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A N N U A L R E P O R T 2 0 1 7

ANNUAL REPOR T 2017 - davey.com · General Manager, DRG Utility Vegetation Management ... President of U.S Utility and Davey Resource Group Greg Ina was promoted to Executive Vice

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A N N U A L R E P O R T 2 0 1 7

(In thousands, except per share data)

THE DAVEY TREE EXPERT COMPANYSummary Financial Data

2015

$ 821,904)

528,899)144,234)59,798)44,677)

2,214)(2,026)44,108)

(3,355)249)

(5,744)

35,258)13,460)

$ 21,798)

$ .78)

27,955)

$ 46,891)56,047)

62,689)(56,046)

(7,140)$ .1000)

2015

$ 393,586)84,633)55,464)

127,089)14,450)

7,773)

35,141) 17,427)

25,487) $ 16.35)

Year Ended December 31, 2013

$ 713,848)

462,646)120,842)50,654)38,231)

1,980)(1,294)

40,789)

(2,708)311)

(2,827)

35,565)12,712)

$ 22,853)

$ .79)

29,205)

$ 40,211)45,205)

56,310)(43,205)(16,891)

$ .0900)

2013

$ 330,814)50,034)44,371)

113,694) 19,347)

8,613)

34,301) 16,036) 26,878)

$ 13.20)

2014

$ 789,911)

508,677)140,027)54,970)40,970)2,070)(806)

44,003)

(2,948)295)

(3,050)

38,300)15,131)

$ 23,169)

$ .81)

28,477)

$ 43,040)55,731)

49,279)(64,060)

17,335)$ .0925)

2014

$ 381,004)81,306)54,854)

123,668)12,826)

8,217)

34,697) 16,584) 26,330)

$ 15.05)

Operating Statement Data:RevenuesCosts and expenses: Operating Selling General and administrative Depreciation Amortization of intangible assets Gain on sale of assets, netIncome from operations

Interest expenseInterest incomeOther expense

Income before income taxesIncome taxesNet income

Earnings per share – dilutedShares used for computing per share amounts – diluted

Other Financial Data:Depreciation and amortizationCapital expendituresCash flow provided by (used in): Operating activities Investing activities Financing activitiesCash dividends declared per share

Balance Sheet Data:Total assetsLong-term debtOther long-term liabilitiesRedeemable common shares related to 401KSOP and Employee Stock Ownership Plan (ESOP)Shareholders’ equityRedeemable common shares Common shares: Issued Less: In treasury Net outstandingESOT valuation per share

2016

$ 845,678)

541,486)152,106)61,789)47,284)2,306)

(4,664)45,371)

(4,393)255)

(3,989)

37,244)14,960)

$ 22,284)

$ .82)

27,247)

$ 49,590)56,646)

55,370)(54,808)

(7,721)$ .1000)

2016

$ 423,939)92,290)60,565)

124,201)27,978)7,057)

35,857) 17,991)

24,923) $ 17.60)

As of December 31,

2017

$ 915,958)

587,333)167,934)64,589)50,702)2,384)

(3,989)47,005)

(4,886)292)

(4,417)

37,994)15,874)

$ 22,120)

$ .83)

26,697)

$ 53,086)57,100)

56,776)(59,518)

(6,410)$ .1000)

2017

$ 473,135)119,210)63,878)

123,520) 37,870)6,467)

36,447) 18,693) 24,221)

$ 19.10)

ANNUAL MEETINGThe Annual Meeting of Shareholders of The Davey Tree Expert Company will be held on Tuesday, May 15, 2018, at 5:00 p.m. at The Davey Institute in Kent, Ohio.

ACCESS TO COMPANY REPORTSAll periodic reports filed with the Securities and Exchange Commission (SEC) can be viewed through our Internet website, by hyperlink to the SEC’s website (http://www.sec.gov). Also, copies of our Annual Report on Form 10-K are available, without charge, upon written request.

VISIT OUR WEBSITETo learn more about The Davey Tree Expert Company online, including Davey services, visit us at http://www.davey.com.

As with most years, the Company faced unique environmental challenges such as wildfires, floods and hurricanes in 2017. The Company came together and turned many of these challenges into opportunities to assist our clients, the local communities and Company employees who were affected by these catastrophes. Overall, the majority of our service lines provided improved performance in 2017 and we ended the year with a solid balance sheet, record stock valuation and positive momentum heading into 2018, keeping us on track to achieve $1 billion in revenue by 2020, and more likely, by 2019.

