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Onex Reports First-Quarter 2014 Results

TORONTO, ONTARIO -- (Marketwired) -- 05/16/14 --

All amounts in U.S. dollars unless otherwise stated

Onex Corporation ("Onex") (TSX:OCX) today announced its consolidated financial results for the first quarter ended March 31, 2014 and an update on matters following quarter-end.

Highlights


--  In May, Onex completed the fundraising for Onex Partners IV, surpassing
    the original $4.5 billion target, and raising a total of $5.15 billion
    in aggregate commitments, including Onex' $1.2 billion commitment. 
    
--  Realizations and distributions from transactions announced to date will
    be the highest in Onex' 30-year history totaling approximately $4.3
    billion, of which Onex' share will be $1.3 billion, including $132
    million of carried interest. Notable sales included: 
    
    --  In April, Onex and CPPIB agreed to sell Gates Corporation, the
        principal remaining business of Tomkins, for $5.4 billion, bringing
        the total proceeds of eight divested units of Tomkins to $7.9
        billion. The transaction is expected to result in a gross multiple
        of capital invested of approximately 2.2 times and a 26% gross rate
        of return.  
    --  In March, Onex agreed to sell The Warranty Group for an enterprise
        value of $1.5 billion, which is expected to result in a gross
        multiple of capital invested of approximately 3.1 times and an 18%
        gross rate of return. 
    --  During the quarter, Onex completed secondary share sales of Spirit
        AeroSystems and Allison Transmission, resulting in aggregate
        proceeds of $590 million. In April, Onex completed an additional
        $372 million Allison Transmission secondary share sale. 
        
--  Including realizations and distributions, Onex Partners' and ONCAP's
    private companies generated returns for Onex of 4% during the first
    three months of 2014. Including our public companies, the value of all
    operating businesses in the Onex Partners and ONCAP Funds, including
    realizations and distributions, increased by 3%. 
    
--  Including cash and near-cash equivalents of $1.8 billion and other
    investments, Onex' capital per share was largely unchanged in the three
    months ended March 31, 2014. For the twelve months ended March 31, 2014,
    Onex' capital per share grew by 18% to $50.64 (C$55.98). 
    
--  Onex Credit Partners ("OCP") completed its fifth collateralized loan
    obligation ("CLO"), offering approximately $420 million in securities,
    including $43 million purchased by Onex.  

Recent Performance

"We're off to a great start in 2014," said Gerry Schwartz, Chairman and Chief Executive Officer of Onex. "In addition to completing a very successful fundraise, we've been active sellers. This year, we will have returned a record $4.3 billion to our investors from transactions we've closed and announced to date."

Earlier this week, Onex held the final close for Onex Partners IV, closing earlier than anticipated on aggregate commitments of $5.15 billion following 10 months of fundraising. Onex exceeded its initial target of $4.5 billion, raising capital commitments from 40 limited partners, including public employee pension plans, sovereign wealth funds, institutional wealth managers and family offices from around the world. With the completion of its fifth CLO, OCP now has $3.7 billion of assets under management - a 32% increase over the prior year. OCP's investors include some of the world's largest banks and fixed income investors. Across all platforms, Onex now has more than $14 billion in fee-generating capital under management. Each of Onex Partners, ONCAP and OCP maintain the same standards of prudent investing, careful building, management alignment and, open and honest communication with investors.

Onex continues to be an active seller of assets thus far in 2014. In each case, consideration is given to whether or not the original investment thesis has been realized and the receptivity of capital markets for large dispositions. In 2014, credit and equity markets continued to be strong - providing a great environment for asset sales. Over its thirty-year history, Onex has generated a gross IRR of 28% and a gross multiple of 3.0 times capital invested from realized, substantially realized and publicly traded investments. This year will be a record year as Onex' share of the previously mentioned realizations and distributions will be approximately $1.3 billion, including $132 million of carried interest.

Onex management continues to share in the success and failure of our operating companies through the team's significant investment in everything we buy. At March 31, 2014, the value of the team's investment in Onex' businesses and its shares was approximately $1.8 billion.

At March 31, 2014, the value of Onex' unrealized carried interest was approximately $40 million based on the traded market values of Onex Partners' public companies, which includes $10 million of carried interest received related to Allison Transmission's April secondary offering. In addition, Onex has the potential to receive a further $167 million of carried interest on its private businesses in the Onex Partners and ONCAP Funds based on their fair values determined at March 31, 2014. This includes approximately $105 million of carried interest related to the pending sales of The Warranty Group and Tomkins. The amount of carried interest ultimately realized by Onex depends on the overall performance of each Fund.

Creating Value for Shareholders

Onex' long-term goal is to grow its capital per share on average by at least 15% per annum. For the twelve months ended March 31, 2014, Onex' capital per share grew by 18% to $50.64 (C$55.98).

