December 2013 Special Digital Print Edition by Blackslate Media Group (BMG)

Businessuite Magazine Special Edition December 2013

CONTENTS Entrepreneurship

Editorial

Page

The 2005 - 2013 List and What it Says about Staying Power.

LEadership

Page

What The CEO’s Expecting For 2013

Page

Were

Page

Special Feature Stories Page

2013 Top 50 By Revenue (Combined)

Page

2013 Top 20 By Revenue – Main Exchange

Page

2013 Top 10 By Reveue –Junior Exchange

17 Page

18 Page

21 Page

22 Page

2013 Top 50 By Profit After Tax (Combined) 2013 Top 20 By Profit After Tax – Main Exchange 2013 Top 10 By Profit – Junior Market

2013 Top 10 By Market Capitalisation

Page

2013 Top 20 By Market Value

Credits: Managing Editor: Aldo Antonio - blackslateholdings@gmail.com Chief Operating Officer (COO): Michael Dixon - michael@blackslateholdings.com Chief Marketing Officer (CMO): Aldo (Al) Antonio - aldo@blackslateholdings.com Copy Editors: Damian Wilson, Ewort Atkinson MBA. Graphic Design/Layout: Miguel Anthony Rowe - mdstudio09@gmail.com Photo credits - Sourced from the internet and contributed Advertising Sales - businessuitemagazine@gmail.com

Find out what’s the latest SME business news and features from Jamaica, the Caribbean and around the world go to our online magazine at www.businessuiteonline.com For all information call 876-631-3890 (o) or 876-280-9192 (m) OR email businessuitemagazine@gmail.com Businessuite Magazine Special Edition December 2013

What Type Of Entrepreneur Are You? Management What Exactly is Emotional Intelligence and Do you Have It? Technology Free Broadband Will Transform The Jamaican Economy

Special Feature Stories Page

The 2012 Jse Market Trading Summary

Page

2012, A Year Filled With A Level Of Uncertainty.

26 Page

28 Page

38 Page

The Businessuite Magazine Top 1O Ceo’s For 2013 - Junior Stock Exchange. Ceo’s Pushed To Perform In Spite Of A Challenging 2012 Business Environment. The Businessuite Magazine Top 1O Ceo’s For 2013 - Main Stock Exchange.

Publishers: Businessuite News Centre A division of the Blackslate Media Group More Info call 876-631-3890 (o) or 876-280-9192 (m) OR email blackslateholdings@gmail.com -------------------------------------------------------------------Corporate Information: Blackslate Media Group Limited, Kingston 19, Jamaica To learn more about Blackslate go to www.blackslateholdings.blogspot.com

Editorial

The 2005 - 2013 List and What it Says about Staying Power. test of excellence and sustained performance. We may envy the hugely attractive salary and fringe benefits, but being a CEO is for the most part a meritocracy fraught with as much pressure as there are perks. These professionals have gotten to where they are today by virtue of insight, sheer knowledge, extensive experience and hard work and therein lies the success stories. These are simply put, people who know their job and do it very well. The Junior Stock Exchange receives its first full extended coverage this year compared to last year which was the first Businessuite reporting and monitoring. Itâ&#x20AC;&#x2122;s still early days yet and given that this is not a race for the swift but for those who can endure, we will have to observe their performance in the coming years to make a he 2013 List of CEOâ&#x20AC;&#x2122;s is about who does full assessment. We are however keeping a special watch what and how well they are doing it, con- on the three Lascelles Chin owned Lasco companies all sistently, year after year. To stay on The the signs are telling us that something big is going to List, which we continue to highlight, is the true happen there.

B USINE SSUIT E T OP T E N CE O's R ANK INGS 2 0 0 5 - 2 0 1 3 2005 -2013 T op 10 Ranking 2005 2006 2007 2008 NR NR NR NR 7 7 NR 1 NR NR 2 3 NR 5 NR 8 8 NR 3 NR NR NR NR

NR NR

NR NR NR NR 10 2 4 3 NR

NR NR 6

8 NR

2 NR NR 3 4 9

NR NR 1

NR NR 6

NR 4

NR NR NR NR 9 NR 7 8 NR

NR 5 NR

13 NR

NR NR NR 4 7 6 NR 10 14

2009 5 2 10 7 3 NR NR NR

NR 4

NR NR NR NR 9 NR 8

2010 NR NR NR 9 NR 2 3 NR NR NR NR NR 1 4 10 NR 6 8 NR NR NR 5

2011-12 5 4 2 NR NR NR NR NR NR 7 NR NR NR NR 1 10 NR 9 8 6 3 NR NR

2012-13 * * 2 NR NR 6 NR NR * 5 NR * 3 3 NR 1 * NR 9 * 8 NR *

CEO Alan Barnes Anya Schnoor Brian George Bruce Bowen Byron Thompson Cedric Blair Christopher Barnes Christopher Levy Clovis Metcalfe Don Wehby Donovan Perkins Douglas Orane Gary Peart Grantley Stephenson Jeffrey Hall Keith Duncan Michael Bernard Patrick Hylton Richard Byles Ryland Campbell Stephen Facey Stephen Facey William McConnell

COMPANY Desnoes & Geddes Limited Scotia DBG Investments Ltd. Supreme Ventures Ltd. Scotia Group Jamaica Ltd. Seprod Limited Desnoes & Geddes Limited Gleaner Company Jamaica Broilers Group FirstCaribbean International Bank (Jamaica) GraceKennedy Limited Pan Caribbean Financial Services GraceKennedy Limited Mayberry Investments Limited Kingston Wharves Jamaica Producers Group Jamaica Money Market Brokers Carreras Limited National Commercial Bank Jamaica Ltd. Sagicor Life Jamaica Capital and Credit Financial Group Limited Pan-Jamaican Investment Trust First Jamaica Investments Lascelles deMercado & Co. Limited

Businessuite Magazine Special Edition December 2013

Editorial

As for the main exchange listing, a number of former members will for a variety of reasons not make a return due a factors including no longer in the position, as in the case of Douglas Orane at GraceKennedy who relinquished the CEO position holding onto the Chairman’s seat.

but continued to serve in a consultative capacity and as a Non-Executive Director of the company. He was replaced by Nigel Holness who was appointed Managing Director and Senior Coverage Officer for FirstCaribbean International Bank’s operating company in Jamaica.

There was talk of Anya Schnoor returning to take over And finally after two years in Jamaica, Alan Barnes in the reins at Scotia Group but the recent appoint of Jac- 2011 resigned his post at Red Stripe returning to South queline Sharp has laid this to rest. Sharp with 16-years Africa to be with his family. at the bank was appointed its first female president and CEO, putting her in charge of Jamaica’s second-largest The fact that Patrick commercial banking group. It also means that Bruce Hylton Group ManBowen who did not make the 2013 top 10 list will also aging Director at not be expected to reappear given his promotion and National Commerrelocation. Bowen, will return to Canada and take up a cial Bank is not on new appointment as senior vice-president, Caribbean, the 2013 list could International Banking with Scotia Bank Canada. be interpreted as the end of long run. Michael Bernard, former managing director of CarHylton was one of a reras Limited after over two decades of executive servery few CEOs that vice to the Carreras group announced his retirement we could pencil into effective December 31, 2010, making way for Richard this list on a year to Pandohie who had been on secondment with British year basis. Such was American Tobacco Caribbean and Central America. the level of consistency of the NCB boss that he became something of a Ryland Campbell former chairman and group presi- fixture on this list. We assumed last year that it would dent of Capital and Credit Financial Group (CCFG) be for years to come, as long as he remains at the helm engineered the sale of the group he founded and led to of the banking giant. Up to last year Hylton was the JMMB group CEO Keith Duncan in 2012. only CEO to maintain a presence on the list every year since inception in 2005. He peaked at #4 on the 2006 The deal saw JMMB acquiring CCFG at J$4.55 per list and placed ninth last year. Could this also be a sign share in a cash and shares combination deal valued at that NCB has reached its peak and must now reinvent J$4.22 billion - 70 per cent of J$2.95 billion will be cash itself to produce the increased growth the market has financed from JMMB’s internal resources while the come to expect each year? other 30 per cent will be issued in the form of JMMB shares to CCFG shareholders. We again salute the repeat placements for their consistent high performance, providing an example of how William McConnell the former managing director of to lead large, complex, dynamic organizations. Credit local conglomerate Lascelles Group through a consor- and welcome also to those new to the list. For making tium named Black Sand staged in 2011 a failed attempt the arduous climb to join an elite club of managers and to acquire the company he once headed and return it leaders in your field – we salute you all. Success is not once again to a sound financial footing. He however a singular act but a habit. We are what we repeatedly endorsed the acquisition of The Lascelles Group by do. It is therefore fair to anticipate your presence in Campari Group in 2012. successive years. BM Clovis Metcalf retired from FirstCaribbean in 2010 Businessuite Magazine Special Edition December 2013

Le a d e r s h i p

What The CEO’s Were Expecting For 2013

e continue to view with intrigue how the CEO’s saw this year and how they would adjust their strategies accordingly. This adjustment will be seen in their annual reports for 2013 and so forms a good basis and backdrop for their decision making process. We now take a selected look at some of the predications and intended strategies for 2013 by sector, and allow you to assess based on what we now know to be the reality. We start with the international perspective and outlook. International Environment

In their January 2013 World Economic Outlook Update, the International Monetary Fund (IMF) indicated that they expect the world economy to expand by 3.4% (annualised) in the first quarter of 2013; up from 3.0% in the last quarter of 2012. While the growth in Q4 2012 was entirely due to the developing economies, it is believed that the advanced economies will contribute to a quarter of the expected growth in Q1 2013. 8

An upturn in economic growth in 2013 was predicted for Latin America and the Caribbean by The Economic Commission for Latin America and the Caribbean (ECLAC). According to ECLAC, in 2013, Latin America and the Caribbean will see stronger economic growth, despite ongoing uncertainties at the international level (particularly the difficulties faced by Europe, the United States and China). In 2013, while the Region will grow by around 3.8%, thanks mainly to the recovery of the economies of Argentina and Brazil, as well as ongoing buoyant internal demand in several countries, Caribbean countries will remain fiscally fragile, and will require reforms accompanied by external support to ensure sustainable fiscal consolidation trajectories.

“Jamaica’s deteriorating economic conditions will create many changes and challenges for the gaming industry in 2013 and strongly affect the Group’s operations. The Government of Jamaica has implemented new measures in order to meet the requirements of the IMF to reduce the overall debt burden of the country. The National Debt Exchange programme and new tax package will affect the discretionary income of players, which is crucial for the success of the business. The National Debt Exchange allowed the Government to request a voluntary offering of local bonds for exchange with lower yielding, later maturing bonds. This offer was taken up by 99% of local bond holders and projected to reduce debt to GDP ratios by 8.5% or approximately JMD 17 Billion between now and 2020. The Government of Jamaica Local Environment proposed a raft of new revenue Gaming Industry Sector measures that is expected to yield JMD 16.4 Billion, JMD 1.5 Billion of which will come from the gaming industry in the fiscal year 2013/14. Additional measures that will affect the income of players are as follows: continued 1. The depreciation of the Jamaican dollar 2. An increase in Education Tax of 0.5% paid by Brian George, President and employers and 0.25% by CEO, Supreme Ventures Limited employees. (SVL) 3. An increase in the tax on Businessuite Magazine Special Edition December 2013

Le a d e r s h i p

dividends for Jamaican residents from 5% to 15%. 4. An increase in the stamp duty from 3% to 4%; and 4% to 5%.”

provided by the overwhelming support of the NDX to put in place those measures which will assure the economic reform necessary for the country. We are cognizant of the challenges across the world, Distribution and Manufacturing hence a core part of our strategy is to grow and diversify our revenue base geographically and across targeted product segments. The Group’s 2020 Campaign Map outlines the four pillars of success: 1. Growth and Sustainability 2. Customer Centricity and Innovation 3. Operational Excellence 4. Performance Driven Organisation In 2013, GraceKennedy will Donald G. Wehby, Group Chief continue to pursue growth Executive Officer, GraceKennedy while strengthening existing operations both in Jamaica and “The outlook for 2013 and internationally.” GraceKennedy’s future strategic approach continue to be driven by the goal of becoming a Global Insurance Sector Consumer Group and a Regional Financial Group. Jamaica, our home base, continues to go through economic transition; we have confirmed our participation in the National Debt Exchange (NDX). While it is expected that this will have a short term adverse impact on profitability it will not have a material impact on the financial position of the Richard O. Byles President & Group, and it was thought to be in CEO Sagicor Life Jamaica the best long term interests of the Limited shareholders of GraceKennedy Limited and necessary for the “For the second time in three long term success of Jamaica to years, Jamaica finds itself in a dire participate in this exchange. economic situation that requires

The NDX of February 2013 and the subsequent private exchange in March will significantly impact our financial performance in 2013. On exchange of the old GOJ notes for new notes at par value with longer maturities and lower coupon rates, the Group will realise capital losses and there will be lower interest income going forward. However, our assessment is that the negative impact of the NDX will not impair the solvency of member companies within the Group. The challenges over the next seven years, as we work ourselves away from this fiscal cliff, are only equalled by the opportunities they present. Opportunity to implement meaningful reforms of the public sector and the tax system. Opportunity to implement a public sector pension system. Opportunity to help frame fiscal rules which will prevent any GOJ spending in excess of fiscally prudent levels.

Following on this debt exchange the business community and Jamaicans as a whole need to be more involved in monitoring the recovery programme to ensure we remain steadfast in achieving the targets over the next seven years. In this respect, Sagicor intends to play an active role on the Oversight Committee proposed by the Minister of Finance. The truth is, no matter how hard you try to build a great company, if it exists drastic action, including another in a weak and fragile economy, it It is expected that the Government debt exchange. will always carry excessive asset of Jamaica will use the opportunity risk. Sagicor is determined to play Businessuite Magazine Special Edition December 2013

Le a d e r s h i p

its part in creating an economic Banking Industry environment that will allow our company to achieve and maintain its full potential.”