Net revenues for 2017 were $915,958,000, representing an increase of 8.3% from 2016 net revenues of $845,678,000. 2017 net income of $22,120,000 was down slightly from the prior year’s net income of $22,284,000, mainly due to the newly enacted Tax Reform Act. Diluted earnings per share increased from $.82 in 2016 to $.83 in 2017. Cash flow from operating activities was strong in 2017 as it increased 2.5%, or $1,406,000, from $55,370,000 in 2016 to $56,776,000 in 2017. Management remains focused on ensuring cash flow is sufficient to fund

TO OUR SHAREHOLDERS

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working capital, equipment purchases, acquisitions and stock redemptions. Combined shareholders’ equity increased to a record level of $161,390,000, compared to $152,179,000 at the end of 2016.

As a result of the Company’s 2017 financial performance, our independent stock valuation firm, Management Planning, Inc., valued our stock

OVERVIEW

The Company achieved many of its financial objectives for 2017

as we delivered robust growth and record revenue, while increasing

operating profit dollars by over $5 million from 2016 and improving

operating profit percent. Both the Utility and Residential/Commercial

business segments recorded all-time highs in sales dollars.

$915,958Net revenues (in 000s)

$19.10Stock price per share

9,000+Number of employees

$56,776Cash flow (in 000s)

Pat Covey, President & CEO

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Jack McCabe was promoted to Vice President and General Manager, DRG Utility Vegetation Management

Joe Tommasi was promoted to Vice President of Corporate Safety

Jim Zwack was promoted to General Manager, Davey Institute

Pat Perry was promoted to Vice President of Safety and Employee Development, Canada

Jeff Parson was promoted to Regional Vice President, Central Operations, Eastern Utility

Louis Stevens was promoted to Regional Vice President, PG&E Operations, Davey Tree Surgery Company

Darran Malcolm was promoted to Regional Vice President, Ontario Utility, Canada

2017 KEY RETIREMENTS

Karl Warnke retired as Chief Executive Officer after 37 years of service. We thank Karl for his contributions and dedication to the Company. Karl joined Davey in 1980 as a spray/feed technician. Later that year, he became a utility management trainee in the corporate office. This proved to be the first step up the Davey corporate ladder for him. A few of Karl’s key promotions include:

• Vice President of Utility Operations in 1986

• Corporate Vice President and Assistant to the President in 1987

• Elected a company officer and promoted to Vice President and General Manager of North American Utility Services in 1988

• Executive Vice President in 1993

• President and Chief Operating Officer in 1999

• Elected CEO in 2007

• Chairman of the Board in 2009

Karl served as President and/or Chief Executive Officer for 18 years. During that time period, he oversaw significant revenue growth at the Company. When Karl was promoted to President and COO in 1999, our revenues were $308 million and when he retired in 2017, the Company had revenues of over $900 million. In recognition of his contributions,

at $19.10 per share, effective December 31, 2017. This price reflects an increase of $.80 per share, or 4.4%, from the midyear price of $18.30, and an 8.5% increase over the year-end December 31, 2016 price of $17.60 (split adjusted). With the reinvestment of dividends, we posted a 9.1% return to our shareholders.

The Company’s peer group, and the 2017 equity markets’ performance, contributed favorably to this year’s stock valuation. Overall, the Company performed well in 2017, taking advantage of opportunities as they arose, and working through adversity along the way, and our stock price reflected this performance favorably.

PEOPLE

As part of our continuous succession planning and management development, key promotions were announced throughout 2017. Dedicated and results-driven employees remain at the heart of our success and we continue to increase our investment in professional development and growth. We recognize the importance of attracting and maintaining strong talent throughout the Company and will continue to make this our top priority.

2017 KEY PROMOTIONS

Pat Covey was promoted to President and Chief Executive Officer

Brent Repenning was promoted to Executive Vice President of U.S Utility and Davey Resource Group

Greg Ina was promoted to Executive Vice President of the Davey Institute and Employee Development

Thea Sears was promoted to Vice President and Controller

Chris Bast was promoted to Vice President and Treasurer

Larry Evans was promoted to Vice President and General Manager, Davey Tree Surgery Company

Kevin Peters was promoted to Vice President of Operations, Davey Tree Surgery Company

Jim Houston was promoted to Vice President and General Manager within Eastern Operations, U.S. Residential/Commercial Services

TO OUR SHAREHOLDERS (CONT.)