Our goal is also to have Onex' shares reflect both the growth in the value of our investments and the growing contribution from managing investments for our limited partners and other investors. At March 31, 2014, Onex' Subordinate Voting Shares ("SVS") closed at C$61.38, which represents a 7% quarterly increase and a 27% increase over the last twelve months. This compares to increases in the S&P 500 and S&P/TSX Composite Index of 1% and 5%, respectively, for the quarter, and increases of 19% and 12%, respectively, over the last twelve months.

Onex paid a first-quarter dividend of C$0.0375 per SVS on April 30, 2014 to shareholders of record on April 10, 2014. Yesterday Onex' Board of Directors approved a 33% increase in the quarterly dividend to C$0.05 per Subordinate Voting Share, reflecting the Company's success and ongoing commitment to its shareholders. This increase follows a 36% increase in the dividend rate in May last year. The increased dividend is payable on July 31, 2014 to shareholders of record on July 10, 2014.

In the first four months of 2014, Onex repurchased 633,988 SVS under its Normal Course Issuer Bids for a total cost of C$37 million, or an average cost per share of C$58.87. Since we began buying back shares in 1997, Onex has repurchased approximately 81 million SVS for a total cost of approximately C$1.4 billion.

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 first quarter, revenues increased 3% to $6.5 billion compared to the same period of the prior year. Onex reported consolidated net earnings of $99 million compared to a net loss of $271 million in the first quarter of 2013. Cash generated from operations was $28 million in the first quarter of 2014 compared to cash used of $68 million in the same period of 2013. The improved net earnings are a reflection of improved operating results at a number of the businesses and a lower charge for the limited partners value increase.

Attached are the Unaudited Interim Consolidated Balance Sheets, Statements of Earnings, Statements of Cash Flows and information by industry segment for the quarter ended March 31, 2014 and 2013 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. Also attached is the "How We Are Invested" schedule, which details Onex' $5.7 billion of proprietary capital and provides private company performance information.

Webcast

Onex management will host a conference call to review Onex' first-quarter 2014 results on Friday, May 16 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

With offices in Toronto, New York and London, Onex is one of the oldest and most successful private equity firms. Onex acquires and builds high-quality businesses in partnership with talented management teams. The Company has approximately $21 billion of assets under management, including approximately $6 billion of Onex capital, in private equity, credit securities and real estate. Onex invests its capital directly and as the largest limited partner in each of its Funds.

Onex' businesses have assets of $45 billion, generate annual revenues of $35 billion and employ approximately 231,000 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                                    
                                                                            
                             HOW WE ARE INVESTED                            
All dollar amounts, unless otherwise noted, are in millions of U.S. dollars.
                                                                            
                                Onex Capital                                
                                                                            
                                                   March 31,    December 31,
As at                                                    2014           2013
----------------------------------------------------------------------------
Private Equity                                                              
Onex Partners                                                               
  Private Companies(1)                                $ 2,142        $ 2,026
  Public Companies(2)                                     437            627
  Unrealized Carried Interest on Onex Partners                              
   Investments(3)                                         207            202
ONCAP(4)                                                  342            337
Direct Investments                                                          
  Private Companies(5)                                     95            153
  Public Companies(2)                                     195            186
----------------------------------------------------------------------------
                                                        3,418          3,531
----------------------------------------------------------------------------
Onex Real Estate Partners(5)                              134            144
Onex Credit Partners(6)                                   288            260
----------------------------------------------------------------------------
                                                          422            404
----------------------------------------------------------------------------
Other Investments                                         109            103
Cash and Near-Cash(7)                                   1,781          1,741
Onex Corporation Debt                                       -              -
----------------------------------------------------------------------------
                                                      $ 5,730        $ 5,779
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Onex' Capital per Share (March 31, 2014 -                                   
 C$55.98; December 31, 2013 - C$54.16)(8) (9)         $ 50.64        $ 50.93
----------------------------------------------------------------------------
                                                                            
