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DREAM Unlimited5-YEAR REVENUE CAGR 12% $1,483MM FINANCIAL HIGHLIGHTS Why Invest in FirstService? COMPOUNDED 22 YEARS REVENUE ANNUAL GROWTH 19% $37MM 1,483 130 1,264 1,132 1,038 940 103 84* 75 79 79 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Revenues (US$ millions) Adjusted EBITDA (US$ millions) *Normalized for $9 million of non-recurring expenses. Leadership Positions In Very Large, Fragmented Markets • Leading market positions with well-recognized brands in all service lines • Modest market shares in large, fragmented markets provide significant organic and tuck- under acquisition growth opportunities • Scale advantage, proprietary products/services and national coverage are competitive differentiators which are difficult to replicate Proven Business Model Strong Financial Profile • Strong free cash flow generation with low capital expenditures • Conservative balance sheet • Ample capital and liquidity to fund future growth • Growing dividends paid on common shares Compelling Growth Prospects • Long and consistent track record of delivering growth • Strong organic growth through competitive advantages in attractive markets • Essential outsourced property • Margin enhancement services with highly predictable and recurring revenue streams potential through operating efficiencies • Disciplined tuck-under acquisition strategy • Focus on customer service excellence throughout our businesses • Leverage our differentiators to extend our leadership positions and win new business • Partnership philosophy aligns business leaders with shareholders About FirstService Corporation FirstService Corporation is a North American leader in the essential property services sector serving its customers through two industry- leading platforms: FirstService Residential – North America’s largest manager of residential communities; and FirstService Brands – one of North America’s largest providers of essential property services to residential and commercial customers delivered through individually branded franchise systems and company-owned operations. FirstService Residential and FirstService Brands both rely on the same operational foundations for success – a core competency in managing and growing 5% $XXXB Leader in Large Markets With Significant Growth Opportunities MARKETPLACE market-leading, value-added outsourced property services businesses; significant scale advantages that are leveraged to create more value for clients; a culture focused around customer service excellence; and strong brand recognition. OF FirstService generates US$1.5 billion in annual revenues and has more than 17,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The common shares of FirstService trade on the NASDAQ and on the Toronto Stock Exchange under the symbol “FSV”. More information is available at www.firstservice.com. FS-AR2016-8panel Gatefold-SELECT-V5.indd 1 5% OF Notice of Shareholders’ Meeting The annual meeting of the shareholders will be held on Wednesday April 12, 2017 at 4:00 p.m. (ET) at The Design Exchange, 234 Bay Street, Toronto-Dominion Centre, Toronto, Ontario CORPORATE INFORMATION Registrar and Transfer Agent Canada – TSX Trust Company Phone: 1.866.600.5869 E-mail: tmxeinvestorservices@tmx.com U.S. co-transfer agent – Computershare Phone: 1.800.368.5948 E-mail: webqueries@computershare.com Stock Exchange Listings NASDAQ Global Select Market – FSV Toronto Stock Exchange – FSV FirstService common shares are included in the S&P/TSX Composite Index. www.FirstService.com Creating Value One Step at a Time Over Two Decades of Consistent Growth 5-YEAR REVENUE CAGR 12% $1,483MM 22 YEARS REVENUE COMPOUNDED ANNUAL GROWTH 19% $37MM 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 (US$ thousands, except per share amounts) Year ended December 31 2016 2015 2014 2013 2012 Results From Operations Revenues Adjusted EBITDA1 Operating earnings Net earnings Financial Position Total assets Long-term debt Shareholders’ equity Earnings Per Share Data Adjusted EPS2 Diluted net earnings per common share Diluted weighted average common shares outstanding (thousands) Cash dividends per common share $ 1,482,889 130,324 90,550 54,243 $ 1,264,077 103,038 70,747 38,198 $ 1,132,002 74,997 45,621 26,192 $ 1,038,087 78,913 37,083 18,452 $ 939,821 78,932 53,478 30,765 $ 770,964 250,909 181,028 600,483 201,199 167,026 $ 615,544 239,357 158,749 $ 610,297 225,425 168,660 $ 591,438 216,370 174,834 Year ended December 31 2016 2015 2014 2013 2012 $ $ 1.62 0.92 36,366 0.44 $ $ 1.20 0.59 36,425 0.40 $ $ 0.84 0.36 36,363 - $ $ 0.96 0.09 36,306 - $ $ - - 2016 Annual Report Notes 1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, other (income) expense, acquisition-related items, and stock-based compensation expense. 2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of non-controlling interest redemption increment, amortization, acquisition-related items, stock-based compensation expense, and spin-off charges. 3/2/17 4:31 PM 5% OF $XXXB MARKETPLACE 5% OF 1,483 130 1,264 1,132 1,038 940 103 84* 75 79 79 Revenues (US$ millions) Adjusted EBITDA (US$ millions) *Normalized for $9 million of non-recurring expenses. 5-YEAR REVENUE CAGR 12% $1,483MM FINANCIAL HIGHLIGHTS Why Invest in FirstService? COMPOUNDED 22 YEARS REVENUE ANNUAL GROWTH 19% $37MM 1,483 130 1,264 1,132 1,038 940 103 84* 75 79 79 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Revenues (US$ millions) Adjusted EBITDA (US$ millions) *Normalized for $9 million of non-recurring expenses. Leadership Positions In Very Large, Fragmented Markets • Leading market positions with well-recognized brands in all service lines • Modest market shares in large, fragmented markets provide significant organic and tuck- under acquisition growth opportunities • Scale advantage, proprietary products/services and national coverage are competitive differentiators which are difficult to replicate Proven Business Model Strong Financial Profile • Strong free cash flow generation with low capital expenditures • Conservative balance sheet • Ample capital and liquidity to fund future growth • Growing dividends paid on common shares Compelling Growth Prospects • Long and consistent track record of delivering growth • Strong organic growth through competitive advantages in attractive markets • Essential outsourced property • Margin enhancement services with highly predictable and recurring revenue streams potential through operating efficiencies • Disciplined tuck-under acquisition strategy • Focus on customer service excellence throughout our businesses • Leverage our differentiators to extend our leadership positions and win new business • Partnership philosophy aligns business leaders with shareholders About FirstService Corporation FirstService Corporation is a North American leader in the essential property services sector serving its customers through two industry- leading platforms: FirstService Residential – North America’s largest manager of residential communities; and FirstService Brands – one of North America’s largest providers of essential property services to residential and commercial customers delivered through individually branded franchise systems and company-owned operations. FirstService Residential and FirstService Brands both rely on the same operational foundations for success – a core competency in managing and growing 5% $XXXB Leader in Large Markets With Significant Growth Opportunities MARKETPLACE market-leading, value-added outsourced property services businesses; significant scale