INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION 2017 FOURTH QUARTER ENVELOPES PACKAGING & SPECIALTY PRODUCTS FEBRUARY 2018 POST 2017 Q4 AND FISCAL RESULTS 1

2 FORWARD LOOKING STATEMENT This presentation contains forward-looking information within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the EBITDA and future performance of Supremex and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such information relates to future events or future performance and reflects current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and liability to attract and retain customers. Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this presentation. Such assumptions, expectations and estimates are discussed throughout our MD&A for fiscal 2017 and for the fourth quarter ended December 31, Forward-looking information is subject to certain risks and uncertainties, and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forwardlooking information. These risks and uncertainties include but are not limited to the following: economic cycles, availability of capital, decline in envelope consumption, increase of competition, exchange rate fluctuation, raw material increases, credits risks with respect to trade receivables, increase in funding of pension plans, postal services deficiencies, interest rates fluctuation and potential risk of litigation. Such risks and uncertainties are discussed throughout our MD&A for fiscal 2017, in particular, in Risk Factors. Consequently, we cannot guarantee that any forwardlooking statements or information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward looking information, whether as a result of new information, future events or otherwise. 2

3 ABOUT SUPREMEX Supremex Inc. (TSX: SXP), is a leading North American manufacturer and marketer of envelopes and a growing provider of packaging and specialty products. ENVELOPES Customized envelopes manufactured to specifications and broad range of stock envelopes 76% OF REVENUES (1) PACKAGING & SPECIALTY PRODUCTS Value-added offering: Corrugated and Folding Carton Solutions, Conformer, RFID, Sleeves, Membership Cards, Bubble Mailers, Medical Folders, X-Ray Envelopes, Labels 24% OF REVENUES (1) MARKET IN SECULAR DECLINE Canadian mail volumes declining at a quicker pace than U.S. mail volumes GROWING MARKET Double-digit growth In-line with e-commerce growth trends and other value-added end-markets Canada Post 2017 Third Quarter Results (For the Third Quarter ended September 30, 2017): Transactional mail volumes down 5.7%, Parcels up 41.4 % USPS 2018 First Quarter Results (For the three-month period ended December 31, 2017): First Class Mail volumes down 4.1%, Shipping & Packages up 6.9% (1) 2017 revenues including pro-forma revenues from the acquisition concluded in

4 GROWING WHERE IT MATTERS ENVELOPE ADDRESSABLE MARKET: US$2.10 B IN THE $102.1M 57% $42.4M 24% UNITED STATES 1 As market leader, Supremex can compete effectively within its local markets and nationwide. The Company is expanding its reach in strategic markets, quickly gaining market share in the United States, the world s largest envelope market and strengthening its packaging and specialty products offering. SUPREMEX CANADIAN ENVELOPE REVENUES 60% Market Share 2 3.0% growth in % revenue decrease in 2017 SUPREMEX REVENUES 2017 $179.1 M $34.6M 19% STRATEGY: Maintain market leading position 1 North-American Envelope Association estimate 2 Management estimate SUPREMEX U.S. ENVELOPE REVENUES 5% North Eastern Market Share % growth in % growth in 2017 STRATEGY: Grow in strategic markets SUPREMEX PACKAGING & SPECIALTY PRODUCT REVENUES 16.4% growth in % growth in 2017 STRATEGY: Product diversification 4

5 EXPANDING FOOTPRINT 13 MANUFACTURING FACILITIES 10 in Canada and 3 in U.S. (of which 3 facilities are owned) 795,000 square feet 820 employees RECENT ACQUISITIONS July 2017: Stuart Packaging Inc. Montreal, Quebec December 2016: Printer Gateway Inc. Toronto, Ontario November 2016: Durabox Paper Inc. Lachine, Quebec August 2016: Bowers Envelope Company, Inc. Indianapolis, Indiana HEAD OFFICE LaSalle, Quebec 5