Tourism

Stafford Burrowes, OD Chairman and Chief Executive Officer Dolphin Cove Limited “We believe that we are in the right industry in the right places. Tourism can suffer temporary setbacks from time to time but in the long run it is enduring and we look forward to the emergence of millions of new entrants to the middle income levels who can travel from countries with enormous populations. We also look forward to an increase in Jamaica’s capacity to receive more visitors with new and expanded hotels. You are invested in a Jamaican listed company that uniquely receives almost all of its income in United States dollars and sells to a market that is not dependent on the highly vulnerable Jamaican consumer. We look forward to the coming year with as much confidence as we have ever had.”

environment, successful execution of strategy takes on added importance as we seek to deliver strong financial results.

3. We will maintain our focus on operating efficiencies by reviewing processes and systems, consolidating functions across the Group and providing our customers with more convenient and cost effective channels to do Bruce Bowen President & CEO business with us. Scotia Group Jamaica Limited “The Jamaican economy faces 4. We will generate profitable and sustained revenue growth and further challenges that will keep build long term shareholder us operating within a difficult value by expanding our environment for the coming year. product offering in our Life Economic uncertainties gripping Insurance and Investment more developed economies will subsidiaries, and will enter challenge the country’s efforts new market segments. to extricate itself from the recent experience of low growth. Against this background, we will stay 5. Finally, we remain committed to our disciplined and focused on five key priorities to systematic approach to risk ensure that we deliver superior management. Our reputation value to our shareholders. of being a safe and stable institution increases in 1. We will seek to deepen significance during uncertain relationships with our economic times. customers and ensure that we are providing the right solutions and offering the This important capability gives best advice. By maintaining us a significant competitive a customer centric approach advantage in a difficult operating and leveraging our expertise environment.” in banking, insurance and investments, we are well- It’s clear that 2013 will not be an positioned to help our easy time for the listed companies customers be financially and for all companies operating in Jamaica. As we close out 2013 we better off eagerly anticipate the financial 2. We will continue to invest reports to see exactly how the ceo in our people to ensure were able to navigate and produce that we have the best team the kind of value expected by to execute on our business shareholders. Who will make the plans. In a difficult operating 2014 list? BM

Businessuite Magazine Special Edition December 2013

Entrepreneur

What Type Of Entrepreneur Are You? “What if three or five years down the road we think you’re not the right person to continue running this company” – how will you address that? Often times – particularly with high growth startups – the founding CEO does not remain the CEO who scales the company beyond the startup phase and investors ask this question to make sure you don’t have “founderitis.”

Founderitis is when a founder’s ego gets in the way of the company’s growth and the founder refuses to (or makes it hard to) step down/ step out of the position they hold. It’s really good to know what type of entrepreneur you are – as this will make it that much easier to know what you don’t know (another thing investors want to know you know). Knowing these categories gives you a vocabulary to discuss your strengths and your limitations. It’s important to have people on your team with a combination of the following strengths and abilities. It’s also equally important for you to know where you fit into the mix, know what you don’t know, and be prepared to exit gracefully when the times come – because it inevitably will. 12

The Idea Generator: (You The Grower: (You are what I like are the visionary, you come up with the great next big idea, your thoughts are not limited by what you hear from your peers, the media, the market, etc.)

The Innovator: (You can write

code, build things, sew things, invent things, and create something for others to sell. Innovators are typically not the same people who sell what they create.)

The Starter: (You are great at

creating a team from nothing and launching a new product or service. You know what it takes to write a solid business plan, implement and track that plan, research and respond to market trends, and surround yourself with people who are smarter than you.)

to refer to as someone who loves “a diamond in the rough.” You see the potential in people, products and markets, and know whether they are worth investing time, money, and energy into improving. You typically don’t like starting new things; you prefer to take something good that someone else has started and turn it into something great. A talent desperately needed in most companies. This person can take a company from surviving to thriving.)

The Exiter: (You are someone

who knows what it takes to position a company or person for exit. That exit is usually merging with another company, acquiring other companies, or taking a company public. This is a rare skill-set and these people are typically not the starters.)

The Changer: (You are not Caroline Cummings is a two-

only great at being a change agent, but you thrive from doing it. These people make the best “turn-around CEOs” – those who enter an existing company, access the situation, recruit change ambassadors, create a new bold plan, make tough decisions [close a business, fire people, hire people, discontinue a product, etc.], and re-position a company for optimal growth – and even sometimes dissolution.)

time technology entrepreneur. She’s co-founded and held the CEO position for two internet companies, OsoEco (social bookmarking/shopping site) and RealLead (mobile marketing for the real estate industry).

Read more: http://upandrunning.bplans. com/2013/02/22/the-10-questions-i-didnt-expect-tobe-asked-by-investors/#ixzz2gfzYNKtp

Businessuite Magazine Special Edition December 2013

M a n a g eme n t

What Exactly is Emotional Intelligence and Do you Have It?

someone is expressing angry emotions, the observer must interpret the cause of their anger and what it might mean. For example, if your boss is acting angry, it might mean that he is dissatisfied with your work; or it could be because he got The Four Branches of Emo- a speeding ticket on his way to work that morning or that he’s been fighttional Intelligence: ing with his wife. Salovey and Mayer proposed a model that identified four different Managing Emotions: The factors of emotional intelligence: ability to manage emotions effecthe perception of emotion, the tively is a key part of emotional ability reason using emotions, the intelligence. Regulating emotions, ability to understand emotion and responding appropriately and responding to the emotions of others the ability to manage emotions. are all important aspect of emotionWhat is Emotional Intelligence? Perceiving Emotions: The al management. first step in understanding emotions Emotional intelligence (EI) is to accurately perceive them. In According to Salovey and Mayer, refers to the ability to perceive, many cases, this might involve un- the four branches of their model control and evaluate emotions. derstanding nonverbal signals such are, “arranged from more basic Some researchers suggest that as body language and facial expres- psychological processes to higher, more psychologically integrated emotional intelligence can be sions. processes. For example, the learned and strengthened, while others claim it is an inborn Reasoning With Emotions: lowest level branch concerns characteristic. The next step involves using emo- the (relatively) simple abilities tions to promote thinking and cog- of perceiving and expressing Since 1990, Peter Salovey and nitive activity. Emotions help prior- emotion, conversely, the highest John D. Mayer have been the itize what we pay attention and react level branch concerns the leading researchers on emotional to; we respond emotionally to things conscious, reflective regulation of emotion” (1997). intelligence. In their influential that garner our attention. article “Emotional Intelligence,” they defined emotional Understanding Emotions: Source: www.psychology.about.com intelligence as, “the subset of The emotions that we perceive can social intelligence that involves carry a wide variety of meanings. If The ability to express and control our own emotions is important, but so is our ability to understand, interpret, and respond to the emotions of others. Imagine a world where you couldn’t understand when a friend was feeling sad or when a co-worker was angry. Psychologists refer to this ability as emotional intelligence, and some experts even suggest that it can be more important than IQ. Learn more about exactly what emotional intelligence is, how it works, and how it is measured.

the ability to monitor one’s own and others’ feelings and emotions, to discriminate among them and to use this information to guide one’s thinking and actions” (1990).

Businessuite Magazine Special Edition December 2013

Top 50 - Business

2013 Businessuite Top 50 By Revenue

2012 provided an interesting and challenging backdrop for all the listed companies on both the Junior and Main Stock Exchanges. Identify the four main factors impacting their respective business, the CEO’s pointed to the following: The BUSINESSUITE TOP 50 BY REVENUE for 2013 is lead by the Don Wehby managed GraceKennedy 1. The Government declaration that they were Group topping the list with turnover of over $61.3B working to complete an agreement with the followed by NCB $44.4B and Scotia Group $36.7B. While GraceKennedy recorded a 5.37 growth in IMF by December 2012. 2. NDX revenue for 2012 over 2011, Scotia Group generated 3. Interest rates were very low and yields on marginal growth of 1.5% and NCB actually recording fixed income investments were lower than a decline of -0.82%. many had seen in over 10 years. 4. The Jamaican dollar depreciated by 6% Of significance in this listing is how companies on and Jamaica dollar fixed income delivered a the Junior Stock Exchange are closing the revenue negative real return. gap and even outperforming established companies on the Main exchange. Hitting the chart at #13 is The Jamaica Stock Exchange commenting on the the proverbial juggernaut the Lasco Distributors performance of the Main Market in 2012 said that, Limited with 2012 revenue of $7.4B compared to “Despite a contraction in the fourth quarter, equities 2011 of $6.7B an impressive 10.42% growth. There showed signs of recovery in expectation that an is little doubt that had the Lascelles Chin group of IMF Agreement would be signed and reduce deep companies consolidated all the companies under concerns emerging that began to be reflected in the the now trending group structure the Lasco Group will take its place in the top 10 by 2014. currency markets locally.” Other companies in the group include: Ranking Company 2012 2011 Growth #19 Lasco Manufacturing Limited 3,227,502 2,969,611 8.68% #37 Lasco Financial Services Limited 270,237 219,117 23.33%

Other Junior Market companies outperforming many on the main exchange include the #17 ranked General Accident Insurance Company with 2012 revenues of $3.7B compared to 2011 of $3.6B a modest 4.48% growth.

Billion Dollar Revenue Club

Only 26 of the 42 listed companies cracked the billion dollar revenue mark with four coming from the Junior Stock Exchange. Anchoring the billion dollar club list is the #26 ranked Dolphin Cove Limited with 2012 revenues of $1.3B compared to $1.1B for 2011 an impressive15.72% growth.BM 14

Businessuite Magazine Special Edition December 2013

Top 50 - Business

TOP 50 BY REVENUE (combined) 2013 Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

COMPANY

2012

T urnover '000 2011

364,174,079

349,526,438

GraceKennedy Limited 61,340,268 National Commercial Bank Jamaica Ltd. 44,425,230 Scotia Group Jamaica Ltd. 36,755,264 Sagicor Life Jamaica 31,475,259 Supreme Ventures Limited 29,726,146 Jamaica Broilers Group 23,672,341 Cable & Wireless (Jamaica) Ltd. 20,438,364 Desnoes & Geddes Limited 13,154,054 Seprod Limited 12,723,578 Jamaica Money Market Brokers 11,613,716 Carreras Limited 11,022,746 Caribbean Cement Company 9,084,600 Lasco Distributors Limited 7,460,509 Sagicor Investments Jamaica Limited 7,400,806 Jamaica Producers Group 6,790,257 Hardware & Lumber Limited 6,284,052 General Accident Insurance Co Ja 3,788,969 Kingston Wharves 3,670,177 Lasco Manufacturing Limited 3,227,502 Gleaner Company 3,194,665 Radio Jamaica Limited 1,828,840 Mayberry Investments Limited 1,819,144 Pan-Jamaican Investment Trust 1,681,803 Scotia Investments Jamaica Ltd. 1,650,905 Berger Paints Jamaica Limited 1,540,689 Dolphin Cove Limited 1,286,639 Blue Power Group Limited 863,003 Palace Amusement Limited 842,189 Jamaican Teas Limited 824,532 Barita Investments Limited 808,980 Salada Foods Jamaica Limited 715,609 Honey Bun (1982) Limited 611,333 Access Financial Services Ltd. 597,708 Consolidated Bakeries Jamaica Limited 474,554 AMG Packaging & Paper Company 357,462 KLE Group Limited 288,461 Lasco Financial Services Limited 270,237 Pulse Investments Limited 241,878 Cargo Handlers Limited 127,508 Kingston Properties Limited 78,030 Montego Bay Ice Co. Limited 16,072 Ciboney Group Limited 0 T otal

Businessuite Magazine Special Edition December 2013

58,216,732 44,791,704 36,191,040 28,669,885 27,961,628 21,294,517 20,787,973 13,272,380 12,005,202 10,367,962 12,935,692 8,033,786 6,756,555 7,211,274 6,180,569 6,055,922 3,626,395 3,168,802 2,969,611 3,178,900 1,944,590 1,890,304 1,744,192 1,643,090 1,498,241 1,111,860 791,407 725,492 648,863 747,953 560,862 560,847 423,108 456,559 308,921 131,093 219,117 234,750 149,457 44,224 14,979 0

Change %

5.37% (0.82%) 1.56% 9.79% 6.31% 11.17% (1.68%) (0.89%) 5.98% 12.02% (14.79%) 13.08% 10.42% 2.63% 9.86% 3.77% 4.48% 15.82% 8.68% 0.50% (5.95%) (3.76%) (3.58%) 0.48% 2.83% 15.72% 9.05% 16.09% 27.07% 8.16% 27.59% 9.00% 41.27% 3.94% 15.71% 120.04% 23.33% 3.04% (14.69%) 76.44% 7.30% 0.00% 4.19%

Top 20 - Business

2013 Businessuite

20 TOP

By Revenue â&#x20AC;&#x201C; Main Exchange

TOP 20 BY REVENUE 2013 Ranking

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

COMPANY GraceKennedy Limited National Commercial Bank Jamaica Ltd. Scotia Group Jamaica Ltd. Sagicor Life Jamaica Supreme Ventures Limited Jamaica Broilers Group Cable & Wireless (Jamaica) Ltd. Desnoes & Geddes Limited Seprod Limited Jamaica Money Market Brokers Carreras Limited Caribbean Cement Company Sagicor Investments Jamaica Limited Jamaica Producers Group Hardware & Lumber Limited Kingston Wharves Gleaner Company Radio Jamaica Limited Mayberry Investments Limited Pan-Jamaican Investment Trust

2012 61,340,268 44,425,230 36,755,264 31,475,259 29,726,146 23,672,341 20,438,364 13,154,054 12,723,578 11,613,716 11,022,746 9,084,600 7,400,806 6,790,257 6,284,052 3,670,177 3,194,665 1,828,840 1,819,144 1,681,803

2011 58,216,732 44,791,704 36,191,040 28,669,885 27,961,628 21,294,517 20,787,973 13,272,380 12,005,202 10,367,962 12,935,692 8,033,786 7,211,274 6,180,569 6,055,922 3,168,802 3,178,900 1,944,590 1,890,304 1,744,192

Change % 5.37% (0.82%) 1.56% 9.79% 6.31% 11.17% (1.68%) (0.89%) 5.98% 12.02% (14.79%) 13.08% 2.63% 9.86% 3.77% 15.82% 0.50% (5.95%) (3.76%) (3.58%)

Businessuite Magazine Special Edition December 2013

Top 20 - Business

2013 Businessuite

10 TOP

By Revenue â&#x20AC;&#x201C;Junior Exchange

2013 Ranking 1 2 3 4 5 6 7 8 9 10

COMPANY Lasco Distributors Limited General Accident Insurance Co Ja Lasco Manufacturing Limited Dolphin Cove Limited Blue Power Group Limited Jamaican Teas Limited Honey Bun (1982) Limited Access Financial Services Ltd. Consolidated Bakeries Jamaica Limited AMG Packaging & Paper Company

2012 7,460,509 3,788,969 3,227,502 1,286,639 863,003 824,532 611,333 597,708 474,554 357,462

T urnover '000 2011 Change % 6,756,555 10.42% 3,626,395 4.48% 2,969,611 8.68% 1,111,860 15.72% 791,407 9.05% 648,863 27.07% 560,847 9.00% 423,108 41.27% 456,559 3.94% 308,921 15.71%

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Businessuite Magazine Special Edition December 2013

Top 50 - Business

2013 Businessuite

50 TOP

By Profit â&#x20AC;&#x201C; After Tax

2013 BUSINESSUITE TOP 50 Company by profit 2011 with NCB recording a whopping 27.65% and (after tax) is lead by Scotia Group Limited closely Scotia Group a modest 0.40%. followed by National Commercial Bank. Financial institutions continue to dominate this ranking with 7 of the 10 companies ranked. The noted exceptions include GraceKennedy, Carrerars and Desnoes and Geddes.