advantages that are leveraged to create more value for clients; a culture focused around customer service excellence; and strong brand recognition. OF FirstService generates US$1.5 billion in annual revenues and has more than 17,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The common shares of FirstService trade on the NASDAQ and on the Toronto Stock Exchange under the symbol “FSV”. More information is available at www.firstservice.com. FS-AR2016-8panel Gatefold-SELECT-V5.indd 1 5% OF Notice of Shareholders’ Meeting The annual meeting of the shareholders will be held on Wednesday April 12, 2017 at 4:00 p.m. (ET) at The Design Exchange, 234 Bay Street, Toronto-Dominion Centre, Toronto, Ontario CORPORATE INFORMATION Registrar and Transfer Agent Canada – TSX Trust Company Phone: 1.866.600.5869 E-mail: tmxeinvestorservices@tmx.com U.S. co-transfer agent – Computershare Phone: 1.800.368.5948 E-mail: webqueries@computershare.com Stock Exchange Listings NASDAQ Global Select Market – FSV Toronto Stock Exchange – FSV FirstService common shares are included in the S&P/TSX Composite Index. www.FirstService.com Creating Value One Step at a Time Over Two Decades of Consistent Growth 5-YEAR REVENUE CAGR 12% $1,483MM 22 YEARS REVENUE COMPOUNDED ANNUAL GROWTH 19% $37MM 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 (US$ thousands, except per share amounts) Year ended December 31 2016 2015 2014 2013 2012 Results From Operations Revenues Adjusted EBITDA1 Operating earnings Net earnings Financial Position Total assets Long-term debt Shareholders’ equity Earnings Per Share Data Adjusted EPS2 Diluted net earnings per common share Diluted weighted average common shares outstanding (thousands) Cash dividends per common share $ 1,482,889 130,324 90,550 54,243 $ 1,264,077 103,038 70,747 38,198 $ 1,132,002 74,997 45,621 26,192 $ 1,038,087 78,913 37,083 18,452 $ 939,821 78,932 53,478 30,765 $ 770,964 250,909 181,028 600,483 201,199 167,026 $ 615,544 239,357 158,749 $ 610,297 225,425 168,660 $ 591,438 216,370 174,834 Year ended December 31 2016 2015 2014 2013 2012 $ $ 1.62 0.92 36,366 0.44 $ $ 1.20 0.59 36,425 0.40 $ $ 0.84 0.36 36,363 - $ $ 0.96 0.09 36,306 - $ $ - - 2016 Annual Report Notes 1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, other (income) expense, acquisition-related items, and stock-based compensation expense. 2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of non-controlling interest redemption increment, amortization, acquisition-related items, stock-based compensation expense, and spin-off charges. 3/2/17 4:31 PM 5% OF $XXXB MARKETPLACE 5% OF 1,483 130 1,264 1,132 1,038 940 103 84* 75 79 79 Revenues (US$ millions) Adjusted EBITDA (US$ millions) *Normalized for $9 million of non-recurring expenses. 5-YEAR REVENUE CAGR 12% $1,483MM FINANCIAL HIGHLIGHTS Why Invest in FirstService? COMPOUNDED 22 YEARS REVENUE ANNUAL GROWTH 19% $37MM 1,483 130 1,264 1,132 1,038 940 103 84* 75 79 79 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Revenues (US$ millions) Adjusted EBITDA (US$ millions) *Normalized for $9 million of non-recurring expenses. Leadership Positions In Very Large, Fragmented Markets • Leading market positions with well-recognized brands in all service lines • Modest market shares in large, fragmented markets provide significant organic and tuck- under acquisition growth opportunities • Scale advantage, proprietary products/services and national coverage are competitive differentiators which are difficult to replicate Proven Business Model Strong Financial Profile • Strong free cash flow generation with low capital expenditures • Conservative balance sheet • Ample capital and liquidity to fund future growth • Growing dividends paid on common shares Compelling Growth Prospects • Long and consistent track record of delivering growth • Strong organic growth through competitive advantages in attractive markets • Essential outsourced property • Margin enhancement services with highly predictable and recurring revenue streams potential through operating efficiencies • Disciplined tuck-under acquisition strategy • Focus on customer service excellence throughout our businesses • Leverage our differentiators to extend our leadership positions and win new business • Partnership philosophy aligns business leaders with shareholders About FirstService Corporation FirstService Corporation is a North American leader in the essential property services sector serving its customers through two industry- leading platforms: FirstService Residential – North America’s largest manager of residential communities; and FirstService Brands – one of North America’s largest providers of essential property services to residential and commercial customers delivered through individually branded franchise systems and company-owned operations. FirstService Residential and FirstService Brands both rely on the same operational foundations for success – a core competency in managing and growing 5% $XXXB Leader in Large Markets With Significant Growth Opportunities MARKETPLACE market-leading, value-added outsourced property services businesses; significant scale advantages that are leveraged to create more value for clients; a culture focused around customer service excellence; and strong brand recognition. OF FirstService generates US$1.5 billion in annual revenues and has more than 17,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The common shares of FirstService trade on the NASDAQ and on the Toronto Stock Exchange under the symbol “FSV”. More information is available at www.firstservice.com. FS-AR2016-8panel Gatefold-SELECT-V5.indd 1 5% OF Notice of Shareholders’ Meeting The annual meeting of the shareholders will be held on Wednesday April 12, 2017 at 4:00 p.m. (ET) at The Design Exchange, 234 Bay Street, Toronto-Dominion Centre, Toronto, Ontario CORPORATE INFORMATION Registrar and Transfer Agent Canada – TSX Trust Company Phone: 1.866.600.5869 E-mail: tmxeinvestorservices@tmx.com U.S. co-transfer agent – Computershare Phone: 1.800.368.5948 E-mail: webqueries@computershare.com Stock Exchange Listings NASDAQ Global Select Market – FSV Toronto Stock Exchange – FSV FirstService common shares are included in the S&P/TSX Composite Index. www.FirstService.com Creating Value One Step at a Time Over Two Decades of Consistent Growth 5-YEAR REVENUE CAGR 12% $1,483MM 22 YEARS REVENUE COMPOUNDED ANNUAL GROWTH 19% $37MM 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 (US$ thousands, except per share amounts) Year ended December 31 2016 2015 2014 2013 2012 Results From Operations Revenues Adjusted EBITDA1 Operating earnings Net earnings Financial Position Total assets Long-term debt Shareholders’ equity Earnings Per Share Data Adjusted EPS2 Diluted net earnings per common share Diluted weighted average common shares outstanding (thousands) Cash dividends per common share $ 1,482,889 130,324 90,550 54,243 $ 1,264,077 103,038 70,747 38,198 $ 1,132,002 74,997 45,621 26,192 $ 1,038,087 78,913 37,083 18,452 $ 939,821 78,932 53,478 30,765 $ 770,964 250,909 181,028 600,483 201,199 167,026 $ 615,544 239,357 158,749 $ 610,297 225,425 168,660 $ 591,438 216,370 174,834 Year ended December 31 2016 2015 2014 2013 2012 $ $ 1.62 0.92 36,366 0.44 $ $ 1.20 0.59 36,425 0.40 $ $ 0.84 0.36 36,363 - $ $ 0.96 0.09 36,306 - $ $ - - 2016 Annual Report Notes 1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, other (income) expense, acquisition-related items, and stock-based compensation expense. 