6 M&A: DIVERSIFICATION EFFECT $107.3M 82% 2014 FY REVENUES $102.1M 54% 2017 INCLUDING PRO-FORMA REVENUES FROM THE ACQUISITION CONCLUDED IN 2017 $42.3M 22% $131.9M $14.8M 11% $188.9M $9.8M 7% $44.5M 24% SUPREMEX CANADIAN ENVELOPE REVENUES 4.8% decrease during the projected period SUPREMEX U.S. ENVELOPE REVENUES 185.8% growth during the projected period SUPREMEX PACKAGING & SPECIALTY PRODUCT REVENUES 354.1% growth during the projected period Pro-forma revenues are based on current revenue levels of envelope and do not reflect the market s rate of decline. 6

7 BUILDING A STRONG PLATFORM Supremex leverages its national presence to efficiently allocate capacity. By tightly controlling costs and maximizing operational leverage, it can: Maximize cash flows generation from the envelope platform Use financial capabilities to support accretive growth projects Maintain a healthy debt leverage Maximize shareholder returns with a mix of dividend/share buybacks RESULTS FINANCIAL DISCIPLINE 4 YEAR POSITIVE CAGR TREND: REVENUE Adjusted EBITDA CASHFLOWS (FROM OPERATIONS AFTER W.C. ADJUSTMENTS) 11.5% growth in 2017 $179.1 M in % decrease in % Margin in % decrease in % Cash flow conversion 8.6% 1.5% (1) 4.7% DIVIDEND 8.9% dividend growth in % yield 17.2% NET DEBT 1.5x Net Debt/Adjusted EBITDA 4.0% (1) increase (1) Adjusted EBITDA excludes the gains related to the amendments made to the pension and post retirement benefits plans in 2013 to 2015, a $0.7 M claim settlement charge in 2014, a $0.8M of contingent considerations for remuneration in connection with business combinations and $2.2M of expenses related to the shutdown of non-core operations of Printer Gateway in See MD&A for those periods. 7

8 SOLID CUSTOMER BASE MARKET LEADER 60% OF TOTAL CANADIAN MARKET BY REVENUE NATIONAL FOOTPRINT + LOCAL DISTRIBUTION: Local market intimacy Cost effective delivery within 800 km Responsiveness Barriers to entry REGIONAL REVENUE DISTRIBUTION (1) U.S. 23% Western 14% Eastern 30% Central 33% TOP 5 IN NORTH AMERICA DIVERSIFIED CUSTOMER BASE 8,000 CLIENTS AND NONE REPRESENTS MORE THAN 10% OF REVENUES STRONG CUSTOMER-BASE (2) : Large leading corporations ( 25%) National resellers ( 20 %) Government entities ( 10%) Merchants, solutions providers and others ( 45%) (1) For the twelve-month period ended December 31, 2017 (2) For the twelve-month period ended December 31,

9 OUR STRATEGY GROWING IN A CHALLENGING ENVIRONMENT 1. MAINTAIN MARKET LEADING POSITION > CANADIAN ENVELOPE Optimize capacity allocation Protect market share and bottom-line 2. ENVELOPE GROWTH IN STRATEGIC MARKETS > U.S. Geographic diversification 3. PRODUCT DIVERSIFICATION > PACKAGING & SPECIALTY PRODUCTS Large and growing markets Value-added offering Canadian-centric 9

10 A HISTORY OF SUCCESSFUL ACQUISITIONS Acquired Innova Envelope Cenveo acquired Supremex Acquired envelope operations of Dominion Blueline IPO Acquired Montreal Envelope and Metro Envelope Acquired Classic Envelope Inc. Acquired Premier Envelope Ltd. Acquired Stuart Packaging Inc Private equity acquired Supremex Acquired 75% interest in Classic Envelope Plus Acquired PNG Globe Envelopes Undertook management of Buffalo Envelope from Cenveo Acquired NPG Envelope Acquired CML Industries Limited (Regional Envelope, Regal Envelope, Transit Envelope, Specialty Paper Products and Precision Fine Papers) 2015 New Management Grow into US and Value- Added Offering Acquired Pioneer Envelopes 2017 Acquired Bowers Envelope Company, Inc. Acquired Durabox Paper Inc. Acquired Printer Gateway Inc. 10

11 CANADA: MAINTAIN MARKET LEADING POSITION IN ENVELOPE OPTIMIZE ENVELOPE PLATFORM Redistribute volumes across facilities - Optimize production - Improve utilization rates - Unlock capacity to sell into growth markets Manufacturing excellence Enhanced service and product offering Focus on margins PRODUCT CAN BE SHIPPED EFFICIENTLY WITHIN AN 800 KM RADIUS LARGEST ENVELOPE MARKET IN NORTH AMERICA 11

