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1 NURTURING THE FUTURE 2014 PROFILE 2 NURTURING THE FUTURE 2014 PROFILE History of PIC . . . . . . . . . . . . . . . . 1 Presidents Message . . . . . . . . . 2 Investment Summary . . . . . . . . 4 Caron Transportation . . . . . . . . 8 Clear Tech Industries . . . . . . . . 9 Panther Industries . . . . . . . . . 10 Hydor-Tech . . . . . . . . . . . . . . . . . 11 Kreos Aviation . . . . . . . . . . . . . 12 Adventure Destinations . . . . . 13 Round Table Management . 14 Charitable Contributions . . . . 15 TABLE OF CONTENTS 1 HISTORY OF PIC In 1976 Prairie Industrial Chemicals Ltd. opened its doors. It was a start-up chemical distribution company with one supplier and four available products. The founders grew the business by being open for business twenty-four hours per day and seven days per week all year round. They understood their customersneeds often before the customer identified the need on their own. Just four years later the company had annual sales in excess of 5 million and established branch offices and warehouses across the prairie provinces. By its fifteenth year combined sales surpassed 26 million dollars annually and the company had diversified into chemical packaging chemical manufacturing transportation importexport and property management.With a view to future growth through delegation and acquisition it underwent a major reorganisation. Separate companies were formed each with its own core business. Ownership remained with Prairie Industrial Chemicals but the name changed to more accurately reflect a broader corporate mandate. Today PIC Investment Group Inc is a diversified holding company that uses venture capital investment and provides hands-on management in order to grow. Through a set of investments including joint ventures wholly-owned and partially-owned operating companies loans bridge financing and minority investments we provide service and support to all of the companies we invest in. We look for every opportunity to find synergy facilitate acquisitions and finance internal growth within existing companies. Analysis of new opportunities compares the return on investment against our best alternative for creating lift during the period of time we hold the investment. We seek to maximise lift by predicting our partnersneeds and help keep their business safe from the unexpected. 2 The money we invest is available thanks to an income stream from participation in the profits of our operating companies as well as management fees dividends or return on capital plus the repayment of loans proceeds from bridge financing capital asset lending or inventory financing. Our minority investment portfolio produces sporadic returns annually and depends on the deal that we struck when becoming a shareholder. Each year we hope to sell some of our positions as we invest in new opportunities. Over the long-term we do expect to win more often than we lose. This year we had returns which proved that this vision had merit. Personal highlights included the sale of our shares in Doepker back to the Doepker family. This was the plan all along and it is with great pride that we participated as a shareholder in Doepker during a time of need for the family and that we returned the ownership back to the family. On the investment side we made a commitment to a management buy-out fund managed by Westcap Management which launches an idea that I have researched and tried in 2008 but could not get airborne on my own. Now we are an active part of a partnership that can find deals and then manage them. In our operating companies we enjoyed the most significant event any owner can experience we sold a company. Kipp Zonen is a great company from which I learned an incredible amount. During the course of our investment we brought some business management and strategic planning expertise that helped the business grow as its market grew. The next step for the business was to make smart RD investment decisions in the solar instrument manufacturing industry in order to remain decisively ahead of Kipps competition. Well we dont know how to do that. RD investment triage is a tricky science and can make or break the future of a technology company. Learning that FROM THE PRESIDENT We felt it appropriate to slightly change the presentation of our traditional Annual Report this year. The change is a little overdue. It reflects the company that PIC Investment Group has turned into within the past few yearsand it certainly projects the heading we are flying. Our presentation intends to demonstrate PIC as an operating company along-side the highlighted investments in which we own a control interest 50 or greater. NURTURING THE FUTURE Change is not a threat its an opportunity. Survival is not the goal transformative success is. SETH GODIN PIC Sales 294238266 Current Assets 69028743 Total Assets 284102823 3 trick would cost a lot of energy as mistakes are made and that would not be fair to Kipps employees. At the same time most of our minority partners in that investment were looking to crystalize the value from their investment as they looked toward retirement. As a result we were able to take part in the once in a lifetime experience of selling a top performing company to a sophisticated purchaser that can make the investment in the business necessary to push Kipp