Annual Report
2019-2020

MESSAGE FROM THE CHAIRMAN OF THE BOARD AND THE PRESIDENT AND CHIEF EXECUTIVE OFFICER

To state the obvious, 2019-2020 was a year unlike any other.

The year started off strong with the launch of a new business model that enabled FPInnovations to improve alignment with our members’ needs and expectations as well as the economic reality at the time. We also increased visibility and oversight of our research programs through newly designed Strategic and Tactical Advisory Committee (STAC) and Research Information Sharing and Feedback (RISF) events, which is another step of our rigorous pursuit of full transparency. These steps were well received by members and have led to new and improved levels of engagement.

Unexpected turn of events: A cyberattack

At the end of July of 2019, FPInnovations was hit with a new variant of the RYUK ransomware. The intent of the attack was to encrypt our network and demand a ransom. Our network and much of our IT fleet was affected, which led to a complete rebuild of the IT infrastructure and the successful implementation of new robust cyber security measures. While the impact of the cyberattack was felt across the organization and some projects were halted, many continued to advance and were a testament of the resiliency and new-found agility of FPInnovations employees.

By October of 2019, the bulk of the cyberattack was behind us, all projects were well-underway, and steps were taken to ensure that our commitment to our members and other stakeholders would be delivered as promised. In hindsight, the cyberattack helped FPInnovations develop increasingly lean processes as systems were being rebuilt with flexibility and efficiency in mind. This prepared a path forward for more transparency on project timelines and spending. In fact, members will have the opportunity to view our new approaches to project management and information sharing with the launch of an exclusive member portal later this year.

… and then, there was COVID-19

When the COVID-19 pandemic hit Canada in March, we were impacted, like many. Once again, we had to re-invent how we do business. Our first priority was the safety of FPInnovations employees and their families. To ensure our people’s safety as well as remain operational and support our members and partners, we quickly adapted our processes for the new realities of working from home and of social distancing in labs. The lessons learned and systems developed during the cyberattack just a few months previous helped us quickly adapt to a new reality.

Time was of the essence, and FPInnovations needed to act fast and help the forest sector contribute to the well-being of Canadians during the COVID-19 crisis. FPInnovations researchers therefore focused on producing high-performance filtration membranes to be used in making masks for the general population rapidly. FPInnovations employees once again proved how quickly they were able to switch gears, and in a very short time frame, produce results in a field that had never before been considered.

Key technical highlights of the year

Over the last year, our research and business development teams focused strongly on projects that would transform the forest sector. Here are some of our key technical highlights of the year:

Thanks to our employees

Even though we faced two major crises this year, we completed the year in the black, and while revenues were lower than forecast, the budgeted net operating margin was nearly reached. This is a significant achievement given the obstacles faced, and for that we thank FPInnovations’ employees for their dedication and resilience. They adapted quickly to unprecedented challenges and designed new ways to work to ensure delivery of projects and fulfil our commitment to the sector.

Looking ahead

In the coming year, expect to see significant advancements in the areas of the bioeconomy, composites, wood construction, transport, and digitalization of the sector as we work with a broad range of stakeholders, some traditional and some not, to fulfil our mission of increasing the competitiveness of the sector and creating new markets. The agility and flexibility shown by employees over the past year is testament to their capacity to respond to those ever-increasing challenges and much, much more.

Here’s to a new and exciting chapter!

James Gorman
Chairman of the Board

Stéphane Renou
President and Chief Executive Officer

FINANCIAL RESULTS

AS AT MARCH 31, 2020

Members of FPInnovations may obtain a signed copy of the audited financial statements free of charge by contacting Terry Knee, Corporate Secretary at terry.knee@fpinnovations.ca.

Financial Results 2019-2020

REVENUE ($000)

Before non-recurring projects
Financial Results - Revenue - Annual Report - 700x400 - EN

SURPLUS (DEFICIT) ($000)

Financial Results - Surplus - Annual Report - 700x400 - EN

Wood Products

Financial Results - Wood Products - Annual Report - 700x400 - EN

REVENUE ($000)

Before non-recurring projects
Financial Results - Wood Products Revenue - Annual Report - 700x120 - EN

Pulp, Paper, and Bioproducts

Financial Results - PPB - Annual Report - 700x400 - EN

REVENUE ($000)

Before non-recurring projects
Financial Results - PPB Revenue - Annual Report - 700x120 - EN

Forest Operations

Financial Results - Forest Operations - Annual Report - 700x400 - EN

REVENUE ($000)

Before non-recurring projects
Financial Results - Forest Operations Revenue - Annual Report - 700x120 - EN

OUR MEMBERS AND PARTNERS

AS AT MARCH 31, 2020

ALLIED PARTNERS
CelluForce

INDUSTRY MEMBERS
Acadian Timber/AT Limited Partnership
Alberta Newsprint Company (West Fraser)
Alberta-Pacific Forest Industries
Armand Duhamel & Fils
Atco Wood Products
Autolog
Barrett Enterprises
Barrette Structural
Bégin & Bégin
BID Group Technologies (Division of Comact)
Boa-Franc
Bois BSL
Bois CFM
Bois D’oeuvre Cedrico
Bois Granval GDS
Bois Marsoui GDS
Boisaco
Boise Cascade AllJoist
Boucher Bros. Lumber
Brisco Manufacturing
C&C Wood Products
Canadian Kraft Paper Industries
Canfor Corporation
Canoe Forest Products
Carrier Lumber
Cascades Containerboard Packaging
Chantiers Chibougamau
Coopérative Forestière de la Matapédia
Coopérative Forestière des Hautes-Laurentides
Corporation Internationale Masonite
Damabois
Delco Forest Products
DK-Spec
Domtar Corporation
Dunkley Lumber
EACOM Timber Corporation
East Fraser Fiber Co.
Element5 Co.
Éloi Moisan
Finition SMB
Forex Amos
Fortress Paper
Garant GP
Genics
Georgia-Pacific
Gestion Forestiere Lacroix
Groupe Concept PV
Groupe Crête Chertsey
Groupe Crête (Division of St-Faustin)
Groupe Lebel
Harmac Pacific (Nanaimo Forest Products)
Hultdins
Hybrid Joist
Industries GDS
Interfor Corporation
Irving Forest Services (J.D. Irving)
J.M. Champeau
Kootenay Innovative Wood
Kop-Coat
Kruger
Kruger Products
Laboratoire Primatech
Laurentide Industriel (Division of Société Laurentide)
Lauzon|
Les Industries JSP