2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of non-controlling interest redemption increment, amortization, acquisition-related items, stock-based compensation expense, and spin-off charges. 3/2/17 4:31 PM 5% OF $XXXB MARKETPLACE 5% OF 1,483 130 1,264 1,132 1,038 940 103 84* 75 79 79 Revenues (US$ millions) Adjusted EBITDA (US$ millions) *Normalized for $9 million of non-recurring expenses. A MESSAGE FROM OUR CEO 20162016 Market leader in essential outsourced property services From left: D. Scott Patterson Chief Executive Officer, Jeremy Rakusin Chief Financial Officer FirstService Corporation is a provider of essential property services with a long track record of consistent growth and profitability. We enjoy strong leadership positions in huge, highly fragmented property service verticals – yet our market shares are modest. These market structures are conducive to consistent long-term organic growth and significant acquisition opportunities across our service lines. Our outstanding performance in 2016 reflects this dynamic and continues our 22-year history of strong top and bottom line growth. Our 2016 highlights include: Strong Revenue Growth Revenue grew 17% driven by continued solid organic growth across all our business lines and enhanced by several acquisitions in both divisions. Especially noteworthy was the addition of Century Fire Protection, an exciting new operating platform for us. Expanded EBITDA Margins EBITDA grew by 27%, while margins expanded by 60 basis points to 8.8%. This year, once again, our biggest mover was FirstService Residential, which continued to drive operating efficiencies throughout its business leading to an 80 basis point increase in divisional EBITDA margin. Our journey towards creating a national operating platform with a recognized brand continues. Record Year for Acquisitions 2016 was by far our most successful year in terms of acquisition activity. We closed 13 acquisitions in 2016 and invested almost $100 million of capital at valuation multiples that were in line with our disciplined criteria. Our current transaction pipeline positions us for another strong growth year in 2017. Entry into Fire Protection In April, we closed the acquisition of Century Fire Protection, and later in the year we followed with the strategically important acquisition of Advanced Fire, which expanded our footprint into the Florida market. We are very excited about this new platform which complements our existing portfolio of essential property services and significantly expands our growth opportunities for the future. Advancement of Company-Owned Strategies During the year, we made significant progress in advancing our company-owned strategies at California Closets and Paul Davis Restoration. • At California Closets, we closed the acquisitions of our Los Angeles and Washington D.C. franchises, two key major markets, bringing our total number of company-owned operations to 13. Our goal is to own the major markets which account for about 25% of the California Closets operations across North America. During the year, we also made great strides in driving efficiencies, quality and turnaround times at our Phoenix-based Western Manufacturing Facility, moving closer to our target metrics for this facility. We look forward to opening our Eastern Manufacturing Facility in Grand Rapids, Michigan in the second quarter of this year which will enable us to serve all of our North American company-owned operations. • At Paul Davis Restoration, we closed the acquisitions of our North Florida and Connecticut franchises plus Paul Davis National, our large-scale disaster recovery operation, bringing to four the number of operations we own. Similar to our strategy at California Closets, we ultimately want to own the major markets and create a national company-owned platform. During the year, we also continued to invest in the operational foundation of this platform to enhance our ability to integrate and operate future Paul Davis add-on acquisitions. Robust Free Cash Flow We generated very strong operating cash flow, which enabled us to invest aggressively in the business through acquisitions, capital expenditures and organic growth initiatives, while maintaining our leverage ratio at a conservative 1.5x net debt to EBITDA – the same level as the prior year-end. In addition, we increased our annual dividend to US$0.49 per share, an increase of 10% for the second consecutive year in our brief history as a new public company. Our cash and bank revolving credit availability, aggregating $140 million at year-end, provides substantial capacity for future investment and acquisitions. Strong Stock Price Performance Strong operating results for 2016 translated into a 20% increase in our stock price during the year. Since our June 2015 spin-off into a new public company, our stock is up approximately 70%. The ability to drive consistent increases in shareholder value is a testament to our business model – one which features highly visible, recurring and contractual revenue and an ability to achieve organic growth with modest capex. Our many successes during 2016 – and over the last 20+ years – are a strong reflection of our relentless focus on employee engagement and service excellence. We know that our greatest differentiator is the quality of our service delivery which is wholly dependent on the professionalism and engagement of our people. Engaged and aligned employees create happy, loyal customers and word of mouth referral – the single most important driver of our organic growth! During 2016, we significantly increased our investment in recruiting, onboarding and training to continue to build a team and culture that clearly separates us from our competition. Our aspiration is to define “service excellence” in every market that we operate in and our investments in people and process are consistent with this goal. We are very excited about the year ahead. Our businesses are enjoying healthy market fundamentals and we believe we are very well-positioned to capitalize across all service lines. Our long-term goal is to grow our revenues at an average rate of at least 10% per year with incremental growth at the EBITDA and earnings per share lines. We have achieved and exceeded this growth goal over a 22-year period and are committed to build on this track record during 2017 and for years to come. We thank our operating partners, our 17,000 associates and the 15,000 employees and owners of our franchises for a fantastic 2016. We also thank our loyal customers for entrusting their business to us and our shareholders for their continued support. D. Scott Patterson Chief Executive Officer Entry into Fire Protection In April 2016, FirstService added a new essential property services platform to its FirstService Brands division when it acquired Century Fire Protection. Headquartered near Atlanta, Georgia, Century Fire is one of the largest full-service fire protection companies in the southeastern United States. Century Fire provides end-to-end fire protection solutions, including design, fabrication, installation, maintenance, repair, service and inspection services for commercial, residential, industrial and institutional clients. The Company employs approximately 700 staff operating out of 13 offices throughout Georgia, Alabama, North Carolina, South Carolina, Tennessee, Texas and Florida. Century Fire recently expanded its full-service offering in the south Florida market through the tuck-under acquisition of Advanced Fire & Security in November 2016. FirstService Brands $370 Million Revenues $56 Million EBITDA $1,113 Million $1,113 