On behalf of the Board of Directors, I’m pleased to present Caisse populaire de Cornwall’s Annual Report for the 2013 fiscal year. The report is a great tool to learn about everything we achieved in 2013 and to look ahead to the challenges we’ll face together in 2014.

RESULTS REFLECT NEW MEMBER HABITSYour caisse posted net income after dividends of $1,461,000 for 2013. We attribute these excellent results to our sound and prudent management practices, which are focused on your needs and the quality of our services.

Your caisse works tirelessly to provide you with the solutions and services that meet your expecta-tions. We strive to develop innovative products and offer expertise from our team of professionals who do what it takes to make sure you’re satisfied.

As you may know, financial institutions must comply with increasingly strict requirements, especially for their capitalization. That is why the caisses must manage the distribution of their operating results prudently. That’s exactly why your financial services cooperative exercises strong, sound judgment when distributing surplus earnings, placing Desjardins among the world’s 15 strongest banks.*

YOUR CAISSE KEEPS GROWINGThere have been myriad technological advances since the inception of the first caisses. ATMs, direct payments, the Internet, and mobile payments all mean transactions can be carried out 24 hours a day, seven days a week! We’re adapting to your needs and putting technology to work for you.

In our efforts to adapt, sometimes your elected directors need to review the Caisse’s service offer. In 2013, the Board of Directors made the decision to transfer teller services from the Montreal Road branch to the Pitt Street branch. The decision was made in consideration of declining general use and increased operating expenses, in a context of increasingly intense competition between financial institutions.

But the Board listened to your concerns and decided to keep an ATM in operation at the 201 Montreal Road location for the time being, with some adjustments to the available features. The Caisse will reassess the profitability of the ATM on a yearly basis, based on member usage. We encourage you to make use of your caisse’s services to ensure it remains financially sustainable.

Your elected directors want to ensure the Caisse remains independent and able to continue offering all the financial services you need. Throughout this transition, we have appreciated your understanding and your support.

NEWS FOR OUR MEMBERSDesjardins is an industry leader when it comes to meeting your expectations. You can get more information on the wide range of products available to you on the new Desjardins.com.

This past year also saw the creation and rollout of some assistance services that are no doubt welcome during difficult situations. Desjardins’s new Travel Assistance and Identity Theft Assistance service are available free of charge to caisse members.

Increasing youth awareness about using credit responsibly is something else that’s important to us. You will find more information on teaching students and young adults how to follow a budget and develop smart financial habits on Desjardins.com. The My Budget financial mana-gement tool, available in AccèsD, is also very useful in helping you get a tighter grip on your finances.

FOR YOUR DIRECTORS, CAISSE MANAGERS AND STAFF, YOUR OPINION IS WHAT MATTERS MOST. WE CONDUCTED A MEMBER SURVEY IN 2013, AND THE RESULTS ARE OUTSTANDING: 89% OF YOU REPORT BEING VERY SATISFIED, WHICH IS ONE OF THE BEST SATISFACTION RATES ACROSS ALL OF DESJARDINS. THANK YOU, AS ALWAYS, FOR YOUR SUPPORT.

OUR VALUES, OUR PRIDEOn behalf of the directors, I’d like to thank Denis Beaudry for demonstrating a deft hand in mana-ging the Caisse business. I’d also like to thank all the employees for their commitment to ensuring your client experience is always getting better.

We’re going to keep working in 2014 so the Caisse’s service quality and products stand out. Your satisfaction will keep playing a central role in every proposal we consider and every decision we make. Let us know what you think about our services. Constructive criticism from our members helps us improve and makes your experience a better one.

Together, we’re building a more prosperous community!

Luc QuesnelPresident of the Board of Directors

ADVANTAGES FOR EVERYONE

ADVANTAGES FOR ME

ANNUAL REPORT

REPORT FROM THE PRESIDENT

* According to Bloomberg’s World’s 20 Strongest Banks, published October 1, 2013.

MESSAGE FROM THE GENERAL MANAGER

The elected directors of your caisse provided sound management in 2013, meeting all of your financial needs and giving you access to a wide range of products and services. Member satisfaction is our primary concern this year, and our desire to serve you is only matched by our desire to focus even more on our cooperative difference and our mission to improve financial literacy.

