APRIL 2018

Friday April 27, 2018The Fairmont Royal York,

Tudor 7&8, Main Mezzanine Level 100 Front St W, Toronto

Graham is the CEO of dentalcorp, a company he founded in 2011. Recognized as one of Canada’s 50 Best Managed Companies, dentalcorp is Canada’s leading network of dental clinics with over 250 locations, 2.5 million annual patient visits and 4,500 employees nationwide.

As a successful entrepreneur and business builder, he brings extensive experience in principal investing and company building across North America, with a focus on consolidation-based strategies. In 2015, he was elected EY Entrepreneur of the Year for Business Services.

Graham also provides leadership and expertise to a wide range of businesses and non-profit organizations, and serves on the Board of Directors of dentalcorp, Northview Apartment REIT, Starlight Multi Family (No.1 Value Add and No.5 Core) Funds, and Mount Sinai Hospital Foundation.

Graham is a CPA and earned his BBA and MBA degrees from the Schulich School of Business in Toronto.

Graham RosenbergChief Executive Officer

dentalcorp

Join us for the DIAC Annual General Meeting

“The Changing Dynamics of the Canadian Dental Industry”

Grey Market Summit 2018

Wednesday, April 25, 2018

1:00pm - 5:00pm

Grey Market Summit

Toronto Sheraton Hotel

Simcoe Room

This upcoming meeting is a continuation of a series of Grey Market Summits DIAC has held for the past several years where our manufacturing members, and guests from professional associations and Health Canada have come together to share and discuss sources and methods in the market for non-compliant dental products, and methodologies to avoid diversion and counterfeiting of our members’ products and trademarks.

All our meetings are commenced with a statement that attendees will at no time engage in discussion or activities that might serve to lessen competition among its industry members, such as price adjustments, customer segmentation or the sharing of confidential, proprietary information.

DIAC believes that if we continue to work together on addressing this very serious issue, we can make a significant dent into this problem.

Welcome to our newest DIAC members:

www.micrylium.comwww.cleardent.com

NEW MEMBERS

HENRY SCHEIN CANADA DONATES $20,000 TO CANADIAN CANCER SOCIETY IN SUPPORT OF ORGANIZATION’S MISSION TO ERADICATE DISEASE

Donation Made During Henry Schein Canada’s National Sales Meeting in Vancouver; Team Also Packs Hygiene Kits for Disaster-Affected Communities in Manitoba

MELVILLE, N.Y., March 23, 2018 – Henry Schein Canada, the Canadian dental business of Henry Schein, Inc. (Nasdaq: HSIC), announced today that it has donated $20,000 to the Canadian Cancer Society (CCS) in support of its efforts to eradicate cancer and enhance the quality of life for people living with the disease.

Cy Elborne, President of Henry Schein Canada, presented the cheque to Sofia Janmohamed of the Canadian Cancer Society, at the company’s recent National Sales Meeting in Vancouver, British Columbia. The 3-day meeting brought together more than 350 Team Schein Members (TSMs) from across Canada, including 225 sales and service representatives, as well as 100 representatives from 35 supplier partners. Mr. Elborne and the Henry Schein Canada team made the donation in honor of their fellow TSMs who have lost their battle with cancer.

Read the full story here:

APRIL 2018 PAGE 2

NEWS

Young Innovations Announces Acquisition of Mydent International

Algonquin, Illinois, USA, January 23, 2018 – Young Innovations, a leading global manufacturer and distributor of dental supplies and equipment, today announced the acquisition of Mydent International Enterprises Corp. (“Mydent”). Launched in 1985, Mydent is a leading supplier of infection control products, disposables, preventives, impression material systems, rotary instruments and restoratives, including under the DEFEND brand, in over 45 countries.

Read the full story here:

Management Appointments at Sinclair Dental

Sinclair Dental Co. Ltd. is pleased to announce the following appointments to its Management team. Please join me in welcoming Victor, David and Ali to their new roles. Together, with all of the members of the Sinclair family from coast to coast, we look forward to continuing to build upon our partnerships.

Shahab Soltani Chief Executive Officer

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APRIL 2018 PAGE 3

NEWS

2018 Federal Budget – How it Affects You and Your Business

The 2018 Budget marks the culmination of a tumultuous year in which we saw the proposal of the most significant tax changes in the last 45 years, many of them specifically targeted at professionals, including dentists. The 2018 Budget confirmed that the Government would be moving forward with changes regarding income sprinkling that were re-released on December 13, 2017, and included draft legislation regarding the taxation of passive income earned by private corporations.