The results demonstrate the immense profitability of the financial sector. Two of the eleven ranked companies are however head and shoulders above the rest namely Scotia Group $10.5B and NCB $10.0B more than doubling the profitability of the #3 ranked Sagicor Life with $5.9B a modest 4% growth over 2011.

At the bottom of the list are four companies who all turned in massive losses with Cable and Wireless (Jamaica) trading as LIME recording a whopping $20.2B loss or 231.10% increase over 20122.

The recently launched junior market company the KLE Group finds itself in a highly unlikely group Both of the two top ranked companies however reversing a modest 2011 $7M profit with a loss of recorded a decline in profitability for 2012 over $13M in 2012. Ranking 39 40 41 42

Company

Ciboney Group Limited KLE Group Limited Caribbean Cement Company Cable & Wireless (Jamaica) Ltd.

2012

(6,200) (13,029) (3,348,265) (20,235,439)

2011

2,219 7,397 (2,613,360) (6,111,526)

Growth

(379.41%) (276.14%) (28.12%) (231.10%)

Businessuite Magazine Special Edition December 2013

Top 50 - Business

The Billion Dollar Club Ranking

2013 RANKING 1 2 3 4 5 6 7 8 9 10 11

Change % (0.40%) (27.65%) 4.05% 27.96% (21.63%) 96.03% 6.67% (3.11%) (15.57%) 13.97% 76.34%

continued growth in the near term with excellent new business sales, outperforming the individual and group insurance markets and growing share by 3% and 5% respectively. With respect to innovation, they launched five new insurance and banking products in 2012. To cap it off they successfully rebranded Pan Caribbean Financial Services to 1. The first was an increase in spinoffs, as Sagicor, opening the opportunity for significant companies shed non-fundamental business sales and marketing synergies. units to concentrate on their core strengths. One CEO however went out and did some shopping. 2. The second was resurgence in mergers and Having achieved the highest profits generated by acquisitions. For several years players have Group in its 20 year history of 63.1%, Keith Duncan been hoarding cash and shunning expansion. Group CEO for JMMB on June 29, 2012, successfully In 2012 they put that cash -- and their rapidly completed the transaction to acquire the Capital and appreciating shares to work in the best year Credit Financial Group (CCFG) in Jamaica. for M&A in over a decade. This acquisition enabled the expansion of the Group Don Wehby at GraceKennedy for example sought to include the provision of Banking, Remittances and growth in the business by continuing to pursue the Unit Trust products to its extensive client base and vision of becoming a Global Consumer Group with resulted in tremendous benefits for shareholders target been earning revenues of 15% from each of of both companies as well as clients. It gave the three continents, North America, Europe and Africa, expanded entity the opportunity to deliver stronger financial performance and increase efficiencies and 50% of profits from outside of Jamaica. by extracting synergies in products, technology Richard Byles at Sagicor on the other hand made platforms and operations, increasing the overall significant progress in laying a platform to deliver growth prospects and shareholder value. BM To grow their businesses Jamaican CEOâ&#x20AC;&#x2122;s sought not to replicate their USA counterparts where as quoted in Fortune magazine, American CEOâ&#x20AC;&#x2122;s shifted to what was described as aggressive behavior exemplified by two major trends following a few years of caution following the financial crisis.

Businessuite Magazine Special Edition December 2013

Top 50 - Business

2013 RANKING 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

TOP 50 BY PROFIT

COMPANY Scotia Group Jamaica Ltd. National Commercial Bank Jamaica Ltd. Sagicor Life Jamaica GraceKennedy Limited Carreras Limited Jamaica Money Market Brokers Pan-Jamaican Investment Trust Scotia Investments Jamaica Ltd. Sagicor Investments Jamaica Limited Desnoes & Geddes Limited Supreme Ventures Limited Jamaica Broilers Group Seprod Limited Lasco Manufacturing Limited Kingston Wharves Lasco Distributors Limited Mayberry Investments Limited General Accident Insurance Co Ja Barita Investments Limited Dolphin Cove Limited Access Financial Services Ltd. Jamaica Producers Group Kingston Properties Limited Pulse Investments Limited Salada Foods Jamaica Limited Gleaner Company Lasco Financial Services Limited Radio Jamaica Limited Jamaican Teas Limited Cargo Handlers Limited AMG Packaging & Paper Company Blue Power Group Limited Honey Bun (1982) Limited Berger Paints Jamaica Limited Hardware & Lumber Limited Palace Amusement Limited Montego Bay Ice Co. Limited Consolidated Bakeries Jamaica Limited Ciboney Group Limited KLE Group Limited Caribbean Cement Company Cable & Wireless (Jamaica) Ltd. T otal

Profit After T ax '000 2012 2011 10,575,091 10,617,655 10,045,862 13,885,301 5,987,618 5,754,467 3,829,141 2,992,473 2,597,220 3,314,076 2,240,456 1,142,930 2,107,339 1,975,560 1,923,379 1,985,092 1,452,676 1,720,656 1,229,558 1,078,809 1,069,224 606,326 936,206 956,094 850,802 767,280 587,760 401,776 555,728 345,012 550,377 306,398 439,354 282,122 290,537 1,284,816 254,963 219,079 250,821 204,477 237,968 162,070 207,710 955,767 178,847 13,135 165,106 173,193 147,377 71,920 133,032 118,483 102,434 29,775 87,407 132,828 74,661 82,563 64,560 51,919 47,666 31,265 47,105 54,607 41,542 27,630 33,317 67,806 27,182 6,296 14,352 10,026 5,756 5,372 3,676 12,798 (6,200) 2,219 (13,029) 7,397 (3,348,265) (2,613,360) (20,235,439) (6,111,526) 25,790,877 43,132,582

Change % (0.40%) (27.65%) 4.05% 27.96% (21.63%) 96.03% 6.67% (3.11%) (15.57%) 13.97% 76.34% (2.08%) 10.89% 46.29% 61.07% 79.63% 55.73% (77.39%) 16.38% 22.66% 46.83% (78.27%) 1261.61% (4.67%) 104.92% 12.28% 244.03% (34.20%) (9.57%) 24.35% 52.46% (13.74%) 50.35% (50.86%) 331.73% 43.15% 7.15% (71.28%) (379.41%) (276.14%) (28.12%) (231.10%) (40.21%)

Businessuite Magazine Special Edition December 2013

Top 20 - Business

2013 Businessuite

20 TOP

By Profit â&#x20AC;&#x201C; Main Exchange

What exactly are these companies doing with this horde of cash on their balance sheets is the question many are asking. We see in the USA were companies with massive amounts of cash have turned to mergers and acquisitions (M&A), embarking on spinoffâ&#x20AC;&#x2122;s creating new Fortune 500 companies. No such activity observed in Jamaica so far. 2013 Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Businessuite Magazine Special Edition December 2013

The BUSINESSUITE TOP 20 BY PROFIT AFTER TAX are by no measure small and for National Commercial Bank and Scotia Group $10B profits are massive by Jamaican standards and measure. Profit After T ax '000 2012 2011 10,575,091 10,617,655 10,045,862 13,885,301 5,987,618 5,754,467 3,829,141 2,992,473 2,597,220 3,314,076 2,240,456 1,142,930 2,107,339 1,975,560 1,923,379 1,985,092 1,452,676 1,720,656 1,229,558 1,078,809 1,069,224 606,326 936,206 956,094 850,802 767,280 555,728 345,012 439,354 282,122 254,963 219,079 207,710 955,767 178,847 13,135 165,106 173,193 147,377 71,920

Change % (0.40%) (27.65%) 4.05% 27.96% (21.63%) 96.03% 6.67% (3.11%) (15.57%) 13.97% 76.34% (2.08%) 10.89% 61.07% 55.73% 16.38% (78.27%) 1261.61% (4.67%) 104.92%

Top 10 - Business

2013 Businessuite

10 TOP

By Profit – Junior Market

Dominating the list are the three Lasco companies who all turned in impressive growth rates over 2011. Commenting on the performance of the Junior Exchange in 2012, Donovan Perkins Chairman of the Jamaica Stock Exchange indicated that “The Junior Market continued to be a growth driver with its continued positive development, with four new companies listed in 2012. These were KLE, Purity, Paramount Chemical and C2W and we welcome these new entities and their shareholders. We expect this trend to continue with additional listings in 2013.” BM

1 2 3 4 5 6 7 8 9 10 22

COMP ANY Lasco Manufacturing Limited Lasco Distributors Limited General Accident Insurance Co Ja Dolphin Cove Limited Access Financial Services Ltd. Lasco Financial Services Limited Jamaican Teas Limited Cargo Handlers Limited AMG Packaging & Paper Company Blue Power Group Limited

P r ofit After T ax '000 2012 2011 Change % 587,760 401,776 46.29% 550,377 306,398 79.63% 290,537 1,284,816 (77.39%) 250,821 204,477 22.66% 237,968 162,070 46.83% 102,434 29,775 244.03% 74,661 82,563 (9.57%) 64,560 51,919 24.35% 47,666 31,265 52.46% 47,105 54,607 (13.74%) Businessuite Magazine Special Edition December 2013

Top 10 - Business

2013 Businessuite

10 TOP

By Market Capitalisation

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

SCOTIA GROUP JAMAICA NATIONAL COMMERCIAL BANK JAMAICA LTD. SAGICOR LIFE JAMAICA LASCELLES DEMERCADO & CO. CARRERAS LIMITED GRACEKENNEDY LTD. JAMAICA MONEY MARKET BROKERS LTD SCOTIA INVESTMENTS JAMAICA LTD. DESNOES & GEDDES PAN-JAMAICAN INVESTMENT SAGICOR INVESTMENTS JAMAICA LTD** SEPROD LIMITED SUPREME VENTURES LTD. KINGSTON WHARVES JA. BROILERS GROUP LASCO MANUFACTURING LIMITED LASCO DISTRIBUTORS LIMITED

** Formerly Pan Caribbean Financial Services Ltd

Businessuite Magazine Special Edition December 2013

65,872,000 59,004,967 38,023,627 37,440,000 24,276,854 16,769,284 13,386,836 12,907,440 12,641,271 12,271,500 12,224,509 8,004,168 7,516,177 7,150,998 6,032,360 4,499,930 3,719,906

Top 20 - Business

2013 Businessuite

20 TOP

By Market Value

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Car r er as Limited Sagicor Life Jamaica National Commer cial Bank Ltd. Lasco Manufactur ing Limited Lasco Distr ibutor s Limited Scotia Gr oup Jamaica Gr aceK ennedy Ltd Jamaica Money Mar ket Br oker s Lascelles deMer cado & Co. K ingston Whar ves Jamaica Br oiler s Gr oup Lasco Financial Ser vices Limited Scotia I nvestments Jamaica Ltd Desnoes & Geddes Sagicor I nvestments Jamaica Limited** Pan-Jamaican I nvestment T r ust Dolphin Cove Limited Sepr od Limited Gleaner Company Jamaica Pr oducer s Gr oup

4,893,527.91 3,666,602.34 3,368,496.51 2,427,206.96 1,957,799.89 1,715,644.70 953,357.23 707,462.58 422,206.90 380,202.81 327,188.73 327 ,163.13 250,656.41 213,119.11 206,449.42 195,761.93 144,262.21 142,720.46 131,549.34 131,220.65

** Formerly Pan Caribbean Financial Services Ltd

Businessuite Magazine Special Edition December 2013

Top 20 - Business

THE JSE MARKET SUMMARY FOR: the Period:01-Jan-2012 To 31-Dec-2012

For the period January 01, 2012 to December 31, 2012JA$ market volume (excluding blocks) amounted to 2,001,148,156.00 units valued at $23,480,393,457.68. Block transactions amounted to 1,149,967,300.00 units valued at $42,814,470,453.36. US$ market volume (excluding blocks) amounted to 7,155,710.00 units valued at $633,960.46. There were no block transactions for the period in the US$ Market. The following companies represent the overall volume leaders:  Sagicor Life Jamaica Limited with 358,051,483 units, amounting to 17.89% of the market volume  Lasco Manufacturing Limited with 210,216,987 units, amounting to 10.50% of the market volume  Lime with 198,553,753 units, amounting to 9.92% of the market volume Overall Market activity resulted from trading in 59 stocks of which 11 advanced, 42 declined and 6 traded firm.