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Karl was presented with the Company’s highest honor, the John Davey Award, in 2017. The Company, employees and shareholders benefited greatly from Karl’s leadership and vision, and we appreciate the significant role he played in our success over the years. We look forward to building upon these successes in the years to come. We wish Karl and his wife, Barb, much enjoyment with family and friends during a well-deserved retirement.

Steve Marshall retired as Executive Vice President and Assistant to the President after 40 years of service. Steve served Davey Tree with distinction during his career and made valuable contributions to the Company. He started his career in 1977 with the Residential service line. Steve received several promotions throughout his career and was promoted to Vice President of Eastern Utility in 1997. By 2007, Steve was promoted to Executive Vice President of Operations. He was a charter member of the President’s Council in 1988 and received the John Davey Award in 2013. We wish Steve and his wife, Janice, the very best and hope for a long and fulfilling retirement.

Rick Edson retired as Business Manager/Secretary of the Davey Tree Surgery Company, after 38 years of distinctive service, having held several positions with the Company throughout his career. The Company benefited greatly from Rick’s strong work ethic, great sense of humor and thorough understanding of the contractual and legal aspects of business. We hope Rick has an enjoyable retirement and wish him and his wife, Carol, the very best.

USES OF CAPITAL

As the Company continues to grow, we will prudently invest capital in the necessary assets to support our expansion, including property, equipment and acquisitions. Over our 38-year history as an employee-owned company, a significant use of cash has been in the redemption of stock for our shareholders. In 2017, we repurchased $32,194,000 in company stock, up 27.3% from 2016 redemptions. The Company also paid dividends to shareholders totaling $2,513,000 for 2017, which is approximately 11.4% of net income for the year.

ACQUISITIONS

We closed on two acquisitions in 2017, both within the Residential service line. The larger of the two companies was Arborguard, a premier tree care company in the Southeast based out of Atlanta with operations in Charlotte and Augusta. The second acquisition added significant talent and clients to our existing tree care presence in the Pittsburgh, Pennsylvania market. Acquisitions remain a key component to our growth strategy and we continue to improve on our acquisition process with an administrative team that works in tandem with service line management on deal identification, closing and integrations. While organic growth remains the main driver of our revenue-generating initiatives, we will continue to seek out strategic acquisition candidates with strong safety programs, similar cultures and shared values to meet growth objectives and secure talent.

SHAREHOLDERS

Nearly 150 shareholders attended our Annual Meeting on May 16, 2017, at The Davey Institute; 83% of the total shares eligible to vote were represented either in person or by proxy. The shareholders reelected Patrick M. Covey, J. Dawson Cunningham and Sandra W. Harbrecht to a three-year term to the Board of Directors. Directors serving existing terms are Donald C. Brown, William J. Ginn, Douglas K. Hall, John E. Warfel and Karl J. Warnke.

During 2017, approximately 2,300 employees participated in the Employee Stock Purchase Plan. In total, 335,040 shares were purchased through the Plan, which offers a 15% discount on shares purchased, through payroll withholdings of $5,031,785.

In 1997, we created The Davey 401KSOP and ESOP Plan, which is now our primary employee retirement benefit program. Our 401KSOP is predicated on a simple philosophy that retirement planning is a lifelong activity that is the responsibility of every individual and one that must begin at an early age. The Company provides a unique opportunity to our employees to

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be part of a culture that allows them to share in the profitable growth and success of the Company through stock ownership.

Our Davey Tree Expert Company pension plan was frozen in 2008 and we are now in the process of working through the stages necessary to terminate that plan. During plan termination, we will be purchasing annuities from high-quality institutions or providing lump sum cash settlements for the pension plan participants. This will provide an opportunity for more consistency in our financial statements, while reducing volatility and administrative challenges associated with managing a pension plan. We anticipate finalizing the pension plan termination in 2019.

OPERATIONS

Overall, operations had a solid year in 2017 in spite of several large environmental events that adversely disrupted business throughout the year. We experienced floods in eastern Canada and in Texas, wildfires in western Canada, floods in northern California early in the year, and wildfires in California later in 2017. Hurricane Irma was a devastating hurricane for Florida and the East Coast, and several Davey service lines worked together to provide assistance with storm clean-up and the restoration of electrical power. During the clean-up, we deployed approximately 1,000 employees to the state of Florida, which had a positive impact on the third quarter and year-to-date revenue and profitability. We wish to recognize the incredible efforts of our Davey team-mates in response to this storm event and thank them for their commitment and dedication to assisting our clients in the recovery efforts. The professionalism, skill and safety exhibited by our people was exemplary.

