Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20PANTHER INDUSTRIES For many companies operating in oil and gas, 2016 was an awful year – the trough of a legendary downturn. The energy sector entered the year already in a downward spiral and proved that just because things are bad, they can always get worse. Panther’s Calgary sales followed the rig count – which dropped 45 per cent year-over-year. North America experienced one of the warmest winters in years, which decimated our ice melt packaging business. Already depressed potash and hydrochloric acid pricing headed lower. It seemed that there was no end to the hits. As always, the Panther team scratched and clawed to survive. Nothing is ever all bad. It wasn’t easy, but we simply decided we wouldn’t break and we didn’t. It’s said that “History may not repeat, but it often rhymes.” Panther is no stranger to the ups and downs of our industry. We’ve been here before and we know that there’s no magic. Sometimes tough actions are needed to get to the other side. Panther underwent organizational restructuring and layoffs. We implemented a work share program with our core employees. Our team sacrificed and pitched in. We focused on sales, tightened our belts, reduced inventories, managed our supply chain and sold assets we could live without. We focused on what we could control and got better at how we did things. Our results improved. The pallet business remained steady, especially in the last quarter of the year. We were recently rewarded for our efforts by finalizing a deal that will bring an extra $1 million in sales for 2017. We also focused on exciting opportunities to GROW our business. With PIC’s support, Panther invested in our first grain trans-load station in Davidson. We began efforts to expand our Fort Saskatchewan trans-load facility. Panther will continue to push forward on diversification and expansion. We are actively and aggressively on the hunt for business development opportunities, acquisitions and strategic partners. While challenging, 2016 was indeed a pivotal year for Panther in a good way. It helped us build a better team and a much better business. It also reminded us to appreciate the times when things seem to come easy. Because we are leaving 2016 in a position of strength, we welcome the opportunities that 2017 will present. — Clayton Schneider SALES: $20,821,499 CURRENT ASSETS: $6,052,473 TOTAL ASSETS: $19,338,382 1 4 — Clayton Schneider PIC_AnnualReport_Final-Alternate_2.indd 14 2016-12-01 8:42 AM