12 CANADA NORTH AMERICA U.S. ENVELOPE: GROW IN STRATEGIC MARKETS MARKET OPPORTUNITY Structural changes - M&A reduced capacity - Fragmented landscape - Product sourcing issues for customers FX favorable to Canadian suppliers ROOM TO GROW The U.S. envelope market is estimated at US$2.10 B Bowers acquisition provides a platform to address 60% of the U.S. envelope market NORTH AMERICAN COMPETITIVE LANDSCAPE #1 NATIONAL ENVELOPE #2 CENVEO #3 MEADWESTVACO (ENVELOPE DIVISION) #1 CENVEO ( MEADWESTVACO ) #2 NATIONAL ENVELOPE #2 Largest Manufacturer #1 CENVEO (NATIONAL ENVELOPE ) 12

13 U.S. : AUGUST 2016 ACQUISITION Strategically located at The Crossroads of America SIGNIFICANTLY EXPANDING REACH IN THE U.S. Provides access to 60% of the U.S. envelope market (estimated at US$2.10 billion) Major hub for e-commerce distribution Establishes Supremex as a true regional player in the U.S. Conduit for excess capacity from Toronto and Montreal facilities Concluded on August 29, 2016 US$8.5 M annualized revenues 50 employees 75,000 square feet facility Indianapolis, Indiana Opportunity to grow organically 13

14 PRODUCT DIVERSIFICATION: PACKAGING & SPECIALTY PRODUCTS VALUE-ADDED OFFERING Aligned with e-commerce/digital growth Small player in large and growing markets High gross margin potential LARGE AND ATTRACTIVE END MARKETS PACKAGING TYPE: PAPER AND BOARD RIGID PLASTIC GLASS FLEXIBLE PLASTIC BEVERAGE CANS OTHERS 6% 10% 11% 12% 27% 34% FOOD Ernst & Young «Unwrapping the packaging industry» report, 2012 PRODUCT TYPE: BEVERAGE HEALTH CARE COSMETICS OTHER CONSUMER 5% 6% 20% 18% 51% NATURAL FIT Paperboard, folding carton Similar core competencies - Supply chain and processes - Market dynamics - Manufacturing similarities STRATEGY Pursue organic growth and M&A focused on fast growing consumer end markets in the folding carton sub-segment of paper and board packaging. Execute same successful growth strategy as pursued in envelope to build a strong national packaging platform 14

15 PACKAGING : NOVEMBER 2016 ACQUISITION Concluded on November 28, 2016 $8 M revenues in last fiscal year 50 employees 35,000 square feet facility Lachine, Quebec PRODUCT DIVERSIFICATION WITH VERTICAL INTEGRATION POTENTIAL IN E-COMMERCE MARKET Vertically integrated corrugated packaging manufacturer for the consumer market Current distribution mix: Quebec Ontario United-States Ability to grow capacity Sales synergies Grow organically within the Supremex network Cost synergies Production of corrugated sheets internally Transportation and SG&A synergies 15

16 PACKAGING : JULY 2017 ACQUISITION Concluded on July 20, 2017 $18 M revenues in last fiscal year 65 employees 68,000 state-of-the-art square feet facility Montreal, Quebec ACCELERATES DIVERSIFICATION: 24% OF PRO-FORMA REVENUES ARE NOW FROM A HIGH GROWTH MARKET Fully integrated carton manufacturer offering packaging and finishing solutions Reputable premier quality supplier for the consumer market Focused on the cosmetic, nutraceutical, fragrance and pharmaceutical industries Large multinational clients Ability to grow share of wallet of existing customers Received various awards of excellence for print and design Experienced management team to lead further development of packaging platform in Canada and in the U.S. 16

17 OPERATIONAL MANDATE 1. GROWING REVENUES AND DIVERSIFICATION DELIVERING RESULTS 2. GROWING PROFITABILITY TREND IN DOLLARS 3. GROWING CASH FLOWS GENERATION 4. FOCUSING ON FINANCIAL DISCIPLINE Maintaining a healthy balance sheet and leverage position Optimizing capital allocation 17