to an even higher level of performance. Literally everyone was a winner from this deal. Meanwhile in 2014 we had to deal with the regularities of ownership in other operating companies including the issues of non-performance.We started the year with PIC Investment Group Inc. experiencing a cash crunch from our 2013 year of intensive investment in long-term payback opportunities. We faced scrutiny regarding our cash flow management and our investment decisions which I had to answer for. So we cleaned house.We sold unencumbered assets not required for operating company health.We sold or got out of positions that were a distraction to people not worth the effort. This created capacity for people to make money on good opportunities. We looked at what we were doing in various operations and made some tough decisions. In that context G Mechanical had to face the fact that it was not meeting performance expectations in the construction industry. We made the decision and took the action to wind-up our construction effort and focus only on our service business with a precious few customers. This was not easy or fun. I have a huge respect for the effected employees at G Mechanical who all handled the situation with understanding and professionalism. Similarly ADI faced its operational realities and decided to close the store and close Thompsons Resort for the winter instead of continuing year-round operation. ADI will fire up a new operational model in 2015. At PIC we moved our office location and that will cause a new operational model as we settle into a new facility which finally reflects the company PIC Investment Group has turned into in the past few years. The team is under one roof with structured meeting space and separate social space so we can interact spontaneously as often as formally. Thats important because we share so much of our work load with each other in the oversight of our investments. We exercise our ownership in companies investments through a Board Governance approach which provides experience and insight to the company leader from a group of directors who have competencies that match the needs of the organisation. We added Phyllis Salisbury to the team of Portfolio Managers in order to bring bench strength on the finance side and create much needed capacity in order to be more pro-active in our pursuit of lucrative opportunities. Phyllis Laurie Craig Hugh and I will each assist the individual companies that we are responsible for by planning for their future decades of growth using our experience expertise and network.We will look for the next operating company for the PIC Group to purchase and that company will be a customer of a supplier to or be in the exact same industry as current PIC Group operating companies.We will be thoughtful. By doing these things PIC Investment Group Inc. can make a contribution to the entire group. The leaders of each company that PIC invests in can write their own story for their company and grow their business with their team. Each PIC Group company knows that we are looking out for the long-term interest and long-term health of the company. We all succeed together. Greg Yuel INVESTMENT SUMMARY ABK BIOMEDICAL INC. Dr. Bob Abraham 1344 Summer Street Suite 212 Halifax NS B3H 0A8 ABK Biomedical Incorporated is a medical device company developing products to simplify clinical procedures performed by interventional radiologists. The companys lead product OccluSystem is focused on uterine fibroid embolization UFE. OccluSystem delivers novel radiopaque embolic agent with improved visibility during embolization for improved safety and ease of use. ADVANTAGE TOWER LTD. Allison Earl Box 26 2 Alberta Ave. Aldersyde AB T0L 0A0 Advantage Tower Ltd. has over a decade of experience as an industry leading expert specializing in engineering services and turnkey construction erection of towers and installation of antennas. The corporate vision is bold yet straightforward to be recognised as the caring expert in the tower and wireless industry. Advantage Tower is committed to excellence providing safe and meaningful solutions that enable people to connect because we all care. ADVENTURE DESTINATIONS INTERNATIONAL JimYuel Ron Striker Hangar 11 J.G. Diefenbaker Airport Saskatoon SK S7L 5X4 Adventure Destinations International ADI owns and provides marketing and support services to a collection of fishing lodges in Northern Saskatchewan.They provide a one-stop location for booking a fishing trip in Canada and they encompass three fishing lodges including Selwyn Lake LodgeTwin Falls Lodge andThompsons Camps Otter Lake Resort as well as six outpost camps and 29 secluded fly-in fishing lakes. They meet the adventure needs of a global clientele base by providing a wide variety of experiences and adventure options through a roster of destinations. The reason PIC Investment Group Inc.negotiates and participates in minority investments is to facilitate entrepreneurship and help existing businesses grow. PIC assesses risk and makes investment decisions based on the criteria listed on our website.Our intention is always to maximize our return either long-term or short-termby bringing some expertise to the business.Our basic underlying motive is a belief that a strong and vibrant economy is constructed by growing one business at a time. The focus of the Portfolio was on growth