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The economic environment in the farm sector has supported growth over the past 15 years. Agriculture is always evolving and average farm sizes have increased. Technology has expanded the productivity and efficiency and farm equipment has become larger and more complex. Between 1999 and 2016, total farm cash receipts in Canada increased 99% and crop receipts increased 159%.1

Saskatchewan has experienced double digit growth in land values in seven of the last ten years, resulting in land prices more than tripling in value since 2007.1

Technology has changed the way agriculture operates. New technologies such as GPS and GMOs have revolutionized the seeding process and the types of crops grown. Farmers will continue to adopt new technologies in order to meet increasing productivity, efficiency and quality demands to feed our growing population.

The agriculture sector has always been a major economic driver in Saskatchewan. With world demographics indicating continued demand for sustained growth and technological advancements, the agriculture industry provides a solid opportunity for investment.

1Statistics Canada, 2017

Provided below are examples of Agriculture investments within Westcap's portfolio:

Agriculture

Healthcare

For the first time in history, the number of Canadians aged 65 and over has exceeded the number of children. For example, Canada’s total population has grown at an annualized 1.06% for the past five years. Canadian people aged 65 years and older have increased at an annualized rate of 3.81% while Canadian people under 65 years-old have increased at an annualized rate of 0.58% over the same time period. Within the next two decades, it is estimated that the number of people over the age of 65 in Canada, as well as in Saskatchewan, will rise growing to almost 25% of the population.1

Canadians on average have been getting older for decades. As the baby boomers aged over the past 60 to 70 years, their demands have fueled the growth of many new industries and created a number of opportunities for investors and entrepreneurs in everything from electronics, retailers, music, movies and information technology. Now that the baby boomers are moving into their senior years the attention has switched to their demands for healthcare.

While much of the healthcare industry is government owned and operated, there are a number of profitable ways to privately invest in healthcare. First, there are opportunities to invest in healthcare infrastructure, medical manufacturers and suppliers, and some private medical services. Second, there are opportunities to invest in healthcare-related new ideas. These include new drugs and therapies, chemical and mechanical diagnostics, and mechanical improvements for services. The aging population represents a significant increase in the demand for healthcare and a need for increased capacity.

1Statistics Canada, 2016

Provided below is an example of a Healthcare investment within Westcap’s portfolio:

Healthcare

Hospitality

Saskatchewan's hospitality industry continues to grow with new construction showing optimism in the future market. Economic diversification among natural resources, construction, technology and agriculture continue to drive growth in Saskatchewan with tourism and infrastructure investment following.

Westcap has approached investment in the hospitality sector seeking companies with strong balance sheets that are able to weather economic cycles or consolidation opportunities made available when cash flow becomes tight by prolonged economic downturn. Westcap is committed to making capital investments to ensure a superior product offering.

With recent renovations, both of Westcap’s investments – the Regina Ramada Plaza and the Ramada Saskatoon – are well positioned to utilize their abilities to be a one-stop hotel for guest needs. This clearly gives the hotels a distinct advantage over all the new limited service builds in the market. ”The latest renovations to the banquet areas certainly give us an edge” says Mr. Darryl Caudle, Vice President of Hotel Operations for Westcap.

Provided below are examples of Hospitality investments within Westcap's portfolio:

Hospitality

InfrastructureAs Canadian national and regional economies grow, the expanding populations will heavily rely on modern and expanded infrastructure. For a number of years, both federal and provincial governments have made concerted efforts to reduce the infrastructure deficit in Canada. In Saskatchewan, the provincial government invested more than $3.0 billion into infrastructure and highways over the last three years, with a highway and infrastructure budget of $900 million in 2018-2019. Infrastructure companies include those that are involved directly or indirectly in the development, maintenance, servicing or management of infrastructure. Among other sectors, infrastructure can include health care, transportation, utilities, and energy.

Infrastructure is required to serve an area’s residents and businesses with the necessary services and facilities. Investment into housing and commercial developments often goes hand in hand with infrastructure investments and is required in order for the sustainable growth of an economy. Investments into housing are critical in increasing the quality of the housing supply as well as supporting home ownership. Saskatchewan has experienced strong population growth in recent years which has resulted in sharp increase in demand for quality housing. This increase in demand has provided numerous investment opportunities.

Provided below are examples of Infrastructure investments completed by Westcap:

Infrastructure

InnovationThe Conference Board of Canada defines innovation as a process that creates and uses new ideas and knowledge to generate economic value. Innovation can be in radical, industry-destructive ideas that create new value chains and new businesses. Innovation can also be gradual and incremental through the improvement of existing products, services or business models. In either kind, there are great investment opportunities for the right investor.

