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Onex Reports Second-Quarter 2016 Results


/EINPresswire.com/ -- TORONTO, ONTARIO -- (Marketwired) -- 08/11/16 -- All amounts in U.S. dollars unless otherwise stated

Onex Corporation ("Onex") (TSX: OCX) today announced its consolidated financial results for the second quarter and six months ended June 30, 2016 and an update on matters following quarter-end.

Highlights


--  Since June, we committed to invest approximately $1.6 billion in three
    businesses:
    --  Thomson Reuters' Intellectual Property & Science business, which
        owns a collection of leading subscription-based businesses that
        provide a diverse customer base with access to scientific
        literature, patent, trademark, pharmaceutical and other curated
        content;
    --  WireCo WorldGroup, one of the largest global manufacturers of
        mission-critical steel-wire rope, synthetic rope, specialty wire and
        engineered products; and
    --  Tecta America Corporation, the largest provider of commercial
        roofing services in the U.S. offering installation, replacement and
        repair services.
--  In April, we sold KraussMaffei Group, resulting in a gross multiple of
    capital invested of 2.1 times and a gross IRR of 24%.
--  We announced plans to launch a direct lending platform and closed our
    eleventh collateralized loan obligation ("CLO"). Onex Credit now manages
    approximately $7.0 billion.
--  In the first seven months of 2016, approximately 2.8 million of
    Subordinate Voting Shares ("SVS") were repurchased for a total cost of
    $163 million (C$223 million), or an average cost per share of C$80.24.

Recent Performance

"Despite a quiet start to the year, we're delighted to have found three great new businesses and continue to grow our credit platform," said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. "We've had to be very selective in these markets, but our patience has paid off."

In addition to approximately $2.2 billion of cash and near-cash, Onex has approximately $3.0 billion of uncalled committed capital available from limited partners. This capital base provides Onex with the strength and flexibility to invest in opportunities that lie ahead.

Onex management continues to share in the risks and rewards of our businesses through the team's significant investment in everything Onex owns. At June 30, 2016, the team had an investment of approximately $1.7 billion in underlying private equity operating businesses, credit funds and Onex shares.

Creating Value for Shareholders

Onex has two long-term goals. The first is to grow our capital per share by 15% per year. For the twelve months ended June 30, 2016, Onex' capital per share increased by 2% to $55.76. While the value of Onex' private equity investments, including realizations and distributions, increased by 6% during the period, our significant cash balance and other investments muted the overall growth from our investing activity. Over the past five years, Onex' capital per share increased by 9% per year.

Our second goal is to grow our fee-generating assets by 10% per year. For the twelve months ended June 30, 2016, Onex' fee-generating assets increased by 4% to $14.9 billion, primarily due to the completion of three CLOs. Over the past five years, our fee-generating assets increased by 13% per year. As we reach our goals over the long term, we believe Onex' shares will reflect both the growth in the value of our investments and the growing contribution from managing investments for fund investors.

Onex paid a second-quarter dividend of C$0.06875 per SVS on July 29, 2016 to shareholders of record on July 8, 2016.

Consolidated Results

Onex' quarterly and full-year consolidated financial results do not follow any specific trends due to acquisitions and dispositions of businesses, changes in the value of its publicly traded and privately held operating companies and varying business cycles at its operating companies.

On a consolidated basis for the second quarter ended June 30, 2016, revenues increased 10% to $5.4 billion compared to the same period of the prior year. This increase was largely due to the inclusion of revenues from the acquisitions of Jack's and Schumacher which were completed during the second half of 2015. Onex reported consolidated net earnings of $367 million during the second quarter of 2016 compared to a net loss of $289 million. The increase in net earnings was primarily driven by earnings from discontinued operations of $476 million compared to a loss of $18 million during the same period in 2015. The gain recognized on the sale of KraussMaffei Group was the primary contributor to discontinued operations in the second quarter of 2016.

On a consolidated basis for the six months ended June 30, 2016, revenues increased 15% to $10.4 billion as compared to the same period of the prior year. This increase was largely due to the inclusion of revenues from the acquisitions of Survitec, SIG, Jack's and Schumacher which were completed during 2015. Onex reported consolidated net earnings of $192 million during the first half of 2016 compared to a net loss of $373 million. The same factors that contributed to the increase in earnings for the second quarter of 2016 drove the increase in earnings for the first half of 2016.