and building our internal capabilities this past year.Four new minority investments were madealong with one follow-on investment and one successful exit Doepker Industries.We were pleased to add a new Portfolio ManagerPhyllis Salisbury to our teamwho has already proven her abilities in the financial and business development areas.PIC also hired a summer student from India through the AIESEC program to develop a database for monitoringevaluation and tracking performance metrics of our Minority Investment Portfolio. MINORITY INVESTMENT 15M in 2014 4 5 CARON TRANSPORTATION SYSTEMS Bruno Muller 301 Streambank Avenue Sherwood Park AB T8H 1N1 Caron Transportation Systems has been a known and trusted name in the transportation industry for over 60 years. Today Caron is comprised of well over 300 employees and leased operators and is one of the largest carriers of bulk commodities in Western Canada with a service area covering western central and northern Canada and the northwestern United States. Caron provides safe dependable service to the construction manufacturing mining oilfield petro- chemical pulp and paper and water treatment industries. CLEARTECH INDUSTRIES INC. Randy Bracewell 1500 Quebec Avenue Saskatoon SK S7K 1V7 ClearTech sells water treatment chemicals process equipment instrumentation and laboratory products across Canada.Their main areas of excellence include potable water and wastewater treatment facilities oil sands oil refineries petrochemical manufacturers food processing plants mining pulp and paper industries and other industries.Today ClearTech is a name recognised throughout Canada for responsible distribution of chemical products as well as analytical and process equipment. CLUBMYNX FITNESS INC. DawnWotherspoon 619 1st Ave N Saskatoon SK S7K 2C6 In 2008 PIC entered into an Angel Investment partnership and loan with a young entrepreneur and former PIC Group employee DawnWotherspoon. ClubMynx specializes in alternative fitness classes such as pole fitness aerial hoop aerial fly fitness hammocksling aerial silks and barre fitness.The recent expansion of ClubMynx has led to increased growth and profitability.The results are a testament to both the Angel Investment process and Dawns dedication to the business. DEFYRUS JeffTurner 2 Bloor Street West Suite 2602 Toronto ON M4W 3E2 Defyrus is a private life sciences biodefence company that collaborates with public health agencies and military RD partners in the United States United Kingdom and Canada to develop and sell broad spectrum anti-viral drugs and vaccine system as medical countermeasures to bioterrorist threats and emerging infectious diseases. DIAMOND HOUSE Heather Haupstein 101-3550 Taylor Street East Saskatoon SK S7H 5H9 Golden Health Care Inc. GHCI is the largest private provider of long-term care facilities in Saskatchewan with existing and under construction facilities in 8 different locations across the province. PIC is a partner with GHCI and other investors in Diamond House a personal care home being built inWarman.The GHCI successful delivery model provides care home residents with a home-like caring family atmosphere designed to enhance their well-being and sense of self-worth. HYDOR-TECH LIMITED Dan Malbeuf 11750 - 180 Street Edmonton AB T5S 1N9 Hydor-Tech Ltd is a water treatment chemical manufacturer working with a network of distributors to offer a wide range of inorganic coagulants to various markets including municipal water and wastewater pulp and paper oil and gas textiles food processing dairy leather automotive laundries and other industrial applications. Hydor-Tech Limited also offers toll blending contracts which are mutually beneficial arrangements which allow our customers to leverage our manufacturing expertise and flexibility to their advantage. 6 KREOS AVIATION Wes Ramsay Hangar 16 16 Wayne Hicks Lane Saskatoon SK S7L 6S2 Kreos was established in 2009 to fulfill executive standards in aviation. They provide sales and acquisition of aircraft for personal or business use and assist with preparation and logistics planning for domestic and international flights. They provide maintenance and repair for a wide variety of aircrafts from single engine to executive jets. With modern facilities and impeccable service Kreos stands for excellence in every area in the air and on the ground. MPT MUSTARD PRODUCTS TECHNOLOGIES INC. John Cross 101 111 Research Drive Saskatoon SK S7N 3R2 We have invested in a Board and Management with a proven track record in agriculture. MPTs innovative technology converts the unique properties of mustard seed into fertilizers that support soil health and formulated biopesticides that control soil borne pests and diseases. PANTHER INDUSTRIES INC. Jack Schneider PO Box 698 Davidson SK S0G 1A0 Panther Industries Inc. has been a major distributor for the Oil and Gas Industry in North America and overseas for over 30 years.With locations in Davidson Saskatchewan Edmonton and a new liquid chemical transload and blending facility opening in Sturgeon County Panther Industries is well located in Western Canada.They have developed a comprehensive list of products including water softener potash calcium chloride and hydrochloric acid and are also a leading supplier of wooden skids and pallets.They have a solid reputation within our industry and are well known for meeting customers demands