SROI Report Card: Year Ending July

Inner City Renovation: Social Mission Overview SROI Report Card: Year End 2005 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 Maintained 63% target/non target employee ratio throughout Year 3 Average target employee wage of $10.68 and average hourly wage for all staff of $12.90 over 3 years Developed customized education training support to prepare target employees to quality for apprenticeship program Established partnership with Louis Riel Arts & Technology Centre where ICR is a work placement for students in the Construction Trades & Technology Program Winnipeg Aboriginal community formally recognizes ICR as a business connected at the community level Overview of Business Increased total revenues by 37% from last year Grew commercial revenues from 30% to 50% of total revenues ICR is the major contractor for commercial and renewal projects in Winnipeg’s inner city, particularly Selkirk Ave Renovated over 40 homes in inner city for joint venture partners Manitoba Residential Construction Training Institute recognizes ICR as preferential employer for training graduates SROI Report Card: Year End 2005 Financial Performance Total Sales Revenue:$1,478,000 Total Grants and Subsidies: $232,500 Total Sales Revenue and Grants: $ 1,710,500 Total Operating Profit (Loss): $(3000) Additional Social Support Infrastructure:$13,600 Total Investment Required for Year Three: Total Investment to Date: $249,100 $842,000 Social Return On Investment Average Change in Societal Contribution (per Target Employee): 9,700 Average Number of Target Employees:14 Number of Target Employees in Sample Group:14 Current Year Cost Savings to Society:135,800 Cumulative Cost Savings (prior to year 3):$261,952 Total Cost Savings to Date:$397,752 Cumulative SROI:47% Sustainable Livelihoods Outcomes (sample group) Established multi-stakeholder partnership to deliver Canada’s first company run savings/asset development program ICR target employee completed first year apprenticeship and earned one of the highest grades in the class Two target employees formally recognized by Aboriginal community at Elders; ceremony Target employee able to be reunited with his children because of his now stable livelihood Overview of Target Population (sample group) 54% aboriginal Average age is % male 46% have not finished high school 50% have criminal records Retained 25% of original target employee base recruited in Year one

Definitions and Methodology Total Investment Required for Year Three Represents all cash injections in the business Average 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 Current Year 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 Cumulative SROI Social return on investment generated by year 1, 2 and 3 change in target employee financial position Three Year Cumulative Societal Payback Period The number of years it would take for the social returns to equal the financial investment made in Y1, Y2 and Y3 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 = Average Change in Societal Contribution Total Change in Societal Contribution / Total Investment Required =Current Year SROI Average Change in Societal Contribution x Average Number of Target Employees 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+ Y3 Change in Societal Contribution/Y1 Total Investment + Y2 Total Investment +Y3 Total Investment = Cumulative SROI Y1 Total Investment + Y2 Total Investment+ Y3 Total Investment / Y1 Total Change in Societal Contribution + Y2 Total Change in Societal Contribution+ Y3 Total Change in Societal Contribution x3 years SROI Report Card: Year End 2005 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