Attached are the Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the three and six months ended June 30, 2016 and 2015 as prepared under International Financial Reporting Standards. The complete financial statements, including Management's Discussion and Analysis of the results, are posted on Onex' website, www.onex.com, and are also available on SEDAR at www.sedar.com. A supplemental information package, which includes the How We Are Invested schedule, Schedules of Fees and Expenses and additional information, is available on Onex' website, www.onex.com.

Webcast

Onex management will host a conference call to review Onex' second-quarter 2016 results on Thursday, August 11 at 11:00 a.m. ET. A live webcast of this conference call will be available in listen-only mode on its website, www.onex.com.

About Onex

Onex is one of the oldest and most successful private equity firms. Through its Onex Partners and ONCAP private equity funds, Onex acquires and builds high-quality businesses in partnership with talented management teams. At Onex Credit, Onex manages and invests in leveraged loans, collateralized loan obligations and other credit securities. The Company has approximately $23 billion of assets under management, including $6 billion of Onex proprietary capital, in private equity and credit securities. With offices in Toronto, New York, New Jersey and London, Onex invests its capital through its two investing platforms and is the largest limited partner in each of its private equity funds.

Onex' businesses have assets of $36 billion, generate annual revenues of $23 billion and employ approximately 145,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX. For more information on Onex, visit its website at www.onex.com. The Company's security filings can also be accessed at www.sedar.com.

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward- looking statements. Onex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.


                              Onex Corporation
                        CONSOLIDATED BALANCE SHEETS


                                                       As at          As at
(Unaudited)                                         June 30,   December 31,
(in millions of U.S. dollars)                           2016           2015
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents                           $  2,021   $      2,313
Short-term investments                                   316            206
Accounts receivable                                    3,150          2,933
Inventories                                            2,273          1,982
Other current assets                                     922            920
Assets held by discontinued operations                     -          1,328
----------------------------------------------------------------------------
                                                       8,682          9,682
Property, plant and equipment                          3,322          3,265
Long-term investments                                  8,624          7,863
Other non-current assets                                 851            795
Intangible assets                                      6,327          6,528
Goodwill                                               7,530          7,677
----------------------------------------------------------------------------
                                                    $ 35,336   $     35,810
----------------------------------------------------------------------------
Liabilities and Equity
Current liabilities
Accounts payable and accrued liabilities            $  3,542   $      3,404
Current portion of provisions                            360            334
Other current liabilities                              1,031            976
Current portion of long-term debt of operating
 companies, without recourse to Onex Corporation         418            411
Current portion of Limited Partners' Interests            16            598
Liabilities held by discontinued operations                -          1,011
----------------------------------------------------------------------------
                                                       5,367          6,734
Non-current portion of provisions                        378            368
Long-term debt of operating companies, without
 recourse to Onex Corporation                         18,227         17,643
Other non-current liabilities                          1,797          1,704
Deferred income taxes                                  1,371          1,451
Limited Partners' Interests                            6,888          6,720
----------------------------------------------------------------------------
                                                      34,028         34,620
----------------------------------------------------------------------------
Equity
Share capital                                            326            333
Non-controlling interests                              1,376          1,353
Retained earnings and accumulated other
 comprehensive loss                                     (394)          (496)
----------------------------------------------------------------------------
                                                       1,308          1,190
----------------------------------------------------------------------------
                                                    $ 35,336   $     35,810
----------------------------------------------------------------------------