Million Revenues $84 Million EBITDA FirstService Brands is a leading North American operator and provider of essential property services to residential and commercial customers, with extensive franchise networks comprising over 1,900 franchises and 19 company-owned locations in all 50 U.S. states and ten Canadian provinces. In 2016, FirstService Brands serviced more than 500,000 customers and generated aggregate system-wide revenues of more than US$1.8 billion from franchised and company-owned operations. Services are delivered through eight well-known brands, each of which is a leading player in its respective market. Charlie E. Chase Chief Executive Officer FirstService Brands Chuck M. Fallon Chief Executive Officer FirstService Residential FirstService Residential is the largest residential property manager in North America, with 7,900 communities and 1.6+ million residential units under management. Its mission is to deliver exceptional client service and solutions that enhance the value of every property and the lifestyle of every resident in the communities it manages. In achieving these objectives, FirstService Residential leverages its scale, expertise and local knowledge to add value to its clients and differentiate itself from its competitors. The business invests extensively in a team of people who are committed to customer service excellence and living its values on a daily basis: Being genuinely helpful, aiming high, owning it, doing what’s right, improving it and building great relationships. Growth Strategy Growth Strategy • Very large, highly fragmented markets provide significant opportunity for organic growth • Expand same store capacity in the areas of sales, design and field service • Continue to drive repeat business and referral leads from its customers through service excellence and market-leading brands • Strategically add company-owned operations at California Closets, Paul Davis Restoration and Century Fire Protection • Leverage best-in-class franchising capabilities to acquire other property services franchise models • Leverage scale advantages and our access to capital to drive new business through differentiated value-added services and reduced client costs • Further increase customer retention and target referral opportunities • Integrated marketing, lead generation and business development effort • Continue to expand our ancillary service offerings • Improve operational efficiency • Augment organic growth with selective tuck-under acquisitions which expand our geographic footprint, enhance our market leadership positions, or broaden our ancillary service offering FS-AR2016-8panel Gatefold-SELECT-V5.indd 2 3/2/17 4:31 PM A MESSAGE FROM OUR CEO 20162016 Market leader in essential outsourced property services From left: D. Scott Patterson Chief Executive Officer, Jeremy Rakusin Chief Financial Officer FirstService Corporation is a provider of essential property services with a long track record of consistent growth and profitability. We enjoy strong leadership positions in huge, highly fragmented property service verticals – yet our market shares are modest. These market structures are conducive to consistent long-term organic growth and significant acquisition opportunities across our service lines. Our outstanding performance in 2016 reflects this dynamic and continues our 22-year history of strong top and bottom line growth. Our 2016 highlights include: Strong Revenue Growth Revenue grew 17% driven by continued solid organic growth across all our business lines and enhanced by several acquisitions in both divisions. Especially noteworthy was the addition of Century Fire Protection, an exciting new operating platform for us. Expanded EBITDA Margins EBITDA grew by 27%, while margins expanded by 60 basis points to 8.8%. This year, once again, our biggest mover was FirstService Residential, which continued to drive operating efficiencies throughout its business leading to an 80 basis point increase in divisional EBITDA margin. Our journey towards creating a national operating platform with a recognized brand continues. Record Year for Acquisitions 2016 was by far our most successful year in terms of acquisition activity. We closed 13 acquisitions in 2016 and invested almost $100 million of capital at valuation multiples that were in line with our disciplined criteria. Our current transaction pipeline positions us for another strong growth year in 2017. Entry into Fire Protection In April, we closed the acquisition of Century Fire Protection, and later in the year we followed with the strategically important acquisition of Advanced Fire, which expanded our footprint into the Florida market. We are very excited about this new platform which complements our existing portfolio of essential property services and significantly expands our growth opportunities for the future. Advancement of Company-Owned Strategies During the year, we made significant progress in advancing our company-owned strategies at California Closets and Paul Davis Restoration. • At California Closets, we closed the acquisitions of our Los Angeles and Washington D.C. franchises, two key major markets, bringing our total number of company-owned operations to 13. Our goal is to own the major markets which account for about 25% of the California Closets operations across North America. During the year, we also made great strides in driving efficiencies, quality and turnaround times at our Phoenix-based Western Manufacturing Facility, moving closer to our target metrics for this facility. We look forward to opening our Eastern Manufacturing Facility in Grand Rapids, Michigan in the second quarter of this year which will enable us to serve all of our North American company-owned operations. • At Paul Davis Restoration, we closed the acquisitions of our North Florida and Connecticut franchises plus Paul Davis National, our large-scale disaster recovery operation, bringing to four the number of operations we own. Similar to our strategy at California Closets, we ultimately want to own the major markets and create a national company-owned platform. During the year, we also continued to invest in the operational foundation of this platform to enhance our ability to integrate and operate future Paul Davis add-on acquisitions. Robust Free Cash Flow We generated very strong operating cash flow, which enabled us to invest aggressively in the business through acquisitions, capital expenditures and organic growth initiatives, while maintaining our leverage ratio at a conservative 1.5x net debt to EBITDA – the same level as the prior year-end. In addition, we increased our annual dividend to US$0.49 per share, an increase of 10% for the second consecutive year in our brief history as a new public company. Our cash and bank revolving credit availability, aggregating $140 million at year-end, provides substantial capacity for future investment and acquisitions. Strong Stock Price Performance Strong operating results for 2016 translated into a 20% increase in our stock price during the year. Since our June 2015 spin-off into a new public company, our stock is up approximately 70%. The ability to drive consistent increases in shareholder value is a testament to our business model – one which features highly visible, recurring and contractual revenue and an ability to achieve organic growth with modest capex. Our many successes during 2016 – and over the last 20+ years – are a strong reflection of our relentless focus on employee engagement and service excellence. We know that