The following are the financial results for Caisse populaire de Cornwall inc. and the share of income from Desjardins Group subsidiary activities, as at December 31, 2013.

The results are directly linked to the trust you place in us, and we appreciate it. Your loyalty is what enables us to take advantage of our cooperative strength and keep growing business while provi-ding you with the best possible services.

VOLUME OF BUSINESS UNDER MANAGEMENTBacked by $413.4 million in business under mana-gement, up 10.7% from 2012, the Caisse is well positioned in the market. The Caisse has access to a complete line of financial products and services to meet the growing needs of its 6,610 members.

Savings and investments

Savings and investments at the Caisse and Desjardins Group entities grew to $208.5 million, an increase of 6.6% compared to last year. In addition to the savings offer at the Caisse, members have access to an excellent one-stop offer for Desjardins financial products, from mutual funds and securities to discretionary management services from Desjardins Group entities.

Financing

Total Caisse financing was $204.8 million, repre-senting an overall increase of 15.4% this year. Caisse individual loans made up a large share of activities and were up by 1.7%, while business financing increased by 31.1%.

The Caisse also worked closely with the Desjardins Business Centre and the Ontario Agriculture and Agri-Food Business Centre to provide financing for local businesses and public bodies. This financing helps contribute to their success so they can achieve their growth and development goals.

NOTES ON THE FINANCIAL STATEMENTS

Balance sheet

The assets of your caisse increased by 8.4% compared to last year, to $215.3 million.

Caisse liabilities were $195.5 million, represen-ting an increase of 8.2%. Borrowings also increased and now total $18.7 million.

As at December 31, 2013, your caisse’s equity showed solid growth, standing at $19.8 million, an increase of 10.2%. In addition to share capital, equity is made up of $17.9 million in distribu-table surplus earnings. Total funds accumulated in reserves were $280,000.

Your caisse has a total of $10,000 in its Community Development Fund.

STATEMENT OF INCOME

During the past year, your caisse generated net surplus earnings after member dividends of $1,461,000, up $520,000 compared to the previous year.

Interest income on loans totalled $7.7 million, a decrease of 3.8% compared to last year. Meanwhile, interest expenses fell by 7.3%, to stand at $2.9 million. Provision for credit losses was $115,000, or 0.0006% of the total personal and business loan portfolio.

Other income, generated largely from the distribu-tion of products and services by Desjardins entities, was $1.4 million, up 7.7% compared to last year.

Other expenses also show slight overall growth, representing a 7.3% change and reaching $4.9 million.

Our 2013 results mean we need to make smart decisions so we can maintain the quality of our services. As a result, we have decided not to pay out member dividends this year. Our goal is to maintain a sound and prudent management strategy for the Caisse, and we gave serious consideration to our situation before making this decision. As members of the Caisse, we all need to work together and invest in our capitalization. Healthy capitalization is what supports business growth and ensures long-term success for our caisse.

However, as a form of community dividend, we are recommending a payment of $20,000 into our Community Development Fund, which was created this past year following a member vote at the 2013 Annual General Meeting. The purpose of the Fund is to reinvest a portion of our surplus earnings in our community. It’s a way for members to support causes that are important to them and contribute to development projects that will benefit our community.

INVESTMENT FUNDS

Deposit investment funds owned by the caisses enable the Federation to coordinate investments in Desjardins Group subsidiaries. Through their activities, these subsidiaries in turn enable the caisses to provide an extensive range of financial products and services to individuals, groups and businesses. The Caisse has invested $6.1 million in the deposit investment fund and had a 16.2% return at year-end.

CONCLUSION

At Caisse populaire de Cornwall inc., all of our employees work together to provide you with the benefit of their collective expertise. We’re a team of 33 individuals helping you achieve your finan-cial goals and realize your dreams.

I’D LIKE TO RECOGNIZE THE WORK OF EACH AND EVERY CAISSE EMPLOYEE. WITHOUT THEIR ATTENTION TO DETAIL, THEIR PROFESSIONALISM AND THEIR DEDICATION, WE WOULDN’T BE ABLE TO HELP OUR MEMBERS REACH THEIR GOALS AND PLAY SUCH AN ACTIVE ROLE IN THE WELL-BEING OUR COMMUNITY.

Together, we’re cooperating to build a stronger institution and a more dynamic society!