and expectations. PHENOMENOME DISCOVERIES INC. John Hyshka 204 407 Downey Road Saskatoon SK S7N 4L8 A world-leading human health research company focusing on the discovery and development of novel disease screening treatment and health monitoring products to address diseases such as colon pancreatic and ovarian cancers multiple sclerosis and alzheimers. PRAIRIE PLANT SYSTEMS INC. Brent Zettl 1 Plant Technology Road Saskatoon SK S7K 3J8 Prairie Plant Systems Inc. is a biotechnology company with Canadian and United States facilities dedicated to the principle of manufacturing pharmaceuticals derived from harvestable plants grown in biosecure GMP production facilities. ROUND TABLE MANAGEMENT LTD. Craig Bell 70 24th Street East Saskatoon SK S7K 4B8 Round Table Management is a property management and property development company with a large portion of its asset base tenanted by other PIC Investment Group Companies. Their niche market is that of single-tenant occupancy commercial and heavy industrial properties and are capable of providing the expertise required to service this type of tenant. 7 TEXT2CAR INC. Vince Hardy 201 302 Pacific Avenue Saskatoon SK S7K 1P1 Text2Car offers innovative products to consumers and businesses that provide the ability to control monitor and track vehicle activity through a cell-phone or computer from any distance anywhere. PIC was made aware of this minority investment opportunity through our involvement with the Saskatchewan Capital Network. TINYEYE TECHNOLOGIES CORPORATION Greg Sutton 103 116 Research Drive Saskatoon SK S7N 3R3 TinyEYE provides high-quality online Speech-Language Pathology and Occupational Therapy services to school aged children around the globe. A world leader in online therapy TinyEYE has been recognised internationally for its innovation and for their positive impact on the lives of thousands of children. TinyEYE mends spirits grows smiles and engages children in their lives. TITANSTAR PROPERTIES INC. TSX VENTURE TSP-V RickTurner 1745 - 1050 West Pender Street Vancouver BC V6E 3S7 The Company is a TSXV-listed real estate issuer in the business of identifying and acquiring real property interests consistent with its investment policy. It seeks to create and grow a portfolio of income producing stabilized real estate assets in the United States. The Companys strategy is to lever its existing contact base to grow the business. VECTOR DRIVE SYSTEMS INC. Ian Lewis 110 1515 Broadway Street Port Coquitlam BC V3C 6M2 Vector Drive Systems Inc. is amongst one of the largest CSA Certified Variable Frequency Drive VFD integrators in Western Canada. The company is an authorizedYaskawa drive distributor and warranty depot for all VFDs from fractional to 1800HP. PIC invested in this business due to confidence in the leadership abilities of a former employee Ian Lewis and helped him realize his entrepreneurial dream of owning his own business. WARMAN HOME CENTRE Rick Casavant 601 South Railway Street West Warman SK S0K 4S1 Golden Opportunities Fund Inc. Golden led a major transaction to complete the management buyout of Warman Homes and its divisions. PIC partnered with Golden and other leading institutional investors including Lex Capital Partners LP and Hathersage Holdings Inc. Warman Home Center is a leader in the building supplies industry including 5 divisions Warman Metals Warman Truss Warman Cabinets Warman Homes and Warman Home Centre. WESTCAP MBO INVESTMENT LP Grant Kook 830 410 22nd Street East Saskatoon SK S7K 5T6 Over the next ten years two out of every three small and medium-sized enterprises will transfer ownership through a succession or exit strategy. This will require knowledgeable capital and strategic partners that can facilitate the right structure and support the companys next growth period. PIC is one of several local investors with broad expertise and history in building successful companies that have invested in the new Westcap MBO Investment LP Fund which is led by Saskatchewans leading private equity fund manager Westcap Mgt. Ltd. Sales 129678000 Current Assets 25299000 Total Assets 115403000 Ownership 50 8 CARON TRANSPORTATION SYSTEMS How exciting to recover from aless than stellaryear as was reported last year to an exceptional year Between both the Canadian and US operations we have experienced steady growth with total corporate revenues increasing by approximately 15. The fleets were expanded to support that growth both in the US and Canada. Our employee base has experienced similar increases with new positions added within operations accounting and HR. Thats great news yet filling seats with drivers remains a constant challenge. More people and more equipment means more room needed to place people to park and maintain equipment We are anticipating another expansion at the Sherwood Park facility which will include a new welding facility and shop expansion. We are also in the preliminary stages of opening a location in Dilly Texas. We continue to strive to be a leader in our industry which we do in ways that complement our modern fleet. In cab cameras were introduced this year complementing many other initiatives that we continue to see as beneficial GPS fleet tracking and the continued success of the Sleep Apnea program. Resources continue to be provided to expand training and development into all areas of the company with a