18 GROWING REVENUES & DIVERSIFICATION FY REVENUE GROWTH M CAD COMPOUND ANNUAL GROWTH RATES ( ) 39.6% Packaging & Specialty Products 37.7% U.S. Envelope CANADIAN MARKET US MARKET PACKAGING & SPECIALTY 18

19 FY ADJUSTED EBITDA (1) TREND PROFITABILITY TREND M CAD 30, ,5% 20,2% 19,8% 20% 25, ,1% 14,9% GROWING ADJUSTED EBITDA (1) IN $ 20, % 6.0% Adjusted EBITDA (1) growth since 2013 Effect of growing business on account of recent acquisitions 15, ,1 $ 26,6 $ 28,1 $ 27,4 $ 26,7 $ 10% 10,0000 STABILIZING ADJUSTED EBITDA (1) MARGIN Growing exposure to more competitive U.S. envelope market In 2017 & 2016, 24% of annual revenues from U.S. 5,0000 0, % 0% Adjusted EBITDA $ (1) (1) Adjusted EBITDA AS A % OF REVENUE (1) Adjusted EBITDA excludes the gains related to the amendments made to the pension and post retirement benefits plans in 2013 to 2015, a $0.7 M claim settlement charge in 2014, a $0.8M of contingent considerations for remuneration in connection with business combinations and $2.2M of expenses related to the shutdown of noncore operations of Printer Gateway in See MD&A for those periods. 19

20 MAINTAINING STRONG CASH FLOWS FY CASH FLOWS FROM OPERATIONS BEFORE WORKING CAPITAL ADJ. M CAD FINANCIAL FLEXIBILITY Strong cash position $12.3 M Free Cash Flow $25.0 M Working Capital Available credit 5 Year Committed $60 million Senior Secured Revolving Facility With Bank of Montreal No scheduled repayments prior to maturity

21 FOCUSED ON FINANCIAL DISCIPLINE MAINTAINING A HEALTHY BALANCE SHEET AND LEVERAGE POSITION M CAD ,4 2,4 2,1 3,0 2,5 80 1,7 1,8 2,0 60 1,4 1,5 1,5 $108,6 40 $91,8 $69,0 0,8 0,9 0,9 1,0 20 $51,6 $44,3 $36,1 $22,0 $25,1 $24,9 $42,1 0, ,0 Net Debt Net Debt to Adjusted EBITDA 21

22 PENSION PLANS EFFECT M CAD ACCRUED PENSION BENEFIT LIABILITY/ASSET 10 $8,2 DEFINED BENEFITS PENSION PLANS Employee Benefits Reviewed - Conversion of defined benefits plans into defined contributions plan in Defined benefits plans past service frozen as at Jan 1, $3,9 $2,3 -$0,6 -$0, $21,9 22

23 OPTIMIZED CAPITAL ALLOCATION M CAD $40 CAPITAL ALLOCATION $30 RETURNING CASH 5.3% dividend yield NCIB buyback program allows up to 1.7% of outstanding shares until August Repurchased 205,882 shares for cancellation between January 1, 2017 and December 31, 2017 $20 $10 $- $12,0 $15,4 $15,4 $12,0 $1,8 $5,3 $5,8 $7,0 $3,8 $1,1 $2,0 $2,1 $2,3 -$6,4 $17,5 $7,8 $7,5 SUSTAINED CASHFLOW HAS ALLOWED: $17.5 M towards M&A strategy in 2017 $7.5 M for CAPEX in 2017 (including intangible assets) $6.8 M dividends paid in 2017 $(10) $(20) -$15, CAPEX Dividends & Buy backs Debt (increase) repayment Business acquisitions 23