Stocks Advancing Access Financial Services Limited Barita Invest Ltd Series A Capital & Credit Financial Group Limited Dolphin Cove Limited Guardian Holdings Limited Jamaica Stock Exchange Variable Preference Lascelles DeMercado & Co. Ltd. Palace Amusement Co. Ltd. Sagicor Life Jamaica Limited Scotia Investments Jamaica Ltd. Trinidad Cement Limited

Stocks Declining AMG Packaging & Paper Company Limited Barita Invest Ltd Series B Barita Investments Limited Berger Paints Jamaica Ltd. Blue Power Group Limited Cargo Handlers Limited Caribbean Cement Company Ltd. Caribbean Producers Jamaica Limited Carreras Limited Ciboney Group Limited Desnoes & Geddes Ltd First Caribbean Internationa Bank General Accident Insurance Company (JA) Limited Gleaner Company Ltd. GraceKennedy Limited Hardware & Lumber Ltd. Honey Bun (1982) Limited Ja. Livestock Association 7.5% Jamaica Broilers Group Jamaica Money Market Brokers Ltd Jamaica Money Market Brokers Ltd 8.75% Jamaica Money Market Brokers Ltd. 12.15% Jamaica Producers Group Ltd. Jamaican Teas Limited Kingston Properties Limited Kingston Wharves Limited Lasco Distributors Limited Lasco Financial Services Limited Lasco Manufacturing Limited LIME Mayberry Investments Limited Montego Freeport Ltd. National Commercial Bank Jamaica Ltd. Pan Jamaican Investment Trust Co. Ltd. Proven Investments Limited Pulse Investments Limited Radio Jamaica Limited Sagicor Investments Jamaica Limited Salada Foods Jamaica Ltd.

Close Price

Change

% Change

6.20 3.08 4.61 7.80 277.00 1.97 390.00 60.00 10.11 30.50 18.33

1.60 0.04 0.06 0.20 112.00 0.27 97.50 10.00 0.11 1.61 0.02

34.78% 1.32% 1.32% 2.63% 67.88% 15.88% 33.33% 20.00% 1.10% 5.57% 0.11%

Close Price

Change

% Change

4.00 2.99 2.76 2.56 6.00 10.00 1.00 2.58 50.01 0.03 4.50 113.00 1.76 1.40 50.01 3.40 3.50 0.57 5.03 8.21 3.25 3.12 17.80 3.95 3.78 5.00 11.05 4.90 11.01 0.16 2.50 0.00 23.92 57.55 0.10 1.00 1.99 22.14 8.50

-0.47 -0.01 -1.95 -0.64 -0.09 -3.05 -2.00 -0.22 -11.51 -0.02 -0.63 -2.67 -0.74 -0.80 -12.98 -2.50 -2.00 -1.03 -0.89 -4.19 -0.25 -0.13 -6.21 -1.06 -0.74 -0.92 -2.40 -1.34 -2.92 -0.04 -0.76 -1.50 -4.14 -2.46 -0.01 -1.45 -0.55 -4.42 -0.37

-10.51% -0.33% -41.40% -20.00% -1.48% -23.37% -66.67% -7.86% -18.71% -40.00% -12.28% -2.31% -29.60% -36.36% -20.61% -42.37% -36.36% -64.38% -15.03% -33.79% -7.14% -4.00% -25.86% -21.16% -16.37% -15.54% -17.84% -21.47% -20.96% -20.00% -23.31% -100.00% -14.75% -4.10% -9.09% -59.18% -21.65% -16.64% -4.17%

Page 1 of 2

Businessuite Magazine Special Edition December 2013

Special Feature - Business

Special Feature: Businessuite Magazine TOP 1O CEO’s for 2013 Junior Stock Exchange

2012, A Year Filled With A Level Of Uncertainty. The JSE Junior Market closed the year with 16 listings, four of which occurred during the year, which altogether creamed $395.47M from local equity investors to facilitate listing on the Junior Exchange. The four additions for 2012 were:

JNR MKT LISTING C2W Music KLE Group Paramount Trading Ltd Consolidated Bakeries

The performance of the Junior Market for the 2012 calendar year resulted in that Index declining by 13.50%. Listed companies’ performance was negatively impacted by growing concern regarding the depreciating local currency, and the contraction in the economy which resulted in lower year over year performances by these companies.

Amount Raised $129,000,000.00 $94,619,005.10 $74,848,990.68 $97,000,001.96

IPO Price $1.29 $3.70 $2.43 $1.88

Given the challenging economic and business environment, only eight (8) of the CEO’s running companies listed on the Junior Stock Exchange met the minimum requirement for inclusion in the 2013 list, that of a positive change in profit after tax for 2012 over 2011.

The Full List 2013 TOP 10 PERFORMING CEO

Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13

COMP ANY Lasco Financial Services Limited Lasco Distributors Limited AMG Packaging & Paper Company Honey Bun (1982) Limited Access Financial Services Ltd. Lasco Manufacturing Limited Cargo Handlers Limited Dolphin Cove Limited Jamaican Teas Limited Blue Power Group Limited Consolidated Bakeries Jamaica Limited General Accident Insurance Co Ja KLE Group Limited T otal

P r ofit After T ax '000 2012 2011 Change % 102,434 29,775 244.03% 550,377 306,398 79.63% 47,666 31,265 52.46% 41,542 27,630 50.35% 237,968 162,070 46.83% 587,760 401,776 46.29% 64,560 51,919 24.35% 250,821 204,477 22.66% 74,661 82,563 (9.57%) 47,105 54,607 (13.74%) 3,676 12,798 (71.28%) 290,537 1,284,816 (77.39%) (13,029) 7,397 (276.14%) 2,286,078 2,657,491 (13.98%)

Dominating the list are the three companies in the claiming the top spot. The others included #2 Lasco conglomerate with #1 Jacinth Hall-Tracey Mr. Peter Chin Managing Director Lasco Managing Director Lasco Financial Services Distributors and #6 Dr. Eileen Chin Managing 26

Businessuite Magazine Special Edition December 2013

Special Feature - Business

Director LASCO Manufacturing Limited. All three entities dominated trading activity for the 2012 calendar year. LASM traded 36.9% of overall market volume, LASD traded 31.11% and LASF traded 11.51%.

in the IPO in June 2011.”

Ranked Jointly at #3 Mr. George Hugh, Director And Chief Executive Officer and Michael P. Chin General Manager AMG Packaging and Paper Ltd described their year this way,“our financial results for 2012 have shown an increase in revenues by 15.71% but more important, is the increase in profits by 52.45%. Even with us bursting at the seams while waiting anxiously for our new facility to be completed, we managed to produce and grow at a tremendous rate. Not even the fire we had, stopped AMG’s production. AMG was able to increase our product lines and customer base while keeping our product quality and customers very pleased with their orders.”

#7 Antony Hart Executive Chairman Cargo Handlers Limited in his 2012 report to shareholders indicated that the company had performed well despite the continued challenges of an anaemic economy and increased competition in their cruise ship operations from the Falmouth Port. He was able to record profits of $64.5M representing an increase of 24% over 2011 profits of $51.9M. Cost containment was key to generating these results as there was a 31.8% YOY decline in Operating Expenses; a 26.65% YOY decline in Staff Costs and a 73% YOY decline in Finance Costs.

#5 Marcus James, Chief Executive Officer, Access Financial Services Limited said that “for the financial year ending December 2012, we are proud to report on another year of positive Commenting on the 2012 performance to growth across all key profit and growth drivers. We shareholders, #1 Jacinth Hall-Tracey indicated achieved Revenues of $661 million and Net Profit of that, “ Our net profits increased by 244% to $102M $238 million representing a 33% and 47 % increase from $29M and earnings per share increased by respectively when compared with 2011.” 219%. LASCO Financial Services Limited (LFSL) continues to be the company that many of you In her 2012 report to shareholders #6 Dr. look to for business opportunities, services and Eileen Chin, Managing Director LASCO employment.” Manufacturing Limited remarked “We believe that a sound business model, strong values, and Speaking against the background of global economic engaged human resources provide us with intrinsic issues and the impact on the local business strength. Our sturdy foundation has enabled us to environment, #2 Peter Chin indicated that it was maintain a revenue generating business with high a year filled with a level of uncertainty within the growth potential. By pursuing our strategy for trade. Nevertheless, the financial year ended March profitable growth, accelerating the transformation 31, 2012 with a turnover of $7.46B which was an of our cost base to drive cost efficiency and investing increase of 10.4% or $703.95M over the previous in our value proposition, LASCO Manufacturing year’s revenue of $6.76B. Total comprehensive Limited delivered steady sales growth in 2012. income increased to $550.4M, a growth of 79.6% or Revenue this year increased by 8.7% from $2.9 $244.0M moving from $306.4M the previous year.” billion in 2011 to $3.2 billion in 2012.”

#4 Michelle Chong Chief Executive Officer, Honey Bun commenting to shareholders on her performance for the financial year 2012, indicated that in spite of the economy and a much more competitive market, the company continues to show a positive trend. And that improvements seen were planned for in strategic decisions taken by management in prior years. “We are also beginning to see the return on investments from funds raised Businessuite Magazine Special Edition December 2013

Anchoring the list is #8 Stafford Burrowes, OD Chairman and Chief Executive Officer Dolphin Cove Limited who reported that in aggregate, despite hurricane Sandy, the parks maintained the profitability ratios of 2011 in 2012; however increased sales at the Ocho Rios park were exceeded by increased expenses. There was increased profitability at the other parks in Jamaica that more than offset this effect so that, consolidated $61 million of the increased sales of $175 million reached the bottom line before tax. BM 27

T op 1 0 C E O ’ s

Special Feature: Full Report

The Businessuite Magazine TOP

CEo’s For 2013 - Junior Stock Exchange

2013 TOP 10 PERFORMING CEO

Ranking 1 2 3 4 5 6 7 8

Businessuite Magazine Special Edition December 2013

T op 1 0 C E O ’ s

#8 Stafford Burrowes,

OD Chairman and Chief Executive Officer Dolphin Cove Limited Other Businessuite Rankings Revenue Top 10 #4 Profit Top 10 #4 Revenue Top 50 #26 Profit Top 50 #20 Member Billion Dollar Club – Revenue #26 Stafford Burrowes, O.D, Chairman and Chief Executive Officer is the entrepreneur credited with conceiving and developing the business idea that became the first Dolphin Cove marine park in Jamaica. Since then, he has planned and executed its expansion with the development of another Dolphin Cove location at the Point, Lucea, Hanover. Clearly the darling of the tourist sector represented on the Jamaica Stock Exchange Junior board the Stafford Burrowes le Dolphin Cove

continues to take strides that are growth-oriented and designed to enhance profits. In his 2012 report to shareholders Burrowes indicated that they had started making investments in offshore locations and had completed a formal succession planning exercise.

In aggregate, despite hurricane Sandy, the parks maintained the profitability ratios of 2011 in 2012 however increased sales at the Ocho Rios park were exceeded by increased expenses. There was, however, increased profitability at the other parks in Jamaica that more than offset this effect so that, consolidated $61 million of the increased sales of $175 million reached the bottom line before tax.

for considerable periods before the returns can be received. In spite of this we achieved a rate of return on equity of 23% in 2012 compared to 20% in the prior year. Our strong balance sheet and high working capital positions us to deal comfortably with our expansion projects through a combination of internally generated funds and prudent borrowing.”

Turning to future prospects Burrowes indicated to shareholders that they were in the right industry in the right places. “Tourism can suffer temporary setbacks from time to time but in the long run it is enduring and we look forward to the emergence of millions of new entrants to the middle income levels who can travel from countries with enormous populations. We also look forward to an increase in “New parks have a long gestation period and we Jamaica’s capacity to receive more visitors with new only embark on such projects when the markets and expanded hotels.” BM are attractive, but it requires that funds be tied up Apart from investment in overseas sites, which are still works in progress, they also acquired more dolphins bringing capital spending to $165 million in 2012, reduced long-term liabilities by $96 million and paid dividends amounting to $118 million, about 47% of net profit.

Businessuite Magazine Special Edition December 2013

T op 1 0 C E O ’ s

#7 Antony Hart

Executive Chairman Cargo Handlers Limited

Other Businessuite Rankings Revenue Top 10 #13 Profit Top 10 #8 Revenue Top 50 #39 Profit Top 50 #30

Tony Hart who is also the Chairman of Hart Investments Limited and a Director of the Coconut Industry Board and Seprod Jamaica, has over the years earned national honours for his contribution to country and commerce. He has been inducted into the prestigious Private Sector of Jamaica’s Hall of Fame, a tribute paid annually to a private-sector leader who has contributed a minimum of 25 years to industry and to national development.

“This giant of the west” as the PSOJ described Hart, was central to the development of Montego Freeport, “which he conceived, promoted and saw through to completion.”

“Tony has been a significant force in the private sector. He has also served his country in a number of areas, spanning politics, education and government, and provides a model example of a real business leader,” said PSOJ President Chris Zacca.

The waterfront project, which began in 1967, reclaimed 350 acres of land, created four berths for In his 2012 report to shareholders Antony Hart ships, an industrial estate, upscale residences, and indicated that the company had performed well resort properties. despite the continued challenges of an anaemic economy and increased competition in their cruise Freeport’s diversity is encapsulated in the fact that ship operations from the Falmouth Port. He was able the area is both home to the Montego Bay Yacht Club to record profits of $64.5M representing an increase and the Montego Bay Free Zone. It also houses the of 24% over 2011 profits of $51.9M. Montego Cruise Ship Terminal. This improved performance due largely to Hart, who is now retired, was also chairman of the consolidation of ship calls to two per week resulting Hart Group of Companies, whose operations once in greater efficiencies and higher containerized included apparel, a savings and loans company, an cargo yeilds per call. Avis car rental licensee, a stevedoring company, Importation of cement continues to play a significant a hardware business, port management, a safety role in stevedoring operations despite a marginal supply company, and five farms, including the increase in tonnage. attraction Good Hope in Trelawny, said PSOJ. In concluding Hart remarked that along with the Over his career, Hart has also served as chairman decline in cruise ship operations Montego Bay for a number of government boards, including Air Cruise Terminal has been unable to secure a home Jamaica and Caymanas Track Limited. He has also port vessel. “However we look forward to seeing the sat on many company boards. return of cruises in Montego Bay in the future.” BM 30

Businessuite Magazine Special Edition December 2013

T op 1 0 C E O ’ s

#6 Dr. Eileen Chin

Managing Director LASCO Manufacturing Limited.