focus on the Professional Driver training component. We continue to grow on the other side of the border too Our expansion into the US has been both exciting and challenging. The Bainville MT operation moved into a 10000 sq foot building complete with office space for an expanding staff a bulk fuel station ample room for parking equipment a good position for launching into year two. In addition to a general manager the employee base now includes 40 drivers a terminal manager an operations manager administrators dispatchers and a mechanic at this location. Every one of our employees plays a part in the success of our company. Our customers regularly provide feedback on the consistent level of service we provide both on the road and through the support of each of our terminals. The dedication of our employees is the number ONE reason for our success and the efforts in ALL departments are greatly appreciated Bruno Muller 9 CLEARTECH INDUSTRIES While 2013 was a year of milestones growth acquisition and change 2014 was more a year of crossing our Ts and making sure the things done to grow the business over the past few years remain sustainable into the future. ClearTech posted solid growth in 2014. We increased total revenue by a healthy 9 and net profit increased by over 10. In fact over the past 4 years our average compound growth rate as expressed in total revenues is 9.2 year over year. The business is strong. We continue to build on that strength by securing the foundations plus planning for and investing in growth. We often get asked what we do. Our answer is usually We sell stuff. Our core product offering has remained stable since the beginning and looks to remain intact into the foreseeable future. Inorganic chemicals particularly in the chlor-alkali segment destined for use in water or wastewater are at the forefront of that offering. Given the strength in these products our markets have naturally centered around utilities both industrial and municipal. Thanks to a robust sales team many additional opportunities in both products and markets have spun off from this base. With a wide range of specialty chemicals and a diverse equipment offering the ClearTech of today is much more than thewater treatment guyswe were once known as. ClearTech has also evolved from a simple regional distributor of products into a nationally recognised company with ten facilities across seven cities and five provinces. Six of these facilities do more than just warehouse and distribute products they are fully operational manufacturing and packaging facilities where we add value to products by blending diluting packaging and even manufacturing products specific to the market or to our customers needs. These facilities have seen change and growth over time with 2014 being no exception. For 2015 we will be busy. Busy ensuring we are positioned for organic growth. We will be completing infrastructure expansion in BC planning new infrastructure on the Prairies and implementing improved technologies in our business systems. Our team will also be pushing forward in providing technical expertise and support plus we will remain diligent in our search for strategic acquisition opportunities that will help us continue our path of growth and success. Our story is a good one and we expect it to remain that way all made possible only because of the good people who make up our team. Randy Bracewell Sales 114473000 Current Assets 31590000 Total Assets 43153000 Ownership 100 Sales 30405000 Current Assets 10087000 Total Assets 24307000 Ownership 100 10 PANTHER INDUSTRIES Another year has passed. It would be nice if it could be said that everything went as planned. It seems that our new projects end up taking twice as long and are twice as expensive. Panther needs to be cautious spending capital going forward.The focus will be on the last 10 million dollars spent at Fort Sask. Fort Sask needs to prove that the investment is indeed worth the risk.The next six months will shape the design of the process to achieve this goal. Despite many delays full rail cars of HCL are being shipped to the site to add pressure for a startup. It is a beautiful plant built for speed and safety.The lesson learned from the past is the right people are needed to bring project expectations to reality. HCL is still a product high on the list of priorities. With Fort Sask in the finishing stages it is time to move on to the other strategies. Panther is looking for partners to expand the potential growth selling HCL.Three areas have been targeted. Somewhere around Estevan and perhaps evenWilliston would serve as potential sites. Medicine Hat has good potential for the future.The last is Grande Prairie which has been in our sights for 15 years. Panthers biggest issue up to today has been supply of HCL.With ErcoWorld Wide starting production on two new burners this will hopefully be the solution to limited supply. Two years have been spent on improving results on our last automated equipment purchase. It is a real challenge to work with so many different kinds of products and so many different sizes and types of packaging. Automated equipment is designed to do the same product the same packaging day after day. It is clear that additional skills with experience are needed for projects like this. The ice melt market is growing leaps and bounds.Tonnes more than