ANNUAL REPORT April 1, 2015 - March 31, 2016

Ten Thousand Villages is a non-profit program of Mennonite Central Committee Canada.

65B Heritage Drive, New Hamburg, Ontario N3A 2J3 p. 519.662.1879 f. 519.662.3755 1.877.BUY.FAIR ( 1.877.289.3247 )

www.tenthousandvillages.ca

/VillagesCanada

All around the world, talented makers stitch, carve, paint and craft meaningful products.

And although they live in some of the world’s most marginalized communities, fair

trade purchases change their lives by ensuring good, predictable wages, better working

conditions, equal opportunity for women and proper education for children.

Giving gifts that give back is something truly wonderful.

Discover the amazing stories behind our products in store or online at

tenthousandvillages.ca

Bring the world home

OUR MISSION

Ten Thousand Villages creates opportunities for makers in developing

countries to earn income by bringing their products and stories to our

markets through long-term, fair trading relationships.

Our philosophy of helping to build a sustainable future is based on the

principle that trade should have a conscience. Through fair trade, makers

receive respect, dignity and hope from working hard and

earning fair wages for their efforts.

COMMERCE WITH A CONSCIENCE

PURCHASES BY REGION

RETAIL SALES

OVER 12 MONTH PERIOD

FOR YEAR ENDED MARCH 31, 2016

MARCH 16 MARCH 15

South Asia 2,101,602 1,780,101

Southeast Asia 525,418 599,979

Africa 237,880 218,124

Middle East 119,479 154,605

Latin America/Caribbean 447,144 379,401

TOTAL ARTISAN PURCHASES 3,431,523 3,132,210

Coffee, Tea, Chocolate, Other Food 1,191,445 1,192,223

Books, International Music etc. 457,293 186,430

Supplies 48,631 109,333

TOTAL PURCHASES 5,128,892 4,620,196

MARCH 16 MARCH 15

British Columbia 1,710,817 1,563,799

Alberta 2,734,905 2,602,149

Saskatchewan 699,490 657,494

Manitoba 1,925,963 1,878,565

Ontario 4,828,780 4,584,014

Quebec 1,426,253 1,243,394

Atlantic Canada 46,622 69,223

TOTAL STORE SALES 13,372,830 12,598,638

Festival Sales 499,940 529,961

Atlantic Festival Sales 515,160 499,630

E-Commerce 494,925 298,527

Wholesale Sales 74,149 -

TOTAL RETAIL SALES 14,957,004 13,926,756

U.S. AND CANADA Fiscal Year 2016 Figures in CDN Dollars

Combined U.S. & Canada Sales $45,068,389

Combined U.S. & Canada Purchases $12,028,244

Ten Thousand Villages Board Members, Toronto, Ontario, April 2016

Members left to right (seated): Doug Roth, Anita Lunden, Cindy Epp, Jonathan Pageau, Arli Klassen, Ryan Jacobs, Pam Raffensberger, Scott Siemens. Left to right (standing): Marshall Warkentin, Dora Koop, Don Peters.

Dear friends,

Ten Thousand Villages Canada has experienced a major transformation over the last several years. Following many years of losses, transition and turmoil, I’m pleased to report that the organization has turned a corner.

Since our national downsizing and reorganization in 2013, Villages Canada has focused largely on stabilizing the business and improving retail fundamentals. These changes have been far-reaching, touching everything from strengthened IT systems and infrastructure, improved reporting, new approaches to training and development, and increased staff accountability and empowerment.

Some bottom-line improvements were realized immediately, which was gratifying. Modest sales increases and progress on a number of key performance indicators were reassuring and confirmed that we were on the right track. It wasn’t, however, until 2015-16 that momentum really picked up, and we saw the full impact of the initiatives we had been developing and implementing for years. For example:

• Cumulative same-store sales increases beat industry standards at 8.4%.

• E-commerce grew by an impressive 61%.

• Overall, total revenue increased by 7% or $757,000.

Even with these positive gains, however, Villages suffered considerably from currency fluctuations. We had budgeted for gross margin weakness, but actuals came in even weaker than predicted. Our average gross margin decreased from 58.8% in 2014-15 to 55.9%. This, coupled with some significant product cost increases, led to an overall loss from operations of $329,000.

Despite these unfortunate factors that were out of our control, we ended the year feeling extremely pleased that we were able to make meaningful improvements in so many areas where we had intentionally put our attention for several years.

We entered the 2016-17 fiscal year recognizing that Villages Canada is at a turning point. Many of the operational challenges we faced have now been addressed. As a strong, stable, growing organization, we are now in a position to embrace new oppor-tunities – and so we must ensure that we quickly shift our focus to brand-building and long-term revenue growth.

It has been an enormous privilege to lead Ten Thousand Villages Canada. These last few years have been difficult and rewarding, challenging and exciting. The Ten Thousand Villages brand continues to stand for something staff, volunteers and customers can be proud to be associated with. And after almost 70 years, the organization still remains true to its core mission of partnering with more than 20,000 talented artisans in 27 countries, who make the beautiful handmade products we sell all across North America.