                              Onex Corporation
                    CONSOLIDATED STATEMENTS OF EARNINGS


                                     Three months ended    Six months ended
(Unaudited)                                     June 30             June 30
(in millions of U.S. dollars except
 per share data)                         2016      2015      2016      2015
----------------------------------------------------------------------------
Revenues                             $  5,425  $  4,926  $ 10,423  $  9,055
Cost of sales (excluding
 amortization of property, plant and
 equipment, intangible assets and
 deferred charges)                     (3,783)   (3,369)   (7,227)   (6,208)
Operating expenses                     (1,026)   (1,003)   (2,032)   (1,900)
Interest income                            81        60       158       116
Amortization of property, plant and
 equipment                               (133)     (128)     (267)     (224)
Amortization of intangible assets
 and deferred charges                    (152)     (153)     (309)     (271)
Interest expense of operating
 companies                               (256)     (215)     (502)     (393)
Increase in value of investments in
 joint ventures and associates at
 fair value, net                           17        42        37        61
Stock-based compensation expense          (24)      (27)      (75)      (85)
Other gains                                50         -        53        74
Other income (expense)                     (7)        3       (42)      (42)
Impairment of goodwill, intangible
 assets and long-lived assets, net       (226)        -      (235)       (9)
Limited Partners' Interests charge        (44)     (361)     (203)     (539)
----------------------------------------------------------------------------
Loss before income taxes and
 discontinued operations                  (78)     (225)     (221)     (365)
Provision for income taxes                (31)      (46)      (59)      (58)
----------------------------------------------------------------------------
Loss from continuing operations          (109)     (271)     (280)     (423)
Earnings (loss) from discontinued
 operations                               476       (18)      472        50
----------------------------------------------------------------------------
Net Earnings (Loss) for the Period   $    367  $   (289) $    192  $   (373)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Loss from Continuing Operations
 attributable to:
Equity holders of Onex Corporation   $   (122) $   (293) $   (305) $   (470)
Non-controlling Interests                  13        22        25        47
----------------------------------------------------------------------------
Loss from Continuing Operations for
 the Period                          $   (109) $   (271) $   (280) $   (423)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Net Earnings (Loss) attributable to:
Equity holders of Onex Corporation   $    322  $   (306) $    135  $   (413)
Non-controlling Interests                  45        17        57        40
----------------------------------------------------------------------------
Net Earnings (Loss) for the Period   $    367  $   (289) $    192  $   (373)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Net Earnings (Loss) per Subordinate
 Voting Share of Onex Corporation
Basic and Diluted:
  Continuing operations              $  (1.16) $  (2.74) $  (2.92) $  (4.36)
  Discontinued operations                4.28     (0.12)     4.22      0.53
----------------------------------------------------------------------------
Net Earnings (Loss) per Subordinate
 Voting Share for the Period         $   3.12  $  (2.86) $   1.30  $  (3.83)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                              Onex Corporation
                    CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                           Six months ended
(Unaudited)                                                         June 30
(in millions of U.S. dollars)                                2016      2015
----------------------------------------------------------------------------
Operating Activities
Loss for the period from continuing operations           $   (280) $   (423)
Adjustments to loss from continuing operations:
  Provision for income taxes                                   59        58
  Interest income                                            (158)     (116)
  Interest expense of operating companies                     502       393
----------------------------------------------------------------------------
Earnings (loss) before interest and provision for income
 taxes                                                        123       (88)
Cash taxes paid                                              (170)     (120)
Items not affecting cash and cash equivalents:
  Amortization of property, plant and equipment               267       224
  Amortization of intangible assets and deferred charges      309       271
  Increase in value of investments in joint ventures and
   associates at fair value, net                              (37)      (61)
  Stock-based compensation expense                             65        84
  Other gains                                                 (53)      (74)
  Foreign exchange gain                                       (21)      (89)
  Impairment of goodwill, intangibles assets and long-
   lived assets, net                                          235         9
  Limited Partners' Interests charge                          203       539
  Change in provisions                                         35        (1)
  Other                                                       (42)       23
----------------------------------------------------------------------------
                                                              914       717
Changes in non-cash working capital items:
  Accounts receivable                                        (121)       31
  Inventories                                                (261)     (105)
  Other current assets                                         (4)       14
  Accounts payable, accrued liabilities and other
   current liabilities                                         20       (47)
----------------------------------------------------------------------------
Decrease in cash and cash equivalents due to changes in
 non-cash working capital items                              (366)     (107)
Decrease in other operating activities                        (17)      (38)
Cash flows from operating activities of discontinued
 operations                                                    38       122
----------------------------------------------------------------------------
                                                              569       694
----------------------------------------------------------------------------
Financing Activities
Issuance of long-term debt                                    951     1,767
Repayment of long-term debt                                  (424)   (1,191)
Cash interest paid                                           (428)     (334)
Cash dividends paid                                           (10)       (9)
Repurchase of share capital of Onex Corporation              (149)     (145)
Repurchase of share capital of operating companies            (43)     (404)
Contributions by Limited Partners                              24     1,441
Issuance of share capital by operating companies                6        30
Distributions paid to non-controlling interests and
 Limited Partners                                            (693)     (140)
Decrease due to other financing activities                    (16)      (47)
Cash flows from (used in) financing activities of
 discontinued operations                                        2       (62)
----------------------------------------------------------------------------
                                                             (780)      906
----------------------------------------------------------------------------
Investing Activities
Acquisitions, net of cash and cash equivalents in
 acquired companies of $4 (2015 - $344)                      (229)   (1,328)
Purchase of property, plant and equipment                    (255)     (218)
Proceeds from sale of property, plant and equipment            46        56
Proceeds from sale of investments in joint ventures and
 associates at fair value                                       -        10
Proceeds from sales of operating companies and
 businesses no longer controlled                              981         -
Distributions received from investments in joint
 ventures and associates                                       39        31
Purchase of investment in joint venture                       (35)      (70)
Change in restricted cash for acquisition of an
 operating company                                              -      (295)
Cash interest received                                        154       113
Net purchases of investments and securities for CLOs and
 Onex Credit Funds                                           (624)     (279)
Net purchases of investments and securities at parent
 company and operating companies                             (105)     (791)
Increase (decrease) due to other investing activities         (19)       24
Cash flows used in investing activities of discontinued
 operations                                                  (155)      (45)
----------------------------------------------------------------------------
                                                             (202)   (2,792)
----------------------------------------------------------------------------
Decrease in Cash and Cash Equivalents for the Period         (413)   (1,192)
Increase (decrease) in cash due to changes in foreign
 exchange rates                                                 8       (22)
Cash and cash equivalents, beginning of the period -
 continuing operations                                      2,313     3,662
Cash and cash equivalents, beginning of the period -
 discontinued operations                                      113       106
----------------------------------------------------------------------------
Cash and Cash Equivalents                                   2,021     2,554
Cash and cash equivalents held by discontinued
 operations and disposal group                                  -       123
----------------------------------------------------------------------------
Cash and Cash Equivalents Held by Continuing Operations  $  2,021  $  2,431
----------------------------------------------------------------------------