doubled last year from the year prior.This year is already busier than last year. As the ice melt market grows so does the complexity of the packaging. After this winter an evaluation of ice melt products and packaging needs to be discussed. Panther needs to decide how to proceed so that the packaging business remains profitable. The Edmonton pallet plant at Sherwood Park is now a stand alone business. HCL will no longer be the driver at this location. They need to build a lot of pallets to cover the overhead which will be a challenge considering the size of the property. Davidson pallet plant numbers are down due to losing a big contract to the CHEP program. It is too bad because the Davidson pallet plant is a great little business. It is always neat and tidy. Employee retention is excellent with good production with a good quality control. Davidson has a limited customer base where as Edmonton is a huge market. Panther Industries success is based on the oil and gas business. Our business is to provide chemicals to the cementers and mud companies.The major chemicals are potash salt hydrochloric acid and calcium chloride.The calcium chloride is reworked to meet specific screen sizes to better service the application it is being used for. Panther also does custom packaging for large users.The business is complimented with several pallet plants to supply pallets to the packaging sector and also design and build pallets for other customers.To add to the hectic fall and winter program Panther also plays a major role in the ice melt business. Blends of chemicals usually salt potash and calcium chloride are packaged in various sizes and types of containers. A good percentage of products are coloured and may be orange green and blue. which achieved by adding the dye during the blending process. To sum it up opportunities exist in the ice melt HCL and pallets markets in Edmonton.With Fort Saskatchewan and all the opportunities that will be presented will be enough to keep Panther busy for the next year. Jack Schneider 11 HYDOR-TECH Hydor-Tech experienced another good year in 2014. Our revenue stayed flat but our profitability was strong and we were able to eliminate our entire long-term loan making Hydor-Tech debt free.This is a great accomplishment considering the multi-million dollar investment the company made to expand the plant only four years ago.This was only achieved thanks to the dedication and commitment of our entire team and the support of our parent and sister companies. This past year we maintained our commitment to grow our business through new product development and toll manufacturing.With the maturation of our core water treatment business into the municipal and pulp and paper markets we have found ourselves with limited potential for additional growth in those areas. The goals for 2014 were based on the diversification of our product line including the development of new products for the oil and gas sector and other markets. These new products are a fundamental element in the growth and expansion of our company and they have been keeping the newly created research and development department especially busy. The second area of focus for Hydor-Tech is in toll manufacturing. Our great geographical location along with our modern production facility which is equipped to manufacture three times the volume currently being produced make us an attractive company for toll manufacturing.We have already commercialized one new customer for the oil and gas sector which has substantially added to our production volume. We have several other suppliers considering Hydor-Tech to manufacture their products for other sectors.This new and exciting area holds great promise for the growth of our company for 2015. This year we have also taken the initiative to invest in organisational development and learning opportunities for our employees.We have increased the training opportunities available to employees in safety operations and leadership.This is an on-going initiative with the goal of having a team of versatile and well- trained employees that will benefit from personal and job satisfaction. The skills and dedication of the Hydor-Tech team are the nucleus of our overall performance.This is evident when you look at the success of our company. It is an honour to work alongside the entire staff at Hydor-Tech. Dan Malbeuf Sales 9559000 Current Assets 2269000 Total Assets 8864000 Ownership 80 Sales 4958000 Current Assets 956000 Total Assets 11116000 Ownership 50 12 KREOS AVIATION We made significant changes this year in the way we look at aircraft management our private and business charter service and aircraft maintenance. The market for all three has grown to include small and mid-size companies who truly value time and celebrate the rewards of success in our strong local economy. Clearly defining why and what we do where we are and where we want to go we created opportunities that we may have missed in the past. This was accomplished through a number of planning days and a continuous audit of what our financial statements were telling us. Although we have many new refined and standardized business rules keeping us on track our business model is best described as Strategic Improv. PIC Flight seized the opportunity to sell a Kreos managed aircraft at top dollar and replaced it with a similar machine in