The Prairie Provinces offer a number of factors that provide potential for investments in innovation. Alberta, Saskatchewan and Manitoba support new innovation through research facilities, institutions and organizations such as start-up incubators and accelerators. These include the Saskatchewan Research Council, the Canadian Light Source, Innovation Place, Alberta Innovates Technology Futures, Innovate Calgary, Alberta Enterprise, the Banff Venture Forum, Innovate Manitoba, Manitoba Technology Accelerator, among others. The three Provinces also have active angel networks.1

More than $2 of economic impact comes from every $1 spent on innovation in Canada.2

Innovation in Western Canada is focused in five main areas:

  • Biotechnology
  • Life Sciences
  • Chemical Engineering
  • Resource Extraction
  • Information Technology
1Government of Saskatchewan
2Statistics Canada

Provided below are examples of Innovation investments within Westcap’s portfolio:

Innovation

MBOIn Canada, a growing number of small to medium-sized enterprise owners are experiencing important decisions regarding the succession of their business. In the next decade, approximately 75% of small and medium-sized business owners will be ready to sell their business.

Almost 50% of business owners plan to sell to buyers unrelated to their family, while another 25% plan to sell to members of their family. Both of which are likely to require a third party source of transition financing.1

A management buyout (MBO) provides business owners with the opportunity to execute an effective business succession plan, while providing key employees with the opportunity to meaningfully participate in the continued success of the business. An MBO is often viewed by customers, suppliers, employees and other stakeholders as a positive progression of the business, as the process attracts knowledgeable capital and strategic partners that can facilitate the process and support growth initiatives. MBO’s are more likely to achieve a successful business succession with an 80% success rate, while inter-family succession has only posted a 32% success rate.2

1Business Development Bank of Canada
2Canadian Association of Family Enterprise

Provided below are examples of Management Buyout investments within Westcap’s portfolio:

Management Buyouts

OilGasThe World Energy Outlook estimates that global energy demand will grow by approximately 30% by 2040 and fossil fuels will account for 77% of energy use at that time.1 Total Canadian oil production is expected to increase to 5.6 million barrels per day (bpd) by 2035 – an increase of 1.4 million bpd compared to production in 2017. Western Canada accounts for about 95 per cent of the country’s total production.2 Canada has the third largest amount of proven oil reserves in the world and total supply of Western Canadian Crude Oil is forecasted to grow by almost 40% by 20303. With the majority of Canadian reserves located in the Western Canadian Sedimentary Basin, Western Canada and Saskatchewan will play a major role in meeting the demand growth.

  • Saskatchewan is Canada’s second-largest oil producer.3
  • Saskatchewan ranks #7 for petroleum exploration and development investment potential and has consistently ranked in the top 10 for the past five years.4
1International Energy Agency, 2017
2Canadian Association of Petroleum Producers, 2018 Crude Oil Forecast, Markets and Transportation report, June 2018
3Canadian Association of Petroleum Producers, 2017
4Fraser Institute Global Petroleum Survey, 2017

Provided below are examples of Resource investments within Westcap's portfolio:

Resources

The economic environment in the farm sector has supported growth over the past 15 years. Agriculture is always evolving and average farm sizes have increased. Technology has expanded the productivity and efficiency and farm equipment has become larger and more complex. Between 1999 and 2016, total farm cash receipts in Canada increased 99% and crop receipts increased 159%.1

Saskatchewan has experienced double digit growth in land values in seven of the last ten years, resulting in land prices more than tripling in value since 2007.1

Technology has changed the way agriculture operates. New technologies such as GPS and GMOs have revolutionized the seeding process and the types of crops grown. Farmers will continue to adopt new technologies in order to meet increasing productivity, efficiency and quality demands to feed our growing population.

The agriculture sector has always been a major economic driver in Saskatchewan. With world demographics indicating continued demand for sustained growth and technological advancements, the agriculture industry provides a solid opportunity for investment.

1Statistics Canada, 2017

Provided below are examples of Agriculture investments within Westcap's portfolio:

Healthcare

For the first time in history, the number of Canadians aged 65 and over has exceeded the number of children. For example, Canada’s total population has grown at an annualized 1.06% for the past five years. Canadian people aged 65 years and older have increased at an annualized rate of 3.81% while Canadian people under 65 years-old have increased at an annualized rate of 0.58% over the same time period. Within the next two decades, it is estimated that the number of people over the age of 65 in Canada, as well as in Saskatchewan, will rise growing to almost 25% of the population.1

Canadians on average have been getting older for decades. As the baby boomers aged over the past 60 to 70 years, their demands have fueled the growth of many new industries and created a number of opportunities for investors and entrepreneurs in everything from electronics, retailers, music, movies and information technology. Now that the baby boomers are moving into their senior years the attention has switched to their demands for healthcare.

While much of the healthcare industry is government owned and operated, there are a number of profitable ways to privately invest in healthcare. First, there are opportunities to invest in healthcare infrastructure, medical manufacturers and suppliers, and some private medical services. Second, there are opportunities to invest in healthcare-related new ideas. These include new drugs and therapies, chemical and mechanical diagnostics, and mechanical improvements for services. The aging population represents a significant increase in the demand for healthcare and a need for increased capacity.

1Statistics Canada, 2016

Provided below is an example of a Healthcare investment within Westcap’s portfolio:

Hospitality

Saskatchewan's hospitality industry continues to grow with new construction showing optimism in the future market. Economic diversification among natural resources, construction, technology and agriculture continue to drive growth in Saskatchewan with tourism and infrastructure investment following.