(1)   Based on the fair value of the investments in Onex Partners' financial
      statements net of the estimated Management Investment Plan ("MIP")    
      liability on these investments of $82 million (2013 - $64 million).   
(2)   Based on the closing market values and net of the estimated MIP       
      liability on these investments of $43 million (2013 -  $37 million).  
(3)   Represents Onex' share of the unrealized carried interest on public   
      and private companies in the Onex Partners Funds.                     
(4)   Based on the C$fair value of the investments in ONCAP's financial     
      statements net of management incentive programs on these investments  
      of $19 million (2013 - $17 million) and a US$/C$exchange rate of      
      1.1055 (2013 - 1.0636).                                               
(5)   Based on the fair value.                                              
(6)   Based on the market values of investments in Onex Credit Partners'    
      Funds and Onex Credit Partners Collateralized Loan Obligations.       
      Excludes $345 million (2013 - $343 million) invested in a segregated  
      Onex Credit Partners' unleveraged senior secured loan strategy fund,  
      which is included with cash and near-cash items.                      
(7)   Includes $345 million (2013 - $343 million) invested in a segregated  
      Onex Credit Partners' unleveraged senior secured loan strategy fund.  
(8)   Calculated on a fully diluted basis. Fully diluted shares were        
      approximately 115.5 million at March 31, 2014 (December 31, 2013 -    
      115.9 million). Fully diluted shares include all outstanding          
      Subordinate Voting Shares and outstanding Stock Options that have met 
      the minimum 25% price appreciation threshold.                         
(9)   The change in Onex' Capital per Share during the three months ended   
      March 31, 2014 is driven primarily by fair value changes of Onex'     
      investments. Share repurchases and options exercised during the period
      will have an impact on the calculation of Onex' Capital per Share. The
      impact on Onex' Capital per Share will be to the extent that the price
      for share repurchases and option exercises is above or below Onex'    
      Capital per Share.                                                    
                                                                            
                                                                            
HOW WE ARE INVESTED                                                         
                                                                            
                   Public and Private Company Information                   
                                                                            
                               Shares                                       
                              Subject       Shares                    Market
                           to Carried        Held       Closing     Value of
Public Companies             Interest     by Onex     Price per        Onex'
As at March 31, 2014       (millions)   (millions)     Share(1)   Investment
----------------------------------------------------------------------------
Onex Partners                                                               
 Skilled Healthcare                                                         
  Group(2)                       10.7          3.5       $ 5.27         $ 18
 Spirit AeroSystems(2)            8.7          4.7      $ 28.19          133
 Allison Transmission(2)         15.7         11.0      $ 29.94          329
----------------------------------------------------------------------------
                                                                         480
 Estimated Management                                                       
  Investment Plan                                                           
  Liability                                                             (43)
----------------------------------------------------------------------------
                                                                         437
----------------------------------------------------------------------------
Direct Investments -                                                        
 Celestica                          -      17.8(3)      $ 10.95          195
----------------------------------------------------------------------------
                                                                       $ 632
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Significant     Onex' and                                                   
 Private              its                                           Original
 Companies        Limited                    Cumulative     Onex'    Cost of
As at March 31, Partners'       LTM      Net    Distri-  Economic      Onex'
 2014           Ownership EBITDA(4)     Debt    butions Ownership Investment
----------------------------------------------------------------------------
Onex Partners                                                               
 Carestream                                                                 
  Health              92%     $ 428  $ 2,164    $ 1,311    33%(3)      $ 186
 Tropicana Las                                                              
  Vegas               82%         2       51          -       18%         70
 ResCare              98%       137      346          -       20%         41
 JELD-WEN          79%(5)    157(6)   785(6)          -    20%(5)     217(7)
 SGS                                                                        
  International       93%    114(8)      582          -       23%         66
 USI                  92%    270(8)    1,615          -       26%        170
 BBAM(9)              50%        82 (30)(10)     64(11)       13%         61
 KraussMaffei         96%   EUR 108  EUR 236          -       24%     92(12)
 Emerald                                                                    
  Expositions         99%    130(8)      788          -       24%        119
----------------------------------------------------------------------------
                                                                       1,022
----------------------------------------------------------------------------
Direct                                                                      
 Investments -                                                              
 Sitel                                                                      
 Worldwide            70%     $ 120    $ 764        $ -       70%        251
----------------------------------------------------------------------------
                                                                     $ 1,273
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1)   Closing prices on March 31, 2014.                                     
                                                                            
(2)   Excludes Onex' potential participation in the carried interest and    
      includes shares related to the MIP.                                   
                                                                            
(3)   Excludes shares held in connection with the MIP.                      
                                                                            
(4)   EBITDA is a non-GAAP measure and is based on the local GAAP of the    
      individual operating companies. These adjustments may include non-cash
      costs of stock-based compensation and retention plans, transition and 
      restructuring expenses including severance payments, the impact of    
      derivative instruments that no longer qualify for hedge accounting,   
      the impacts of purchase accounting and other similar amounts.         
                                                                            
(5)   Onex' and its limited partners' investment includes convertible       
      preferred shares. The ownership percentage is presented on an as-     
      converted basis.                                                      
                                                                            
(6)   LTM EBITDA and net debt are presented for JELD-WEN Holding, inc.      
                                                                            
(7)   Net of a $27 million return of capital on the convertible promissory  
      notes prior to the conversion into additional Series A Convertible    
      Preferred Stock of JELD-WEN in April 2013.                            
                                                                            
(8)   LTM EBITDA for SGS International, USI and Emerald Expositions is      
      presented on a pro-forma basis to reflect the impact of acquired      
      businesses.                                                           
                                                                            