                              Onex Corporation
                      INFORMATION BY INDUSTRY SEGMENT
                  FOR THE THREE MONTHS ENDED JUNE 30, 2016





(Unaudited)          Electronics                Health
(in millions of    Manufacturing  Healthcare and Human  Building  Insurance
 U.S. dollars)          Services     Imaging  Services  Products   Services
----------------------------------------------------------------------------
Revenues            $      1,486  $      503  $    448  $    964  $     460
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                 (1,355)       (287)     (342)     (732)         -
Operating expenses           (54)       (134)      (80)     (130)      (345)
Interest income                -           -         -         1          -
Amortization of
 property, plant
 and equipment               (17)        (16)       (8)      (23)        (4)
Amortization of
 intangible assets
 and deferred
 charges                      (3)        (18)       (4)       (3)       (51)
Interest expense of
 operating
 companies                    (3)        (37)       (6)      (19)       (47)
Increase in value
 of investments in
 joint ventures and
 associates at fair
 value, net                    -           -         -         -          -
Stock-based
 compensation
 expense                      (7)         (1)       (1)       (3)        (5)
Other gains                    -           -         5         -         45
Other income
 (expense)                     1         (17)        3        (8)       (20)
Impairment of
 goodwill,
 intangible assets
 and long-lived
 assets, net                   -           -         -         -       (226)
Limited Partners'
 Interests charge              -           -         -         -          -
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                   48          (7)       15        47       (193)
Recovery of
 (provision for)
 income taxes                (12)         (8)       (6)       22        (22)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                   36         (15)        9        69       (215)
Earnings from
 discontinued
 operations(b)                 -           -         -         -          -
----------------------------------------------------------------------------
Net earnings (loss)
 for the period     $         36  $      (15) $      9  $     69  $    (215)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net earnings (loss)
 attributable to:
Equity holders of
 Onex Corporation   $          4  $      (13) $      9  $     60  $    (189)
Non-controlling
 interests                    32          (2)        -         9        (26)
----------------------------------------------------------------------------
Net earnings (loss)
 for the period     $         36  $      (15) $      9  $     69  $    (215)
----------------------------------------------------------------------------
----------------------------------------------------------------------------




