian business and support Canada’s economic recovery.

We continue to work hard to ensure environmental, social and governance best practices and responsible business conduct remain an integral part in all our business dealings.

And finally, as the custodian of the Canada-U.S. Defence Production Sharing Agreement for Canada, CCC recommitted to strengthening Canada-U.S. bilateral defence trade as a key priority.

[Closing Remarks]

In closing, I want to say that I feel privileged to lead CCC as we mark 75 years of delivering Canada to the world. I’d like to thank both the Board of Directors and the entire team at CCC for their commitment to CCC’s mission to help Canadian businesses succeed in challenging government markets.

Together we brought dedication, professionalism, and resilience to meet the unprecedented challenges related to COVID. As we navigate toward the end of the pandemic, CCC is well positioned to help Canadian businesses apply their expertise and ingenuity to the many challenges governments around the world are grappling with.

We look forward to playing a part in more Canadian success stories next year. Thank you for joining us today and for your interest in CCC.

This now concludes CCC’s Annual Public Meeting.