Other Businessuite Rankings Revenue Top 10 #3 Profit Top 10 #1 Revenue Top 50 #19 Profit Top 50 #14

Born in Havana City, Cuba, Dr. Eileen Chin holds a postgraduate degree in Medicine from the Havana University’s School of Medicine. She commenced working within the LASCO Affiliated Companies in 1999 in various capacities, including Marketing Department (Label Development), Export Department (Central and South American Sales Representative and Export Director). In 2007, she was appointed General Manager of LASCO Foods

(Successors) Limited and in 2009 she was appointed Managing Director of the Company before it changed During 2012, the Company’s net profit increased by 46.3%; from $401.7M in 2011 to $587.8M in 2012. its name to LASCO Manufacturing Limited. Dr. Chin holds an MBA in Global Management and has received knowledge and skills development training in Advanced Negotiation, Risk Management and Lean Six Sigma. She is also a member of the Board of Directors of LASCO Financial Services Limited and LASCO Distributors Limited. In her 2012 report to shareholders Dr. Chin remarked “We believe that a sound business model, strong values, and engaged human resources provide us with intrinsic strength. Our sturdy foundation has enabled us to maintain a revenue generating business with high growth potential.”

“By pursuing our strategy for profitable growth, accelerating the transformation of our cost base to drive cost efficiency and investing in our value proposition, LASCO Manufacturing Limited delivered steady sales growth in 2012. Revenue this year increased by 8.7% from $2.9 billion in 2011 to $3.2 billion in 2012.” Businessuite Magazine Special Edition December 2013

LASCO Manufacturing commenced the construction of their state-of-the-art manufacturing plant in January 2012. This plant will increase production capacity and expand product portfolio. The new plant will also expand both local and export markets, thereby ensuring business continuity, increased sales and profitability. The US$25M investment underlines our long-term strategic plans. BM

T op 1 0 C E O ’ s

#5 Marcus James,

Chief Executive Officer, Access Financial Services Limited. Other Businessuite Rankings Revenue Top 10 #8 Profit Top 10 #5 Revenue Top 50 #33 Profit Top 50 #21

Marcus James is the founder and CEO of AccessFinancial Services Limited. Armed with a background in banking and finance and an entrepreneurial desire, he started Access Financial Services in 2000. Under his leadership, Access has grown exponentially with over J$5B in loans disbursed to the microfinance sector and the Company has received numerous industry awards. Mr. James’ journey to Access took him through the banking sector. In 1994, he joined Corporate Merchant Bank as Credit Officer and in 1997 he assumed the position of Officer in

 Increasing the market share of core business through improved operational efficiencies;  The development and enhancement of loan products;  The continued expansion of branch network and  The offering of excellent customer service delivered by a well trained and highly motivated team.

Charge of the Merchant Bank. A brief stint in a family owned business followed in 1998, after which he joined Paymaster Jamaica Limited in 1999 as Operations Manager. This experience gave him valuable insights in entrepreneurship and management which he would later employ at Access. “For the financial year ending December 2012, we are proud to report on another year of positive Mr. James holds a Master of Business Administration growth across all key profit and growth drivers. We (MBA) in Banking and Finance with Distinction achieved Revenues of $661 million and Net Profit of from the University of the West Indies (1999) and $238 million representing a 33% and 47 % increase a Bachelor of Business of Business Administration respectively when compared with 2011.” (B.B.A) from Western Carolina University (1994). “Total shareholders’ equity has moved from $484 Mr. James is a Director of British Caribbean million in 2011 to $599 million in 2012, Insurance Company Limited, United Way of Jamaica, representing an increase of 24%. Loan disbursements Crime Stop, and Tennis Jamaica. He is a member increased by 25% and Loans and Advances increased of the Young Presidents’ Organization (YPO) and by 15%. Expenses were contained by focusing on a founding member of the Young Entrepreneurs improving operational efficiencies. The increase in total revenue of 34% was relatively greater than Association of Jamaica (YEA). the increase in total expenditure of 27%. Earnings In his 2012 report to shareholders James determined per share increased from $0.59 in 2011, to $0.87 in that the continued growth of the Company would be 2012, an increase of 47%. A final dividend of $0.65 per ordinary share for the financial year ending achieved by: December 31, 2012 was declared for shareholders 32

Businessuite Magazine Special Edition December 2013

T op 1 0 C E O ’ s

on record as of February 21, 2013, paid on February 27, 2013.”

products and enhance existing products to meet the needs of our clients. Overall, the total number of loans disbursed during 2012 increased by 21%. Concluding, James remarked that “In 2012, we Simultaneously, we ensured that our team managed focused on improving our efficiencies through better quality portfolios. Portfolio at risk, net of process innovation, which resulted in improved provisions, at the end of 2012 was 8.5% compared turn-around times for credit decisions and loan to 10.3% at the end of 2011.”BM disbursements. We continue to develop new loan

#4 Michelle Chong Chief Executive Officer Honey Bun Other Businessuite Rankings Revenue Top 10 #7 Profit Top 50 #11 Revenue Top 50 #32 Profit Top 50 #33

Michelle, together with her husband, Company Chairman, Herbert Chong, is a founder of the Company where as Chief Executive Officer she is responsible for day-today operations. A graduate of York University Toronto, Canada, with a Bachelor of Arts degree, and furthering her technical education gaining certification as a HACCP Consultant, and pursuing food studies at the American Institute of Baking, and business studies via an international scholarship granted by the Swedish International Development Agency SIDA.

Commenting to shareholders on the company’s performance for the financial year 2012, that in spite of the economy and a much more competitive market, the company continues to show a positive trend. And that improvements seen were planned for in strategic decisions taken by management in prior years. “We are also beginning to see the return on investments from funds raised in the IPO in June 2011.”  Gross profits and Profits before Tax increased by fourteen and thirteen percent respectively. Management of efficiencies on each production line has created opportunities for us to improve these margins.  While profits before tax increased by 13%, EBITDA increased by 18% year over year. We consider these improvements to be significantwhen compared to an increase in sales of 9%.

Businessuite Magazine Special Edition December 2013

 The company’s EPS increased by 10 cents over 2011 moving from 34 cents to 44 cents per share. A total dividend pay out of eleven cents was distributed for the 2012 financial year. Five cents was paid on May 31, 2012 and another six cents was paid on January 11, 2013 for shareholders on record date of December 24, 2012. BM 33

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#3 Mr. George Hugh Director And Chief Executive Officer

and Michael P. Chin

General Manager AMG Packaging and Paper Ltd.

Other Businessuite Rankings Revenue Top 10 #10 Profit Top 10 #9 Revenue Top 50 #35 Profit Top 50 #31

Mr. George Hugh has been the managing director of the family founded business Rayton Electric Commercial Equipment Limited since 1989. He has had stakes in many local businesses, including Jade Gardens Restaurant, Dominos Pizza and Homelectrix. He is also a founder and currently serves as a director of Island Concrete Company Limited.

General Manager Michael Chin with a BSc. Degree in Business Management from Lynn University in Boca Raton, Florida, is responsible for supporting Chief Officer George Hugh in day to day operations bringing to the Company over 20 year’s management experience. Joining the Company in 2009 his leadership assisted it to win a “Bold Ones” award from its client National, the Continental Baking Company, given to outstanding local manufacturers. Prior to joining the company he acted as Operations Manager at Markham Betting Company for over 6 years, where he was responsible for leading an initiative to computerize the business’ operations, amongst other things. Michael has also worked in management at Home Choice Rentals of South Florida have made amazing strides; far exceeding our projection for the year 2012.

August 31, 2012 increased by 15.71% to $357.46 million as a result of an increase of 27.19% in the number of units produced. This increase in sales resulted in a 27.23% increase in Gross Profit of $81.31 million (2011- $63.91 million). “Our Financial results for 2012 have shown an increase in revenues by 15.71% but more important is the increase in profits by 52.45%. Even with us bursting at the seams while waiting anxiously for our new facility to be completed, we managed to produce and grow at a tremendous rate. Not even the fire we had stopped AMG’s production. AMG was able to increase our product lines and customer base while keeping our product quality and customers very pleased with their orders.”

“2012 was another exciting year for AMG. Our new Commenting on the 2012 results, Michael remarked warehouse facility is currently here and the Chinese that “Our performance for the year was satisfactory technician arrived in September to start the much in a number of areas in spite of a challenging anticipated development.” BM operating environment. Sales for the year ended 34

Businessuite Magazine Special Edition December 2013

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#2 Mr. Peter Chin

Managing Director Lasco Distributors

Other Businessuite Rankings Revenue Top 10 #1 Profit Top 10 #2 Revenue Top 50 #13 Profit Top 50 #16

Peter Chin has served as Managing Director of LASCO Distributors Limited since November, 2011 and has developed a reputation for strong people management skills and sound leadership.

His deep commitment and loyalty to the LASCO brand have brought him steady advancement through the ranks over his fifteen years of service to the LASCO Affiliated Companies. As a result of his well-rounded background and entrepreneurial energy, Mr. Chin has earned a series of appointments to key management positions, including Logistics Manager responsible for distribution & procurement, Marketing Manager andGeneral Manager – Consumer Division. A versatile executive, he has wide and effective experience in various functional areas such as procurement, operations, warehousing, distribution, inventory management and newproduct development. He has also managed the oversight of mission-critical special projects at LASCO, spearheading the steering committee that implemented the system-wide ERP network software now in place at the Company.

Against the background of global economic issues and the impact on the local business environment, it was a year filled with a level of uncertainty within the trade. Nevertheless, the financial year ended March 31, 2012 with a turnover of $7.46B which was an increase of 10.4% or $703.95M over the previous amount of $6.76B. Total comprehensive income increased to $550.4M, a growth of 79.6% or $244.0M moving from $306.4M the previous year.

activities to strengthen market presence for its owned brands and the brands represented.”

“The Company has made some organisational changes. These include: enhancements in logistics to improve service delivery and channel penetration; initiation of incentive programmes to motivate and drive staff performance and executive management changes Commenting further on the company’s performance across divisions as a part of the transitioning process he said that “In this competitive business to manage the business segments and for future environment, the Company continues to intensify development.” BM its marketing programmes and its go-to-market Businessuite Magazine Special Edition December 2013

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#1 Jacinth Hall-Tracey Managing Director Lasco Financial Services

Other Businessuite Rankings Revenue Top 10 #8 Profit Top 10 #6 Revenue Top 50 #37 Profit Top 50 #27

A Graduate of the University of the West Indies (UWI), Jacinth Hall-Tracey earned a B.A. (Hons.) in French & Economics and also completed several short courses in the development of her skills, including a Certificate in Marketing, Jamaican Securities Course and Corporate Treasury and Cash Management; CTP administered by the Association for Financial Professionals.

Her career in management spans twenty-two (22) years, five of which were in the hospitality industry. However, banking and financial services have dominated her career years, where she has developed expertise in remittance and cambio services.

Her profound knowledge of the industry gave rise to her being invited to speak at the World Bank Caribbean Remittance Forum in 2011. She has been president of the Cambio Association of Jamaica and is a founding member and secretary of the Jamaica Money Remitters Association.

shareholders, Jacinth indicated that, “ Our net profits increased by 244% to $102M from $29M and earnings per share increased by 219%. LASCO Financial Services Limited (LFSL) continues to be the company that many of you look to for business opportunities, services and employment. Through our network of 150 MoneyGram locations and five cambios, we have provided convenient access to receivers and senders of money transfers and sellers of foreign currency. We have also provided competitive rates and consistency in supply of currency to merchants and businesses that rely on us to fund their daily operations.” “In the 2011-2012 financial year, we grew our trading income by 23%. Our loans division grew the most significantly as we pushed some innovative packages; you may recall the Black Friday shopping sale and the Jazz Festival loan sale. Thanks to our continued discipline and focus, we were also able to significantly reduce finance costs, providing savings of over $3M.”

She is in the final semester of her MBA Programme in Strategic Management through the Edinburgh Business School. “In October 2011, we launched our drive-thru Cambio service, allowing customers to conduct transactions Commenting on the her 2012 performance to from the privacy of their vehicles. In December, we 36

Businessuite Magazine Special Edition December 2013

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acquired the Supreme Ventures Financial Services MoneyGram network, and by year-end, signed off “It is with pride that we share with you our strong on the MoneyGram Licence, giving us Primary Agent profitability in an environment where our main source countries for remittance and currency had status in Barbados.” economic difficulties. “The competition in the money service industry To better understand our opportunities, when is tough and requires us to constantly review you review our results, pay close attention to the our messages to the consumer and to position following areas: ourselves so that we remain relevant to them. You • Product momentum (growth in trading income) will therefore find us offering our services through • Strategic partnership & acquisitions the smallest neighbourhood store to some large and • Our positioning for the future” formal enterprises.” BM

Businessuite Magazine Special Edition December 2013

Special Feature - Business

Jamaican CEO’s Pushed To Perform In Spite Of A Challenging 2012 Business Environment.

There were some harsh realities that all companies listed on the main exchange confronted. Among them the following were at the top of the list.

 The National Debt Exchange (NDX) program  The realities associated with the conditions for an IMF Agreement.