24 TRENDS & RESULTS Q RESULTS 1. MANAGING & DIVERSIFYING 2. Q RESULTS 3. KEY TRENDS 24

25 MANAGING & DIVERSIFYING FOCUSED ON GROWTH AND VALUE-ADDED MARKET PENETRATION Accelerate growth in packaging & specialty value-add market REVENUE (IN MILLIONS OF DOLLARS) 2017 Q Q FY 2016 FY Canadian envelope Volume variation Average selling price variation TOTAL VARIATION 25.5 (11.3)% 2.5% (9.1)% 28.0 (7.1)% 3.9% (3.5)% (7.7)% 0.6% (7.2)% (1.3)% 4.4% 3.0% U.S. envelope Volume variation Average selling price variation (in CAD) TOTAL VARIATION % (6.5)% (1.5)% % 0.8% 21.5% % (1.9)% 10.4% % 5.0% 53.3% Packaging & Specialty Products (Canada & U.S.) TOTAL VARIATION % % % % TOTAL REVENUE REVENUE VARIATION % % % % 25

26 Q RESULTS SUMMARY OF OPERATING RESULTS Tightly monitoring the effects of a growing organization on costs Diversifying into packaging & specialty products for growth and margin potential Managing the effects of growing presence in U.S. (tighter margins) and FX SELECT FINANCIAL INFORMATION (IN THOUSANDS OF DOLLARS) THREE-MONTH PERIODS ENDED DECEMBER 31 TWELVE-MONTH PERIODS ENDED DECEMBER Revenue 49,350 43, , ,570 Operating Expenses 36,115 30, , ,447 Selling, General and Admin. Expenses 5,805 4,935 22,920 18,740 Shutdown of non-core operations of Printer Gateway 2,192 2,192 EBITDA (1) 5,238 7,827 23,635 27,383 Adjusted EBITDA (1) 8,007 7,827 26,654 27,383 Adjusted EBITDA Margin % 16.2% 18.0% 14.9% 17.1% Cash Flows from Operating Activities (before W.C. adjustments) 5,547 6,010 19,552 21,327 Free Cash Flows (2) 5,076 5,413 12,250 17,751 (1) See Definition of EBITDA and Adjusted EBITDA in Company s MD&A (2) Computed as Adjusted EBITDA less CAPEX, Interest and Income Tax paid 26

27 Q RESULTS FOCUSED ON EFFICIENT CAPITAL MANAGEMENT AND ALLOCATION Invest to upgrade infrastructure and capabilities to remain competitive Efficiently allocate capital between growth projects, dividends and NCIB SELECT FINANCIAL INFORMATION (IN THOUSANDS OF DOLLARS EXCEPT FOR PER SHARE AMOUNTS) THREE-MONTH PERIODS ENDED DECEMBER 31 TWELVE-MONTH PERIODS ENDED DECEMBER Adjusted EBITDA (1) 8,007 7,827 26,654 27,383 Shutdown of non-core operations of Printer Gateway 2,192 2,192 Provision for contingent remuneration related to business combinations EBITDA (1) 5,238 7,827 23,635 27,383 Amortization of property, plant and equipment 1, ,713 4,520 Amortization of intangible assets ,682 1,917 Loss (gain) on disposal of property, plant and equipment Operating earnings 3,676 6,731 18,125 20,919 Financing charges, net , Earnings before income taxes 3,277 6,529 17,047 20,067 Income taxes expenses 1,015 1,886 4,656 5,474 Net earnings 2,262 4,643 12,391 14,593 Basic and diluted net earnings per share Dividend declared per share Total assets 157, ,539 (1) See Definition of EBITDA and Adjusted EBITDA. in Company s MD&A 27

28 SUMMARY PRIORITIES CORPORATE AND FINANCIAL INFORMATION 2. MANAGEMENT TEAM 3. BOARD OF DIRECTORS 4. INVESTMENT HIGHLIGHTS 28

29 2018 PRIORITIES CORPORATE 1. Complete integration of acquisitions and grow new platforms Midwest U.S. New England Eastern Canada Packaging 2. Continue geographic expansion in envelope Protect market share in Canada 3. Actively pursue growth and diversification of packaging & specialty offering Continue organic growth of packaging solutions for value-added end markets FINANCIAL 1. Maintain a healthy balance sheet Low debt to EBITDA ratio Strong cash flows Financial capabilities to support accretive growth projects 2. CAPEX: Annual maintenance $2.0M Growth initiatives on value-added products 3. Optimize shareholder value 29