                    Packaging
(Unaudited)          Products
(in millions of           and      Credit              Consolidated
 U.S. dollars)       Services  Strategies    Other(a)         Total
--------------------------------------------------------------------
Revenues            $     598  $        1  $      965  $      5,425
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                (391)          -        (676)       (3,783)
Operating expenses        (72)        (11)       (200)       (1,026)
Interest income             -          75           5            81
Amortization of
 property, plant
 and equipment            (47)          -         (18)         (133)
Amortization of
 intangible assets
 and deferred
 charges                  (37)         (2)        (34)         (152)
Interest expense of
 operating
 companies                (55)        (38)        (51)         (256)
Increase in value
 of investments in
 joint ventures and
 associates at fair
 value, net                 -           -          17            17
Stock-based
 compensation
 expense                    -           -          (7)          (24)
Other gains                 -           -           -            50
Other income
 (expense)                (11)         54          (9)           (7)
Impairment of
 goodwill,
 intangible assets
 and long-lived
 assets, net                -           -           -          (226)
Limited Partners'
 Interests charge           -         (15)        (29)          (44)
--------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations               (15)         64         (37)          (78)
Recovery of
 (provision for)
 income taxes              (7)          -           2           (31)
--------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations               (22)         64         (35)         (109)
Earnings from
 discontinued
 operations(b)              -           -         476           476
--------------------------------------------------------------------
Net earnings (loss)
 for the period     $     (22) $       64  $      441  $        367
--------------------------------------------------------------------
--------------------------------------------------------------------

Net earnings (loss)
 attributable to:
Equity holders of
 Onex Corporation   $     (22) $       64  $      409  $        322
Non-controlling
 interests                  -           -          32            45
--------------------------------------------------------------------
Net earnings (loss)
 for the period     $     (22) $       64  $      441  $        367
--------------------------------------------------------------------
--------------------------------------------------------------------

(a)  Includes Emerald Expositions, Survitec, Jack's, Schumacher, ONCAP II,
     ONCAP III, Flushing Town Center, Meridian Aviation and the parent
     company. Investments in joint ventures and associates recorded at fair
     value include AIT, BBAM, Incline Aviation Fund, ITG and Mavis Discount
     Tire.
(b)  Represents the after-tax results of KraussMaffei and Sitel Worldwide.

                              Onex Corporation
                      INFORMATION BY INDUSTRY SEGMENT
                  FOR THE THREE MONTHS ENDED JUNE 30, 2015


(Unaudited)          Electronics                Health
(in millions of    Manufacturing  Healthcare and Human  Building  Insurance
 U.S. dollars)          Services     Imaging  Services  Products   Services
----------------------------------------------------------------------------
Revenues            $      1,418  $      545  $    453  $    879  $     455
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                 (1,303)       (310)     (347)     (677)         -
Operating expenses           (50)       (141)      (80)     (115)      (350)
Interest income                -           -         -         1          -
Amortization of
 property, plant
 and equipment               (15)        (13)       (7)      (27)        (4)
Amortization of
 intangible assets
 and deferred
 charges                      (3)        (26)       (3)       (2)       (48)
Interest expense of
 operating
 companies                    (1)        (35)       (6)      (13)       (45)
Increase in value
 of investments in
 joint ventures and
 associates at fair
 value, net                    -           -         -         -          -
Stock-based
 compensation
 expense                      (8)         (1)        -       (12)        (5)
Other income
 (expense)                    (9)         (1)        -        (7)       (21)
Limited Partners'
 Interests charge              -           -         -         -          -
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                   29          18        10        27        (18)
Recovery of
 (provision for)
 income taxes                 (5)         (2)       (4)      (15)         6
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                   24          16         6        12        (12)
Loss from
 discontinued
 operations(b)                 -           -         -         -          -
----------------------------------------------------------------------------
Net earnings (loss)
 for the period     $         24  $       16  $      6  $     12  $     (12)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net earnings (loss)
 attributable to:
Equity holders of
 Onex Corporation   $          4  $       15  $      6  $     11  $     (11)
Non-controlling
 interests                    20           1         -         1         (1)
----------------------------------------------------------------------------
Net earnings (loss)
 for the period     $         24  $       16  $      6  $     12  $     (12)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                    Packaging
(Unaudited)          Products
(in millions of           and      Credit              Consolidated
 U.S. dollars)       Services  Strategies    Other(a)         Total
--------------------------------------------------------------------
Revenues            $     606  $        2  $      568  $      4,926
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                (404)          -        (328)       (3,369)
Operating expenses        (67)        (16)       (184)       (1,003)
Interest income             1          57           1            60
Amortization of
 property, plant
 and equipment            (44)          -         (18)         (128)
Amortization of
 intangible assets
 and deferred
 charges                  (39)         (1)        (31)         (153)
Interest expense of
 operating
 companies                (58)        (30)        (27)         (215)
Increase in value
 of investments in
 joint ventures and
 associates at fair
 value, net                 -           -          42            42
Stock-based
 compensation
 expense                   (1)          -           -           (27)
Other income
 (expense)                100          (9)        (50)            3
Limited Partners'
 Interests charge           -          (2)       (359)         (361)
--------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                94           1        (386)         (225)
Recovery of
 (provision for)
 income taxes             (23)          -          (3)          (46)
--------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                71           1        (389)         (271)
Loss from
 discontinued
 operations(b)              -           -         (18)          (18)
--------------------------------------------------------------------
Net earnings (loss)
 for the period     $      71  $        1  $     (407) $       (289)
--------------------------------------------------------------------
--------------------------------------------------------------------