Notwithstanding these challenging factors nine of  The Jamaican dollar continued to decline in the CEO’s pushed their companies performance value to record the required positive change is after tax  The Minister of Finance announced a series profits for 2012 over 2011 to place them on The of significant tax measures 2013 List. 38

Businessuite Magazine Special Edition December 2013

Special Feature - Business

2013 Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

TOP 10 CEO FOR 2013 COMPANY Jamaica Money Market Brokers Supreme Ventures Limited Kingston Wharves Mayberry Investments Limited GraceKennedy Limited Desnoes & Geddes Limited Seprod Limited Pan-Jamaican Investment Trust Sagicor Life Jamaica Scotia Group Jamaica Ltd. Jamaica Broilers Group Scotia Investments Jamaica Ltd. Sagicor Investments Jamaica Limited Carreras Limited National Commercial Bank Jamaica Ltd. Caribbean Cement Company Radio Jamaica Limited Berger Paints Jamaica Limited Jamaica Producers Group Cable & Wireless (Jamaica) Ltd. Ciboney Group Limited Total

Keith Duncan Group Chief Executive Officer JMMB Group reported a good year

and was delighted to report a Group operating profit of J$2.78 billion and net profit of J$2.24 billion for the year and a 96% increase compared to the previous year’s result pushing him into the #1 spot. These achievements were the direct result of a strategy focused on business line diversification, expanded regional growth, operational excellence and exceptional client service delivery. #2 Brian

George President and CEO, Supreme Ventures Limited (SVL) on the other hand

describe 2012 as a milestone year for Supreme Ventures Limited (SVL) now in the 11th year of operations, George indicated to shareholders that “We crossed the One Billion Dollar mark in net profit after-tax, reporting $1.069B in after-tax profit. This Businessuite Magazine Special Edition December 2013

Profit After T ax '000 2012 2011 2,240,456 1,142,930 1,069,224 606,326 555,728 345,012 439,354 282,122 3,829,141 2,992,473 1,229,558 1,078,809 850,802 767,280 2,107,339 1,975,560 5,987,618 5,754,467 10,575,091 10,617,655 936,206 956,094 1,923,379 1,985,092 1,452,676 1,720,656 3,314,076 2,597,220 10,045,862 13,885,301 (3,348,265) (2,613,360) 87,407 132,828 33,317 67,806 207,710 955,767 (20,235,439) (6,111,526) (6,200) 2,219 22,578,184 39,857,587

Change % 96.03% 76.34% 61.07% 55.73% 27.96% 13.97% 10.89% 6.67% 4.05% (0.40%) (2.08%) (3.11%) (15.57%) (21.63%) (27.65%) (28.12%) (34.20%) (50.86%) (78.27%) (231.10%) (379.41%) (43.35%)

represented a year-on-year growth of 76.34%. Additionally, we paid the highest dividend in our history of 23 cents per share, a 35.29% increase over 2011. This was achieved by a 6.31% increase in gross revenues and a gross margin increase of 21.62% over 2011.” #3 Grantley Stephenson, C.D., J.P.

Chairman & CEO, Kingston Wharves Limited Announcing to shareholders that “We

delivered our strongest performance in the past 10 years amidst persistent local and international economic challenges, Stephenson pointed to two financial results indicating improvement in the critical performance indicators:  A 15% increase in revenue over the 2011 Financial Year and a 68% increase in Operating Profit; a significant improvement over 2012. Continued on page 40

Special Feature - Business Continued from page 39

 Profit before tax and Net Profit also saw Continuing Wehby said that “During 2012, four of increases of 74% and 61%, respectively. our five segments recorded growth in profit before tax with Grace Foods having the largest increase “This is a pleasing achievement in a tough operating of 32%. The banking and investments segment environment, and we are very proud of these recorded a profit before tax decline of 29%. While results. This performance affirmed the wisdom of the GK Foods division accounted for the majority of the position we articulated in 2011, ‘a firm hold on revenue, the GK Financial Group accounted for 66% the future’. This outlook provided the anchor for of profit before tax, compared to 69% in 2011. This our strong performance: for business growth, for decline resulted from an improved performance in continued improvement in our operations, and for the food division and the fall in the banking division’s increased investment in our people. profit.

Making a return The List at #4 Gary Peart, B.Sc. (Hons), M.B.A, Chief Executive Officer, Mayberry Investments Ltd said that for 2012 the main

Entering The List for the first and last time is #6

Renato Gonzalez, Managing Director, Desnoes and Geddes limited who led

the company from June 2011- July 2012, and were focus was exiting the Repo market, growing funds replaced by Cedric Blair who has been running under management and improving client interaction. the company since. Renato speaking against the “We made significant headway in reducing our backdrop of a challenging domestic and international Jamaican dollar denominated Repo book, which we economic environment and a discriminatory SCT managed to do by over 20%, through the outright advantage of some alcohol products, reporting to sale of fixed income assets to our retail client base shareholders in the 2012 annual report indicated as well as introducing them to our managed money that, “The Company pursued aggressive strategies to market portfolios. Similarly, we were successful in achieve growth and to produce net profits of $1.23bn, maintaining our drive for greater client intimacy an improvement of 14% over the last financial year; and interaction and were able to improve this by driven in part by the domestic portfolio returning to increasing client contact and hosting more client growth with net sales value increasing year on year by 7%. This was offset by a 16% decline in export related events.” net sales resulting in an overall decline of 1% to #5 Donald G. Wehby, Group Chief 11.03bn for the period under review.

Executive Officer, GraceKennedy Another returning list member at # 7 is Byron Limited in his report to shareholders identified the five (5) key areas of focus for the company Thompson CEO/Managing Director Seprod Group of Companies who in spite during the year as:  Growing our brands and our international footprint;  Innovation to drive revenue growth;  Managing our costs and better capital management,  Continued focus on our customers and our employees.  These, coupled with our commitment to be good corporate citizens drove our activities during 2012. 40

of a challenging business environment reported that Seprod has experienced significant growth since inception. “We remain bullish about Seprod’s prospects. Seprod has a strong product portfolio that will be in demand in good times and bad. We will continue to carefully monitor our costs. In light of the short term economic uncertainty it is imperative that we contain costs at the same time grow our sales. 2012 was a good year with all businesses with the exception of Golden Grove making a contribution to group PAT. In 2013 we expect all

Businessuite Magazine Special Edition December 2013

Special Feature - Business

businesses including Golden Grove to make positive from 24.8% to 32.8%. #9 Richard O. Byles, contributions and subsequently to see an improved B.Sc., M.Sc., President and CEO, performance. Sagicor Life Jamaica Limited. Reporting

to shareholders on his 2012 stewardship, offered the following commentary, â&#x20AC;&#x153;Our Team delivered net profits of $5.79 billion, which is 5% above 2011 and our thirteenth consecutive year of profit growth. Revenues were $31.48 billion, an improvement of 10% over 2011. We provided $10.36 billion of insurance and annuity benefits to our customers and addressing shareholders on the performance of the their families in 2012. In addition we managed the company in 2012, indicated that in July, 2012 the GEASO and GPASO health business and the largest company increased its investment in its associated pool of pension funds in Jamaica. These are major company, Sagicor Life Jamaica Limited (SLJ), with businesses from which we pay out another $17.4 the acquisition of approximately 300 million billion annually. additional stock units for a purchase consideration of J$3.1 billion. The acquisition was financed, in Our investment funds outperformed their respective part, by the issue of secured notes totaling J$2.5 benchmarks for the most part and some were the billion and increased Pan-Jamâ&#x20AC;&#x2122;s ownership of SLJ best performers in their asset class. BM

#8 Stephen B. Facey, M. Arch, President and Chief Executive Officer of Pan-Jamaican Investment Trust Limited and Chairman of Jamaica Property Company Limited (JPCO),

Businessuite Magazine Special Edition December 2013

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Special Feature: Full Report

The Businessuite Magazine TOP

CEoâ&#x20AC;&#x2122;s For 2013 - Main Stock Exchange

2013 Ranking 1 2 3 4 5 6 7 8 9

Profit After T ax '000 2012 2011 2,240,456 1,142,930 1,069,224 606,326 555,728 345,012 439,354 282,122 3,829,141 2,992,473 1,229,558 1,078,809 850,802 767,280 2,107,339 1,975,560 5,987,618 5,754,467

Change % 96.03% 76.34% 61.07% 55.73% 27.96% 13.97% 10.89% 6.67% 4.05%

Businessuite Magazine Special Edition December 2013

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#1 Keith Duncan

Group Chief Executive Officer JMMB Group Other Businessuite Rankings Revenue Top 20 #10 Profit Top 20 #6 Revenue Top 50 #10 Profit Top 50 #6

Holding a B.A. (Economics) from the University of Western Ontario, Canada and a Chartered Financial Analyst qualification, Keith joined JMMB as Trading Manager in 1993 and in 2000 became the Deputy Managing Director. In 2005, he was promoted to Group Chief Executive Officer with responsibility for overall performance and charting the strategic direction of the Group. As a strategic thinker and visionary leader, he has built one of the strongest trading teams in Jamaica. His financial expertise has not only benefited the JMMB Group, but also the Jamaican financial sector. He is a former President of the Jamaica Securities Dealers’ Association and was involved in the partnership with the Financial Services Commission (FSC) in designing and implementing new structures and

models to enhance the effectiveness of Jamaica’s market players. Known for his commitment to youth development, Keith served as Chairman of the National Youth Service from 2003 to 2009 and worked closely with the respective boards and teams to fulfill the mission of creating and reforming Jamaica’s youth to become purposeful citizens. In continuing this service, he joined efforts to design and implement the Youth Upliftment Through Employment programme (Y.U.T.E), a private sector-led initiative, and is a board member of the Y.U.T.E. Project. GROUP RESULTS  Operating revenue net of interest expense was J$5.99 Billion (2011: J$4.07 billion).  The profit before income tax was J$2.81 billion (2011: J$1.51billion).  The profit attributable to equity holders of the parent after income tax was J$2.22 billion (2011:J$1.12billion). Businessuite Magazine Special Edition December 2013

 Shareholders’ equity was (2010:J$9.40billion).

J$10.87

billion

We are pleased to submit to you the Annual Report for the JMMB Group for the year ended March 31, 2012. We had a good year and are delighted to report a Group operating profit of J$2.78 billion and net profit of J$2.24 billion for the year and a 96% increase compared to the previous year’s result. Shareholders’ equity increased from J$9.4 billion i n the previous year toJ$10.87 billion. Our achievements have been the direct result of a strategy focused on business line diversification, expanded regional growth, operational excellence and exceptional client service delivery.

All our business lines reported higher contributions to profits. The operations in the Dominican Republic continue to grow with a client portfolio of US$80.71 million and A strong base of retail and institutional clients, including Banks, Savings & Loans Associations, Continued on page 44

T op 1 0 C E O ’ s Continued from page 43

Securities Dealers and Pension KEY HIGHLIGHTS OF THE FY Funds. In Trinidad and Tobago, 2011/12 our operations also posted Our client base continues to satisfactory results. grow and exceeds 190,000. This Intercommercial Bank Limited is a testament to the trust and and its wholly owned subsidiary, confidence that the Jamaican Intercommercial Bank Trust people and wider regional clients and Merchant Bank Limited, have placed in the JMMB brand. taken together as IBL Group, had total assets of TT$1.2 In 2011 the JMMB Group billion, an increase of 24.8% from continued its strategic expansion prior year whilst Profit before initiatives in its quest to acquire Tax (PBT) closed at TT$6.09 the Capital & Credit Financial million a 47.9% increase over the Group in Jamaica. comparative period. This signal During the year, we also deepened of positive growth demonstrates our presence in the Dominican the continued fortitude of the Republic with the addition of the entities in the face of challenging Santiago Branch. economic times, the commitment of the teams and the support of As JMMB expands throughout the region, we continue to dedicate stakeholders. ourselves to the company’s core values of honesty, integrity,

openness and love, and we recognize their prominent role in sustaining our success.

In May 2011, we launched the Joan Duncan School of Entrepreneurship, Ethics and Leadership (JDSEEL) at the University of Technology (UTECH), in memory of our founder Joan Duncan. The Company continued to diversify its offerings by launching several new products, including the JMMB Car Solution, JMMB Education Solution and JMMB Debt Consolidation Loan. JMMB Insurance Brokers (JMMB IB) launched the Smart Choice Home Insurance product and continued with its JMMB Motor Smart Pak through partnerships with select insurance companies. BM

#2 Brian George

President and CEO, Supreme Ventures Limited (SVL). Other Businessuite Rankings Revenue Top 20 #5 Profit Top 20 #11 Revenue Top 50 #5 Profit Top 50 #11

Brian George is Trinidadian and a graduate of Tulane University with a degree in Physics, and has pursued various management development programs, including Executive Development programs at Stanford University.

Prior to joining SVL, he was Senior Director of GTECH Latin America and General Manager of GTECH Jamaica and Barbados. As General Manager of GTECH Jamaica, he had been working closely with SVL even prior to the launch of operations in 2001.

