PANTHER INDUSTRIES Starting where we left off in last year’s report “…and because we are leaving 2016 in a position of strength that we welcome the opportunity that 2017 will present” … That we did! At the beginning of this year, our business was showing signs of picking up and our whole team fought hard for each and every scrap of opportunity. We first focussed on reinvigorating our sales team. With the aid of Cara from Frontline, we filtered through several hundred applicants for new positions – and we found two we believed would match our culture perfectly… and both proved very quickly they were the right picks. Luisana Rodriguez represents us in Alberta out of Calgary, and Scott Gelowitz works all over Rider Nation and the northern U.S. states along its border. And in only 6 months, they’ve added over $1mm in new sales! This is a wonderful testament of the importance of hiring the right people for the job!!! And our growing home team of 38 employees in Davidson welcomed the new business with open arms and have done a wonderful job keeping up with demand. Actually, wonderful job is an understatement. To put this in perspective: in our very best years we needed to run our Davidson operation 24 hours a day, 5 days a week – with three crews of 5, around the clock. This past fiscal year we were able to do comparable tonnage with only one crew of 8 – running 8 hours a day, 5 days a week! Wow! What a team!!! The very best team. OUR team. This could have not been done without hard work from everyone Management, Maintenance, Operators, Loaders/Unloader, and Admininstration. Everyone brought their “A” game this past fiscal year. Our pallet manufacturing divisions also did outstanding. This was not an easy task, especially with the wild fires in Western Canada and all the uncertainty that exists these days with politics both at home and south of the border. And between wildfires in B.C., proposed “Trump” softwood lumber regulations in the U.S., and a few hurricanes - lumber prices are up in some cases by fifty percent, at record highs. Supply is tight, and it was very difficult to actually purchase what was needed throughout the year. We repositioned our sales force to Edmonton so we could concentrate our efforts in that region. Our Edmonton location was required to manufacture an additional 52,000 pallets year-over-year, and our team team did a fantastic job keeping up with demand and managing everything that comes with such significant growth. This all translated to the best year ever for Edmonton Pallets! Davidson pallets is also heading in the right direction, producing an additional 20,000 pallets from last year! Overall – our revenue was bumped by almost 15%! Both locations did fabulous in a difficult time, and when every extra dollar counts. Panther also had an unexpected surprise in the last quarter – for once in a good way – that matched our forward momentum: the Chinese Government decided to shut down plants in their country that were failing on environmental regulation; these shut downs resulted in customers coming back home and looking for these products domestically, products that Panther was more than welcome to supply since we’ve maintained our commitment to sourcing locally. All-in-all we are extremely excited with the team we have built, the culture that is emerging on our team, and the awesome opportunities that we see in the upcoming year. And we strongly believe that our parting words will once again foreshadow what actually happens in 2018! — Clayton Schneider SALES: $30,276,118 CURRENT ASSETS: $6,954,414 TOTAL ASSETS: $19,352,729 KREOS AVIATION The simple story is that in 2017 we increased our flight hours, number of managed aircraft, number of customers, number of employees, number of maintenance services, number of buildings, number of aircraft brokered, and strengthened our operating certificates. Revenue out stretched expenses. Most of these accomplishments were a result of what we were already doing. We knew we would succeed (98.75 percent guaranteed) and already had the new five-year plan in place to leverage this. 2017 was a re-set year. We were aggressive in tackling our growth plans in business development, geographical expansion, fleet growth, real estate and regulatory compliance. What we started and continue to work on will slowly shine in the next few years. We have our first dedicated business development person leading our new sales and marketing plan. We went down the rabbit hole exploring several complimentary business acquisitions and investments and spent countless hours preparing to expand beyond our home base. Transport Canada knocked on our door spending a total of six days auditing Kreos Flight Operations and Central Aircraft Maintenance. It should be great comfort to our customers that the regulators found Kreos to be extremely safe, conscientious and current. The increased number of flight hours would not have been possible without continually self-auditing and improving our operating procedures. Central Aircraft Maintenance (CAM) continued on the verge of greatness. You can feel it. The doors may lock at five, but the phones are always on. Legacy customers were a result of attention to detail, customer service, growing credibility and willingness to jump on new opportunities. Our expanded capabilities in interior retrofits was well received and led us down a path with great potential. It’s fun to build when you have support. I have incredible confidence in our people and I’m so proud of what we accomplished. Thanks for being you. It appears to be working. – Wes Ramsey SALES $7,096,019 CURRENT ASSETS: $1,232,542 TOTAL ASSETS: $10,105,942 15 14