Net earnings (loss)
 attributable to:
Equity holders of
 Onex Corporation   $      71  $        1  $     (403) $       (306)
Non-controlling
 interests                  -           -          (4)           17
--------------------------------------------------------------------
Net earnings (loss)
 for the period     $      71  $        1  $     (407) $       (289)
--------------------------------------------------------------------
--------------------------------------------------------------------

(a)  Includes Tropicana Las Vegas (up to August 2015), Emerald Expositions,
     Survitec (since March 2015), ONCAP II, ONCAP III, Flushing Town Center,
     Meridian Aviation and the parent company. Investments in joint ventures
     and associates recorded at fair value include AIT, BBAM, ITG (since
     June 2015) and Mavis Discount Tire.
(b)  Represents the after-tax results of KraussMaffei and Sitel Worldwide.

                              Onex Corporation
                      INFORMATION BY INDUSTRY SEGMENT
                   FOR THE SIX MONTHS ENDED JUNE 30, 2016


(Unaudited)          Electronics                Health
(in millions of    Manufacturing  Healthcare and Human  Building  Insurance
 U.S. dollars)          Services     Imaging  Services  Products   Services
----------------------------------------------------------------------------
Revenues            $      2,839  $      940  $    901  $  1,764  $     910
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                 (2,596)       (539)     (688)   (1,355)         -
Operating expenses          (105)       (274)     (169)     (248)      (686)
Interest income                -           1         -         1          -
Amortization of
 property, plant
 and equipment               (32)        (32)      (15)      (53)        (9)
Amortization of
 intangible assets
 and deferred
 charges                      (5)        (42)       (8)       (7)      (102)
Interest expense of
 operating
 companies                    (5)        (73)      (12)      (37)       (95)
Increase in value
 of investments in
 joint ventures and
 associates at fair
 value, net                    -           -         -         -          -
Stock-based
 compensation
 expense                     (16)         (2)       (1)      (34)        (9)
Other gains                    -           -         8         -         45
Other income
 (expense)                    (2)        (23)        2       (19)       (33)
Impairment of
 goodwill,
 intangible assets
 and long-lived
 assets, net                   -          (8)        -        (1)      (226)
Limited Partners'
 Interests charge              -           -         -         -          -
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations                   78         (52)       18        11       (205)
Recovery of
 (provision for)
 income taxes                (16)         (6)       (7)       20        (21)
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                   62         (58)       11        31       (226)
Earnings from
 discontinued
 operations(b)                 -           -         -         -          -
----------------------------------------------------------------------------
Net earnings (loss)
 for the period     $         62  $      (58) $     11  $     31  $    (226)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net earnings (loss)
 attributable to:
Equity holders of
 Onex Corporation   $          8  $      (52) $     11  $     27  $    (199)
Non-controlling
 interests                    54          (6)        -         4        (27)
----------------------------------------------------------------------------
Net earnings (loss)
 for the period     $         62  $      (58) $     11  $     31  $    (226)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Total assets        $      2,720  $    1,451  $  1,021  $  2,516  $   4,746
----------------------------------------------------------------------------
Long-term debt(c)   $        279  $    1,959  $    482  $  1,256  $   2,873
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                    Packaging
(Unaudited)          Products
(in millions of           and      Credit              Consolidated
 U.S. dollars)       Services  Strategies    Other(a)         Total
--------------------------------------------------------------------
Revenues            $   1,120  $        2  $    1,947  $     10,423
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                (737)          -      (1,312)       (7,227)
Operating expenses       (141)        (18)       (391)       (2,032)
Interest income             1         146           9           158
Amortization of
 property, plant
 and equipment            (92)          -         (34)         (267)
Amortization of
 intangible assets
 and deferred
 charges                  (74)         (3)        (68)         (309)
Interest expense of
 operating
 companies               (109)        (75)        (96)         (502)
Increase in value
 of investments in
 joint ventures and
 associates at fair
 value, net                 -           -          37            37
Stock-based
 compensation
 expense                   (1)          -         (12)          (75)
Other gains                 -           -           -            53
Other income
 (expense)                (20)        138         (85)          (42)
Impairment of
 goodwill,
 intangible assets
 and long-lived
 assets, net                -           -           -          (235)
Limited Partners'
 Interests charge           -         (21)       (182)         (203)
--------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
 discontinued
 operations               (53)        169        (187)         (221)
Recovery of
 (provision for)
 income taxes               2           -         (31)          (59)
--------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations               (51)        169        (218)         (280)
Earnings from
 discontinued
 operations(b)              -           -         472           472
--------------------------------------------------------------------
Net earnings (loss)
 for the period     $     (51) $      169  $      254  $        192
--------------------------------------------------------------------
--------------------------------------------------------------------