Denis BeaudryGeneral Manager

During the past financial year, the Audit Committee conducted its activities in compliance with the Credit Unions and Caisses Populaires Act, 1994 and with regulations under this Act. It held five (5) meetings to examine the operations and various facets of the administration of the Caisse. In accordance with Caisse by-laws, the Committee also monitored the Caisse’s ethical and professional conduct and its cooperative activities.

MORE SPECIFICALLY, THE AUDIT COMMITTEE PERFORMED THE FOLLOWING TASKS:

› Examined the service offer, the mandate and the audit plan put forth by the auditors and recom-mended that the Board of Directors accept these documents and related professional fees

› Discussed with the auditor the audit findings, any restrictions on the scope of the auditor’s work and any problems that the auditor experienced in performing the audit

› Reviewed and made recommendations to the Board regarding any of the auditor’s recommenda-tions or reports about the business or financial statements of the Caisse and any response to them by Caisse management

› Reviewed the audited annual financial statements and made appropriate recommendations to the Board

› Reviewed the effectiveness of the Caisse’s internal audit practices and made recommendations to the Board to address any deficiencies

› Reviewed the organization and assessed the degree of independence of the Caisse’s internal auditors, including their mandate, work plans and any problems that they experience or issues they raise regarding the performance of audits

› Reviewed findings and recommendations of the internal auditors concerning the accounting prac-tices and internal control practices and reviewed the responses by Caisse management to any signifi-cant or material deficiencies

› Reported to the Board any significant changes in the accounting principles and practices followed by the Caisse

› Recommended to the Board arrangements to safe-guard the Caisse’s assets, to ensure the timeliness, accuracy and reliability of accounting data, to main-tain compliance with the lending and investment policies and procedures and to provide for other matters concerning the financial policies of the Caisse

› Reviewed any report about the affairs of the caisse made by the Superintendent or the Deposit Insurance Corporation of Ontario, monitored the implementation of any significant recommenda-tions and reported to the Board on the progress of the implementation

› Reviewed the Caisse’s policies and procedures governing the way in which it meets the require-ments under the Act and any other applicable legislation

› Assessed whether the staff of the Caisse is adequate to fulfil the Caisse’s accounting and finan-cial responsibilities

› Monitored the adherence of the Caisse’s directors, officers and employees to the Caisse’s standards of business conduct and ethical behaviour

› Reviewed the Caisse’s disaster recovery and busi-ness continuity plans

› Reviewed, at least annually, the effectiveness of the Committee in carrying out its duties

MONITORING THE COOPERATIVE VALUES In 2013, we worked to ensure that the Caisse’s business practices put members’ needs first, that the Caisse pursued financial education initiatives by giving members information to help them manage their finances, and that the Caisse’s services remained accessible to all client groups.

The Audit Committee made sure the Caisse communicated effectively with members. We also saw that the Caisse set up mechanisms for working with other caisses in the region.

We presented the observations and recommenda-tions from our work to the Board of Directors to help improve caisse activities for our members and the community.

MONITORING PRINCIPLES AND RULES OF PROFESSIONAL CONDUCT

One of the Audit Committee’s key responsibilities is to monitor compliance with the principles and rules of professional conduct, and to identify and address any violations that may arise. Naturally, at a time and in an industry where allegations of conflict of interest, collusion, corruption, and lack of integrity have become commonplace, Desjardins has to be beyond reproach. In order to keep and build the trust of our members, integrity needs to be a top priority.

The Audit Committee ensured the Caisse had its employees and directors read the Desjardins Group Code of Professional Conduct and agree to abide by its principles and rules.

The report on the supervision of activities of professional conduct is as follows:

Conflicts of interest

No conflict of interest situations were noted.

Loans granted to restricted parties

Total loans granted during the past year to restricted parties of the Caisse were granted in accordance with all applicable laws and within the rules of ethics and professional conduct.

Non-loan contracts granted to restricted parties under the Code

During the same period, no contracts were awarded to restricted parties, as defined under the Desjardins Group Code of Professional Conduct.

Pierre LandryPresident of the Audit Committee

REPORT FROM THE AUDIT COMMITTEE

89 %OF OUR MEMBERS ARE VERY SATISFIED

MEMBER SATISFACTION

SURVEYCOME AND EXPERIENCE THE DESJARDINS DIFFERENCE!

