MANAGEMENT’S DISCUSSION & ANALYSIS OUTLOOK We have focused our research investments on the development of new formulations and potential new indications for our value drivers: avenanthramides and beta glucan. As well as assessing new marketing strategies, most of the effort, time, and money in 2012 have been deployed in planning for the establishment of a new state-of-the-art manufacturing facility which will also house our offices and laboratories. We expect the transition to the new site to be completed by end of 2013. This new centre should allow for cost reductions through increased extraction efficiencies and the integration of all our employees under one roof. In all, we expect to improve our margins on existing products and to commercially produce our new products that are the focus of today’s research activities. A comprehensive plan has been put in place to secure a smooth transition while maintaining and developing our business in a focused and prioritized manner. Financial results for 2012 were below expectations; however, based on our current strong order book and upcoming initiatives, we remain very positive for 2013. We are attracting serious interest in our innovative technology platforms and products from major players in new market sectors like nutraceuticals. In addition, the construction project for the new facility is on track for completion in the fourth quarter of 2013. Over and above these initiatives, and in line with our long-term strategy, we continue to evaluate additional opportunities for growth including contract manufacturing opportunities. Our vision is to be recognized as the Canadian leader in botanical actives and a centre of excellence in bioprocessing by 2015. Additional information relating to Ceapro Inc., including a copy of the Company’s Annual Report and Proxy Circular, can be found on SEDAR at www.sedar.com. ADDITIONAL INFORMATION CEAPRO Annual Report 2012 23