Net earnings (loss)
 attributable to:
Equity holders of
 Onex Corporation   $     (51) $      169  $      222  $        135
Non-controlling
 interests                  -           -          32            57
--------------------------------------------------------------------
Net earnings (loss)
 for the period     $     (51) $      169  $      254  $        192
--------------------------------------------------------------------
--------------------------------------------------------------------

Total assets        $   6,457  $    6,915  $    9,510  $     35,336
--------------------------------------------------------------------
Long-term debt(c)   $   3,530  $    5,307  $    2,959  $     18,645
--------------------------------------------------------------------
--------------------------------------------------------------------

(a)  Includes Emerald Expositions, Survitec, Jack's, Schumacher, ONCAP II,
     ONCAP III, Flushing Town Center, Meridian Aviation and the parent
     company. Investments in joint ventures and associates recorded at fair
     value include AIT, BBAM, Incline Aviation Fund (since March 2016), ITG
     and Mavis Discount Tire.
(b)  Represents the after-tax results of KraussMaffei and Sitel Worldwide.
(c)  Long-term debt includes current portion, excludes finance leases and is
     net of financing charges.

                              Onex Corporation
                       INFORMATION BY INDUSTRY SEGMENT
                   FOR THE SIX MONTHS ENDED JUNE 30, 2015


