PRESIDENT’S MESSAGE A N N U A L P R O F I L E When we look back years from now, this year may be remembered as one of our most important years ever as a group. It felt like when you start accelerating while you are in a curve. We know that when you establish the optimum line in a curve, you can accelerate. In every company we started the year locked and loaded for that acceleration and growth. As the year progressed, we gained momentum. Our financial success was more philosophically important than monetarily impressive, although in a few companies we got both. The great reconciliation of the energy & mining sectors in Western Canada was a long tough curve that our Balance Sheet was luckily ready to endure. I am proud to say that we never took our eyes off the horizon when we made decisions. We hired for the future, and invested for the long term. We hired Eric Verity fulltime as an Analyst and we added an old friend as a Controller – Leah Hientz. PIC also assisted in delivering acquisition opportunities and ideas to the rest of the group. Laurie Dmytryshyn‘s equity investment portfolio grew the most this year as we picked through over 100 equity investment opportunities sent our way in order to settle on an impressive five deals done. Five is a lot in this business. Plus, we reinvested in another five companies that were currently in our equity portfolio. Lastly, our minority investment model was again validated with a fantastic exit from CanniMed (Prairie Plant Systems IPO). ClearTech organically grew to the equivalent level of acquiring a $20mm company. The reason was because the engine was tuned perfectly and operating at maximum efficiency. People, process, and systems were all working together for the first time in a long-time. The construction project of a new branch for Edmonton consumed a lot of resources, and will surely be a success. Caron hung-on and we are back to needing more drivers to cover all of the work we have. Growth is our theme and thanks to good management support in the US, as well as good management through an acquisition on the West Coast, we are in good shape going forward. The Panther turn-around has been incredible. We ended the year more profitable than we had hoped. We grew our Revenue and market share significantly and have lots of market share still to pick up. Investment in a growing sales force and the leadership excited to drive forward gives us cause to be very optimistic about the years to come. Round Table Management Ltd. is more profitable than it has ever been, thanks to a consistent team effort. RTM leadership is solid. We have an appropriate amount of vacancy – it just happens to mostly be in Edmonton. We hold wonderful assets in markets ready for a rebound. Kreos provides a huge source of pride. It’s been 10 years, and we look smart. Our customer service is #1 for sure. Our culture is the envy of all. We have aircraft expansion and geographic expansion plans under way. We invested in people. We have dedicated full-time attention in every facet of the business and we know that we can achieve our growth plans profitably. Frontline provides us with a perfect metaphor for this year. We started the year in a hole because of writing-off a Receivable. Then, HR Business solutions carried momentum as we invested in dedicated Sales to fuel growth. The Frontline team came together, causing me to think that this year was Frontline’s best. Adventure Destinations really tightened their operation to what was only necessary. ADI financially performed significantly better than in years past and have a lot to think about regarding the future. In the meantime, the industry was sold-out in Saskatchewan and on the West Coast. Hunters and Anglers returned to SK in impressive numbers. Concentration on the road ahead could provide a total business that we can all enjoy for generations. PIC Investment Group Inc. is a family office. We own Operating Companies and place equity investments. We provide financial services, HR support, M&A search, identification and closing expertise, payroll & benefits, Board governance and strategic planning for our companies. We are grateful to serve our companies each and every day. Thank you for the great year. — Greg Yuel 2017 7 6