During large environmental events such as those we experienced in 2017, the Company’s safety professionals are deployed and on-site to assist the operating teams as clean-up efforts take place. We are extremely grateful to these dedicated teammates who work every day to improve our safety programs and ensure every employee is provided with the best training available.

Safety remains our most important value at Davey, and we will continue with our unwavering commitment to sending our employees home safe every day.

RESIDENTIAL/COMMERCIAL

Residential/Commercial (R/C) segment revenue was up $35,150,000, or 8.6% over 2016, and income from operations increased by $4,518,000, or 12.3% from the prior year. All service lines within the R/C segment contributed to the revenue increase in 2017 with the majority of the growth coming from the U.S. R/C service line, the Davey Resource Group and Commercial Landscape Services.

The driving force behind the increases in operating profit in the R/C segment has been from U.S. tree care, where Jim Stief, Executive Vice President of U.S. R/C Services has placed emphasis on putting together a management team dedicated to employee training and safety, client experience, and profitable growth. Additionally, the Company’s Marketing team, working in tandem with senior R/C management, has been developing and implementing a client experience plan over the past five years to ensure we are providing the quality services that our clients have come to expect and deserve. The results have been dramatic and were a critical component to the success that Jim and the R/C segment delivered in 2017 and has seen over the past few years. The talent, teamwork and passion for excellence exhibited by these teams give us great optimism that the future is very bright for our R/C tree care operations.

UTILITY

Utility segment revenue was up $33,348,000 or 7.7% in 2017 compared to 2016, while income from operations was down $1,033,000 or (5.4%). The majority of the revenue increase was driven by Eastern Utility and Davey Resource Group. In Eastern Utility, solid revenue gains were made in 2017 compared to 2016, with revenue being up over $26,000,000 and profitability significantly improving in 2017 compared to 2016. Total utility line clearance profitability fell short of planned margins in 2017

TO OUR SHAREHOLDERS (CONT.)

7

mainly driven by Davey Tree Surgery and Western Canada. Davey Tree Surgery missed plan mainly due to cut backs in special project work from a large customer, while Western Canada experienced challenges with weather, wildfires and competitive market conditions. We anticipate these service lines to bounce back in 2018 with a renewed vigor as we continue to evaluate under-performing contracts and overall profitability with certain utility customers. Significant changes and management transitions were implemented in 2017, and the results were evident, but there is still room for improvement. We enter 2018 in a stronger position in all regions of our U.S. and Canadian operations and will continue to focus on profitability, operational improvement, safety and exceptional client service.

Our Canadian operations were below plan and prior year revenues and profits for 2017, mainly due to several large environmental factors, including floods in eastern Canada and wildfires in western Canada. These events made it difficult for the teams to access areas or perform work in some cases due to the adverse conditions and safety concerns. Overall, Canadian management made a solid effort in the second half of 2017 to blunt the impacts of the challenging first half. They made adjustments along the way, which will improve operations going forward. The teams did not make excuses for the challenges they faced; their plan is to turn the adversity into opportunity. Our Canadian management team is very experienced and motivated and will seize the right opportunities in 2018.

STRATEGIC PLAN

Our “Vision 20/20” strategic plan has been in place for six years and is the nucleus of our operational strategy and the key driver of the Company’s overall direction. The strategic plan concentrates on employees, clients and the Davey brand, with our vision, mission and values as the foundation. Our leadership team regularly assesses the plan’s results and progress, identifies new opportunities and challenges, and makes any needed adjustments along the way. The strategic plan has allowed senior

management to be focused on consistent objectives, which translates into shared short-term and long-term goals. Our objective remains consistent: to ensure that our resource allocation optimizes revenue growth, profitability and shareholder value.

2018

We are optimistic as we begin 2018 and look forward to the opportunities that lie ahead. We have orchestrated significant management succession over the past few years with several key position transitions in 2017 and some key retirements expected in 2018. In all cases, we are being thoughtful in our succession planning to ensure that we have the right team in place to deliver a successful 2018 and beyond. We will continue to make operational improvements and adjustments in several areas to improve our results. More than ever, our focus must be on the training, safety and engagement of our employees as they are truly our differentiator and reason for our success.

