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 207 PRESIDENT’S MESSAGE We entered the 2016 fiscal year anticipating a tough ride and we got it. We hoped for a light at the end of the tunnel in the energy sector and it was just not there. As that reality became ever more apparent throughout the year, we pulled in our horns at our Operating Companies and especially in PIC Investment Group Inc. We made tough decisions necessary for our survival this past fiscal year but not just for the sake of cutting. They were made to lay a foundation from which to grow. It was a back to basics approach. We made changes in PIC Investment Group Inc specifically intended to stack our team for the long term as we pursue acquisition opportunities that will significantly impact our size and earning potential in the future. Phyllis Salisbury made such an impressive contribution to ClearTech Industries while seconded to them that they realized they did not want to lose her, so she stayed. In that regard we delivered on our mandate of helping our Operating Companies. We added Terris Chorney, an experienced and successful former Business Development Manager, investment banker, MBA and engineer. While managing Panther Industries’ portfolio during their restructuring and assisting Clayton, Terris is also searching, screening and then negotiating and executing any acquisition within the PIC Group. Terris and I have worked hard on acquisition opportunities for PIC and for Operating Companies. None came to fruition this year but we remain vigilant. Cara Petrovicz joined the PIC Group as our HR Business Partner, seconded to us from Frontline. She spreads her time across the PIC Group as she seeks to build Frontline’s service offering. Similar efficiencies include Grace Yuel coming to us as an Administrative Assistant, taking as many of the jobs she can from our Office Manager Bodie Elliott, who left us to get her MBA. Assisting PIC in fulfilling those responsibilities, as well as helping Laurie with due diligence, is Eric Verity who organized his academic schedule at university during this last year in order to work half-days at PIC. In addition, we established a practice of regular meetings among the portfolio managers and we have increased our communication about industry intelligence and opportunities. All of these efforts are aimed at solidifying a culture worth protecting. The Tribal Leadership initiative Craig Bell has delivered across PIC Group companies has helped proliferate cultural characteristics among PIC Group companies. The cohorts and personal coaching help support our emerging leaders in PIC Group companies. We enjoyed announcing the arrival of three PIC Group leaders, all groomed from within our organization. Clayton Schneider began transforming Panther Industries and bringing diversification to the revenue base by unlocking new opportunities. Ron Striker began implementing his business plan for Adventure Destinations. Rick Court embraced the leadership of Round Table Management and G Mechanical. Continuation of regular board meetings will help solidify Rick’s and the other newly appointed leaders’ autonomy for their company. Although we experience no material or positive financial changes year over year, we can withstand the negative impact of the energy and mining sectors effect on a few of our companies because our balance sheet is outstanding. We spent the year perfecting our core and our culture. We are ready for an exciting future and we look forward to the work it will take to bring opportunities to fruition. We exercise our ownership through a board governance approach which provides experience and insight to the company leader on behalf of a group of Directors who have competencies that match the needs of the organization. The money we invest is available thanks to an income stream from participation in the profits of our Operating Companies, as well as return on investment, dividends (or return on capital), plus the repayment of loans, proceeds from bridge financing, management fees, 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. — Greg Yuel PIC_AnnualReport_Final-Alternate_2.indd 7 2016-12-01 8:41 AM