A MESSAGE FROM RYAN

Ryan D. Jacobs Chief Executive Officer Ten Thousand Villages Canada

BALANCE SHEET

INCOME STATEMENT

FOR YEAR ENDED MARCH 31, 2016

MARCH 16 MARCH 15

Sales 12,343,375 11,583,456

Cost of Goods Sold 5,320,424 4,698,339

Gross Margin 7,022,951 6,885,117

Total Expenses 7,447,687 6,835,732

NET SURPLUS (LOSS) FROM OPERATIONS (424,736) 49,385

Gain (Loss) on US Exchange (182,643) 91,013

Other Income 623,969 147,303

NET SURPLUS 16,590 287,701

MARCH 16 MARCH 15

ASSETS

Inventory 4,873,093 4,837,248

Other Current Assets 838,475 629,781

Net Fixed Assets 2,243,846 2,407,203

TOTAL ASSETS 7,955,414 7,874,232

Liabilities 5,386,625 5,322,033

Equity 2,568,789 2,552,199

TOTAL LIABILITIES & EQUITY 7,955,414 7,874,232

AS OF MARCH 31, 2016

Rajana is owned and operated by the Khmer people, and provides traditional craft-making skills as well as accounting, marketing, computer and English courses. The makers of Rajana receive income and security in a stable work environment. The basic salary is well above the area’s minimum wage for Cambodians working in the garment sector. It’s an organization that offers hope in a time of peace.

Learn more about this meaningful, handcrafted jewellery and the stories behind our products at

www.tenthousandvillages.ca

Crafting Peace with Remnants of War

The Rajana

On the other side of the world, Cambodia is still, to this day, picking up the pieces following decades of unrest. The entire countryside is littered with spent bomb and artillery shell casings.

Rajana Association of Cambodia is transforming old horrors into peace and beauty. Its artisans are creating innovative jewellery from the recycled metal shells and selling this Bombshell Jewellery to markets all around the world.

The many shells still being uncovered on land and along the Mekong River are remnants of the country’s Pol Pot genocide, in which over 1.7 million Cambodians were killed between 1975 and 1979. With approximately 21 percent of the population destroyed, the genocide is considered one of the worst human tragedies in the past century. It’s been estimated that it would take 800 years to eliminate all undetonated bombs in Cambodia and neighbouring Laos.

Yet creating jewellery not only allows the makers to use skills passed down over hundreds of years, but the process offers catharsis for the many victims who lost family and friends in the genocidal conflict.

Story

Rajana is owned and operated by the Khmer people, and provides traditional craft-making skills as well as accounting, marketing, computer and English courses. The makers of Rajana receive income and security in a stable work environment. The basic salary is well above the area’s minimum wage for Cambodians working in the garment sector. It’s an organization that offers hope in a time of peace.

Learn more about this meaningful, handcrafted jewellery and the stories behind our products at

www.tenthousandvillages.ca

Crafting Peace with Remnants of War

The Rajana

On the other side of the world, Cambodia is still, to this day, picking up the pieces following decades of unrest. The entire countryside is littered with spent bomb and artillery shell casings.

Rajana Association of Cambodia is transforming old horrors into peace and beauty. Its artisans are creating innovative jewellery from the recycled metal shells and selling this Bombshell Jewellery to markets all around the world.

The many shells still being uncovered on land and along the Mekong River are remnants of the country’s Pol Pot genocide, in which over 1.7 million Cambodians were killed between 1975 and 1979. With approximately 21 percent of the population destroyed, the genocide is considered one of the worst human tragedies in the past century. It’s been estimated that it would take 800 years to eliminate all undetonated bombs in Cambodia and neighbouring Laos.

Yet creating jewellery not only allows the makers to use skills passed down over hundreds of years, but the process offers catharsis for the many victims who lost family and friends in the genocidal conflict.

Story

Dear friends,

Ten Thousand Villages Canada has experienced a major transformation over the last several years. Following many years of losses, transition and turmoil, I’m pleased to report that the organization has turned a corner.

Since our national downsizing and reorganization in 2013, Villages Canada has focused largely on stabilizing the business and improving retail fundamentals. These changes have been far-reaching, touching everything from strengthened IT systems and infrastructure, improved reporting, new approaches to training and development, and increased staff accountability and empowerment.

Some bottom-line improvements were realized immediately, which was gratifying. Modest sales increases and progress on a number of key performance indicators were reassuring and confirmed that we were on the right track. It wasn’t, however, until 2015-16 that momentum really picked up, and we saw the full impact of the initiatives we had been developing and implementing for years. For example:

• Cumulative same-store sales increases beat industry standards at 8.4%.

• E-commerce grew by an impressive 61%.

• Overall, total revenue increased by 7% or $757,000.

Even with these positive gains, however, Villages suffered considerably from currency fluctuations. We had budgeted for gross margin weakness, but actuals came in even weaker than predicted. Our average gross margin decreased from 58.8% in 2014-15 to 55.9%. This, coupled with some significant product cost increases, led to an overall loss from operations of $329,000.