Brian’s valuable marketing insight and considerable management expertise was enhanced by over 18 years Businessuite Magazine Special Edition December 2013

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experience in the gaming industry.

increase over the prior year’s $606.33 Million. This is the best performance of the Group since going Describing 2012 as a milestone year for Supreme public in 2007. Ventures Limited (SVL) now in the 11th year of operations, George indicated to shareholders that For the year under review: “We crossed the One Billion Dollar mark in net profit • Direct expenses were $25.71 Billion, an after-tax, reporting $1.069B in after-tax profit. This increase of 4.26% or $1.05 Billion represented a year-on-year growth of 76.34%. • Operating expenses of $2.66 Billion, an Additionally, we paid the highest dividend in our increase of 8.94% or $218.1 Million history of 23 cents per share, a 35.29% increase • Interest income of $ 53.098 Million, an over 2011. This was achieved by a 6.31% increase increase of 14.49% or $6.72 Million in gross revenues and a gross margin increase of 21.62% over 2011.” Other financial benchmarks for the year were: • Return on Equity of 26.6% compared Continuing he remarked that, “Despite operating to17.4% in 2011 in a challenging and declining socio-economic • Earnings per Stock Unit of $0.41 compared environment, the Supreme Ventures Group to $0.23 in 2011 reported $29.73 Billion in total revenues, a 6.32% • Divided payments amounting to $0.23 increase over the $27.96 Billion achieved in 2011. compared to $0.17 in 2011. The Group’s gross profit increased by 21.62% over the corresponding period, with the lottery Other gains were $42 Million, which represents segment being the most significant contributor. the draw down on the Lucky Five reserve. In the The improved performance by the lottery segment previous year, the gains were $195.39 Million, was due mainly to a lower Cash Pot liability and the which was comprised of a $149.39 Million early successful introduction of the Pick 4 game. Pin codes renewal fee for the successful completion of a new and Sports Betting contributed $15.93 Million and contractual agreement with GTECH Corporation. $40.09 Million respectively, whereas, VLTs gross GTECH is the technology provider of the lottery profit on the other hand decreased significantly by games network.” BM $79.77 Million. As a result, the Group’s net profit after tax was $1.07 Billion, representing a 76.34% Businessuite Magazine Special Edition December 2013

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#3 Grantley Stephenson, C.D., J.P. Chairman & CEO, Kingston Wharves Limited Other Businessuite Rankings Revenue Top 20 #16 Profit Top 20 #14 Revenue Top 50 #18 Profit Top 50 #15

Grantley Stephenson joined Kingston Wharves as the Managing Director in 2003 and has carefully crafted the modernization and growth strategies of the Company. He has also headed various shipping companies over the past 30 years such as Seaboard Freight and Shipping Jamaica Limited and Jamaica Merchant Marine. He holds a Masters in Business Administration from the University of the West Indies and is a graduate of the University of Technology in Jamaica and the University of Plymouth in England. In 2012, he was elected President of the Caribbean Shipping Association and is Dean of the Consular Corps of Jamaica and the Honorary Consul General for the Kingdom

of Norway. For his outstanding work in this role, he was conferred with the Jamaican National Award of the Order of Distinction - Commander Class and the Royal Norwegian Order of Merit, the highest nonnational award. Announcing to shareholders that “We delivered our strongest performance in the past 10 years amidst persistent local and international economic challenges, Stephenson pointed to two financial results indicating improvement in the critical performance indicators:  A 15% increase in revenue over the 2011 Financial Year and a 68% increase in Operating Profit; a significant improvement over 2012.

increased investment in our people.

In 2011 we indicated the four Strategic pillars that are critical to the sustainable growth, development, profitability, and the delivery of world-class service: Financial, Customer, Learning & Growth, and Business Growth. Our results, so far, are promising. Our 2012 results were led by the strong performance of Kingston Wharves Limited (KWL) through the growth in motor vehicle and container activities. There is no doubt the acquisition of the Hoegh Motor Vehicle Transshipment Hub in 2010 is not only good business but is also good for business. This partnership resulted in a staggering 500% increase in motor vehicle units in 2010 compared to 2009.

 Profit before tax and Net Profit also saw Our 2012 results indicate that, while not of the same magnitude, this increasing trend has continued. increases of 74% and 61%, respectively. Having set the strategic objective to increase “This is a pleasing achievement in a tough operating Customer Value through the consistent delivery of environment, and we are very proud of these service at a competitive price, 2012 was used to results. This performance affirmed the wisdom of lay the foundation to implement a Customer Value the position we articulated in 2011, ‘a firm hold on Proposition that is Distinctive and Differentiable. the future’. This outlook provided the anchor for Our 2012 customer service satisfaction survey, gave our strong performance: for business growth, for us insights, many of which we have already acted on continued improvement in our operations, and for to deliver on this promise.” BM 46

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#4 Gary Peart,

B.Sc. (Hons), M.B.A, Chief Executive Officer, Mayberry Investments Ltd Other Businessuite Rankings Revenue Top 20 #19 Profit Top 20 #15 Revenue Top 50 #22 Profit Top 50 #17

Gary Peart joined Mayberry Investments in May 2005 as its Chief Executive Officer with over twenty years of corporate financial experience and armed with a B.Sc. in Economics from the University of the West Indies (Hons.) and an MBA from Florida International University. He was appointed to the Board of Directors in April 2006. Currently serving as President of the Jamaica Securities Dealers Association and Chairman of the Jamaica Bauxite Institute, he also is a director of Access Financial Services Limited, Lasco Financial Services Limited and Port Authority of Jamaica.

Describing as remarkable the growth in profitability that Mayberry realised in 2012, Peart indicated to shareholders in his 2012 report that it did not happen without challenges.

expanding its client base to include international “The Jamaican Dollar devalued by 6 per cent and accounts and assisted in the development of several local stock indices declined by 3 per cent in the portfolio financial year. The local economic climate was products that are now offered to clients. hampered by the pending IMF Agreement and a reduction in key macroeconomic indicators. Despite For 2012 the main focus of the Sales and Client that however, we were able to incorporate strategies Relations Department was exiting the Repo market, that mitigated these negative effects. growing our funds under management and improving client interaction. We made significant headway The Asset Management Department launched new in reducing our Jamaican dollar denominated products to add to the list of options for our clients, Repo book, which we managed to do by over 20%, while the Research and Special Projects Department through the outright sale of fixed income assets to expanded its reach to offer our retail client base as well as introducing them to not only Initial Public Offerings (IPOs) and Advisory our managed money market portfolios. Similarly, Services but made major inroads in the Private we were successful in maintaining our drive for Equity market. greater client intimacy and interaction and were able to improve this by increasing client contact and hosting more client related events. Both moves impacted positively the year’s earnings. Our Markets and Trading Department While we are very proud of our results in fiscal performed impressively, positioning Mayberry as a 2012, we will continue to improve upon our strategy major player in the local bonds and foreign exchange for growth execution, particularly because we (FX) trade markets. The team was also successful in anticipate 2013 to be a challenging year.” BM Businessuite Magazine Special Edition December 2013

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#5 Donald G. Wehby,

Group Chief Executive Officer, GraceKennedy Limited Other Businessuite Rankings Revenue Top 20 #1 Profit Top 20 #4 Revenue Top 50 #1 Profit Top 50 #4

Don Wehby became Group Chief Executive Officer of GraceKennedy Limited on July 1, 2011. Prior to this appointment, Mr. Wehby was Group Chief Operating Officer, a position he took up when he rejoined the company on October 5, 2009. Having first joined GraceKennedy Ltd. in 1995 as Group Finance Manager he was quickly appointed Deputy Finance Director in 1997 and in that same year was appointed to the Board of Directors of GraceKennedy Ltd. The following year, he was appointed Group Chief Financial Officer and in 1999 undertook the additional role of Chief Operating Officer for the Financial Services Division.

A Fellow Chartered Accountant, Mr. Wehby gained his early auditing experience at Touche-Ross Thorburn. He holds both a Bachelor of Science (Hons.) and a recorded a profit before tax decline of 29%. While Master of Science degree in Accounting from The the GK Foods division accounted for the majority of University of the West Indies and has completed an revenue, the GK Financial Group accounted for 66% Advanced Management College certificate course at of profit before tax, compared to 69% in 2011. This decline resulted from an improved performance in Stanford University. the food division and the fall in the banking division’s Wehby in his report to shareholders identified the profit. five (5) key areas of focus for the company during We continued to pursue our vision of becoming the year as:  Growing our brands and our international a Global Consumer Group with our target being earning revenues of 15% from each of three footprint; continents, North America, Europe and Africa, and  Innovation to drive revenue growth;  Managing our costs and better capital 50% of profits from outside of Jamaica. Our Food brands recorded a 6% growth over 2011, with management,  Continued focus on our customers and our creditable growth in North America, Europe and Africa. We expanded our international footprint employees.  These, coupled with our commitment to be into Africa and increased our shareholding in our good corporate citizens drove our activities Central American subsidiary, GraceKennedy (Belize) Limited.” during 2012. Continuing Wehby said that “During 2012, four of our five segments recorded growth in profit before tax with Grace Foods having the largest increase of 32%. The banking and investments segment 48

Wehby also reported, “That all business segments recorded growth in revenue. Group revenues for 2012 were $61.34 billion, representing a 5.4% increase over the prior year. This revenue increase Businessuite Magazine Special Edition December 2013

T op 1 0 C E O ’ s Continued from page 48

was accompanied by a significant improvement in our net profits. The result was a 27.8% increase in net profit attributable to shareholders to $3.51 billion for 2012 from $2.75 billion in 2011. Earnings per share increased by $2.19 to $10.52. Total assets grew by 6.2% to total $106.4 billion for 2012. This growth was financed largely by an increase in total equity of 11.4% to total $34.1 billion. In keeping with our objective to improve shareholder returns, the total dividends paid in 2012 were $2.00 per share, compared to $1.50 in 2011, an increase of 33%.” BM

#6, Renato Gonzalez

Managing Director, Desnoes and Geddes limited (Led the company between June 2011- July 2012 and were replaced by Cedric Blair who has been running the company since.) Other Businessuite Rankings Revenue Top 20 #8 Profit Top 20 #10 Revenue Top 50 #8 Profit Top 50 #10

Renato Gonzalez has twenty years experience in the consumer goods market in large multinationals across the world. He has a wide range of experience in supply chain management having designed and successfully implemented procedures and processes. Prior to his appointment, he was the Customer Operations Director of Diageo’s Global Supply Chain based in Amsterdam, with responsibility for order management and supply planning of Diageo’s number one brands and export from multi-plants worldwide. While he was Supply Chain Director for Diageo Mexico, he received two leadership

awards for excellence in execution and inspirational profits of $1.23bn, an improvement of 14% over the leader. He has a degree from the Universidade de last financial year. Cidade, Rio de Janiero, Brazil and speaks fluent Portuguese and Spanish. This creditable profit performance was driven by: Speaking against the backdrop of a challenging domestic and international economic environment and a discriminatory SCT advantage of some alcohol products, reporting to shareholders Renato indicated that, “The Company pursued aggressive strategies to achieve growth and to produce net Businessuite Magazine Special Edition December 2013

 The domestic portfolio returning to growth with net sales value increasing year on year by 7%. This was offset by a 16% decline in export net sales resulting in an overall decline of 1% to 11.03bn for the period under review. Continued on page 50

T op 1 0 C E O ’ s Continued from page 49

 An effective cost management programme, which has netted higher levels of efficiencies across the business, including the key areas of waste and energy.  The rollout of a number of product innovations, including a trio of flavoured light beers and Talawah™ our $100 beer, which have been a hit on the domestic market.

Additionally, the company’s competitiveness in the domestic alcohol beverages market improved with a more balanced SCT policy on tonic wines and energy drinks - even as white rum maintained its large tax advantage for most of the year.

Exports continue to be a key element of the company’s growth strategy. Export volume performance fell in FY2012, primarily due to a decline in the U.S. market. The company responded by moving U.S. export  A more level playing field in respect of production from Jamaica to the U.S., which will the SCT on tonic wines and energy drinks, allow us to invest more in the brand in that country following intense lobbying efforts, even as and become more responsive to the consumers in the discriminatory tax advantage of white that segment. rum continued for most of the year. Turnover was $13,154 million, a 1% decline The great news is that Red Stripe is back in growth compared to last year. Net Sales Value (NSV) also in the domestic market, after 5 years of decline. declined 1% to $11,032 million for the year under This helped offset a decline in the export business, review. A focus on total cost efficiency and lower particularly the US, as we transition to the new marketing costs delivered a positive Trading Profit distribution structure. growth of 1% in FY2012 to $1,458 million. Red Stripe lost traction with beer over the last several years in the domestic market through battling a large tax disadvantage; however the company has started to recover.

Higher levels of efficiency have led to lower costs, which have allowed for greater flexibility for investments in the domestic brewed portfolio. This has driven diversification of the product mix, including the introduction of five new beverages with lower alcohol content and contributed to higher sales volume and domestic profits.

Net profit after tax amounted to $1,230 million, a 14% increase over the previous year. This translates into earnings per stock unit of 43.77 cents in FY2012 compared to 38.40 cents in FY2011. The company paid dividends of 20 cents per stock unit during the year compared to no dividend in the previous year. The stock price as at June 30, 2012 was $3.80 a share, compared to $3.30 at the corresponding point last year, a price appreciation of 15.2%. Market capitalization at June 30, 2012 was $10.7 billion, up from $9.3 billion at the end of FY2011.” BM

360 Signature Events is a Caribbean company specialising in the planning and execution of Corporate and Marketing Events including, Exhibitions, Conventions, Conferences, seminars, Sporting and Hospitality Events, Road Shows, Brand Promotion, Product launches, Incentives and Special Event.

www.360signaturevents.com 50

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# 7 Byron Thompson

CEO/Managing Director Seprod Group of Companies Other Businessuite Rankings Revenue Top 20 #9 Profit Top 20 #13 Revenue Top 50 #9 Profit Top 50 #13

Byron Thompson has been a Director since 1995. He is the Chief Executive Officer and Managing Director of the Seprod Group of Companies. He is a Director of Facey Commodity Company Limited, Customs Brokers Licensing Authority and Jamaica Manufacturer Association. He holds a Bachelor’s Degree in Chemistry and Geology from the University of the West Indies and an MBA from Barry University, Florida, USA.

Highlighting the following:

While describing 2012 as challenging for business in Jamaica as the economy continued to regsiter anaemic growth rates Bryon was pleased to report to shareholders that the Group performed remarkably well during the year.

• The Group sales revenue for 2012 was $12.723B reprsenting a 6% increase over the previous year. • Earnings per share were $1.73 compared to $1.69 earned in 2011 • Dividend per share was $0.83 compared to the $0.76 paid in 2011 • Profit before taxation increased from $1.194B to $1.23B an increase of 3.1%. • The Group’s after tax increased from $767.3M to $850.8M an increase of 10.9%.

