1. 1 2013 Outlook for U.S. Construction July 2013 Cliff Brewis Senior Director Operations McGraw Hill Construction McGraw Hill Construction

2. 2 McGraw Hill Construction Confidential. All information presented @ McGraw Hill Construction, 2013. All rights reserved. The pace of economic expansion remains lackluster. GDP Pattern: History Forecast 2009 2010 2011 2012 2013 -3.1% +2.4% +1.8% +2.2% +2.1% Shape of Recovery: Reliance on Private sector Impact of reliance on private sector Sequestration Fed Tapering U.S. Macroeconomic Picture

3. California 3 2010201120122013 EDUC $ 5,639,165 $ 4,382,107 $ 3,252,202 $ 3,284,868 -22.3%-25.8%1.0% HEALTH $ 3,665,282 $ 2,950,105 $ 2,677,585 $ 2,955,916 -19.5%-9.2%10.4% HIGHWAY $ 3,642,359 $ 3,580,204 $ 3,743,907 $ 3,154,786 -1.7%4.6%-15.7% HOTEL $ 158,101 $ 185,736 $ 435,860 $ 497,646 17.5%134.7%14.2% MFG $ 257,108 $ 287,846 $ 604,795 $ 838,565 12.0%110.1%38.7% MULTI RES $ 1,657,565 $ 2,559,982 $ 3,027,578 $ 3,455,532 54.4%18.3%14.1% OFFICE $ 957,899 $ 994,906 $ 1,170,144 $ 1,281,655 3.9%17.6%9.5% ONEFAM $ 7,183,462 $ 6,635,083 $ 8,285,845 $ 10,463,240 -7.6%24.9%26.3% RETAIL $ 941,289 $ 961,767 $ 1,089,085 $ 1,433,973 2.2%13.2%31.7% WARENM $ 221,710 $ 322,985 $ 426,259 $ 591,942 45.7%32.0%38.9% WATER $ 1,693,518 $ 1,285,197 $ 1,053,156 $ 1,221,494 -24.1%-18.1%16.0% TOTAL $ 42,223,236 $ 46,117,744 $ 39,859,761 $ 42,127,681 9.2%-13.6%5.7%

4. Questions? Cliff Brewis Senior Director Operations McGraw-Hill Construction/Dodge (510) 566 – 0913 Cliff.brewis@mhfi.com 4