SROI Report Card: Year Ending July

Inner City Renovation: Social Mission Overview SROI Report Card: Year End 2004 Hire majority of ICR employees from low – income, inner city neighbourhoods Contribute to the revitalization of Winnipeg’s inner city Provide ‘quality’ jobs to target employee group Provide opportunities for skill development and internal career laddering Establish an ICR employee ownership plan once the enterprise has stabilized and reached profitability Recruit at least 60% of employees from low- income, inner city neighborhoods Dedicate significant proportion of contract opportunities to inner city projects Pay market wages and employee benefits Establish apprenticeship program, participatory management training and career laddering structure Retain Employee Social Support Worker Develop employee steering committees and regular staff social and educational events ICR maintains a 60% employee average from the target population Current and past target employees are able to lessen or eliminate need for government financial assistance Tangible progress made regarding individual target employee sustainable livelihood asset development ICR retains majority of target employees while reaching profitability GoalsMethodsSuccess Metrics

Enterprise: Inner City Renovations Location: Winnipeg MNDate of Inception: August 2002 Employment Outcomes Peak employment of 13 target employees Established apprenticeship program at ICR 44% of target employees established career laddering pathways 100% view ICR as a good career opportunity For 38% of target employees, ICR is the longest they have been at one job 100% reported that through their work they were directly contributing to their local community Overview of Business Adapted the business model – particularly jobsite work processes and crew composition- to compete fairly with the competition and address productivity issues Decreased losses before grants and subsidies from Year 1 to Year 2 by $155,000 Decreased operating loss from Year 1 to Year 2 by $89,000 70% of business ($654,000) in residential contracts and 30% (282,000) of business in commercial contracts SROI Report Card: Year End 2004 Financial Performance Total Sales Revenue:$936,000 Total Grants and Subsidies $48,000 Total Sales Revenue and Grants $ 984,000 Total Operating Profit (Loss) $(157,000) Additional Social Support Infrastructure$20,000 Total Investment Required for Year Two $225,000 Social Return On Investment Average Change in Societal Contribution (Target Employees)$12,495 Average Number of Target Employees9 Number of Target Employees in Sample Group Current Year Cost Savings to Society 9 $112,452 Current Year SROI 50% Societal Payback Period2 years Average (Year 1 and Year 2) SROI22% Cumulative (Year 1 and Year2) Societal Payback Period4.6 years Sustainable Livelihoods Outcomes (sample group) 100% reported that working at ICR is a positive influence in their lives 100% reported being more financially secure than before working at ICR 63% reported that employment at ICR has increased their abilities in money management 100% reported that their levels of technical (carpentry) skills have improved and 75% reported that they are now able to perform technical tasks or managerial duties that they could not when they were first hired 63% reported working at ICR has a positive impact on their mental health 100% reported an increased social connectedness since working at ICR Overview of Target Population (sample group) 55% aboriginal 100% male 44% have not finished high school Average age is 45 Retained 57% of original target employee base recruited from community-based training program Retained 32% of target employees recruited in year one For 38%, ICR is the longest they have been at one job

Definitions and Methodology Total Investment Required for Year Two Represents all cash injections in the business Change in Societal Contribution (Target Employees) Difference between the direct societal “cost” or “benefit” contributed by the employee before hire versus after hire Current Year SROI Return on investment generated by the current year change in target employee financial position Cost Savings to Society Dollars saved that year by employing target group and eliminating or lessening government financial assistance Societal Payback Period The number of years it would take for the social returns to equal the financial investment Two Year Average SROI Average return on investment generated by year 1 and year 2 change in target employee financial position Two Year Cumulative Societal Payback Period The number of years it would take for the social returns to equal the financial investment made in Y1 and Y2 combined Total operating losses + Grants and Subsidies + Additional Support Infrastructure = Total Investment Required Annual Government Financial Assistance Before Hire - Annual Income Tax Paid Before Hire + Annual Income Tax Paid After Hire = Change in Societal Contribution Total Change in Societal Contribution / Total Investment Required =Current Year SROI Total Change in Societal Contribution = Cost Savings to Society The calculation is the inverse of the Current Year SROI or: Total Investment Required/Total Change in Societal Contribution Y1 Change in Societal Contribution + Y2 Change in Societal Contribution/ Y1 Total Investment + Y2 Total Investment /2 = Two Year Average SROI Y1 Total Investment + Y2 Total Investment / Y1 Total Change in Societal Contribution + Y2 Total Change in Societal Contribution x 2 years SROI Report Card: Year End 2004 Data Gathering Process Target employees are interviewed to obtain a baseline socio-economic data Data is gathered regarding employment and sustainable livelihood status prior to hire A second survey is taken at the end of each year to determine changes for target employees Only target employees who are employed for more than three months are considered for SROI calculations