(9)   Ownership percentages, LTM EBITDA, net debt and cumulative            
      distributions are presented for BBAM Limited Partnership and do not   
      reflect information for Onex' investments in FLY Leasing Limited      
      (NYSE:FLY) or Meridian Aviation Partners Limited that were made in    
      conjunction with the investment in BBAM. The Original Cost of Onex'   
      Investment includes $5 million invested in FLY Leasing Limited and $14
      million invested in Meridian Aviation Partners Limited.               
                                                                            
(10)  Net debt for BBAM represents unrestricted cash, reduced for accrued   
      compensation liabilities.                                             
                                                                            
(11)  Onex, Onex Partners III and Onex management received distributions of 
      $29 million from BBAM.                                                
                                                                            
(12)  The investments in KraussMaffei were made in euros and converted to   
      U.S. dollars using the prevailing exchange rate on the date of the    
      investments.                                                          
                                                                            


                              Onex Corporation                              
                                                                            
                         CONSOLIDATED BALANCE SHEETS                        
                                                                            
                                                                            
(Unaudited)                                          As at             As at
(in millions of U.S. dollars)               March 31, 2014 December 31, 2013
----------------------------------------------------------------------------
Assets                                                                      
Current assets                                                              
Cash and cash equivalents                $           3,019 $           3,191
Short-term investments                                   -               754
Accounts receivable                                  3,654             3,639
Inventories                                          3,951             3,872
Other current assets                                   758             1,478
Assets held by discontinued operations               4,942                 -
----------------------------------------------------------------------------
                                                    16,324            12,934
Property, plant and equipment                        5,040             5,105
Long-term investments                                6,259             7,564
Other non-current assets                             1,071             2,100
Intangible assets                                    4,710             4,695
Goodwill                                             4,363             4,469
----------------------------------------------------------------------------
                                         $          37,767 $          36,867
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and Equity                                                      
Current liabilities                                                         
Accounts payable and accrued liabilities $           4,198 $           4,342
Current portion of provisions                          324               331
Other current liabilities                            1,076             1,621
Current portion of long-term debt of                                        
 operating companies, without recourse                                      
 to Onex Corporation                                   787               651
Current portion of warranty reserves and                                    
 unearned premiums                                       -             1,350
Liabilities held by discontinued                                            
 operations                                          4,150                 -
----------------------------------------------------------------------------
                                                    10,535             8,295
Non-current portion of provisions                      435               419
Long-term debt of operating companies,                                      
 without recourse to Onex Corporation               11,653            11,319
Non-current portion of warranty reserves                                    
 and unearned premiums                                   -             1,779
Other non-current liabilities                        2,368             2,526
Deferred income taxes                                1,237             1,225
Limited Partners' Interests                          7,005             6,959
----------------------------------------------------------------------------
                                                    33,233            32,522
----------------------------------------------------------------------------
Equity                                                                      
Share capital                                          344               346
Non-controlling interests                            3,322             3,191
Retained earnings and accumulated other                                     
 comprehensive earnings                                868               808
----------------------------------------------------------------------------
                                                     4,534             4,345
----------------------------------------------------------------------------
                                         $          37,767 $          36,867
----------------------------------------------------------------------------
----------------------------------------------------------------------------
These unaudited interim consolidated financial statements should be read in 
conjunction with the 2013 audited annual consolidated financial statements. 
                                                                            
                                                                            
                              Onex Corporation                              
                                                                            
                     CONSOLIDATED STATEMENTS OF EARNINGS                    
                                                                            
                                                                            
(Unaudited)                                  Three months ended March 31    
(in millions of U.S. dollars except per                                     
 share data)                                         2014              2013 
----------------------------------------------------------------------------
Revenues                                 $          6,525  $          6,325 
Cost of sales (excluding amortization of                                    
 property, plant and equipment,                                             
 intangible assets and deferred charges)           (4,976)           (4,924)
Operating expenses                                   (951)             (937)
Interest income                                        31                25 
Amortization of property, plant and                                         
 equipment                                           (143)             (147)
Amortization of intangible assets and                                       
 deferred charges                                    (129)             (135)
Interest expense of operating companies              (220)             (175)
Increase in value of investments in joint                                   
 ventures and associates at fair value,                                     
 net                                                  355               276 
Stock-based compensation expense                      (85)             (120)
Other items                                           (72)             (111)
Limited Partners' Interests charge                   (250)             (374)
----------------------------------------------------------------------------
Earnings (loss) before income taxes and                                     
 discontinued operations                               85              (297)
Provision for income taxes                            (16)              (12)
----------------------------------------------------------------------------
Earnings (loss) from continuing                                             
 operations                                            69              (309)
Earnings from discontinued operations                  30                38 
----------------------------------------------------------------------------
Net Earnings (Loss) for the Period       $             99  $           (271)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Earnings (Loss) from Continuing                                             
 Operations attributable to:                                                
Equity holders of Onex Corporation       $            (67) $           (339)
Non-controlling Interests                             136                30 
----------------------------------------------------------------------------
Net Earnings (Loss) from Continuing                                         
 Operations for the Period               $             69  $           (309)
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Net Earnings (Loss) attributable to:                                        
Equity holders of Onex Corporation       $            (40) $           (308)
Non-controlling Interests                             139                37 
----------------------------------------------------------------------------
Net Earnings (Loss) for the Period       $             99  $           (271)
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Net Earnings (Loss) per Subordinate                                         
 Voting Share of Onex Corporation                                           
Basic and Diluted:                                                          
  Continuing operations                  $          (0.60) $          (2.98)
  Discontinued operations                            0.24              0.27 
----------------------------------------------------------------------------
Net Loss for the Period                  $          (0.36) $          (2.71)
----------------------------------------------------------------------------
                                                                            
