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2016ANNUALREPORT

The Executive and Directors on the Board of PPPC met in Montreal from November 16 – 18, 2016, to discuss and debate the future direction of our member-owned Association. The Board has listened to the membership, and over the past year, has been working diligently to create a process toward addressing the changing nature and needs of our industry and Association, and the value propositions we believe are of paramount importance to the membership.

In early June of this year as the Board met, we had invited all manner of ideas to discuss and evaluate at a future meeting. It was also decided that we would require the services of a Facilitator, one with significant experience and a stellar reputation in helping associations develop strategies to address the needs of today and beyond for our membership and industry. The Facilitator had contacted and interviewed members of our Association, stakeholders assured of the anonymity of their comments, and those who would not be afraid to openly address the questions and their beliefs. On November 17, 2016, the Facilitator met with the entire Board in Montreal to share the findings, and help the Board process the earlier ideas of June toward developing a plan forward.

With the Facilitator, a comprehensive agenda, and the discipline and courage of the Board, a plan forward is now being formulated and investigated, that will result in an Association better equipped to address the needs of the membership now, and in the future. With every member value proposition, we will investigate how we must and will deliver a recognized advancement in both delivery and benefit. There are no boundaries in the path to this goal, respective of our Canadian identity, values and official languages! We will investigate every opportunity to improve, including partnership with other organizations and/or providers of solutions that our members will find inherent and valuable to their continued member/ownership of PPPC, and one they will hold in high esteem.

The Board now is moving forward, and have begun by taking control of our IT platform and a changing role for Office Beacon, as we progress toward the inclusion of a local provider and solution to address our unique Canadian needs and languages, toward delivery of a state of the art and promised platform. Our Head

A MESSAGEFROM THE CHAIR

Office has been directed by the entire Board to aid in the process of helping to deliver a progressive and proud model. Your Board is committed to open and complete communication with the membership throughout this process. You, the Member/Owners of our Association will be encouraged to attend meetings that will be scheduled across the country, to engage in the process toward producing an outcome and Association we will all be proud of and more invested.

Aristotle said courage is the first virtue, and the most important in leadership. The Board of PPPC thanks our Head Office staff, the many Stakeholders who participated in the interviews, and all of you who have exercised that one inalienable and undeniable right of a member/owned Association…THE RIGHT TO BE HEARD!

We hear you clearly!

Sincerely,

Alain Gravel, Chair of the Board

- Message from the Chair -2 | PPPC ANNUAL REPORT 2016

USADistributors - 6Suppliers - 46MLRs - 1Associates - 7Other - 1

NWT

BC

ABSK MB

ON

QC ATL

ATL

ATL

New Members Welcomedinto the Association in 2016

TOTAL1,291 members

Member Relations Member Retention Member Recruitment• PPPC attended numerous tradeshows

across the country in 2016. PPPC travelled over 30,000 kilometers to attend 32 different industry trade shows in 2016!

• A targeted member communication plan was ongoing in 2016. Membership and customer service staff contacted all current PPPC members to reinforce the value of membership and inform members on upcoming initiatives and opportunities within the association.

• In celebration of PPPC’s 60th anniversary, in 2016 PPPC opened its doors and invited potential members to attend the Natcon and TOPS+. Numerous potential members attended these events and many of them moved on to become members.

- Membership & Business Development -

Distributors 63

Suppliers 19

MLRs

Associates 4

Total 87

1In a study targeting new members, respondents indicated that their top 2 reasons for becoming a member are Promocan (77%) and PPPC trade shows (68%).

Distributors84

Suppliers24

MLRs5

Distributors139

Suppliers3

MLRs7

Distributors384

Suppliers132

Distributors204

Suppliers59

MLRs14

Associates5

Distributors46

Suppliers3

MLRs2

Distributors36

Suppliers5

MLRs3

Distributors36

Distributors2

MLRs24

Associates13

PPPC ANNUAL REPORT 2016 | 3

Lookingtowardsthe future.Promocan continues to be one of the most important PPPC member benefits. With the refinements made in the previous year, 2016 focused primarily on migrating Promocan to a newer technology platform that will be the foundation for continual improvement of the site. This new Promocan will introduce a more robust series of features including a new quoting system along with the ability to further customize the distributor client focused websites. At the end of 2016 Promocan moved to a new platform and while hiccups were expected, PPPC’s development team worked on making the transition as seamless as possible.

During this past year, PPPC engaged a Montreal based Web Development Company to provide our members with a bilingual tech support service for all aspects of Promocan. Mediavore Inc. will continue to provide tech support and will be the primary developer for any work on Promocan following the completion of the migration to this latest platform. Mediavore’s immediate focus will be to work on enhancements and improvements to the overall user experience on Promocan.

With Promocan moving forward and PPPC controlling all aspects of Promocan, Office Beacon’s role within PPPC will focus primarily on providing PPPC and member suppliers with product data updating services to populate the Promocan search engine. They will continue to provide our members with optional services from their list of offerings.