our greatest differentiator is the quality of our service delivery which is wholly dependent on the professionalism and engagement of our people. Engaged and aligned employees create happy, loyal customers and word of mouth referral – the single most important driver of our organic growth! During 2016, we significantly increased our investment in recruiting, onboarding and training to continue to build a team and culture that clearly separates us from our competition. Our aspiration is to define “service excellence” in every market that we operate in and our investments in people and process are consistent with this goal. We are very excited about the year ahead. Our businesses are enjoying healthy market fundamentals and we believe we are very well-positioned to capitalize across all service lines. Our long-term goal is to grow our revenues at an average rate of at least 10% per year with incremental growth at the EBITDA and earnings per share lines. We have achieved and exceeded this growth goal over a 22-year period and are committed to build on this track record during 2017 and for years to come. We thank our operating partners, our 17,000 associates and the 15,000 employees and owners of our franchises for a fantastic 2016. We also thank our loyal customers for entrusting their business to us and our shareholders for their continued support. D. Scott Patterson Chief Executive Officer Entry into Fire Protection In April 2016, FirstService added a new essential property services platform to its FirstService Brands division when it acquired Century Fire Protection. Headquartered near Atlanta, Georgia, Century Fire is one of the largest full-service fire protection companies in the southeastern United States. Century Fire provides end-to-end fire protection solutions, including design, fabrication, installation, maintenance, repair, service and inspection services for commercial, residential, industrial and institutional clients. The Company employs approximately 700 staff operating out of 13 offices throughout Georgia, Alabama, North Carolina, South Carolina, Tennessee, Texas and Florida. Century Fire recently expanded its full-service offering in the south Florida market through the tuck-under acquisition of Advanced Fire & Security in November 2016. FirstService Brands $370 Million Revenues $56 Million EBITDA $1,113 Million $1,113 Million Revenues $84 Million EBITDA FirstService Brands is a leading North American operator and provider of essential property services to residential and commercial customers, with extensive franchise networks comprising over 1,900 franchises and 19 company-owned locations in all 50 U.S. states and ten Canadian provinces. In 2016, FirstService Brands serviced more than 500,000 customers and generated aggregate system-wide revenues of more than US$1.8 billion from franchised and company-owned operations. Services are delivered through eight well-known brands, each of which is a leading player in its respective market. Charlie E. Chase Chief Executive Officer FirstService Brands Chuck M. Fallon Chief Executive Officer FirstService Residential FirstService Residential is the largest residential property manager in North America, with 7,900 communities and 1.6+ million residential units under management. Its mission is to deliver exceptional client service and solutions that enhance the value of every property and the lifestyle of every resident in the communities it manages. In achieving these objectives, FirstService Residential leverages its scale, expertise and local knowledge to add value to its clients and differentiate itself from its competitors. The business invests extensively in a team of people who are committed to customer service excellence and living its values on a daily basis: Being genuinely helpful, aiming high, owning it, doing what’s right, improving it and building great relationships. Growth Strategy Growth Strategy • Very large, highly fragmented markets provide significant opportunity for organic growth • Expand same store capacity in the areas of sales, design and field service • Continue to drive repeat business and referral leads from its customers through service excellence and market-leading brands • Strategically add company-owned operations at California Closets, Paul Davis Restoration and Century Fire Protection • Leverage best-in-class franchising capabilities to acquire other property services franchise models • Leverage scale advantages and our access to capital to drive new business through differentiated value-added services and reduced client costs • Further increase customer retention and target referral opportunities • Integrated marketing, lead generation and business development effort • Continue to expand our ancillary service offerings • Improve operational efficiency • Augment organic growth with selective tuck-under acquisitions which expand our geographic footprint, enhance our market leadership positions, or broaden our ancillary service offering FS-AR2016-8panel Gatefold-SELECT-V5.indd 2 3/2/17 4:31 PM A MESSAGE FROM OUR CEO 2016 Market leader in essential outsourced property services From left: D. Scott Patterson Chief Executive Officer, Jeremy Rakusin Chief Financial Officer FirstService Corporation is a provider of essential property services with a long track record of consistent growth and profitability. We enjoy strong leadership positions in huge, highly fragmented property service verticals – yet our market shares are modest. These market structures are conducive to consistent long-term organic growth and significant acquisition opportunities across our service lines. Our outstanding performance in 2016 reflects this dynamic and continues our 22-year history of strong top and bottom line growth. Our 2016 highlights include: Strong Revenue Growth Revenue grew 17% driven by continued solid organic growth across all our business lines and enhanced by several acquisitions in both divisions. Especially noteworthy was the addition of Century Fire Protection, an exciting new operating platform for us. Expanded EBITDA Margins EBITDA grew by 27%, while margins expanded by 60 basis points to 8.8%. This year, once again, our biggest mover was FirstService Residential, which continued to drive operating efficiencies throughout its business leading to an 80 basis point increase in divisional EBITDA margin. Our journey towards creating a national operating platform with a recognized brand continues. Record Year for Acquisitions 2016 was by far our most successful year in terms of acquisition activity. We closed 13 acquisitions in 2016 and invested almost $100 million of capital at valuation multiples that were in line with our disciplined criteria. Our current transaction pipeline positions us for another strong growth year in 2017. Entry into Fire Protection In April, we closed the acquisition of Century Fire Protection, and later in the year we followed with the strategically important acquisition of Advanced Fire, which expanded our footprint into the Florida market. We are very excited about this new platform which complements our existing portfolio of essential property services and significantly expands our growth opportunities for the future. Advancement of Company-Owned Strategies During the year, we made significant progress in advancing our company-owned strategies at California Closets and Paul Davis Restoration. • At California Closets, we closed the acquisitions of our Los Angeles and Washington D.C. franchises, two key major markets, bringing our total number of