need of an upgrade.This had a significant impact on the entire Kreos Group. Leaving a vacancy in our charter fleet for longer than expected we were under planed and over staffed at a time when demand for service was increasing. Our people accepted the new reality and found the silver lining in every challenge and at every level. The new aircraft was the catalyst Central Aircraft Maintenance needed to step into the next level of service. Although this wasnt the initial plan a proposal to be the first Saskatchewan company to install a Garmin G1000 avionic upgrade was born and accepted. This grew into an entire interior refurbishment which will give CAM credibility as we market our new found skills. The Kreos private terminal continued to grow market share on the airfield winning a second consecutive FBO of The Year for Central Canada Award as chosen by our customers. We are one of the few independent FBOs left at a major centre in North America but the aviation community clearly knows who we are. This past year was also a test of strength in principle. We refused to join therace to the bottomby sacrificing our services and expertise below value. We were willing NOT to work with certain customers based on respect and differences in business philosophy. Kreos is stronger and will survive beyond chasing revenue at all cost. Whether we articulate our vision consciously or not we know where we want to be. Our sales structure is being honed which will focus and add to our growing customer base. The growing demand for private air travel means a need for additional aircraft hangar space and human resources. We will remain flexible and open to opportunities. We arent naive to think our obstacles are more difficult than anyone elses but we do know having the right people and a good compass has been the recipe for growth this year. Thank you to our incredible people customers and ownership who continue to support a very exciting and ever changing aviation industry. Wes Ramsay 13 ADVENTURE DESTINATIONS Adventure Destinations made only marginal changes in 2014. However due to retirements and resignations the three fishing and hunting lodges will all be under new management by the end of the 2015 season. The first episode of 13 for season 1 of FishCamp Past the Pavement aired Sept 22 2014. Filming for season 2 was completed this year with expectations of a much better scripted 13 episodes. Selwyn Lake Lodge despite a 17 increase in guest numbers continues to struggle with finding ways towards profitability. Guest satisfaction was at an all-time high this year with the quality of fishing being the best since the lodge inception in 1993. A lake record Northern Pike of 53was landed at one of our day use fly outs on Selwyn Lakes south arm. Greg Sprout after 6 seasons has tendered his resignation as lodge manager effective October 2015. Greg will continue as manager during the 2015 season while mentoring a replacement manager. Twin Falls Lodge had challenges throughout the year. Late ice-out conditions followed immediately by forest fires and evacuations of Stanley Mission compounded the challenges of opening the Lodge.The project taken on in late 2013 of replacing cabins to be completed in the spring of 2014 was pushed back and completed in the fall of 2014. One additional cabin was replaced as well in the fall of 2014 and the Lodge is in good shape looking forward to 2015. Ron Cojacar announced his retirement in the fall of 2014 but will stay on till October 2015 to assist during the transition to new management. Guest numbers were down in 2014 as bookings were pushed back to accommodate completion of the new cabins. Thompsons Camps took a major step backwards in revenues and profitability this past season due to the mining crews pulling out in January 2014. However a returned focus on the traditional guest mix shows promise with many positive results that were witnessed over the past summer. Guest satisfaction and comments were at an all-time high this past year and staffing moral was at its best since ADI acquired the operation. The theme continues as the lodge managers of Thompsons have given notice for April 2015. This leaves a huge void to fill but also provides the opportunity to bring in new management with fresh ideas and new enthusiasm. Improvements on replacing docks and beautification around the lodge were the focus of 2014. Churchill RiverTrading Post made some positive moves forward this year.With the mandate of being a seasonal convenience store revenues were almost half of the previous season but losses were close to that of 2013. However a small increase in revenues will turn this into a profitable venture.Working smarter and cleaning up old inventory this past year helped achieve goals set in the spring.The addition of a 45 KVA backup generator ensured there were no interruptions during regular power outages over the season. At present CRTP is gathering some quotes on some major renovations to address some structural issues identified over the past two years. Ron Striker Sales 2829712 Current Assets 644145 Total Assets 6540312 Ownership 100 Sales 5012614 Current Assets 870310 Total Assets 54164605 Ownership 100 14 ROUND TABLE MANAGEMENT If 2013 was the year of expenditures capital spending and heavy investment for the future of Round Table Management then 2014 could be characterized as a year of reaping the benefits of these strategies. Investment was still happening across Western Canada but the biggest push was in starting to realise some revenue on the previous yearsdevelopments and acquisitions. 