Despite these unfortunate factors that were out of our control, we ended the year feeling extremely pleased that we were able to make meaningful improvements in so many areas where we had intentionally put our attention for several years.

We entered the 2016-17 fiscal year recognizing that Villages Canada is at a turning point. Many of the operational challenges we faced have now been addressed. As a strong, stable, growing organization, we are now in a position to embrace new oppor-tunities – and so we must ensure that we quickly shift our focus to brand-building and long-term revenue growth.

It has been an enormous privilege to lead Ten Thousand Villages Canada. These last few years have been difficult and rewarding, challenging and exciting. The Ten Thousand Villages brand continues to stand for something staff, volunteers and customers can be proud to be associated with. And after almost 70 years, the organization still remains true to its core mission of partnering with more than 20,000 talented artisans in 27 countries, who make the beautiful handmade products we sell all across North America.

A MESSAGE FROM RYAN

Ryan D. Jacobs Chief Executive Officer Ten Thousand Villages Canada

BALANCE SHEET

INCOME STATEMENT

FOR YEAR ENDED MARCH 31, 2016

MARCH 16 MARCH 15

Sales 12,343,375 11,583,456

Cost of Goods Sold 5,320,424 4,698,339

Gross Margin 7,022,951 6,885,117

Total Expenses 7,447,687 6,835,732

NET SURPLUS (LOSS) FROM OPERATIONS (424,736) 49,385

Gain (Loss) on US Exchange (182,643) 91,013

Other Income 623,969 147,303

NET SURPLUS 16,590 287,701

MARCH 16 MARCH 15

ASSETS

Inventory 4,873,093 4,837,248

Other Current Assets 838,475 629,781

Net Fixed Assets 2,243,846 2,407,203

TOTAL ASSETS 7,955,414 7,874,232

Liabilities 5,386,625 5,322,033

Equity 2,568,789 2,552,199

TOTAL LIABILITIES & EQUITY 7,955,414 7,874,232

AS OF MARCH 31, 2016

OUR MISSION

Ten Thousand Villages creates opportunities for makers in developing

countries to earn income by bringing their products and stories to our

markets through long-term, fair trading relationships.

Our philosophy of helping to build a sustainable future is based on the

principle that trade should have a conscience. Through fair trade, makers

receive respect, dignity and hope from working hard and

earning fair wages for their efforts.

COMMERCE WITH A CONSCIENCE

PURCHASES BY REGION

RETAIL SALES

OVER 12 MONTH PERIOD

FOR YEAR ENDED MARCH 31, 2016

MARCH 16 MARCH 15

South Asia 2,101,602 1,780,101

Southeast Asia 525,418 599,979

Africa 237,880 218,124

Middle East 119,479 154,605

Latin America/Caribbean 447,144 379,401

TOTAL ARTISAN PURCHASES 3,431,523 3,132,210

Coffee, Tea, Chocolate, Other Food 1,191,445 1,192,223

Books, International Music etc. 457,293 186,430

Supplies 48,631 109,333

TOTAL PURCHASES 5,128,892 4,620,196

MARCH 16 MARCH 15

British Columbia 1,710,817 1,563,799

Alberta 2,734,905 2,602,149

Saskatchewan 699,490 657,494

Manitoba 1,925,963 1,878,565

Ontario 4,828,780 4,584,014

Quebec 1,426,253 1,243,394

Atlantic Canada 46,622 69,223

TOTAL STORE SALES 13,372,830 12,598,638

Festival Sales 499,940 529,961

Atlantic Festival Sales 515,160 499,630

E-Commerce 494,925 298,527

Wholesale Sales 74,149 -

TOTAL RETAIL SALES 14,957,004 13,926,756

U.S. AND CANADA Fiscal Year 2016 Figures in CDN Dollars

Combined U.S. & Canada Sales $45,068,389

Combined U.S. & Canada Purchases $12,028,244

Ten Thousand Villages Board Members, Toronto, Ontario, April 2016

Members left to right (seated): Doug Roth, Anita Lunden, Cindy Epp, Jonathan Pageau, Arli Klassen, Ryan Jacobs, Pam Raffensberger, Scott Siemens. Left to right (standing): Marshall Warkentin, Dora Koop, Don Peters.

27 Countries73 Groups

20,000+ Individual Artisans

OUR GLOBAL lMPACT

ANNUAL REPORT April 1, 2015 - March 31, 2016

Ten Thousand Villages is a non-profit program of Mennonite Central Committee Canada.

65B Heritage Drive, New Hamburg, Ontario N3A 2J3 p. 519.662.1879 f. 519.662.3755 1.877.BUY.FAIR ( 1.877.289.3247 )

www.tenthousandvillages.ca

/VillagesCanada

All around the world, talented makers stitch, carve, paint and craft meaningful products.

And although they live in some of the world’s most marginalized communities, fair

trade purchases change their lives by ensuring good, predictable wages, better working

conditions, equal opportunity for women and proper education for children.

Giving gifts that give back is something truly wonderful.

Discover the amazing stories behind our products in store or online at

tenthousandvillages.ca

Bring the world home