These unaudited interim consolidated financial statements should be read in 
conjunction with the 2013 audited annual consolidated financial statements. 
                                                                            
                                                                            
                              Onex Corporation                              
                                                                            
                    CONSOLIDATED STATEMENTS OF CASH FLOWS                   
                                                                            
                                                                            
(Unaudited)                                      Three months ended March 31
(in millions of U.S. dollars)                         2014              2013
----------------------------------------------------------------------------
Operating Activities                                                        
Earnings (loss) for the period from                                         
 continuing operations                   $              69 $           (309)
Adjustments to earnings (loss) from                                         
 continuing operations:                                                     
  Provision for income taxes                            16                12
  Interest income                                     (31)              (25)
  Interest expense of operating                                             
   companies                                           220               175
----------------------------------------------------------------------------
Net earnings (loss) before interest and                                     
 provision for income taxes                            274             (147)
Cash taxes received (paid)                              31              (46)
Items not affecting cash and cash                                           
 equivalents:                                                               
  Amortization of property, plant and                                       
   equipment                                           143               147
  Amortization of intangible assets and                                     
   deferred charges                                    129               135
  Increase in value of investments in                                       
   joint ventures and associates at fair                                    
   value, net                                        (355)             (276)
  Stock-based compensation expense                      81                66
  Limited Partners' Interests charge                   250               374
  Change in provisions                                  44                41
  Other                                                  8                63
----------------------------------------------------------------------------
                                                       605               357
Changes in non-cash working capital                                         
 items:                                                                     
  Accounts receivable                                (229)             (159)
  Inventories                                        (103)             (176)
  Other current assets                                   -                56
  Accounts payable, accrued liabilities                                     
   and other current liabilities                     (227)             (178)
----------------------------------------------------------------------------
Decrease in cash and cash equivalents                                       
 due to changes in working capital items             (559)             (457)
Decrease in other operating activities                (37)               (4)
Cash flows from operating activities of                                     
 discontinued operations                                19                36
----------------------------------------------------------------------------
                                                        28              (68)
----------------------------------------------------------------------------
Financing Activities                                                        
Issuance of long-term debt                           1,087               680
Repayment of long-term debt                          (374)             (183)
Cash interest paid                                   (154)             (110)
Cash dividends paid                                    (4)               (3)
Repurchase of share capital of Onex                                         
 Corporation                                          (21)              (23)
Repurchase of share capital of operating                                    
 companies                                            (39)                 -
Financing provided by Limited Partners                 170                66
Issuance of share capital by operating                                      
 companies                                               3                34
Proceeds from sale of interests in                                          
 operating company under continuing                                         
 control                                               171                 -
Purchase of shares of operating company                                     
 under continuing control                             (66)                 -
Distributions paid to Limited Partners               (374)             (215)
Change in restricted cash                             (72)                35
Decrease due to other financing                                             
 activities                                           (28)               (9)
Cash flows from (used in) financing                                         
 activities of discontinued operations                 (2)                 5
----------------------------------------------------------------------------
                                                       297               277
----------------------------------------------------------------------------
Investing Activities                                                        
Acquisition of operating companies, net                                     
 of cash and cash equivalents in                                            
 acquired companies of nil                                                  
(2013 - nil)                                         (356)               (4)
Purchase of property, plant and                                             
 equipment                                           (114)             (173)
Proceeds from sale of investment in                                         
 joint ventures and associates at fair                                      
 value                                                 432               323
Distributions received from investments                                     
 in joint ventures and associates                       13                 5
Cash interest received                                  23                11
Net purchases of investments and                                            
 securities                                          (287)             (230)
Increase (decrease) due to other                                            
 investing activities                                 (40)                58
Cash flows used for investing activities                                    
 of discontinued operations                           (16)              (22)
----------------------------------------------------------------------------
                                                     (345)              (32)
----------------------------------------------------------------------------
Increase (Decrease) in Cash and Cash                                        
 Equivalents for the Period                           (20)               177
Decrease in cash due to changes in                                          
 foreign exchange rates                                (3)              (11)
Cash and cash equivalents, beginning of                                     
 the period - continuing operations                  3,043             2,499
Cash and cash equivalents, beginning of                                     
 the period - discontinued operations                  148               157
----------------------------------------------------------------------------
Cash and Cash Equivalents                            3,168             2,822
Cash and cash equivalents held by                                           
 discontinued operations                               149               172
----------------------------------------------------------------------------
Cash and Cash Equivalents Held by                                           
 Continuing Operations                   $           3,019 $           2,650
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
These unaudited interim consolidated financial statements should be read in 
conjunction with the 2013 audited annual consolidated financial statements. 
                                                                            
