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PIC is primarily an owner-operator of the companies that are featured in the preceding pages. Other opportunities outside of the companies in which PIC enjoys direct majority ownership include investments as a minority shareholder and the participation in other financing options such as syndicated loans bridge financing capital asset lending and inventory financing. Investments of this type can take place at any time throughout the year and although small and risky they can be rewarding. A wide variety of terms are possible depending on the needs of the recipient party and the level of risk and resources PIC must commit. Participation in this manner serves to keep PIC Investment Group connected to the markets in which these opportunities are revealed and allows PIC Investment Group to function as an operating company The cover of our annual report notes that we are building value. In order to give credit to our founders and to the people executing the strategies at our operating companies I would like to say that we are building value from value. In 2008 I commented that The nature of equity investing is that there will be losses. If structured properly only the invested capital is at risk. Conversely the successful ones have the possibility of returning invested money many times over. Many of our successful operating companies have returned the invested capital over-and-over-and-over. It is these returns that allow PIC to look for new opportunities to build value. 2012 was another year characterized by organic growth reinvestment in our core business units and strong operating results. 16.4 million in income before dividends represents an 18 increase over last year. The strength of our operating results is evidenced by the fact that we had record growth in assets yet our debt to equity ratio still improved. It was a busy year for financing and we benefitted from significant cooperation from the financial institutions that we view as business partners. Although we got a lot done in 2012 there are still some financing transactions in progress and completion of these transactions will allow us to further reinvest in 2013. I would like to congratulate Bruno Muller and his team at Caron Transportation for being the first PIC Group Company to reach one-hundred million in annual revenues. It is an honor to be involved with a company that is consistently establishing new financial milestones. This will be the fourth out of the last five years that I too have commented on significant financial milestones. 2012 has established many financial milestones but the one I will bring attention to is that PIC has exceeded one-hundred million in shareholders interest. 2013 will be another busy and exciting year. As you have read in the preceding pages our operating companies are not standing still. Since year end PIC has completed two equity transactions and another one is close. Post year end we received a significant return from our investment in Warman Home Centre. The quality and capabilities of the Groups leadership business partners and employees combined with the solidity of our financial foundation gives us the ability to move into the future with confidence. Hugh MacGowan Financial Report 2012 ANNUAL REPORT 18