We anticipate 2017 to be a very productive year for Promocan as we continue to look at delivering a state of the art IT solution and platform for PPPC Members.

- Information Technology -4 | PPPC ANNUAL REPORT 2016

Lookingtowardsthe future.

Bringing Members Together.2016 National ConventionThe 2016 National Convention, Canada’s largest promotional product trade show, welcomed 193 exhibitors in 375 booths. An impressive 3,158 attendees visited the 3-day Trade Show, held at the Metro Toronto Convention Centre in Downtown Toronto. The ideal opportunity to meet and network with industry participants, a number of different networking opportunities were held throughout the week. The annual networking party, Battle of the Bands and Karaoke party, was a huge success. PPAI’s “Midnight Soul Patrol” and PPPC’s “The Misprints” battled it out in a friendly association competition. Hundreds of attendees gathered on the evening of the third day, to celebrate the association’s 60th anniversary and cheer on their peers, at the Image Awards ceremony. Best booth awards were presented to Rume Inc. for best overall booth and DML Creation for most innovative booth.

2016 TOPS+PPPC travelled across the country to bring distributors and their clients a unique trade show experience like no other. Nearly 2,000 distributors and their clients attended the travelling tour. The tour began on September 7th in Vancouver, followed by Calgary on September 9th, Toronto on September 14th and finally Montreal on September 16th. Overall, both distributors and suppliers valued the opportunity that they had to connect with one another, ‘I feel I get more impact from these smaller shows. They are more personal, not rushed, and allow you to connect with good quality suppliers’, says one member.

375Booths

193Exhibitors

3,158Attendees

- Events -

293 Booths | 1988 Attendees

PPPC ANNUAL REPORT 2016 | 5

Keeping You Connected.

PPPC Publications continued to be the leading source for ideas, industry news and up-to-date association information, in 2016. Whether in print or electronically, PPPC Publications have got you covered!

The PPPC Idea Book, the premiere catalog of the promotional product industry, continued to gain interest in 2016. Demand for the online version increased by 28.5%, compared to 2015, while the printed copies sold out shortly after its release. The Membership Directory was sent to all members via the annual PromoXpress mailing. In a recent survey conducted by the association, 95% of distributors indicated that they use their directory on a regular basis.

PPPC sent out approximately 400 targeted electronic communications to members in 2016 and grew their online following by approximately 12%. The PPPC Weekly Newsletter remained solid with a 36% open rate, well above the industry average of 20.9%. Members look to the Weekly for the latest industry news and information pertaining to the association. The Echo, an electronic communication targeting non-members, was sent out quarterly to encourage participation at PPPC events and promote the various membership benefits offered by the association. This communication resulted in a number of membership leads.

- Publications -6 | PPPC ANNUAL REPORT 2016

- Awards & Recognition -

And the Winner is…

Image AwardsIn 2016, 92 Image Award trophies were presented to well-deserving members, from 44 different member companies. BrandAlliance took home the National Distributor of the Year Award, for the second year in a row. The gold Supplier of the Year award was awarded to Debco Bag Distributors, while Spector & Co. was presented with the silver award and Leed’s the bronze.

Hall of Fame Mark Wingrove, MAS, of Bic Graphic, was recognized for all that he has contributed to the industry and association, and was inducted into the PPPC Hall of Fame. Mark was joined by his closest family, friends and colleagues, to celebrate this extraordinary achievement.

Humanitarian AwardKevin Hill, of Abednego Agencies, was honoured with the 2015 PPPC Humanitarian Award for his passion and selfless dedication to several charitable organizations. Lifeline Malawi (Malawi, Africa) and the Doors of Faith Orphanage, (La Mission, Mexico) are amongst the charities he supports. Staying local as well, Kevin volunteered as a minor league hockey and football coach in his community, for over 15 years .

Momentum Award (Left to right: Gary Chan, BrandAlliance, Nelson Ng, BrandAlliance, Jessica Néron-Lefebvre, Busrel Inc., Alex Wong, Redwood Classics Apparel, Jerome Smith, Bic Graphic, Michelle Farquhar,CAS, The Branding Company, Daniel Baker, Debco Bag Distributors, and Melanie Belore,MAS, McCabe Promotional Products)8 passionate and dynamic individuals were presented with the PPPC Momentum Award, recognizing those who demonstrate the initiative and skill required to propel our industry forward. The recipients were all presented with a beautiful Bulova watch and a plaque from iSM Line. Both Bulova and iSM Line were on stage to present these gifts to the recipients.

PPPC ANNUAL REPORT 2016 | 7

- Professional Development & Certification -

Taking Your Careerto Greater Heights PPPC’s professional development portfolio, powered by PPAI, strives to take your career to greater heights by offering members with a unique educational experience! During the 2016 National Convention, 10 different professional development sessions were offered to PPPC members, free of charge. Sessions kicked off with 2 highly anticipated keynote speakers, Karl Subban and Chitra Anand from Microsoft. In May, ladies from all areas of the industry gathered together, at the beautiful Oakwood Resort, in Grand Bend, Ontario, for the 7th annual Women’s Empowerment Event (WEE). The fabulous two day conference was the ideal combination of recreational team building activities and educational seminars. The Women’s Empowerment Event continues to gain popularity amongst women in the industry. Participation increased by 22% in 2016. These seminars enable members to earn points towards industry certification. To date, 126 members have earned a TAS, CAS, MAS or MAS+ designation.

