ASM & COAA Adding Value to Alberta Energy Sector projects

The priority today Increase shareholder value Increase project profitability Reduce project risk Improving productivity is vital to industry success

Understanding our Customer Understanding our Opportunity

The Buying Process - Kevin Davis, Topline Leadership

What is ASM doing to improve?

ASM – Competitive Advantages 1. Competitive Total Installed Cost 2. Capacity Improvements 3. Safety 4. Quality 5. A Sustainable workforce

Initial Purchase Cost Comparison

Delivery Format Options Logic Sequence

Total Installed Cost Comparison Adjusted for Forex Changes

Alberta Capacity 1. Increasing through Investment, Expansion & Partnerships 2. Capacity – Alberta has PLENTY!

Revenues have DOUBLED

Capacity IMPROVEMENTS “ASM is INVESTED” $885 MILLION invested in Fabricated Metals industry $147.5 Million average investment/yr Source: Govt of Alberta, 2007 – 2012, Major Indicators for the Metals & Machinery Industry

Success Stories - Capacity “Through partnerships, our capacity can double market demand increases” Source: Edmonton based ASM member

Success Stories - Capacity “Doubled Manufacturing & Service capacity recently via capital investment” Source: Edmonton based ASM member

Success Stories - Capacity “Significantly INCREASED structural steel and modular manufacturing capacity” Source: Source: Edmonton based ASM member

Structural Steel Capacity – Alberta Nov/13 Current/4 months – 26% 12 months – 71% 24 months – 95% Source: Ground State Market Solutions – Quarterly Backlog report - Nov 13

Modular Assembly Capacity Available – AB Current/4 months – 64% 12 months – 90% 24 months – 95% Source: Ground State Market Solutions – Quarterly Backlog Report – Nov 13

ASM – A Strong Culture of Safety “Alberta lost-time claim rates at an ALL TIME LOW of 1.39” Overall, the lost-time claim rate for Alberta industry has dropped from 3.52 in 1993 to 1.39 in 2012 For Primary Metal Products industry, lost-time claim rate has reduced from 3.46 in 2006 to 1.61 in 2010 – a 53% REDUCTION Source: Workers Compensation Board

A Culture of Safety WORKING SAFELY PROUCTIVELY

Increasing Quality – Independent Certification Minimize re-work & project delays through Independent certification bodies (CWB, ABSA)

Success Stories – A Sustainable Workforce Improved labor pool through real time on-site CWB certification Source: New Innovation from an Edmonton Based ASM Member

Project Options Shareholder Goal Maximize production at high oil prices by expediting or speeding up project schedule completion date Project Solution – “Fast Tracking” NOTE. To date, projects where fabrication starts earlier than normal using partial engineering have consistently led to cost & schedule overruns ASM Value – Project Flexibility Easily accessible local resources & expertise offer maximum flexibility to support changes to project engineering or schedule

Project Options Shareholder Goal Secure cost certainty Project Solution – Lump Sum Projects with fully engineered drawings allows fabrication suppliers more production efficiency, leading to cost savings and project certainty ASM Value – Competitive Total Installed Cost ASM experience is best equipped to support Lump sum bids at a very competitive Total Installed Cost

Project Options Shareholder Goal Maximize profitability Secure LOWEST total installed project cost Secure FASTEST schedule completion time Reducing project risk Project Solution – Fully Integrated Model This model includes supply chain collaboration and expertise early on and throughout project. Through shared risk & reward, the lowest overall project cost and fastest completion time is consistently delivered ASM - Value through Collaboration & Expertise ASM’s unique industry knowledge and proven experience will help you exceed your shareholder expectations related to project cost, scheduling and project risk

ASM Value Our customer is our TOP priority COLLABORATION with our customers & partners is vital to our future ASM is INNOVATIVE with UNIQUE value ASM has CAPACITY ASM is more COMPETITIVE & working hard to improve SUMMARY