Introduction to EllisDon June 2012

Key Facts Founded in 1951 Canada’s 2 nd largest constructor 2011 Revenues over $3 billion International company – have worked in 17 countries Core strength in social infrastructure – particularly healthcare and justice facilities One of two most successful PPP developers and builders in Canada

Healthcare experience Canada’s largest hospital builder 200+ hospitals Healthcare construction value over $15 billion In last 30 years never a time when EllisDon wasn’t building a hospital somewhere in Canada Almost all EllisDon staff have healthcare construction experience

South Health Campus – CM project Calgary, Alberta $1.3B project – over 2.5M s.f. Ongoing VE and planning Fast-track 4 year schedule

Justice Facilities Over 150 justice projects – in Canada and the U.S.  Prisons  Courthouses  Police facilities  Forensic Mental Health Currently building the largest PPP prison in Canada Currently building two PPP courthouses

Public Private Partnerships Won the first two Canadian PPP projects Participate as developer, design-builder and (sometimes) facility operator Have reached financial close on 24 PPP projects  Hospitals  Prisons  Courthouses  Housing  Sports/entertainment facilities

Surrey Memorial Hospital – PPP project Surrey, British Columbia $512M expansion project 151 acute care beds, new Emerg Dept financial close December 2010

Public Private Partnerships Pros  Full risk transfer for design, construction, building operations – guaranteed performance  Best-in-class asset management – FM/life cycle  Private finance provides discipline & capacity  Faster delivery – inception to completion Cons  Higher transaction costs  Higher finance costs for the private finance portion  Less flexibility to handle changes during operating period

Comments - P3/Concession procurement Output Specs typically exceed industry norms Transaction costs are relatively high Not all risk transfer is good value Expectations can be unrealistic – innovations, retail revenues etc. Projects are most successful when all parties focus on the “partnership” The condition of the asset during the operations phase is better than with non-P3 assets