                                                                            
                              Onex Corporation                              
                                                                            
                       INFORMATION BY INDUSTRY SEGMENT                      
                  FOR THE THREE MONTHS ENDED MARCH 31, 2014                 


                                                                            
                                                                            
(Unaudited)                                                                 
(in millions of                                                             
 U.S. dollars)                                                              
Three months        Electronics                                     Customer
 ended March 31,  Manufacturing                                         Care
 2014                  Services   Aerostructures   Healthcare       Services
----------------------------------------------------------------------------
Revenues         $        1,312 $          1,729 $      1,147 $          351
Cost of sales                                                               
 (excluding                                                                 
 amortization of                                                            
 property, plant                                                            
 and equipment,                                                             
 intangible                                                                 
 assets and                                                                 
 deferred                                                                   
 charges)               (1,205)          (1,449)        (807)          (234)
Operating                                                                   
 expenses                  (50)             (60)        (229)           (91)
Interest income               -                -            1              -
Amortization of                                                             
 property, plant                                                            
 and equipment             (14)             (38)         (29)            (7)
Amortization of                                                             
 intangible                                                                 
 assets and                                                                 
 deferred                                                                   
 charges                    (3)              (6)         (37)            (5)
Interest expense                                                            
 of operating                                                               
 companies                  (1)             (35)         (55)           (25)
Increase in                                                                 
 value of                                                                   
 investments in                                                             
 joint ventures                                                             
 and associates                                                             
 at fair value,                                                             
 net                          -                -            -              -
Stock-based                                                                 
 compensation                                                               
 expense                   (11)              (2)          (2)              -
Other items                   2              (2)            3            (2)
Limited                                                                     
 Partners'                                                                  
 Interests                                                                  
 charge                       -                -            -              -
----------------------------------------------------------------------------
                                                                            
Earnings (loss)                                                             
 before income                                                              
 taxes and                                                                  
 discontinued                                                               
 operations                  30              137          (8)           (13)
Recovery of                                                                 
 (provision for)                                                            
 income taxes                 7              (1)          (9)            (4)
----------------------------------------------------------------------------
Earnings (loss)                                                             
 from continuing                                                            
 operations                  37              136         (17)           (17)
Earnings from                                                               
 discontinued                                                               
 operations(b)                -                -            -              -
----------------------------------------------------------------------------
Net earnings                                                                
 (loss) for the                                                             
 period          $           37 $            136 $       (17) $         (17)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Net earnings                                                                
 (loss)                                                                     
 attributable                                                               
 to:                                                                        
Equity holders                                                              
 of Onex                                                                    
 Corporation     $            4 $             16 $       (16) $         (12)
Non-controlling                                                             
 interests                   33              120          (1)            (5)
----------------------------------------------------------------------------
Net earnings                                                                
 (loss) for the                                                             
 period          $           37 $            136 $       (17) $         (17)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Total assets(c)  $        2,591 $          5,329 $      3,592 $          634
----------------------------------------------------------------------------
Long-term                                                                   
 debt(c)(d)      $            - $          1,192 $      2,963 $          761
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                            
                                                                            
(Unaudited)                                                                 
(in millions of                                                             
 U.S. dollars)                                                              
Three months                                                                
 ended March 31,       Building        Insurance                Consolidated
 2014                  Products        Brokerage     Other(a)          Total
----------------------------------------------------------------------------
Revenues         $          765 $            203 $      1,018 $        6,525
Cost of sales                                                               
 (excluding                                                                 
 amortization of                                                            
 property, plant                                                            
 and equipment,                                                             
 intangible                                                                 
 assets and                                                                 
 deferred                                                                   
 charges)                 (646)                -        (635)        (4,976)
Operating                                                                   
 expenses                 (116)            (141)        (264)          (951)
Interest income               -                -           30             31
Amortization of                                                             
 property, plant                                                            
 and equipment             (28)              (1)         (26)          (143)
Amortization of                                                             
 intangible                                                                 
 assets and                                                                 
 deferred                                                                   
 charges                    (4)             (35)         (39)          (129)
Interest expense                                                            
 of operating                                                               
 companies                 (19)             (27)         (58)          (220)
Increase in                                                                 
 value of                                                                   
 investments in                                                             
 joint ventures                                                             
 and associates                                                             
 at fair value,                                                             
 net                          -                -          355            355
Stock-based                                                                 
 compensation                                                               
 expense                   (12)              (3)         (55)           (85)
Other items                 (5)             (11)         (57)           (72)
Limited                                                                     
 Partners'                                                                  
 Interests                                                                  
 charge                       -                -        (250)          (250)
----------------------------------------------------------------------------
                                                                            