Tax on Split Income (a.k.a. “Income Sprinkling”)

The December 2017 proposals introduced several “bright-line” exclusions from the application of Tax on Split Income (“TOSI”). If a taxpayer can meet the conditions for one of the exclusions, the new TOSI rules would not apply, and you would be able to continue paying income to family members which would be subject to the graduated rates and not the highest marginal rates. Some of the notable exclusions are as follows:

· Age Test: If the business owner is age 65 or older, their spouse will generally be able to continue receiving income;

· Excluded Business: Family members who have made a substantial labour contribution (generally an average of at least 20 hours per week) to the business during the year, or any five previous taxation years;

· Excluded Shares: Adults aged 25 or older who own 10% or more of a corporation, provided that the corporation earns less than 90% of its income from the provision of services, and is not a professional corporation;

· Qualifying Capital Gains: Individuals who receive capital gains on the disposition of qualified small business corporation shares will not be subject to TOSI.

If none of the exclusions apply, then individuals who have attained that age of 25 in or before the year will be subject to TOSI on amounts if they exceed a “reasonable return”.

In light of these new rules, we recommend meeting with your tax advisor to determine if any exclusions might be available for your business, so that you can continue splitting income with your family.

Holding Passive Investments Inside a Private Corporation

Active business income earned by Canadian Controlled Private Corporations (“CCPCs”) is taxed at corporate rates that are generally significantly lower when compared to personal tax rates. As a result, CCPCs have more after-tax income to invest than individuals earning the same income. Where this after-tax income is invested passively, the Government is of the view that CCPCs have an unfair advantage compared to unincorporated individuals. Budget 2018 introduced two measures to limit the value of this perceived advantage:

Business Limit Reduction

Where a CCPC and its associated corporations earn annual investment income in excess of $50,000, Budget 2018 proposes to limit the corporation’s access to the small business deduction (“SBD”). For every $1 of investment income in excess of $50,000, the SBD will be reduced by $5. This means that when a CCPC and its associated corporations earn $150,000 of investment income, access to the $500,000 SBD will be eliminated, and income earned by the CCPC will be subject to the higher general corporate tax rate.

Refundability of Taxes on Investment Income

When a CCPC earns passive investment income, a portion of the tax it pays is refundable when the corporation eventually pays dividends to it’s shareholders. This refundable dividend tax on hand (RDTOH) is refunded at a rate of $38.33 for every $100 of dividends paid.

CCPCs can typically pay two types of taxable dividends – eligible or ineligible. When a CCPC is taxed at the general corporate tax rate, it can generally distribute it’s retained earnings as eligible dividends, which are subject to preferential personal tax rates. Where a CCPC is taxed at the small business tax rate, or earns passive investment income, it’s retained earnings are distributed as ineligible dividends, which are subject to higher personal tax rates.

Bonnie Tan CPA, CA, MBA

APRIL 2018 PAGE 4

Jim Wareing

Technorama Chair

TECHNORAMATM 2018Once again Technorama was a huge success.

With over 1100 attendees over the two day show and 77 booths, it was one of busiest shows to date. We were excited to have 56 companies occupying the 77 exhibit booths. Over 200 exhibit staff were on the show floor to display their products, services and engage with the attendees. Digital dentistry was predominately displayed with the latest invovations being shown at many of the booths.

Our 21 seminars were a sellout! The Technorama agenda offered three seminar topics in each of the 7 time slots over the two days which allowed attendees to attend the seminar topic most relevant to them.

Thank you to the ADTO and DAO for supporting Technorama once again this year. Without your member’s support, the show would not be the great success it is.

Thank you to Henry Schein for providing the conference bags, 3M for sponsoring the hospitality reception, Ivoclar Vivadent for providing the lanyards and sponsoring the registration and to the Aurum Group/Core 3d Centres for sponsoring the continental breakfast.

Lastly, I would like to thank all the DIAC volunteers that offered up their time and expertise to make this show a great success.

Next year’s show is scheduled for April 5th & April 6th 2019 at the Hilton Markham Suites.

Hope to see you there.

Under the current system, both eligible and ineligible dividends can generate a refund of the RDTOH. Budget 2018 changes this, so that only ineligible dividends will give rise to a refund of RDTOH. One exception exists in respect of RDTOH that arises from the receipt of eligible dividends by the CCPC – this will continue to be refunded if the CCPC pays eligible dividends.

As a result of these changes to holding passive investments inside a private corporation, it will be essential to work closely with your financial advisor and tax advisor to minimize and manage the possible impact on your business. By modifying your investment strategy, you may be able to manage the amount of investment income realized in a given year. Additionally, it is advisable to revisit your remuneration strategy to ensure that it provides you with flexibility to help manage the changes introduced in budget 2018.

If you have any questions please contact Bonnie Tan at (416) 515-3847, bonnie.tan@mnp.ca.

Health Sector Payment Transparency Act, 2017.