Les Planchers Mercier
Les Produits Gilbert
Liebherr Canada
Lonza Wood Protection
Louisiana-Pacific Canada
LRBG Chemicals
Machinerie Lico
Maibec
Marcel Lauzon
Matériaux Blanchet
McRae Lumber Company
Meadow Lake OSB (Division of Tolko Industries)
Mee-Toos Forest Products (Division of Peter Ballantyne Development)
Mercer International
Meubles Canadel
Millar Western Forest Products
Mosaic Forest Management
Nisus Corporation
Norbord
Northland Forest Products
Olofsfors
Pacific BioEnergy Corporation
Paper Excellence
Peintures MF
Performance BioFilaments
Pinnacle Renewable Energy
Planchers des Appalaches
Port Hawkesbury Paper
Preverco
Produits forestiers Arbec
Produits forestiers Petit Paris
Prologic+
PurChem Systems
Rayonier Advanced Materials
Resolute Forest Products
Richmond Plywood Corporation
Rio Tinto Minerals (U.S. Borax)
Scierie Dion et Fils
Scierie Clermond Hamel
Scierie St-Fabien
SCS Forest Products
Séchoir MEC
Silvana Import Trading
Sinclar Group Forest Products
Skeena Sawmills
Societé en Commandite Scieries Chaleur
Spray Lake Sawmills (1980)
Stella-Jones Canada
Structurlam Mass Timber Corporation
The Sansin Corporation
The Teal-Jones Group
Timber Specialties Co.
Timmerman Timberworks
Tire Pressure Control International
Tolko Industries
University of Northern British Columbia
USNR
VAB Solutions
Vanderwell Contractors (1971)
Vexco
Viance
West Fraser
Western Archrib
Westmill Industries
Weyerhaeuser Company
White River Forest Products
Williams & White
Zavisha Sawmills

PERFORMANCE INNOVATION TRANSPORT (PIT) PROGRAM
Agropur
Armour Transportation Systems
Arnold Bros. Transport
Arrow Transportation Systems
Bison Transport
C.A.T.
Carmen Transportation
Cascades Transport
Centre de formation en transport de Charlesbourg
Centre de formation en transport routier de Saint-Jérôme
Centre de gestion de l’équipement roulant (Division of Ministère des Transports du Québec)
Charger Logistics
Christian Larocque Services
Eassons Transport
Énergir
Express Mondor
Groupe Goyette
Groupe Robert
Groupe TYT
Kemira
Loblaws
Martin Roy Transport
Midland Transport
Minimax Express
Ministère des Transports du Québec
Praxair
RST Industries
Skyline Transport
SLH Transport
Sobeys
Société des alcools du Québec
Sunbury Transport
Transport ATD
Transport Bessette & Boudreau
Transport Canada
Transport Jacques Auger
Transport Matte
Trans-West Group
VersaCold Transportation Solutions
Vitesse Transport
Whitecourt Transport

WILDFIRE OPERATIONS (WFORG) PROGRAM
FUNDING PARTNERS
Conair
Coulson Group
Genics
Government of Alberta
Government of British Columbia
Government of the Northwest Territories
Government of Saskatchewan
Government of Yukon

GOVERNMENT PARTNERS
PROVINCES AND TERRITORIES
Government of Alberta
Government of British Columbia
Government of Manitoba
Government of New Brunswick
Government of Newfoundland and Labrador
Government of Nova Scotia
Government of Ontario
Government of Québec
Government of Saskatchewan
Government of Northwest Territories

FEDERAL
Natural Resources Canada (Canadian Forest Service)

OUR GOVERNANCE

AS AT MARCH 31, 2020

OFFICERS OF THE CORPORATION
James Gorman
Chairman of the Board of Directors

Stéphane Renou
President and CEO

Nathalie Legault
Chief Financial Officer

Terry Knee
Corporate Secretary and Chief Communications Officer

BOARD OF DIRECTORS
Bruce Mayer
Alberta Agriculture and Forestry
Government of Alberta

Charles Tardif
Maibec

David Ure
Mercer International

Derek Nighbor
Forest Products Association of Canada

François D’Amours
Kruger

James Gorman
West Fraser

Diane Nicholls
Ministry of Forests, Lands, and Natural Resources Operations
Government of British Columbia

Kathleen McFadden
Ministry of Natural Resources and Forestry
Government of Ontario

Kevin Edgson
EACOM Timber Corporation

Jennifer Strutt
Canfor Corporation

Pascale Lagacé
Resolute Forest Products

Stéphane Renou
FPInnovations

OBSERVERS
André Denis
Ministry of Forests, Wildlife and Parks
Government of Quebec

Beth MacNeil
Canadian Forest Service – Natural Resources Canada

Nous demeurons ouverts pendant cette période sans précédent et nous sommes là pour vous soutenir | We have remained open during these unprecedented times and are fully operational to support you.
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