Westcap has approached investment in the hospitality sector seeking companies with strong balance sheets that are able to weather economic cycles or consolidation opportunities made available when cash flow becomes tight by prolonged economic downturn. Westcap is committed to making capital investments to ensure a superior product offering.

With recent renovations, both of Westcap’s investments – the Regina Ramada Plaza and the Ramada Saskatoon – are well positioned to utilize their abilities to be a one-stop hotel for guest needs. This clearly gives the hotels a distinct advantage over all the new limited service builds in the market. ”The latest renovations to the banquet areas certainly give us an edge” says Mr. Darryl Caudle, Vice President of Hotel Operations for Westcap.

Provided below are examples of Hospitality investments within Westcap's portfolio:

InfrastructureAs Canadian national and regional economies grow, the expanding populations will heavily rely on modern and expanded infrastructure. For a number of years, both federal and provincial governments have made concerted efforts to reduce the infrastructure deficit in Canada. In Saskatchewan, the provincial government invested more than $3.0 billion into infrastructure and highways over the last three years, with a highway and infrastructure budget of $900 million in 2018-2019. Infrastructure companies include those that are involved directly or indirectly in the development, maintenance, servicing or management of infrastructure. Among other sectors, infrastructure can include health care, transportation, utilities, and energy.

Infrastructure is required to serve an area’s residents and businesses with the necessary services and facilities. Investment into housing and commercial developments often goes hand in hand with infrastructure investments and is required in order for the sustainable growth of an economy. Investments into housing are critical in increasing the quality of the housing supply as well as supporting home ownership. Saskatchewan has experienced strong population growth in recent years which has resulted in sharp increase in demand for quality housing. This increase in demand has provided numerous investment opportunities.

Provided below are examples of Infrastructure investments completed by Westcap:

InnovationThe Conference Board of Canada defines innovation as a process that creates and uses new ideas and knowledge to generate economic value. Innovation can be in radical, industry-destructive ideas that create new value chains and new businesses. Innovation can also be gradual and incremental through the improvement of existing products, services or business models. In either kind, there are great investment opportunities for the right investor.

The Prairie Provinces offer a number of factors that provide potential for investments in innovation. Alberta, Saskatchewan and Manitoba support new innovation through research facilities, institutions and organizations such as start-up incubators and accelerators. These include the Saskatchewan Research Council, the Canadian Light Source, Innovation Place, Alberta Innovates Technology Futures, Innovate Calgary, Alberta Enterprise, the Banff Venture Forum, Innovate Manitoba, Manitoba Technology Accelerator, among others. The three Provinces also have active angel networks.1

More than $2 of economic impact comes from every $1 spent on innovation in Canada.2

Innovation in Western Canada is focused in five main areas:

  • Biotechnology
  • Life Sciences
  • Chemical Engineering
  • Resource Extraction
  • Information Technology
1Government of Saskatchewan
2Statistics Canada

Provided below are examples of Innovation investments within Westcap’s portfolio:

MBOIn Canada, a growing number of small to medium-sized enterprise owners are experiencing important decisions regarding the succession of their business. In the next decade, approximately 75% of small and medium-sized business owners will be ready to sell their business.

Almost 50% of business owners plan to sell to buyers unrelated to their family, while another 25% plan to sell to members of their family. Both of which are likely to require a third party source of transition financing.1

A management buyout (MBO) provides business owners with the opportunity to execute an effective business succession plan, while providing key employees with the opportunity to meaningfully participate in the continued success of the business. An MBO is often viewed by customers, suppliers, employees and other stakeholders as a positive progression of the business, as the process attracts knowledgeable capital and strategic partners that can facilitate the process and support growth initiatives. MBO’s are more likely to achieve a successful business succession with an 80% success rate, while inter-family succession has only posted a 32% success rate.2

1Business Development Bank of Canada
2Canadian Association of Family Enterprise

Provided below are examples of Management Buyout investments within Westcap’s portfolio:

OilGasThe World Energy Outlook estimates that global energy demand will grow by approximately 30% by 2040 and fossil fuels will account for 77% of energy use at that time.1 Total Canadian oil production is expected to increase to 5.6 million barrels per day (bpd) by 2035 – an increase of 1.4 million bpd compared to production in 2017. Western Canada accounts for about 95 per cent of the country’s total production.2 Canada has the third largest amount of proven oil reserves in the world and total supply of Western Canadian Crude Oil is forecasted to grow by almost 40% by 20303. With the majority of Canadian reserves located in the Western Canadian Sedimentary Basin, Western Canada and Saskatchewan will play a major role in meeting the demand growth.

  • Saskatchewan is Canada’s second-largest oil producer.3
  • Saskatchewan ranks #7 for petroleum exploration and development investment potential and has consistently ranked in the top 10 for the past five years.4
1International Energy Agency, 2017
2Canadian Association of Petroleum Producers, 2018 Crude Oil Forecast, Markets and Transportation report, June 2018
3Canadian Association of Petroleum Producers, 2017
4Fraser Institute Global Petroleum Survey, 2017

Provided below are examples of Resource investments within Westcap's portfolio: