CANADA

Canada achieved solid sales and earnings growth on the strength of its success with independent (“street”) restaurants and steady Food & Beverage and Vehicle Care gains, along with increased sales of handcare offerings during the SARS crisis, which hit the Toronto area hard in early 2003.

HIGHLIGHTS

> Adopted a truly multi-divisional approach to combating the effects of the SARS-related drop-off that hurt Canada's tourism industry. The various businesses worked cooperatively to develop new growth opportunities within alternative markets, delivering good sales gains despite the tough external obstacles.

> Grew its Institutional street business by forging enhanced relationships with its distributor partners. The launch of new Inferno and Typhoon dishmachines from Ecotemp helped street sales.

> Continued to enjoy success throughout Canada's food and beverage processing industry, particularly with meat and poultry producers, and benefited from multi-facility, North America-wide corporate account wins with large food product manufacturers.

OUTLOOK

With an anticipated rebound of the hospitality industry expected to improve sales opportunities, Canada is forecasting good gains in 2004. The improved hospitality climate should drive increased corporate account gains, and street business is expected to continue to grow due to Canada's strengthened distributor relationships. Food & Beverage business is expected to remain sound, with growth projected in the meat and food processing sectors.