2013 was an eventful year, full of initiatives designed to promote the Caisse’s cooperative difference. This difference is reflected in our democratic system, which is in line with our members’ needs; support to community development; and our efforts to educate our members about cooperation and finance.

COOPERATIVE DIFFERENCE REPORT

ORGANIZATIONS, EVENTS AND ACTIVITIES THAT RECEIVED CAISSE SUPPORT

Braises d’automne – Fondation du Collège d’Alfred

Canada Day Committee of Cornwall

Centre Charles-Émile-Claude

Centre des métiers Minto – Campus Alphonse-Desjardins

Cheese Curd Festival

Children’s Treatment Centre of Cornwall

Club de balle molle CPCI

Club des aînés Sainte-Thérèse

Cornwall Concert Series Association

Cornwall Hospital Foundation

Cornwall Peewee Typhoons

École élémentaire catholique Marie-Tanguay

École élémentaire publique Rose-des-Vents

École secondaire catholique La Citadelle

Foire gourmande Outaouais-Est ontarien

Friends of Vets

Généalogie et archives Saint-Laurent inc.

Groupe Renaissance Group

Jeux franco-ontariens

McMaze (registered education savings plan awarded to a student)

Missing Children and Adults Association

Musical Celebration Musicale Festival

Oktoberfest 2013 – Beau’s All Natural Brewing Co.

Oldtimers benefit hockey team

OSGA 55+

Paroisse de La Nativité

Paroisse Saint-Félix-de-Valois

Partir d’un bon pas

Patrons of St. Columban’s Foundation

Rachel’s Kids

Racing Against Drugs

RDÉE Ontario

Seaway Valley Blazers U-12

Society for the Promotion of Bilingualism Cornwall

Tournoi de golf Franco-ontarien de La Cité

United Way

OUR STEADFAST COMMITMENT TO SUSTAINABLE DEVELOPMENT IN OUR COMMUNITYIn 2013, we invested more than $42,000 in our community, in the form of sponsorships, donations and scholarships.

n Arts and culture

n Education

n Humanitarian work and community services

n Health and healthly lifestyles

n Cooperation

$1,550

$10,575

$18,000

$11,500

$450

BILAN DE LA DISTINCTION COOPÉRATIVE (SUITE)

EVENTS, PARTNERSHIPS AND SPONSORSHIPS IN PHOTOS

Children’s Treatment Centre of Cornwall

Seaway Valley Blazers U-12 – Soccer team

Centre Charles-Émile-Claude

Cornwall Hospital Foundation

COOPERATIVE DIFFERENCE REPORT (CONTINUED)

THE DESJARDINS FOUNDATION CONTINUES TO INVEST IN STUDENTS!The Desjardins Foundation is well known for the scholarships it hands out every year. Education has always been a priority for the Foundation, which promotes knowledge as a way of bettering society and helping people reach their full potential. It’s where Desjardins Group has centralized its edu cation and cooperation initiatives.

The Desjardins Foundation works in partnership with the caisses. It is a source of empowerment for Desjardins members, elected directors and employees, and it contributes to fulfilling the vision of Desjardins Group.

The Foundation gives young people access to secondary and post-secondary education, and rewards excellence by encouraging students to persevere in their studies through to graduation. It also recognizes and emphasizes the importance of volunteer work and contributes to the betterment of communities.

WORKING TOGETHER TO BUILD THE DESJARDINS OF TOMORROW

BILAN DE LA DISTINCTION COOPÉRATIVE (SUITE)COOPERATIVE DIFFERENCE REPORT (CONTINUED)

DESJARDINS FOUNDATION PRIZES FOR VOLUNTEER INVOLVEMENTThe Desjardins Foundation Prizes for Volunteer Involvement recognize people who volunteer with registered charitable organizations. Prizes are awarded annually, consisting of an honorary certificate and a $1,000 donation to the recipient’s charity. In 2013, Shawn Adams was selected from among 290 nominations submitted to the Ontario selection committee. The charity he works with, the Children’s Treatment Centre of Cornwall, received a donation of $1,000.

