1. CPA Canada Q4 2015 Business Monitor Background document On behalf of: Chartered Professional Accountants of Canada January 28, 2016

2. Study Information The CPA Canada Business Monitor is issued quarterly, based on a survey commissioned by CPA Canada and conducted by Harris Poll. The report draws upon business insights of professional accountants in leadership positions in privately and publicly held companies. For the Q4 2015 study, emailed surveys were completed by 512 of 5,760 identified by CPA Canada as holding senior positions in industry (CFOs, CEOs, COOs and other leadership roles). The response rate was 9 per cent, with a margin of error associated with this type of study at ±4.2 per cent, with a confidence level of 95 per cent. The survey was conducted from December 9 to December 23, 2015. A background document is available online at cpacanada.ca/businessmonitor.cpacanada.ca/businessmonitor About CPA Canada The new Canadian designation, Chartered Professional Accountant (CPA), is now used by Canada’s accounting profession across the country. The profession’s national body, Chartered Professional Accountants of Canada (CPA Canada), is one of the largest in the world with more than 200,000 members, both at home and abroad. The Canadian CPA was created with the unification of three legacy accounting designations (CA, CGA and CMA). CPAs are valued for their financial and tax expertise, strategic thinking, business insight, management skills and leadership. CPA Canada conducts research into current and emerging business issues and supports the setting of accounting, auditing and assurance standards for business, not-for-profit organizations and government. CPA Canada also issues guidance and thought leadership on a variety of technical matters, publishes professional literature and develops education and professional certification programs. www.cpacanada.ca Q4 2015 CPA Canada Business Monitor Backgrounder

3. KEY SLIDES Q4 2015 CPA Canada Business Monitor Backgrounder

4. Optimism levels were 13 per cent in the fourth quarter of last year compared with 17 per cent the previous quarter. Half of the business leaders surveyed in the final quarter of 2015 were pessimistic about how the national economy will perform over the next 12 months. In the previous quarter, 40 per cent of the professional accountants surveyed expressed a pessimistic outlook. To put things into perspective, pessimism hasn’t been running this high in the quarterly research since the first quarter of 2009 when it stood at 83 per cent. Q2ai/ii. Please select the rating that best describes your view for each of the following. Number of respondents for these questions = 512. Note: Optimism + pessimism do not necessarily add to 100%, as data for “neither optimistic nor pessimistic” is not shown. Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Change vs. Q4 2014 Optimism in Canadian Economy for next 12 months % Optimistic 33% 23% 29%17% 13% -20 % Pessimistic 19% 30% 20%40% 50% +31 Optimism in Business for next 12 months % Optimistic 53% 50% 53%46% 38% -15 % Pessimistic 20% 22% 23%24% 31% +11 Q4 2015 CPA Canada Business Monitor Backgrounder

5. Company optimism was 38 per cent in Q4 2015 but pessimism has closed the gap coming in at 31 per cent. These findings are how the professional accountants surveyed view the prospects for their own companies over the next 12 months. Previously, company optimism had ranged between 46 and 53 per cent for the last four quarters Q2ai. Please select the rating that best describes your view for each of the following. Number of respondents for this question is 512 for Q4 2015, varies for previous quarters. Q4 2015 CPA Canada Business Monitor Backgrounder

6. Oil prices remained the number one challenge to the Canadian economy cited by 39 per cent of survey participants. The next highest response was uncertainty about the Canadian economy referenced by 21 per cent of the respondents. Q4. Which of the following do you think is the top challenge to the growth of the Canadian economy? Number of respondents for this question = 512. Note: Percentages less than 4% in Q4 2015 are not shown in the above chart. Q4 2015 CPA Canada Business Monitor Backgrounder Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015 27%34%32%38%39% 10%16%14%15%21% 11%8%7%14%9% 4% 5% 18%12%17%8%5% 4%7%5%4%5% 7%6%5% 4%

7. Focusing on revenues, 51 per cent of the respondents were projecting growth over the next 12 months, compared with 57 per cent in the third quarter of 2015. For profits, 48 per cent of those surveyed anticipate an increase. This marks the first time since Q2 2009 that fewer than 50 per cent of those surveyed were forecasting a rise in profits. Turning to employee numbers, the percentage of those who expect an increase is basically identical to the number of respondents anticipating a decrease. Thirty-one per cent of the survey participants are predicting growth at their company over the next 12 months while 30 per cent are expecting a decline. Thirty-eight per cent of the respondents forecast no change while the rest did not know. Q3a. Thinking about the next 12 months, please indicate how you expect the following to change if at all from the past 12 months for your company. Number of respondents for these questions =512. Note: Percentages may not add up to 100% due to rounding. Projected Change in Following Year RevenueProfitsEmployees Total Who Project an Increase 51%48%31% Increase by over 10% 10%11%5% Increase by 5 to 10% 19%17%9% Increase by less than 5% 23%20%17% No Change 13%14%38% Total Who Project a Decrease 34%36%30% Decrease by less than 5% 7%9%10% Decrease by 5 to 10% 10%8%9% Decrease by over 10% 17%19%11% N/A 2% 1% Don't Know --<1% Q4 2015 CPA Canada Business Monitor Backgrounder

8. Q4. What is the biggest priority facing your company heading into 2016? Number of respondents for this question = 512. Note: Percentages may not add up to 100% due to rounding. Q4 2015 CPA Canada Business Monitor Backgrounder In terms of priorities for their companies, the top response was increasing sales within Canada, identified by 25 per cent of respondents. The next two most referenced priorities were reducing costs (18 per cent) and improving productivity (12 per cent). TOP PRIORITY FOR BUSINESSES IN 2016