We are focused on sustaining our high-performance standards in 2018, and the Company remains on track to achieve $1 billion in profitable revenue by 2020, and possibly sooner. We are enthusiastic as we begin the new year and are confident that we will deliver the level of service that our clients have come to expect, while increasing shareholder value through profitable growth.

As a valued shareholder, your support is most important to us and, on behalf of the entire Company, we thank you. Please join us at the Shareholders’ Meeting on May 15th at The Davey Institute.

We look forward to seeing you.

Patrick M. CoveyPresident and Chief Executive Officer

Vision 20/20 strategic plan updates We rolled out enhancements to our Vision 20/20 strategic plan in January. The purpose of the adjustments was to ensure our strategy reflects the current and future business environment.

Arborguard, Arborel become part of Davey In April, we announced the acquisitions of two companies: Arborguard and Arborel. Arborguard is a residential and commercial tree care company based in Atlanta (pictured) with operations in Charlotte. Arborel Tree Service is a residential tree and lawn care company operating in Pittsburgh.

Stock split announcedIn May, we announced that the Board of Directors approved a two-for-one forward dividend stock split effective June 1. The split-adjusted fair market value was $17.60 per share on the effective date.

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YEAR IN REVIEW (2017)

Shigo collection launchedIn February, we announced that we would be housing the Shigo collection (shigo.davey.com), which is a collection of research papers and laboratory samples from Dr. Alex Shigo, a plant pathologist and long-time scientist for the U.S. Forest Service.

Warnke retires, Covey becomes CEOIn July, Karl Warnke (pictured left) announced his retirement as CEO of the company, and the promotion of Pat Covey (right) as President and CEO. Karl retains his title as Chairman of the Board of Directors.

JANUARY FEBRUARY MARCH APRIL MAY JUNE

Corporate campus expansion announced To help keep pace with the growth of the company, we announced in August the purchase of a 170-acre property near the corporate campus in Kent. The property provides ample opportunities for capability and facility expansion.

Fleet management system Our fleet services implemented the initial phase of a new Fleet Management System in November. The system (Fleet 2020) allows us to better manage our equipment capital expenditures by improving tracking, visibility and reporting.

Davey is the 13th largest employee- owned company In September, the National Center for Employee Ownership again honored the company for its employee-ownership program.

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Northern California wildfires The October 2017 Northern California wildfires were the costliest group of wildfires on record. Our crews helped in the aftermath by assisting with the initial damage assessments, providing safety professionals, helping manage wood waste and removing hazardous trees.

Hurricanes Harvey and Irma hitIn August and September, the double hit of Hurricanes Harvey and Irma meant more than 1,000 employees headed to Texas and Florida for storm cleanup. The enormity of the storms required close collaboration across service lines and crews continued to do storm work late into the fall.

JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

Provide solutions that promote balance among people, progress

and the environment.

O U R

V I S I O N

O U R

M I S S I O N

O U R

V A L U E S

Deliver unmatched excellence in client experience, employee strength, safety

and financial sustainability as we advance the green industry.

Integrity, safety, expertise, improvement,

leadership and resolve.

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Organizational Vice Presidents