DIAC Comments Submitted to the Ontario Ministry of Health and Long Term Care - April 5, 2018

DIAC Position: More time is needed for stakeholder consultation to understand consequences

Key Points:

The Ontario list of payors and recipients goes well beyond what any other country has adopted for transparency reporting. For example, the Physician Payments Sunshine Act was adopted in the United States in 2010 and recipients are only teaching hospitals and physicians. Without changes to the regulations, the entire dental community (medical device manufacturers, distributors, laboratories; dentists, dental hygienists, dental technicians) will incur a significant financial burden without any evidence to suggest patients have a trust issue with their dental health providers and the dental system or with being able to access information to make an informed decision. It also appears as though the information to be reported does not relate to just the traditional“transfer of

value” benefits but to the entire activity of a company, putting a huge administrative burden not only on all those identified as a “payor” but also on “recipients” expected to review any transaction with a value greater than $10. DIAC Proposal:Extend the Consulting PeriodExempt dental manufacturers, distributors and laboratories from the list of payors. Wins: Industry Advocacy was heard by the MinistryMinistry of Health and Long Term Care has delayed the regulation approval process until the fall. Next Steps: Continued Advocacy Please visit (Diac website) to view the DIAC submission on behalf of the Industry.Read the full story here:

APRIL 2018 PAGE 5

Regulatory Subject Matter Committee Update

Susanne CurrieDirector, Regulatory

Affairs

Future of Dentistry (FOD) Survey 2018Future of Dentistry Membership Survey

With the 2018 DIAC Future of Dentistry Survey nearing our survey response deadline of June 6, 2018, we’re pleased to announce that we have seen a 40% increase in survey responses compared to last year at this time.

That said, we’re still well short of our 2018 target of 700 respondents and we’re asking all DIAC members to continue with their marketing and awareness ads through email and print because we can see positive results from those initiatives.

We’re looking forward to reaching our goals your support is sincerely appreciated.Karl Schmidt

Director,Market Research

APRIL 2018 PAGE 6

Pacific Dental Conference (PDC) Networking Event – March 7th, 2018On Wednesday March 7th, 2018 we held our 4th annual social networking event at PDC. It was held at Mahony’s & Sons Pub Burrand Landing.

This year over 80 member company representatives joined us for a great evening of networking. Refreshments and bites were served and great prizes were drawn.

We would like to thank the sponsors for the donations and are looking forward to next year for another social event. See you in 2019.

Save the Dates!

Friday, April 27, 2018AGM, Royal York Hotel, TorontoThe Fairmont Royal York,100 Front St W, Toronto

AGM Web Link

JDIQ Networking EventSunday, May 27, 20185:00pm - 7:00pmMontreal, PQ

Save the Date

Come and Get to Know your IndustryAssociation & Colleagues

We had a very successful fifth season with our popular coupon books. With 36 different member companies participating over the three main Canadian shows, our coupon books have been growing over the years.

Thank you to all our exhibiting members for making it such a success.

Contact Debra at info@diac.ca for more information.

2018 COUPON BOOKS

Conventions

MARCH8-9, 2018

The Organizing Group of the 2018 Pacific Dental Conference would like to again thank you for your participation. Your support has contributed in making the 2018 Pacific Dental Conference our most successful meeting EVER – breaking he 14,000 person mark! As one of the largest dental conferences in North America, partnering with valued exhibitors such as you continues to be an essential component of the Pacific Dental Conference’s success and we thank you for that.

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Management Appointments at Sinclair Dental www.sinclairdental.com

Dear Manufacturing Partners of Sinclair Dental,

Sinclair Dental Co. Ltd. is pleased to announce the following appointments to its Management team. Please join me in welcoming Victor, David and Ali to their new roles. Together, with all of the members of the Sinclair family from coast to coast, we look forward to continuing to build upon our partnerships. Shahab Soltani Chief Executive Officer 1-800-663-7393

Shahab Soltani

Chief Executive Officer

Mr. Shahab Soltani has been elected as the Chief Executive Officer (CEO) for Sinclair Dental, on March 2, 2018, in a strategic and advisory role. Mr. Soltani has been with Sinclair Dental Co. Ltd for more than 30 years providing leadership in the growth of the Alberta market as well as an advisor to the late CEO, Dr. Arjang Nowtash.

Victor Michaud

Chief Operating Officer

Mr. Victor Michaud accepted the role of Chief Operating Officer (COO), on February 1, 2018 and is responsible for the company’s daily operations and will continue to oversee the growth in the Quebec marketplace. Mr. Michaud has been in the dental industry for more than 33 years and for the last 18 years with Sinclair Dental Co. Ltd, where he provided leadership most recently as the Vice President, Ontario, Quebec and Atlantic Canada.

David Sammut

Vice President, Ontario and Atlantic Canada

As of April 1, 2018, Mr. David Sammut was promoted from Director of Sales and Business Development in Ontario to the role of Vice President, Ontario and Atlantic Canada. In his new role, Mr. Sammut is responsible for leading the organizations in Ontario and Atlantic Canada. Mr. Sammut has been with Sinclair Dental Co. Ltd since 2006, progressing from sales to leadership roles.

Ali Nowtash

Vice President, Marketing and Purchasing

With expanded duties, Mr. Ali Nowtash is now the Vice President, Marketing and Purchasing, as of March 22, 2018. Mr. Nowtash has been in the dental industry with Sinclair Dental Co. Ltd for more than 19 years in both sales and leadership roles.