8 | PPPC ANNUAL REPORT 2016

- Public Relations & Social Media -

Giving Backto the Membership.

$13,500

9Scholarships

768,660 PPPC Reward Points Redeemed

$42,579.26

$3,060worth of Gift Cards& other prizes

TOTAL - $62,420.94

Join the Conversation.

822

LINKEDINGROUP

MEMBERS

22% 7%

TWITTERFOLLOWERS

FACEBOOKLIKES

2 x $250account credits for earlymembership renewal

2 Free PPPC membershipsfor 2016 AGM participation

PPPC ANNUAL REPORT 2016 | 9

Promotional Product Professionals of Canada (PPPC) is fully accountable for the integrity and objectivity of the financial information contained in the Annual Report. The accompanying financial statements have been prepared on an accrual basis of accounting as required by generally accepted accounting principles, applying informed judgements and estimates where acceptable.

PPPC maintains a system of internal accounting controls providing reasonable assurance the assets are safeguarded and transactions are executed in accordance with managements authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles.

The Finance committee of the Board of Directors is responsible for recommending to the Board of Directors the independent accounting firm to be retained for 2017 and approved by the membership. The President & CEO meets annually with the independent auditors to review accounting, auditing, internal accounting controls and financial reporting matters. All Board members have free access to communicate with the auditors.

Hardy, Normand & Associés has done a Review Audit of PPPC’s financial statements and issued an unqualified opinion. Management has made available to Hardy, Normand & Associés all the Association financial records and related data, as well as the minutes from the Board of Directors meetings.

Ed Ahad,President & CEOPromotional Product Professionals of CanadaMontreal, QuebecJanuary 2017

- Management Report & National Board of Directors -

Management Report

Back row: Max Baer, Iain Walker-Chair Elect, Alex Jovetic, Rosalind Plummer, MAS, Steven Polish, MAS, Laura Hansen.Front row: Rohan Vilimek, Heidi Reimer-Epp, Don Fahie-Immediate Past Chair, Alain Gravel-Chair of Board, Ralph Dei Tigli, Kenneth Ho.

2016 PPPC National Board Of Directors

10 | PPPC ANNUAL REPORT 2016

For the accompanying notes and the detailed financial report, visit www.promocan.com/en_ca/page/annualreport

- Statement of Activites & Statement of Financial Position -

___________________________, Alain Gravel, Chair of the Board

___________________________, Iain Walker, Treasurer

Approved by the Board

STATEMENTOF ACTIVITIES

PPPC ANNUAL REPORT 2016 | 11

Notes 2016 2015Revenue Membership $984,782 $1,016,912 National convention $744,934 $833,720 TOPS $350,782 $414,410 Idea book $98,260 $133,750 Information technology $61,460 $98,300 Education $24,170 $27,830 Membership directory $19,690 $24,793 Image news $26,120 $24,030 Interest $7,711 $20,851 Other Income $34,374 $35,100 Change in unrealized fair value of investments $1,252 $(15,193)

$2,353,535 $2,614,503

Expenses Membership $59,538 $68,913 National convention $604,153 $589,582 TOPS $273,786 $305,395 Idea book $42,489 $41,120 Information technology - Product sourcing $156,395 $176,900 Information technology - Transition costs $17,613 $5,000 Information technology - Information and training $13,409 $13,216 Education $57,435 $51,820 Membership directory $15,152 $16,847 Image news $6,153 $8,116 Images - - Rewards program - $42,000

$1,246,123 $1,318,909$1,107,412 $1,295,594

Other expenses (Schedule) Operating expenses (Appendix A) $(652,637) $(790,527) Administrative expenses (Appendix B) $(470,343) $(489,976)Excess (Deficiency) of revenue over expenses $(15,568) $15,091

AssetsCurrent assets Cash $990,602 $761,338 Cash Chapters - $726 Accounts receivable 3 $470,153 $588,413 Prepaid expenses $104,828 $258,459 Current portion of investments 4 $321,313 $513,646

$1,886,896 $2,122,582Investments 4 $160,476 $146,653Capital assets 5 $16,034 $19,920

$2,063,406 $2,289,155LiabilitiesCurrent liabilities Accounts payable and accrued liabilities 6 $102,678 $152,384 Deferred revenue 7 $1,003,889 $1,164,364

$1,106,567 $1,316,748Net Assets Invested in capital assets $16,034 $19,920 Unrestricted $413,867 $425,549 Internally restricted 8 $526,938 $526,938

$956,839 $972,407$2,063,406 $2,289,155

STATEMENTOF FINANCIALPOSITION

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