company-owned operations to 13. Our goal is to own the major markets which account for about 25% of the California Closets operations across North America. During the year, we also made great strides in driving efficiencies, quality and turnaround times at our Phoenix-based Western Manufacturing Facility, moving closer to our target metrics for this facility. We look forward to opening our Eastern Manufacturing Facility in Grand Rapids, Michigan in the second quarter of this year which will enable us to serve all of our North American company-owned operations. • At Paul Davis Restoration, we closed the acquisitions of our North Florida and Connecticut franchises plus Paul Davis National, our large-scale disaster recovery operation, bringing to four the number of operations we own. Similar to our strategy at California Closets, we ultimately want to own the major markets and create a national company-owned platform. During the year, we also continued to invest in the operational foundation of this platform to enhance our ability to integrate and operate future Paul Davis add-on acquisitions. Robust Free Cash Flow We generated very strong operating cash flow, which enabled us to invest aggressively in the business through acquisitions, capital expenditures and organic growth initiatives, while maintaining our leverage ratio at a conservative 1.5x net debt to EBITDA – the same level as the prior year-end. In addition, we increased our annual dividend to US$0.49 per share, an increase of 10% for the second consecutive year in our brief history as a new public company. Our cash and bank revolving credit availability, aggregating $140 million at year-end, provides substantial capacity for future investment and acquisitions. Strong Stock Price Performance Strong operating results for 2016 translated into a 20% increase in our stock price during the year. Since our June 2015 spin-off into a new public company, our stock is up approximately 70%. The ability to drive consistent increases in shareholder value is a testament to our business model – one which features highly visible, recurring and contractual revenue and an ability to achieve organic growth with modest capex. Our many successes during 2016 – and over the last 20+ years – are a strong reflection of our relentless focus on employee engagement and service excellence. We know that our greatest differentiator is the quality of our service delivery which is wholly dependent on the professionalism and engagement of our people. Engaged and aligned employees create happy, loyal customers and word of mouth referral – the single most important driver of our organic growth! During 2016, we significantly increased our investment in recruiting, onboarding and training to continue to build a team and culture that clearly separates us from our competition. Our aspiration is to define “service excellence” in every market that we operate in and our investments in people and process are consistent with this goal. We are very excited about the year ahead. Our businesses are enjoying healthy market fundamentals and we believe we are very well-positioned to capitalize across all service lines. Our long-term goal is to grow our revenues at an average rate of at least 10% per year with incremental growth at the EBITDA and earnings per share lines. We have achieved and exceeded this growth goal over a 22-year period and are committed to build on this track record during 2017 and for years to come. We thank our operating partners, our 17,000 associates and the 15,000 employees and owners of our franchises for a fantastic 2016. We also thank our loyal customers for entrusting their business to us and our shareholders for their continued support. D. Scott Patterson Chief Executive Officer Entry into Fire Protection In April 2016, FirstService added a new essential property services platform to its FirstService Brands division when it acquired Century Fire Protection. Headquartered near Atlanta, Georgia, Century Fire is one of the largest full-service fire protection companies in the southeastern United States. Century Fire provides end-to-end fire protection solutions, including design, fabrication, installation, maintenance, repair, service and inspection services for commercial, residential, industrial and institutional clients. The Company employs approximately 700 staff operating out of 13 offices throughout Georgia, Alabama, North Carolina, South Carolina, Tennessee, Texas and Florida. Century Fire recently expanded its full-service offering in the south Florida market through the tuck-under acquisition of Advanced Fire & Security in November 2016. FirstService Brands $370 Million Revenues $56 Million EBITDA $1,113 Million Revenues $84 Million EBITDA FirstService Brands is a leading North American operator and provider of essential property services to residential and commercial customers, with extensive franchise networks comprising over 1,900 franchises and 19 company-owned locations in all 50 U.S. states and ten Canadian provinces. In 2016, FirstService Brands serviced more than 500,000 customers and generated aggregate system-wide revenues of more than US$1.8 billion from franchised and company-owned operations. Services are delivered through eight well-known brands, each of which is a leading player in its respective market. Charlie E. Chase Chief Executive Officer FirstService Brands Chuck M. Fallon Chief Executive Officer FirstService Residential FirstService Residential is the largest residential property manager in North America, with 7,900 communities and 1.6+ million residential units under management. Its mission is to deliver exceptional client service and solutions that enhance the value of every property and the lifestyle of every resident in the communities it manages. In achieving these objectives, FirstService Residential leverages its scale, expertise and local knowledge to add value to its clients and differentiate itself from its competitors. The business invests extensively in a team of people who are committed to customer service excellence and living its values on a daily basis: Being genuinely helpful, aiming high, owning it, doing what’s right, improving it and building great relationships. Growth Strategy Growth Strategy • Very large, highly fragmented markets provide significant opportunity for organic growth • Expand same store capacity in the areas of sales, design and field service • Continue to drive repeat business and referral leads from its customers through service excellence and market-leading brands • Strategically add company-owned operations at California Closets, Paul Davis Restoration and Century Fire Protection • Leverage best-in-class franchising capabilities to acquire other property services franchise models • Leverage scale advantages and our access to capital to drive new business through differentiated value-added services and reduced client costs • Further increase customer retention and target referral opportunities • Integrated marketing, lead generation and business development effort • Continue to expand our ancillary service offerings • Improve operational efficiency • Augment organic growth with selective tuck-under acquisitions which expand our geographic footprint, enhance our market leadership positions, or broaden our ancillary service offering FS-AR2016-8panel Gatefold-SELECT-V5.indd 2 3/2/17 4:31 PM A MESSAGE FROM OUR CEO 2016 Market leader in essential outsourced property services From left: D. Scott Patterson Chief Executive Officer, Jeremy Rakusin Chief