30 INDUSTRY EXPERTISE MANAGEMENT TEAM STEWART EMERSON President & CEO (Director of SXP) LYNE BÉGIN Interim VP, Finance SUZIE GAUDREAULT Vice-President & General Manager, Eastern Region EDWARD GAUER GM, Western Region 27 YEARS INDUSTRY EXPERIENCE 26 YEARS OF ACCOUNTING EXPERIENCE. 22 YEARS OF INDUSTRY EXPERIENCE 26 YEARS OF INDUSTRY EXPERIENCE Started at predecessor to Supremex in Previously VP and GM Central Region and Buffalo Envelope. Responsible for leading many successful M&A integrations. Joined Supremex in 2014 as Corporate Controller, a position also held from 1994 to Completed various accounting mandates. Spent 5 years at KPMG. Holds a CPA designation. Joined Supremex in 1996 and was previously Administration Manager for Eastern Region. Holds a CPA (CA) designation. Joined Supremex in Held the position of General Manager of Manitoba/Saskatchewan at a predecessor to Supremex. 30

31 CORPORATE GOVERNANCE ROBERT JOHNSTON CHAIRMAN MATHIEU GAUVIN BOARD OF DIRECTORS (NON-EXECUTIVE) GEORGES KOBRYNSKY DANY PARADIS DREW SULLIVAN WARREN J. WHITE EVP of The InterTech Group, Inc. Was CEO and Vice Chairman of The Hudson s Bay Company. MBA from John Molson School of Business and Master in Public Policy and Administration. Holds ICD.D designation. Sits of the boards of Gas Natural Inc., Corning Natural Gas Holding Corporation, Circa Enterprises Inc., Colabor Group Inc. and South Carolina Community Loan Fund. Partner at Richter Advisory Group Inc. Sits on the board of HNZ Group Inc., Richelieu Hardware Ltd. and Logistik Unicorp Inc. Was CFO of Europe s Best Inc. VP and Partner of Schroders & Associates Canada Inc. He is a CPA, CFA and CBV. Corporate Director of Cascade Inc. Was SVP, Investments Forest Products at SGF and held various senior positions at Domtar Inc. Holds an MBA from McGill and Bachelors degrees. Senior VP, of Sales and Customer Care at Yellow Pages Limited. He is a Director at YMCA Quebec. Previously held senior executive and executive positions at Fibrek Inc. and Domtar Inc. He holds a Bachelor of Actuarial Sciences from Laval University and ICD.D designation from the Institute of Corporate Directors. Corporate Director of Supremex, he was President of RR Donnelley Canada, a position which he held since February Previously held various sales executive positions with RR Donnelley/Moore Corporation and Relizon Canada. Mr. Sullivan has worked in the printing business since Held many senior leadership positions for large international manufacturing organizations, CGI and Alcan. He is a CPA and an MBA graduate from Concordia University. He sits on the Board of Circa Enterprises Inc. and Titan Logix Corp and Vicon Industries, Inc. 31

32 INVESTMENT HIGHLIGHTS MARKET LEADER 60% of Canadian market 11.5% 2017 revenue growth KEY MARKET GROWTH 184.0% 2017 revenue growth in packaging 10.4% 2017 revenue growth in US envelope market FINANCIAL DISCIPLINE 1.5x Debt /Adjusted EBITDA $12.3 M 2017 free cash flow RETURNED VALUE 5.3% Dividend yield 8.3 % Dividend growth MARKET DATA (TSX: SXP) (February 19, 2018) Shares Outstanding: Last Price : Market Cap: Average Daily Volume (10d): High-Low (52w): 28,405,469 $4.35 $123.6 M 85,080 $ $5.18 KEY METRICS (Q4-2017) P/E: EPS: Debt/Adjusted EBITDA: Dividend Yield: Adjusted EBITDA Margin: 10.5x $ x 5.3% 14.9% ANALYSTS COVERAGE Cormark Securities Gavin Fairweather, CFA Beacon Securities Ahmad Shaath, MBA Industrial Alliance Neil Linsdell, CFA SHAREHOLDERSHIP Zucker Trust (1) : Management and BOD: 19% 1% (1) The Article 6 Marital Trust created under the First Amended and Restated Jerry Zucker Revocable Trust dated

33 Stewart Emerson Tel: (514) extension 2316 HEAD OFFICE 7213 Cordner Street LaSalle, Quebec H8N 2J7 Tel: (514) CLICK HERE to subscribe to the investor alerts 33