2014 saw buildings being filled and lease deals materialize for a number of our projects highlighted by the JWYuel Building at 220 Wall Street in Saskatoon our biggest development to date. KS Potash finished their tenant build out and had their official grand opening and ribbon cutting in September. RTM also saw vacancies filled in large buildings in Saskatoon Quebec Avenue Robin Crescent as well as a couple of deals close in Edmonton. This has translated into a significant increase in rental revenue and also had the interesting effect of decreasing sister company contribution to rental revenue by almost half which means the majority of our revenue now comes from 3rd party customers. 2014 was also a year that saw the sale of some depressed assets and the sale of assets in areas that we were leaving including parts of British Columbia andWinnipeg. RTM has also wrapped up its work with Panther Industries on managing the construction of their new state-of-the-art Trans-Load facility in the Sturgeon Industrial Park in Fort Saskatchewan Alberta.We continue to work very closely with a few of our sister companies in meeting their real estate and space challenges for 2014 and beyond as they prepare for growth or other operational challenges and opportunities. 2014 was a landmark year as well in that it saw PIC Investment Group move to its first new offices in 21 years. After a long and arduous search PIC purchased half of a building in the warehouse district of Saskatoon just down the street from the JW Yuel Building and set about re-modeling the building to better meet the needs of the PIC Head Office. RTM still has a few vacancies to deal with and faces a few challenges in finding the right properties for our sister companies particularly in Alberta but past investments are starting to pay dividends for the future of RTM. With the alliances and partnerships that have been forged over the last couple of years with other developers consultants and construction firms RTM is poised to enter into another year of investment and development for the future in 2015. Craig Bell 15 CHARITABLE CONTRIBUTIONS Our 2014 contributions remained significantly over the Canadian and provincial averages due to the substantial need in our communities and ongoing commitments. We continue to focus on five main categories disease research youth development municipalprovincial economic development nature and community quality of life. Our participation within each category will fluctuate each year depending on what is required and our ability to affect the outcome. Our multi-year contributions towards the Ducks Unlimited Chappell Marsh project the Meewasin River Landing the Rick Hansen Institute and the Childrens Hospital Foundation of Saskatchewan remain our largest ongoing contributions. We continue to support smaller local initiatives and welcome inquiries and requests for support as we apply assistance and funds where we see that the PIC Group can provide the most benefit. Canada In a world where the needs are so great we have difficulty in choosing who we could and should support. Many credible reputable organisations would benefit from our assistance therefore we must discern where our support for those in need is best allocated. 16 17 PIC Investment Group Inc. 70 24th Street E Saskatoon SK S7K 4B8 Tel 306 664-3955 INVESTMENT COMPANIES ABK Biomedical Inc. 1344 Summer Street Suite 212 Halifax NS B3H 0A8 AdvantageTower Ltd. Box 26 2 Alberta Ave Aldersyde AB T0L 0A0 Adventure Destinations International Hangar 11 J.G. Diefenbaker Airport Saskatoon SK S7L 5X4 CaronTransportation Systems 301 Streambank Avenue Sherwood Park AB T8H 1N1 ClearTech Industries Inc. 1500 Quebec Ave Saskatoon SK S7K 1V7 ClubMynx Fitness Inc. 619 1st Ave N Saskatoon SK S7K 2C6 Defyrus 2 Bloor Street West Suite 2602 Toronto ON M4W 3E2 Diamond House 101 - 3550 Taylor Street East Saskatoon SK S7H 5H9 Hydor-Tech Limited 11750 - 180 Street Edmonton AB T5S 1N9 Kreos Aviation Hangar 16 16 Wayne Hicks Lane Saskatoon SK S7L 6S2 MPT Mustard Products Technologies Inc. 101 - 111 Research Drive Saskatoon SK S7N 3R2 Panther Industries Inc. PO Box 698 Davidson SK S0G 1A0 Phenomenome Discoveries Inc. 204 - 407 Downey Road Saskatoon SK S7N 4L8 Prairie Plant Systems Inc. 1 Plant Technology Road Saskatoon SK S7K 3J8 RoundTable Management Ltd. 70 - 24th Street East Saskatoon SK S7K 4B8 Text2Car Inc. 201 302 Pacific Avenue Saskatoon SK S7K 1P1 TinyEYETechnologies Corporation 103 - 116 Research Drive Saskatoon SK S7N 3R3 TitanStar Properties Inc. 1745 - 1050 West Pender Street Vancouver BC V6E 3S7 TSXV TSP Vector Drive Systems Inc. 110 1515 Broadway Street Port Coquitlam BC V3C 6M2 Warman Home Centre 601 South Railway Street West Warman SK S0K 4S1 Westcap MBO Investment LP 830 410 22nd Street East Saskatoon SK S7K 5T6 westcapmgt.cafundsmbo_lp.php SOLICITOR Stevenson Hood Thornton Beaubier 500 - 123 2nd Avenue South Saskatoon SK S7K 7E6 AUDITOR Ernst Young LLP 1200 - 410 22nd Street East Saskatoon SK S7K 5T6 PRIMARY FINANCIAL SERVICES PROVIDER BMO 101 - 2nd Avenue Saskatoon SK S7K 3L4 PIC Investment Group Inc. 70 24th Street E Saskatoon SK S7K 4B8 Tel 306 664-3955