REPORT FROM THE PRESIDENT AND CEO Outlook Rogers Sugar Inc. 2 We anticipate that consumer volume will be slightly higher in 2014 than it was in 2013, largely as a result of a new  multi-year national agreement with a major consumer account taking effect in January 2014. However, the consolidation of  certain large retail accounts has intensified the competitiveness in this already highly competitive market.  The Company is tackling the challenges which are ahead. As a corporate goal, the Company endeavours to continue to  improve its competitive position in the sale of value-added products through the introduction of new packaging and retail  products. With this in mind, Lantic will launch early in calendar 2014, new graphics for the retail lines of both Rogers and  Lantic brands. This new look will enhance our on shelf appearance and provide a more consistent fresh look nationally while  supporting our two national brands. The new packaging will highlight, amongst other things that sugar is natural, it is only  15 calories per teaspoon and that the Company is proud of its Canadian heritage, coast to coast, encompassing more than  100 years of knowledge and expertise in the business. We have made substantial progress in the blending operations. During the year, we obtained the Food Safety  System Certification (“FSSC 22000”) for our retail packaging line, which was purchased last year and installed  this year. We successfully delivered all of our sugar containing products quota, which increased our blending volume for the  year. The FSSC 22000 certification, is a very positive step in continuous improvement and highlights our commitment to  provide quality products to our customers.We are fully committed to increase blending volumes in both the industrial and  retail sectors, including non-sugar containing blends. This past year has been a difficult one for plant operations as the overall performance was below anticipated levels.  Equipment breakdowns, high energy costs during winter months and some packaging inefficiencies increased the overall  costs of the operating facilities in fiscal 2013. During the year, we spent $9.1 million in capital projects and over $30 million  in maintenance costs. We will continue to invest in our refining operations and will focus on energy and labour savings  projects. As an example, the Company committed $2.2 million for the purchase and installation of a palletizing station in  Vancouver which will deliver labour savings in late fiscal 2014 and will help improve operating costs. Many other projects  are under review and will start over the next several years contributing to improved operating results. Adjusted earnings before interest and income taxes (“EBIT”) were $56.9 million as compared to $74.9 million in fiscal  2012, a decrease of $18.0 million.The decrease is due mainly to an unfavourable sales mix with lower margin industrial and  liquid sales volume and no special export quota to the U.S. In addition, the Company incurred additional operating costs in fiscal 2013 of $1.9 million for committed future pension benefit updates, $1.0 million of additional energy costs for auxiliary  natural gas, and $0.6 million in additional unplanned maintenance costs at the Vancouver refinery. As a result, the adjusted  gross margin rate per tonne was lower than the previous year at $127.80 as compared to $159.28 per metric tonne.  As an offset to domestic volume losses incurred in 2012, the Company aggressively pursued opportunities and gained  additional volume with new and existing customers. Industrial volume was 30,600 higher than the previous year. In addition,  the Company recovered a large high fructose corn syrup (“HFCS”) substitutable account in western Canada and as a result  increased liquid volume by approximately 14,500 metric tonnes. On the other hand, the Company did not benefit from  any special refined sugar quota in fiscal 2013 as it did the previous year.This is explained by the fact that both the U.S. and  Mexican markets had large surplus inventories, this in turn created downward pressure on selling prices in their respective  markets. As a consequence, export opportunities decreased and reduced overall export volume by approximately  35,400 metric tonnes. This year just completed has been marked by numerous challenges. We are pleased to report that our sales volume at  approximately 649,300 metric tonnes increased as compared to fiscal 2012 by approximately 7,700 metric tonnes. 