Financial Officer FirstService Corporation is a provider of essential property services with a long track record of consistent growth and profitability. We enjoy strong leadership positions in huge, highly fragmented property service verticals – yet our market shares are modest. These market structures are conducive to consistent long-term organic growth and significant acquisition opportunities across our service lines. Our outstanding performance in 2016 reflects this dynamic and continues our 22-year history of strong top and bottom line growth. Our 2016 highlights include: Strong Revenue Growth Revenue grew 17% driven by continued solid organic growth across all our business lines and enhanced by several acquisitions in both divisions. Especially noteworthy was the addition of Century Fire Protection, an exciting new operating platform for us. Expanded EBITDA Margins EBITDA grew by 27%, while margins expanded by 60 basis points to 8.8%. This year, once again, our biggest mover was FirstService Residential, which continued to drive operating efficiencies throughout its business leading to an 80 basis point increase in divisional EBITDA margin. Our journey towards creating a national operating platform with a recognized brand continues. Record Year for Acquisitions 2016 was by far our most successful year in terms of acquisition activity. We closed 13 acquisitions in 2016 and invested almost $100 million of capital at valuation multiples that were in line with our disciplined criteria. Our current transaction pipeline positions us for another strong growth year in 2017. Entry into Fire Protection In April, we closed the acquisition of Century Fire Protection, and later in the year we followed with the strategically important acquisition of Advanced Fire, which expanded our footprint into the Florida market. We are very excited about this new platform which complements our existing portfolio of essential property services and significantly expands our growth opportunities for the future. Advancement of Company-Owned Strategies During the year, we made significant progress in advancing our company-owned strategies at California Closets and Paul Davis Restoration. • At California Closets, we closed the acquisitions of our Los Angeles and Washington D.C. franchises, two key major markets, bringing our total number of company-owned operations to 13. Our goal is to own the major markets which account for about 25% of the California Closets operations across North America. During the year, we also made great strides in driving efficiencies, quality and turnaround times at our Phoenix-based Western Manufacturing Facility, moving closer to our target metrics for this facility. We look forward to opening our Eastern Manufacturing Facility in Grand Rapids, Michigan in the second quarter of this year which will enable us to serve all of our North American company-owned operations. • At Paul Davis Restoration, we closed the acquisitions of our North Florida and Connecticut franchises plus Paul Davis National, our large-scale disaster recovery operation, bringing to four the number of operations we own. Similar to our strategy at California Closets, we ultimately want to own the major markets and create a national company-owned platform. During the year, we also continued to invest in the operational foundation of this platform to enhance our ability to integrate and operate future Paul Davis add-on acquisitions. Robust Free Cash Flow We generated very strong operating cash flow, which enabled us to invest aggressively in the business through acquisitions, capital expenditures and organic growth initiatives, while maintaining our leverage ratio at a conservative 1.5x net debt to EBITDA – the same level as the prior year-end. In addition, we increased our annual dividend to US$0.49 per share, an increase of 10% for the second consecutive year in our brief history as a new public company. Our cash and bank revolving credit availability, aggregating $140 million at year-end, provides substantial capacity for future investment and acquisitions. Strong Stock Price Performance Strong operating results for 2016 translated into a 20% increase in our stock price during the year. Since our June 2015 spin-off into a new public company, our stock is up approximately 70%. The ability to drive consistent increases in shareholder value is a testament to our business model – one which features highly visible, recurring and contractual revenue and an ability to achieve organic growth with modest capex. Our many successes during 2016 – and over the last 20+ years – are a strong reflection of our relentless focus on employee engagement and service excellence. We know that our greatest differentiator is the quality of our service delivery which is wholly dependent on the professionalism and engagement of our people. Engaged and aligned employees create happy, loyal customers and word of mouth referral – the single most important driver of our organic growth! During 2016, we significantly increased our investment in recruiting, onboarding and training to continue to build a team and culture that clearly separates us from our competition. Our aspiration is to define “service excellence” in every market that we operate in and our investments in people and process are consistent with this goal. We are very excited about the year ahead. Our businesses are enjoying healthy market fundamentals and we believe we are very well-positioned to capitalize across all service lines. Our long-term goal is to grow our revenues at an average rate of at least 10% per year with incremental growth at the EBITDA and earnings per share lines. We have achieved and exceeded this growth goal over a 22-year period and are committed to build on this track record during 2017 and for years to come. We thank our operating partners, our 17,000 associates and the 15,000 employees and owners of our franchises for a fantastic 2016. We also thank our loyal customers for entrusting their business to us and our shareholders for their continued support. D. Scott Patterson Chief Executive Officer Entry into Fire Protection In April 2016, FirstService added a new essential property services platform to its FirstService Brands division when it acquired Century Fire Protection. Headquartered near Atlanta, Georgia, Century Fire is one of the largest full-service fire protection companies in the southeastern United States. Century Fire provides end-to-end fire protection solutions, including design, fabrication, installation, maintenance, repair, service and inspection services for commercial, residential, industrial and institutional clients. The Company employs approximately 700 staff operating out of 13 offices throughout Georgia, Alabama, North Carolina, South Carolina, Tennessee, Texas and Florida. Century Fire recently expanded its full-service offering in the south Florida market through the tuck-under acquisition of Advanced Fire & Security in November 2016. FirstService Brands $370 Million Revenues $56 Million EBITDA $1,113 Million Revenues $84 Million EBITDA FirstService Brands is a leading North American operator and provider of essential property services to residential and commercial customers, with extensive franchise networks comprising over 1,900 franchises and 19 company-owned locations in all 50 U.S. states and ten Canadian provinces. In 2016, FirstService Brands serviced more than 500,000 customers and generated aggregate system-wide revenues of more than US$1.8 billion from franchised and company-owned