Earnings (loss)                                                             
 before income                                                              
 taxes and                                                                  
 discontinued                                                               
 operations                (65)             (15)           19             85
Recovery of                                                                 
 (provision for)                                                            
 income taxes                 1                5         (15)           (16)
----------------------------------------------------------------------------
Earnings (loss)                                                             
 from continuing                                                            
 operations                (64)             (10)            4             69
Earnings from                                                               
 discontinued                                                               
 operations(b)                -                -           30             30
----------------------------------------------------------------------------
Net earnings                                                                
 (loss) for the                                                             
 period          $         (64) $           (10) $         34 $           99
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Net earnings                                                                
 (loss)                                                                     
 attributable                                                               
 to:                                                                        
Equity holders                                                              
 of Onex                                                                    
 Corporation     $         (54) $            (9) $         31 $         (40)
Non-controlling                                                             
 interests                 (10)              (1)            3            139
----------------------------------------------------------------------------
Net earnings                                                                
 (loss) for the                                                             
 period          $         (64) $           (10) $         34 $           99
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Total assets(c)  $        2,542 $          2,996 $     20,083 $       37,767
----------------------------------------------------------------------------
Long-term                                                                   
 debt(c)(d)      $          777 $          1,604 $      5,143 $       12,440
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(a)   Includes Tropicana Las Vegas, SGS International, KraussMaffei, Emerald
      Expositions, ONCAP II, ONCAP III, Flushing Town Center, Meridian      
      Aviation, OCP CLOs and the parent company. Investments in joint       
      ventures and associates recorded at fair value include Allison        
      Transmission, BBAM, Tomkins and certain Onex Real Estate investments. 
(b)   Represents the after-tax results of The Warranty Group.               
(c)   Total assets and long-term debt in the other segment include          
      discontinued operations.                                              
(d)   Long-term debt includes current portion, excludes finance leases and  
      is net of financing charges.                                          
                                                                            
                                                                            
                              Onex Corporation                              
                                                                            
                       INFORMATION BY INDUSTRY SEGMENT                      
                  FOR THE THREE MONTHS ENDED MARCH 31, 2013                 


(Unaudited)                                                                 
(in millions of                                                             
 U.S. dollars)                                                              
Three months        Electronics                                     Customer
 ended March 31,  Manufacturing                                         Care
 2013                  Services   Aerostructures   Healthcare       Services
----------------------------------------------------------------------------
                                                                            
Revenues         $        1,372 $          1,442 $      1,155 $          365
Cost of sales                                                               
 (excluding                                                                 
 amortization of                                                            
 property, plant                                                            
 and equipment,                                                             
 intangible                                                                 
 assets and                                                                 
 deferred                                                                   
 charges)               (1,268)          (1,239)        (817)          (236)
Operating                                                                   
 expenses                  (52)             (56)        (213)           (92)
Interest income               -                -            1              -
Amortization of                                                             
 property, plant                                                            
 and equipment             (15)             (34)         (31)            (7)
Amortization of                                                             
 intangible                                                                 
 assets and                                                                 
 deferred                                                                   
 charges                    (3)              (8)         (39)            (5)
Interest expense                                                            
 of operating                                                               
 companies                  (1)             (17)         (43)           (25)
Increase in                                                                 
 value of                                                                   
 investments in                                                             
 joint ventures                                                             
 and associates                                                             
 at fair value,                                                             
 net                          -                -            -              -
Stock-based                                                                 
 compensation                                                               
 expense                   (10)              (4)          (2)              -
Other items                 (8)             (19)         (33)           (10)
Limited                                                                     
 Partners'                                                                  
 Interests                                                                  
 charge                       -                -            -              -
----------------------------------------------------------------------------
                                                                            
Earnings (loss)                                                             
 before income                                                              
 taxes and                                                                  
 discontinued                                                               
 operations                  15               65         (22)           (10)
Recovery of                                                                 
 (provision for)                                                            
 income taxes               (5)             (17)          (2)            (2)
----------------------------------------------------------------------------
                                                                            
Earnings (loss)                                                             
 from continuing                                                            
 operations                  10               48         (24)           (12)
Earnings from                                                               
 discontinued                                                               
 operations(b)                -                -            -              -
----------------------------------------------------------------------------
                                                                            