In spite of a challenging business environment Byron reported that Seprod has experienced significant growth since inception. “We remain bullish about Seprod’s prospects. Seprod has a strong product portfolio that will be in demand in good times and bad. We will continue to carefully monitor our costs. In light of the short term economic uncertainty it is imperative that we contain costs at the same time grow our sales. 2012 was a good year with all businesses with the exception of Golden Grove making a contribution to group PAT. In 2013 we expect all businesses including Golden Grove to make positive contributions and subsequently to see an improved performance. BM

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T op 1 0 C E O ’ s

#8 Stephen B. Facey, M. Arch, President and Chief Executive Officer of PanJamaican Investment Trust Limited and Chairman of Jamaica Property Company Limited (JPCO), Other Businessuite Rankings Revenue Top 20 #20 Profit Top 20 #7 Revenue Top 50 #23 Profit Top 50 #7

Son of the legendary visionary and entrepreneur Maurice Facey, Stephen, an architect by training is a graduate of Rice University and the University of Pennsylvania, with over 30 years’ experience in business. He is also a director of Sagicor Life Jamaica Ltd., Panacea Insurance Company Limited, Mavis Bank Coffee Factory Limited, Chukka Caribbean Adventures Limited, New Kingston Civic Association and Kingston Restoration Company Limited. He is also a Director of the Jamaica Developers Association and a member of the Jamaica Institute of Architects.

The Stephen Facey led Pan-Jamaican Investment Trust Limited (Pan-Jam) is an investment holding company and through its subsidiaries provides property management services in Jamaica, including rental, management and development of commercial real estate properties, and captive insurance. It also engages in investments for its own account both through actively-managed positions in Caribbean, principally Jamaican, public and private companies and through securities trading, principally in equities and fixed income securities.

2012 the company acquired a 20% shareholding in Chukka Caribbean Adventures Limited (CCA), a leading nature adventure excursion operator in the Caribbean, for a purchase consideration of US$4 million, and subscribed for a 35% shareholding in Caribe Hospitality Jamaica Limited, the developer of a proposed Marriott Courtyard Hotel in New Kingston, for $96 million.

In July, 2012 the company increased its investment in its associated company, Sagicor Life Jamaica Limited (SLJ), with the acquisition of approximately The company’s portfolio of associated and joint 300 million additional stock units for a purchase venture companies engage in life and health consideration of J$3.1 billion. The acquisition was insurance, pension fund administration and financed, in part, by the issue of secured notes investment management, commercial and totaling J$2.5 billion and increased Pan-Jam’s investment banking and asset management, ownership of SLJ from 24.8% to 32.8%. consumer product processing and distribution (including coffee and various lines of sauces and In December, 2012 the company drew down the condiments), retail and distribution of hardware, second and final tranche of a US$17.5 million loan lumber and agricultural supplies, and tour and from The International Finance Corporation (IFC). attractions operations. At the end of 2012 the group had cash and short term Addressing shareholders on the performance of the investments of J$2.8 billion as well as significant company in 2012, Stephen indicated that in May, additional borrowing capacity with which to pursue 54

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additional investment opportunities in 2013 and beyond.

Jam). In the amalgamation, First-Jam shareholders were issued with ten (10) Pan-Jam stock units for every thirteen (13) First-Jam stock units held. The The year 2012 was the first full financial year amalgamation has provided increased board and following the amalgamation of Pan-Jam with its management focus on investments. BM subsidiary, First Jamaica Investments Limited (First-

#9 Richard O. Byles,

B.Sc., M.Sc., President and CEO, Sagicor Life Jamaica Limited. Other Businessuite Rankings Revenue Top 20 #4 Profit Top 20 #3 Revenue Top 50 #4 Profit Top 50 #3

Mr. Byles holds a Bachelor’s degree in economics from the University of the West Indies and a Master’s in National Development from the University of Bradford, England. He is the Board Chairman of Sagicor Investments Limited (formerly Pan Caribbean Financial Services Limited) Sagicor Life of the Cayman Islands Limited and Desnoes & Geddes Ltd. brewers of Red Stripe. He is also a director of Pan-Jamaican Investment Trust Limited.

Our investment funds outperformed their respective Reporting to shareholders on his 2012 stewardship, benchmarks for the most part and some were the Byles offered the following commentary. best performers in their asset class.

“Our Team delivered net profits of $5.79 billion, In 2012 we made significant progress in laying a which is 5% above 2011 and our thirteenth platform to deliver continued growth in the near consecutive year of profit growth. Revenues were term: $31.48 billion, an improvement of 10% over 2011. We provided $10.36 billion of insurance and annuity  Once again we had excellent new business benefits to our customers and their families in 2012. sales, outperforming the individual and In addition we managed the GEASO and GPASO group insurance markets and growing our health business and the largest pool of pension share by 3% and 5% respectively. funds in Jamaica. These are major businesses from  With respect to innovation, we launched five which we pay out another $17.4 billion annually. new insurance and banking products in 2012 and all were well received by the market. Continued on page 56

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T op 1 0 C E O ’ s Continued from page 55

 We successfully rebranded Pan Caribbean Financial Services to Sagicor, opening the opportunity for significant sales and marketing synergies.  We received approval from the Costa Rica Regulator to operate an insurance company in that country in joint venture with a Costa Rican partner, Capital and Advice S.A. We expect to have product approvals in 2013 and to begin operations in Q2 of that year.  Team morale in the group improved further. The annual, independently administered staff survey indicates that 76% of our Team members consider themselves to be highly engaged in their jobs.  Customer experience across the group continued to improve with 85% of our surveyed customers expressing satisfaction with our services across all our major product lines.  We further strengthened the recognition of and affinity for the Sagicor brand through a wide array of product promotions and social initiatives focused primarily on sport, health and education.

Underpinning our promise to deliver promised benefits to our customers is a strong balance sheet. In 2012 our assets grew 9% to $175 billion and the capital of SLJ improved by 15% to $32.6 billion after paying a dividend of $2.11 billion to our 8,312 shareholders. SLJ continues to exceed the risk-adjusted capital required by our regulators.” BM 56

Businessuite Magazine Special Edition December 2013

Te c h n o l o g y

Free Broadband Will Transform The Jamaican Economy Everything we know, see and observe now is pointing us in one direction……a world and single economy built around the internet, powered by super high speed broadband that’s totally free. The only question is not how but when. Jamaica can become a world leader and a truly transformed country and by extension economy by the government enacting legislation nationalizing all broadband infrastructure and delivery in Jamaica within the next five years. Broadband should be treated like the national road and high way infrastructure and any amendment to the legislative and regulatory framework, must allow for the development of infrastructure with the view to handing over to the Government and People of Jamaica once the investment is recovered or within a defined time frame. “For more than 100 years, Ericsson has been enabling communications for all and today more than 6 billion people in the world have access to mobile communications. We are committed to shaping the Networked Society – where everyone and everything will be connected in real time; creating the freedom, empowerment and opportunity to transform society. We believe affordable connectivity and internet access improves people’s lives and helps build a more sustainable planet and therefore we are excited to participate in the Internet.org initiative.” Hans Vestberg, President and CEO of Ericsson. This will give current players an opportunity to adjust business models and new entrant sufficient time to make their entrance. The Businessuite Magazine Special Edition December 2013

Jamaican economy and its people will yield significant economic gains and provide a truly level business playing field. To cover the cost of acquisition from current owners and maintenance the Government should impose a minimum tax based on each devise registered and connected to the system. To accelerate the rate of penetration and adoption the Government should facilitate the dramatic reduction in the price of web-enabled devices, such as smartphones, tablets and other such devices that would facilitate connection to this free broadband service by removing all duties and related importation charges. “As a world leader in mobile solutions for emerging markets having powered more than 300 million smart devices within 2 years, MediaTek whole heartedly supports the Internet.org initiative. Global internet and social media access represent the biggest shift since the industrial revolution, and we want to make it all-inclusive.” MK Tsai, Chairman of MediaTek. We know for a fact that all the major players in social media and mobile technology are moving in this direction. Mark Zuckerberg, founder and CEO of Facebook, recently announced the launch of internet.org, a global partnership with the goal of making internet access available to the next 5 billion people. “Everything Facebook has done has been about giving all people around the world the power to connect,” Zuckerberg said. “There are huge barriers in developing countries to connecting and joining 57

Free Broadband Will Transform The Jamaican Economy Cont’d..... the knowledge economy. Internet.org brings together a global partnership that will work to overcome these challenges, including making internet access available to those who cannot currently afford it.” “Nokia is deeply passionate about connecting people – to one another and the world around them. Over the years, Nokia has connected well over a billion people. Our industry is now at an exciting inflection point where internet connectivity is becoming more affordable and efficient for consumers while still offering them great experiences. Universal internet access will be the next great industrial revolution.” Nokia President and CEO Stephen Elop According to published reports, today, only 2.7 billion people – just over one-third of the world’s population – have access to the internet. Internet adoption is growing by less than 9 percent each year, which is slow considering how early we are in its development. For Jamaica published estimates show just eight per cent of the population are presently using high-speed Internet service, with studies suggesting that for every 10 per cent increase in telecommunications and broadband penetration there is a 1.3 per cent boost to GDP. The goal of Internet.org is to make internet access available to the two-thirds of the world who are not yet connected and to bring the same opportunities to everyone that the connected third of the world has today. “This new initiative has big potential to help accelerate access to the internet for everyone. We’re focused on delivering high quality mobile devices to ensure that the next five billion people have great mobile internet experiences.” JK Shin, CEO and President of the IT & Mobile Communications Division at Samsung Electronics. 58

The founding members of Internet.org-Facebook, Ericsson, MediaTek, Nokia, Opera, Qualcomm and Samsung know that the more people connected to the internet the greater their potential market and opportunity to grow revenues and profits. The only thing stopping them right now is the cost of connection, remove this and the whole world is opened up for all. These companies have the motive, incentive and the money to make this happen very quickly. To do this they will develop joint projects, share knowledge, and mobilize industry and governments to bring the world online. These founding companies have a long history of working closely with mobile operators and expect them to play leading roles within the initiative, which over time will also include NGOs, academics and experts as well. Internet.org is influenced by the successful Open Compute Project, an industrywide initiative that has lowered the costs of cloud computing by making hardware designs more efficient and innovative. “Today, more than 300 million people use Opera every month to access the internet. Tomorrow, we have a chance to serve the next 5 billion people connecting on mobile devices in developing countries. It’s in Opera’s DNA to save people time, money and data, and through Internet.org we think we can help advance these goals,” Lars Boilesen, CEO Opera Software. The Jamaican Government is presently trying to auction two 700 megahertz (MHz) band licences, which allow for the provision of 4G technology, such as Long Term Evolution (LTE). This has failed and we may not have to look too far to understand why. If the medium to long term trend is for free broadband access why invest in the build out of this infrastructure. If the Government were to offer companies the US$40 million and US$45 million, now offered to acquire the licenses, to build the infrastructure for them they Businessuite Magazine Special Edition December 2013

Free Broadband Will Transform The Jamaican Economy Cont’d.....

How Internet.org Plans to Connect The World

would get a much better response. The Government must hold and acquire the entire available spectrum to ensure the rapid and aggressive roll-out of free mobile broadband services and the transformation of the economy. Broadband now is like oil, water and other natural resources. Control the broadband in your country and you control the future of that country. The market place has deeply discounted the value the licences and the only person or entity it now has real value to is the People of Jamaica as a “valuable natural resource”. For the Government to hold onto the available spectrum for the simple reason of immediate revenue to meet fiscal targets laid out under the latest International Monetary Fund (IMF) agreement is short sighted. “Mobile has helped to transform many people’s lives in the emerging regions where often a computing device will be the first and only mobile experience they’ll ever have. Having shipped more than 11 billion chips, Qualcomm is a market leader that is committed to the goal of bridging the digital divide. We’re pleased to be a part of Internet.org and to be working with key ecosystem players to drive this initiative forward.” Paul Jacobs, chairman of the board and CEO of Qualcomm Incorporated. Telecommunications operator, LIME, as quoted in a recent Jamaica Observer articles is absolutely right it “reckons that it would be useful for the Government to consider the technology that enables full broadband penetration as the means to an end and not the end itself in relation to the levying of licensing and other fees. This, we feel, should be considered above the immediate windfall potential of licensing fees which, if set at rates that are not economically feasible, could hinder the Government’s desired objective,” the company said. The long-term view should focus on the tremendous economic spin-offs that increased broadband penetration can deliver, according to LIME. BM Sources: Sunday Jamaica Observer Press Contactpress@fb.com SOURCE Facebook http:// rt.prnewswire.com/rt.gif?NewsItemId=LA67253&Tran smission_Id=201308202258PR_NEWS_USPR_____ LA67253&Date Businessuite Magazine Special Edition December 2013

In order to achieve its goal of connecting the two-thirds of the world who are not yet online, Internet.org will focus on three key challenges in developing countries:

Making access affordable: Partners will collaborate to develop and adopt technologies that make mobile connectivity more affordable and decrease the cost of delivering data to people worldwide. Potential projects include collaborations to develop lower-cost, higherquality smartphones and partnerships to more broadly deploy internet access in underserved communities. Mobile operators will play a central role in this effort by driving initiatives that benefit the entire ecosystem.

Using data more efficiently: Partners will invest in tools that dramatically reduce the amount of data required to use most apps and internet experiences. Potential projects include developing data compression tools, enhancing network capabilities to more efficiently handle data, building systems to cache data efficiently and creating frameworks for apps to reduce data usage. Helping businesses drive access: Partners will support development of sustainable new business models and services that make it easier for people to access the internet. This includes testing new models that align incentives for mobile operators, device manufacturers, developers and other businesses to provide more affordable access than has previously been possible. Other efforts will focus on localizing services – working with operating system providers and other partners to enable more languages on mobile devices. By reducing the cost and amount of data required for most apps and enabling new business models, Internet. org is focused on enabling the next 5 billion people to come online. Facebook, Ericsson, MediaTek, Nokia, Opera, Qualcomm, Samsung and other partners will build on existing partnerships while exploring new ways to collaborate to solve these problems. 59

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