operations. Services are delivered through eight well-known brands, each of which is a leading player in its respective market. Charlie E. Chase Chief Executive Officer FirstService Brands Chuck M. Fallon Chief Executive Officer FirstService Residential FirstService Residential is the largest residential property manager in North America, with 7,900 communities and 1.6+ million residential units under management. Its mission is to deliver exceptional client service and solutions that enhance the value of every property and the lifestyle of every resident in the communities it manages. In achieving these objectives, FirstService Residential leverages its scale, expertise and local knowledge to add value to its clients and differentiate itself from its competitors. The business invests extensively in a team of people who are committed to customer service excellence and living its values on a daily basis: Being genuinely helpful, aiming high, owning it, doing what’s right, improving it and building great relationships. Growth Strategy Growth Strategy • Very large, highly fragmented markets provide significant opportunity for organic growth • Expand same store capacity in the areas of sales, design and field service • Continue to drive repeat business and referral leads from its customers through service excellence and market-leading brands • Strategically add company-owned operations at California Closets, Paul Davis Restoration and Century Fire Protection • Leverage best-in-class franchising capabilities to acquire other property services franchise models • Leverage scale advantages and our access to capital to drive new business through differentiated value-added services and reduced client costs • Further increase customer retention and target referral opportunities • Integrated marketing, lead generation and business development effort • Continue to expand our ancillary service offerings • Improve operational efficiency • Augment organic growth with selective tuck-under acquisitions which expand our geographic footprint, enhance our market leadership positions, or broaden our ancillary service offering FS-AR2016-8panel Gatefold-SELECT-V5.indd 2 3/2/17 4:31 PM 5-YEAR REVENUE CAGR 12% $1,483MM FINANCIAL HIGHLIGHTS Why Invest in FirstService? COMPOUNDED 22 YEARS REVENUE ANNUAL GROWTH 19% $37MM 1,483 130 1,264 1,132 1,038 940 103 84* 75 79 79 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Revenues (US$ millions) Adjusted EBITDA (US$ millions) *Normalized for $9 million of non-recurring expenses. Leadership Positions In Very Large, Fragmented Markets • Leading market positions with well-recognized brands in all service lines • Modest market shares in large, fragmented markets provide significant organic and tuck- under acquisition growth opportunities • Scale advantage, proprietary products/services and national coverage are competitive differentiators which are difficult to replicate Proven Business Model Strong Financial Profile • Strong free cash flow generation with low capital expenditures • Conservative balance sheet • Ample capital and liquidity to fund future growth • Growing dividends paid on common shares Compelling Growth Prospects • Long and consistent track record of delivering growth • Strong organic growth through competitive advantages in attractive markets • Essential outsourced property • Margin enhancement services with highly predictable and recurring revenue streams potential through operating efficiencies • Disciplined tuck-under acquisition strategy • Focus on customer service excellence throughout our businesses • Leverage our differentiators to extend our leadership positions and win new business • Partnership philosophy aligns business leaders with shareholders About FirstService Corporation FirstService Corporation is a North American leader in the essential property services sector serving its customers through two industry- leading platforms: FirstService Residential – North America’s largest manager of residential communities; and FirstService Brands – one of North America’s largest providers of essential property services to residential and commercial customers delivered through individually branded franchise systems and company-owned operations. FirstService Residential and FirstService Brands both rely on the same operational foundations for success – a core competency in managing and growing 5% $XXXB Leader in Large Markets With Significant Growth Opportunities MARKETPLACE market-leading, value-added outsourced property services businesses; significant scale advantages that are leveraged to create more value for clients; a culture focused around customer service excellence; and strong brand recognition. OF FirstService generates US$1.5 billion in annual revenues and has more than 17,000 employees across North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating value and superior returns for shareholders. The common shares of FirstService trade on the NASDAQ and on the Toronto Stock Exchange under the symbol “FSV”. More information is available at www.firstservice.com. FS-AR2016-8panel Gatefold-SELECT-V5.indd 1 5% OF Notice of Shareholders’ Meeting The annual meeting of the shareholders will be held on Wednesday April 12, 2017 at 4:00 p.m. (ET) at The Design Exchange, 234 Bay Street, Toronto-Dominion Centre, Toronto, Ontario CORPORATE INFORMATION Registrar and Transfer Agent Canada – TSX Trust Company Phone: 1.866.600.5869 E-mail: tmxeinvestorservices@tmx.com U.S. co-transfer agent – Computershare Phone: 1.800.368.5948 E-mail: webqueries@computershare.com Stock Exchange Listings NASDAQ Global Select Market – FSV Toronto Stock Exchange – FSV FirstService common shares are included in the S&P/TSX Composite Index. www.FirstService.com Creating Value One Step at a Time Over Two Decades of Consistent Growth 5-YEAR REVENUE CAGR 12% $1,483MM 22 YEARS REVENUE COMPOUNDED ANNUAL GROWTH 19% $37MM 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 (US$ thousands, except per share amounts) Year ended December 31 2016 2015 2014 2013 2012 Results From Operations Revenues Adjusted EBITDA1 Operating earnings Net earnings Financial Position Total assets Long-term debt Shareholders’ equity Earnings Per Share Data Adjusted EPS2 Diluted net earnings per common share Diluted weighted average common shares outstanding (thousands) Cash dividends per common share $ 1,482,889 130,324 90,550 54,243 $ 1,264,077 103,038 70,747 38,198 $ 1,132,002 74,997 45,621 26,192 $ 1,038,087 78,913 37,083 18,452 $ 939,821 78,932 53,478 30,765 $ 770,964 250,909 181,028 600,483 201,199 167,026 $ 615,544 239,357 158,749 $ 610,297 225,425 168,660 $ 591,438 216,370 174,834 Year ended December 31 2016 2015 2014 2013 2012 $ $ 1.62 0.92 36,366 0.44 $ $ 1.20 0.59 36,425 0.40 $ $ 0.84 0.36 36,363 - $ $ 0.96 0.09 36,306 - $ $ - - 2016 Annual Report Notes 1. Adjusted EBITDA is defined as net earnings before income tax, interest, depreciation, amortization, other (income) expense, acquisition-related items, and stock-based compensation expense. 2. Adjusted earnings per share is defined as diluted net earnings per common share, adjusted for the effect, after income tax, of non-controlling interest redemption increment, amortization, acquisition-related items, stock-based compensation expense, and spin-off charges. 3/2/17 4:31 PM 5% OF $XXXB MARKETPLACE 5% OF 1,483 130 1,264 1,132 1,038 940 103 84* 75 79 79 Revenues (US$ millions) Adjusted EBITDA (US$ millions) *Normalized for $9 million of non-recurring expenses.
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