FINANCIAL AND COOPERATIVE EDUCATION FOR OUR MEMBERS: A HOT TOPICFor over a century, Desjardins has been developing various ways of promoting financial and cooperative education among its members. In this vein, Desjardins Group created an index that measures Canadians’ knowledge and habits in terms of personal finances. According to the Desjardins Personal Finance Index (DPFI), in 2013:

› 60% of people who took the survey believe they don’t save enough.

› 47% don’t have a financial cushion to meet their needs for more than three months in the event of unexpected circumstances.

› 50% of those approaching retirement (between age 55 and 64) stated they didn’t have a retirement savings plan.

Several tools are offered by your caisse to help you make the best decisions. Visit the Co-opme section of Desjardins.com, where you’ll find the following:

› Successful retirement, a page that guides you through the different stages of planning for your retirement and includes an income calculator, personalized advice, and videos and blogs by experts.

› Preparing for the future: Youth and finance, a page that includes tools for parents and teachers who want to help kids aged 6 to 17 learn to make smart financial decisions. We provide you with ideas of activities you can carry out at school and at home, as well as videos and an interactive game called “Charly and Max,” designed to help make learning more fun.

THE NEW DESJARDINS.COMDesjardins has completely redesigned its website to better and more effectively address your needs. On the new site, you’ll find calculators, simulators and product selection tools to help you make informed financial decisions.

THE COOPERATIVE MODEL AS A DRIVER OF SOCIAL CHANGE10 REASONS TO CHOOSE DESJARDINS

1. Caisses are open to everyone

2. Members are collective owners of their caisse

3. We operate on the principle of one member, one vote, as opposed to one share, one vote

4. Elected directors represent their communities

5. Dividends go to members, as opposed to shareholders

6. We don’t seek profits for the sake of profits, but for other goals

7. We believe in the importance of cooperative, economic and financial education

8. We are active in our communities and make real contributions to their social and economic development

9. We take concrete steps to address environmental and sustainability issues

10. We have a long-standing commitment to international solidarity partnerships

WORKING TOGETHER TO BUILD THE DESJARDINS OF TOMORROW

Your caisse and its directors are commit-ted to working together, in a spirit of cooperation, to help their members achieve their goals and to develop their community. Please feel free to contact our team and visit our website for prac tical advice, support and tools on how to better plan and manage your day-to-day.

CAISSE POPULAIRE DE CORNWALL

840 Pitt Street Cornwall ON K6J 3S2

613-932-4513

General Management: 613-932-4989

ATM location201 Montreal Road Cornwall ON K6H 1B5

desjardins.com/caisse-cornwall

DESJARDINS BUSINESS — EARTERN ONTARIO

Cornwall Branch840 Pitt Street Cornwall ON K6J 3S2

613-938-2044 or 1-866-938-2044

ONTARIO AGRICULTURE AND AGRI-FOOD BUSINESS CENTRE

4597 St. Catherine Street St. Isidore ON K0C 2B0

613-524-3331 or 1-866-615-5547

Make your day-to-day transactions at any time with AccèsD Telephone, AccèsD Internet and Desjardins mobile services.

1-800-CAISSES

www.desjardins.com

m.desjardins.com

AFTER-HOURS AVAILABILITY

MISSION OF THE CAISSEOur caisse populaire, a member of the Desjardins network, is a bilingual financial institution serving the changing financial needs of our members. We are committed to our community and to an effective, profitable and sustainable business model that draws on the expertise of our personnel.

BILAN DE LA DISTINCTION COOPÉRATIVE (SUITE)

BOARD OF DIRECTORSNAME FUNCTION

Luc Quesnel President

Alain M. Gravelle Vice-president

Denis Beaudry Secretary

Emma Bissonnette* Director

Marc Génier Director

Michael Guindon Director

Pierre Landry Director

Diane Pilon* Director

* Re-eligible outgoing director

DESJARDINS MOBILE APP ACCESS YOUR FINANCES, RATES, ADVICE AND SO MUCH MORE— ALL AVAILABLE AT YOUR FINGERTIPS, 24/7.

Download the Desjardins app now!

HIGHLIGHTSWhat we offer our 6,610 members:

� 1 branch

� 3 ATMs

� 1 Desjardins Business Centre

� 1 Agriculture and Agri-Food Business Centre

� Major projects carried out in partnership with local organizations

� The expertise of 33 employees dedicated to their satisfaction

MOTIVATED BY YOUR TRUST AND GUIDED BY YOUR INTERESTS

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