(Unaudited)          Electronics                Health
(in millions of    Manufacturing  Healthcare and Human  Building  Insurance
 U.S. dollars)          Services     Imaging  Services  Products   Services
----------------------------------------------------------------------------
Revenues            $      2,716  $    1,015  $    895  $  1,616  $     886
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                 (2,492)       (600)     (683)   (1,268)         -
Operating expenses          (104)       (283)     (156)     (225)      (684)
Interest income                -           1         -         1          -
Amortization of
 property, plant
 and equipment               (29)        (30)      (14)      (53)        (8)
Amortization of
 intangible assets
 and deferred
 charges                      (5)        (52)       (7)       (5)       (95)
Interest expense of
 operating
 companies                    (2)        (71)      (10)      (25)       (91)
Increase in value
 of investments in
 joint ventures and
 associates at fair
 value, net                    -           -         -         -          -
Stock-based
 compensation
 expense                     (19)         (2)        -       (21)       (10)
Other gains                    -           -         -         -          -
Other income
 (expense)                    (9)         (1)       (4)      (19)       (43)
Impairment of
 goodwill,
 intangible assets
 and long-lived
 assets, net                   -           -         -        (7)         -
Limited Partners'
 Interests recovery
 (charge)                      -           -         -         -          -
----------------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
discontinued
 operations                   56         (23)       21        (6)       (45)
Recovery of
 (provision for)
 income taxes                (12)         (1)       (9)       (7)        18
----------------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                   44         (24)       12       (13)       (27)
Earnings from
 discontinued
 operations(b)                 -           -         -         -          -
----------------------------------------------------------------------------
Net earnings (loss)
 for the period     $         44  $      (24) $     12  $    (13) $     (27)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net earnings (loss)
 attributable to:
Equity holders of
 Onex Corporation   $          6  $      (21) $     12  $    (12) $     (24)
Non-controlling
 interests                    38          (3)        -        (1)        (3)
----------------------------------------------------------------------------
Net earnings (loss)
 for the period     $         44  $      (24) $     12  $    (13) $     (27)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                    Packaging
(Unaudited)          Products
(in millions of           and      Credit              Consolidated
 U.S. dollars)       Services  Strategies    Other(a)         Total
--------------------------------------------------------------------
Revenues            $     826  $        3  $    1,098  $      9,055
Cost of sales
 (excluding
 amortization of
 property, plant
 and equipment,
 intangible assets
 and deferred
 charges)                (555)          -        (610)       (6,208)
Operating expenses        (91)        (23)       (334)       (1,900)
Interest income             1         111           2           116
Amortization of
 property, plant
 and equipment            (56)          -         (34)         (224)
Amortization of
 intangible assets
 and deferred
 charges                  (53)         (2)        (52)         (271)
Interest expense of
 operating
 companies                (84)        (54)        (56)         (393)
Increase in value
 of investments in
 joint ventures and
 associates at fair
 value, net                 -           -          61            61
Stock-based
 compensation
 expense                   (1)          -         (32)          (85)
Other gains                 -          38          36            74
Other income
 (expense)                140          (5)       (101)          (42)
Impairment of
 goodwill,
 intangible assets
 and long-lived
 assets, net               (2)          -           -            (9)
Limited Partners'
 Interests recovery
 (charge)                   -           1        (540)         (539)
--------------------------------------------------------------------
Earnings (loss)
 before income
 taxes and
discontinued
 operations               125          69        (562)         (365)
Recovery of
 (provision for)
 income taxes             (26)          -         (21)          (58)
--------------------------------------------------------------------
Earnings (loss)
 from continuing
 operations                99          69        (583)         (423)
Earnings from
 discontinued
 operations(b)              -           -          50            50
--------------------------------------------------------------------
Net earnings (loss)
 for the period     $      99  $       69  $     (533) $       (373)
--------------------------------------------------------------------
--------------------------------------------------------------------

Net earnings (loss)
 attributable to:
Equity holders of
 Onex Corporation   $      99  $       69  $     (542) $       (413)
Non-controlling
 interests                  -           -           9            40
--------------------------------------------------------------------
Net earnings (loss)
 for the period     $      99  $       69  $     (533) $       (373)
--------------------------------------------------------------------
--------------------------------------------------------------------

(Unaudited)
(in millions of
 U.S. dollars)       Electronics                Health
As at December 31, Manufacturing  Healthcare and Human  Building  Insurance
 2015                   Services     Imaging  Services  Products   Services
----------------------------------------------------------------------------
Total assets(c)     $      2,612  $    1,609  $  1,034  $  2,374  $   5,034
----------------------------------------------------------------------------
Long-term
 debt(c)(d)         $        261  $    1,999  $    525  $  1,257  $   2,866
----------------------------------------------------------------------------
----------------------------------------------------------------------------


(Unaudited)
(in millions of     Packaging
 U.S. dollars)       Products
As at December 31,        and      Credit              Consolidated
 2015                Services  Strategies    Other(a)         Total
-------------------------------------------------------------------
Total assets(c)     $   6,366  $    6,284  $   10,497  $     35,810
-------------------------------------------------------------------
Long-term
 debt(c)(d)         $   3,487  $    4,899  $    2,760  $     18,054
-------------------------------------------------------------------
-------------------------------------------------------------------

(a)  Includes Tropicana Las Vegas (up to August 2015), Emerald Expositions,
     Survitec (since March 2015), ONCAP II, ONCAP III, Flushing Town Center,
     Meridian Aviation and the parent company. Investments in joint ventures
     and associates recorded at fair value include AIT, BBAM, ITG (since
     June 2015) and Mavis Discount Tire.
(b)  Represents the after-tax results of KraussMaffei, Sitel Worldwide and
     Skilled Healthcare Group.
(c)  The other segment includes KraussMaffei, which is a discontinued
     operation.
(d)  Long-term debt includes current portion, excludes finance leases and is
     net of financing charges.

Contacts:
Onex Corporation
Emilie Blouin
Director, Investor Relations
416.362.7711
www.onex.com


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