John G. Arico Regional Vice President, Canadian Residential Operations, Davey Tree Expert Co. of Canada, LimitedTerry D. Bier Regional Vice President, Southwestern Operations, Davey Tree Surgery CompanyJack R. Bloomfield Regional Vice President, Northern Operations, U.S. Utility ServicesScott R. Carlin Vice President, Asset Management Services, Davey Resource GroupHarry E. Claypool Vice President & GM, U.S. Southern Utility OperationsKenneth W. Clear Vice President, New England/Southeast Operations, U.S. Residential/Commercial ServicesJoseph E. Day Vice President & GM, Western Operations, U.S. Residential/Commercial ServicesScott M. Deevers Vice President, Northern Operations, U.S. Utility ServicesLarry R. Evans Vice President & GM, Davey Tree Surgery CompanyAlan J. Finocchio Regional Vice President, Northern California, Davey Tree Surgery CompanyRichard M. Foote Vice President, Business Development and Client Services, U.S. Residential/ Commercial ServicesDaniel J. Gregory Regional Vice President, Canadian Utility Operations, Davey Tree Expert Co. of Canada, LimitedRaymond J. Hannebique Regional Vice President, Contract Services, Davey Resource GroupMarvin E. Hassell Regional Vice President, Gulf & Mid-Atlantic Operations, U.S. Utility ServicesCraig S. Holcomb Vice President, Operations Support ServicesJames C. Houston Vice President & GM, Eastern Operations, U.S. Residential/Commercial ServicesKenneth A. Joehlin Vice President & GM, Environmental Consulting and Business Development, Davey Resource GroupDarran S. Malcolm Regional Vice President, Ontario Utility, Davey Tree Expert Co. of Canada, LimitedJohn J. McCabe III Vice President & GM, Utility Vegetation Management, Davey Resource GroupMichael H. McCollum Regional Vice President, Wolf Tree OperationsMichael J. Mittiga Vice President - Utility Operations, U.S. Utility ServicesGregory T. Myers Vice President, Operations, Commercial Landscape ServicesMichael D. Nash Vice President & GM, Canadian Residential Operations, Davey Tree Expert Co. of Canada, LimitedJeffrey S. Parson Regional Vice President, Central Operations, U.S. Utility ServicesPatrick R. Perry Vice President of Safety & Employee Development, Davey Tree Expert Company of Canada, LimitedKevin B. Peters Vice President, Operations, Davey Tree Surgery CompanySandra L. Reid Vice President, Corporate Communications & Strategic Plan AdministrationMichael S. Rolband President, Wetland Studies and Solutions, Inc.Philip G. Snyder Vice President, East Atlantic Operations, U.S. Residential/Commercial ServicesEmil E. Stahli Vice President, Finance, Davey Tree Surgery CompanyLouis D. Stevens Regional Vice President, PG&E Operations, Davey Tree Surgery CompanyMark J. Svozil Senior Vice President, Commercial Landscape ServicesJoseph F. Tommasi Vice President – Corporate SafetyMark H. Turnbull Regional Vice President, Canadian Utility Operations, Davey Tree Expert Co. of Canada, LimitedBlair A. Veitch Vice President & GM, Canadian Utility Operations, Davey Tree Expert Co. of Canada, LimitedJames A. Zwack General Manager of The Davey Institute

The Care of Trees, Inc. Wheeling, Illinois

Wetland Studies and Solutions, Inc. Gainesville, Virginia

Wolf Tree, Inc. Knoxville, Tennessee

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Board of Directors

Karl J. Warnke G Chairman

Patrick M. Covey G President & Chief Executive Officer

Donald C. Brown AG Retired Executive Vice President, Administration, FedEx Freight

J. Dawson Cunningham AC Retired CFO, Roadway Corporation

William J. Ginn AC Executive Vice President, Global Conservation Initiatives, The Nature Conservancy

Douglas K. Hall AC Retired President & CEO, MDA Federal, Inc.

Sandra W. Harbrecht AG President & CEO, Paul Werth Associates

John E. Warfel CG Retired President, Westfield Financial Corp.

Committees: A - Audit C - Compensation G - Governance

Officers

Patrick M. Covey President & Chief Executive Officer

Joseph R. Paul Executive Vice President, Chief Financial Officer & Secretary

Lawrence S. Abernathy Vice President, Davey Tree Surgery Company

Christopher J. Bast Vice President & Treasurer

Marjorie L. Conner Vice President, Assistant Secretary & Counsel

James E. Doyle Executive Vice President & GM, Davey Tree Expert Co. of Canada, Limited

Gregory M. Ina Executive Vice President of The Davey Institute and Employee Development

Dan A. Joy Executive Vice President & GM, Commercial Landscape Services and Operations Support Services

Brent R. Repenning Executive Vice President of U.S. Utility & Davey Resource Group

Thea R. Sears Vice President & Controller

James F. Stief Executive Vice President, U.S. Residential Operations

Mark J. Vaughn Vice President & GM, U.S. Northern Utility Operations

Counselors At Law

Thompson Hine LLP Cleveland, Ohio

Independent Auditors

Ernst & Young LLP Akron, Ohio

Subsidiaries

Davey Tree Expert Co. of Canada, Limited Ancaster, Ontario & Vancouver Island, British Columbia

Davey Tree Surgery Company Livermore, California

Standing Rock Insurance Company Burlington, Vermont

THE DAVEY TREE EXPERT COMPANY1500 North Mantua Street, P.O. Box 5193 Kent, Ohio 44240-5193 www.davey.com

© 2018, The Davey Tree Expert Company All Rights Reserved

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