Net earnings                                                                
 (loss) for the                                                             
 period          $           10 $             48 $       (24) $         (12)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Net earnings                                                                
 (loss)                                                                     
 attributable                                                               
 to:                                                                        
Equity holders                                                              
 of Onex                                                                    
 Corporation     $            1 $              6 $       (24) $          (9)
Non-controlling                                                             
 interests                    9               42            -            (3)
----------------------------------------------------------------------------
                                                                            
Net earnings                                                                
 (loss) for the                                                             
 period          $           10 $             48 $       (24) $         (12)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
(Unaudited)                                                                 
(in millions of                                                             
 U.S. dollars)      Electronics                                     Customer
As at December    Manufacturing                                         Care
 31, 2013              Services   Aerostructures   Healthcare       Services
----------------------------------------------------------------------------
Total assets(c)  $        2,639 $          5,155 $      3,707 $          613
----------------------------------------------------------------------------
Long-term                                                                   
 debt(c)(d)      $            - $          1,128 $      3,009 $          740
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(Unaudited)                                                                 
(in millions of                                                             
 U.S. dollars)                                                              
Three months                                                                
 ended March 31,       Building        Insurance                Consolidated
 2013                  Products        Brokerage     Other(a)          Total
----------------------------------------------------------------------------
                                                                            
Revenues         $          770 $            180 $      1,041 $        6,325
Cost of sales                                                               
 (excluding                                                                 
 amortization of                                                            
 property, plant                                                            
 and equipment,                                                             
 intangible                                                                 
 assets and                                                                 
 deferred                                                                   
 charges)                 (649)                -        (715)        (4,924)
Operating                                                                   
 expenses                 (120)            (129)        (275)          (937)
Interest income               1                -           23             25
Amortization of                                                             
 property, plant                                                            
 and equipment             (26)              (2)         (32)          (147)
Amortization of                                                             
 intangible                                                                 
 assets and                                                                 
 deferred                                                                   
 charges                    (4)             (35)         (41)          (135)
Interest expense                                                            
 of operating                                                               
 companies                 (19)             (31)         (39)          (175)
Increase in                                                                 
 value of                                                                   
 investments in                                                             
 joint ventures                                                             
 and associates                                                             
 at fair value,                                                             
 net                          -                -          276            276
Stock-based                                                                 
 compensation                                                               
 expense                    (7)              (2)         (95)          (120)
Other items                  19             (12)         (48)          (111)
Limited                                                                     
 Partners'                                                                  
 Interests                                                                  
 charge                       -                -        (374)          (374)
----------------------------------------------------------------------------
                                                                            
Earnings (loss)                                                             
 before income                                                              
 taxes and                                                                  
 discontinued                                                               
 operations                (35)             (31)        (279)          (297)
Recovery of                                                                 
 (provision for)                                                            
 income taxes                 2               11            1           (12)
----------------------------------------------------------------------------
                                                                            
Earnings (loss)                                                             
 from continuing                                                            
 operations                (33)             (20)        (278)          (309)
Earnings from                                                               
 discontinued                                                               
 operations(b)                -                -           38             38
----------------------------------------------------------------------------
                                                                            
Net earnings                                                                
 (loss) for the                                                             
 period          $         (33) $           (20) $      (240) $        (271)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Net earnings                                                                
 (loss)                                                                     
 attributable                                                               
 to:                                                                        
Equity holders                                                              
 of Onex                                                                    
 Corporation     $         (24) $           (18) $      (240) $        (308)
Non-controlling                                                             
 interests                  (9)              (2)            -             37
----------------------------------------------------------------------------
                                                                            
Net earnings                                                                
 (loss) for the                                                             
 period          $         (33) $           (20) $      (240) $        (271)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
(Unaudited)                                                                 
(in millions of                                                             
 U.S. dollars)                                                              
As at December         Building        Insurance                Consolidated
 31, 2013              Products        Brokerage     Other(a)          Total
----------------------------------------------------------------------------
Total assets(c)  $        2,483 $          3,099 $     19,171 $       36,867
----------------------------------------------------------------------------
Long-term                                                                   
 debt(c)(d)      $          661 $          1,605 $      4,827 $       11,970
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(a)   Includes Tropicana Las Vegas, SGS International, KraussMaffei, ONCAP  
      II, ONCAP III, Flushing Town Center, Meridian Aviation, OCP CLOs and  
      the parent company. Investments in joint ventures and associates      
      recorded at fair value include Allison Transmission, BBAM, RSI (sold  
      in February 2013), Tomkins and certain Onex Real Estate investments.  
(b)   Represents the after-tax results of The Warranty Group and TMS        
      International.                                                        
(c)   Total assets and long-term debt in the other segment include          
      discontinued operations.                                              
(d)   Long-term debt includes current portion, excludes finance leases and  
      is net of financing charges.                                          

Contacts:
Emma Thompson
Investor Relations
Tel: 416.362.7711

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