PPP Conference PPP Conference

January 27, 2014 - Zagreb, Croatia

SNC-Lavalin

� Leading engineering and construction

company in Canada (among top 10 in the world)

� Leader in operations and maintenance in Canada

� Major player in infrastructure concession

2

� Major player in infrastructure concession investments

30,000

Employees

30,000

Employees

101 Years

Old

101 Years

Old

Public Since

1986

Public Since

1986

4

Sectors of Activity

Infrastructure& Environment

Airports,

Bridges, Buildings,

Highways, Hospitals,

Ports & Marine,

Mass Transit

Systems, Roads,

Water,

OTHER INDUSTRIES(agrifood, pharma, sulphuricacid, industrial facilities)

OPERATIONS & MAINTENANCE

INFRASTRUCTURECONCESSION INVESTMENTS

Chemicals &Petroleum

Power

Hydroelectric,

Nuclear,

Thermal,

Transmission

and Distribution,

Other

Gas processing,

Heavy and conventional

oil production,

Onshore and offshore

oil and gas, LNG,

Carbon capture,

Pipelines,

Mining &Metallurgy

Base Metals,

Ferrous,

Precious Metals,

Industrial Minerals,

Mine Closure

& Reclamation, Water,

Environment,

Other

~ 5,500employees

~ 6,500employees

Other Pipelines,

Refining and upgrading,

Other

& Reclamation,

Other

~ 5,500employees

~ 5,500employees

~ 7,000employees

2012: Diversity of Revenue Base

$565.1 (7%) $1,330.5

(17%)

$3,020.4

(37%)

$3,175.0

(39%)

Categories of Activity

ICI

O&M

Packages

Services

$376.4 (5%) $565.1 (7%)

$840.4

(10%)

$1,330.5 (16%)

$1,388.5 (17%)

$1,519.2 (19%)

$2,070.9 (26%)

Industry SegmentsOther industries

ICI

Hydrocarbons &

Chemicals

O&M

Power

Mining & Metallurgy

Infrastructure & Infrastructure &

Environment

40.1 (1%) 213.1

(2%)304.3 (4%)

362.6 (4%)

649.8 (8%)

698.3

(9%)

813.6

(10%)

5009.2 (62%)

Geographic Areas

Other Regions

Asia

United States

Middle East

Africa

Europe

Latin America

Canada

2012 Revenues (IFRS):

$8.1 billion

Investment Grade Rating:S&P: BBB/negative*DBRS: BBB(high)/stable

*As of 2013.05.22

Four activities that are complementary… …serving multiple industry segments…

…with good geographic coverage and Canada as its largest base.

Relevance of P3’s

6

Represent an

important portionof governmentinfrastructure spending

Use our technicalSNC-Lavalin Capital We can

P3 Some of the biggest

projects are P3s

Use our technical

expertise in orderdeliver innovativesolutions

SNC-Lavalin Capital

O&M ContractorEPC Contractor

We can

provide anintegratedsolution

Selectively investing in P3s is a key component of our

business strategy

P3 Success = Integrated Approach

SNC-Lavalin Capital

Key Success Factors

� Early Identification of prospects� Get to know the client and needs

7

O&M ContractorEPC Contractor

� Get to know the client and needs� Strategic teaming� Showcase EPC and O&M

expertise/innovation� Competitive financing

Global Portfolio of SNC-Lavalin Capital’s Investments� Fair Value of Assets Under Management of $3.0 billion

1

� Net Book Value of Assets Under Management of $1.4 billion2

CanadaHighway 407 ETR

William R. Bennett Bridge

Southeast Stoney Trail (Ring Road)

Canada Line - Rapid Transit

McGill University Health Centre

Montreal Symphonic Orchestra Concert

MaltaMalta Airport

FranceTC Dome

Vatry Cargo Airport

8

USAAstoria Power Plant

Astoria II (550 MW Power Plant)

Montreal Symphonic Orchestra Concert

Restigouche Hospital Centre

AltaLinkT

Ste. Justine University Hospital Centre3

IndiaRayalseema Expressway

1Average Fair Market Value as per Analysts’ calculations, April 3 2012

2As at March 31st, 2012

3 At Financial Closing stage

MadagascarAmbatovy Nickel/

Cobalt Mine

AlgeriaHadjret en Nouss Power Plant

Myah Tipaza Desalination Plant

MayotteMayotte Airport

88

OTTAWA Light Rail OTTAWA Light Rail Transit Project

Project Overview and Key Parties – The Project

� The Project is being tendered by the City of Ottawa under a long-term design,build, finance and maintain (“DBFM”) structure with a term equal to theConstruction Period plus 30 years (~35 year term)

� Infrastructure Ontario is the commercial procurement lead

� The Project involves converting the existing Ottawa BRT corridor into a Light RailTransit (“LRT”) system in addition to widening and rehabilitating a section (~4km) ofHighway 417. The scope of the Highway 417 work is “build-finance” only

� Approximately 80% of the route involves the conversion of the existing BRTto light rail, generally without the need to excavate the existing roadplatform, and includes 10 stations at grade

� Approximately 20% of the route is underground through the downtownOttawa area and includes the construction of 3 below-grade stationsOttawa area and includes the construction of 3 below-grade stations

� The design for the bid stage was equivalent in detail to the design that would betypical on most other projects at the start of construction

Project Scope

� Conversion of existing 12.5 km BRT corridor into an LRT system

� Upgrades to 10 existing passenger stations

� Construction of 3 new underground passenger stations

� Tunnelling through downtown core (2.5 km)

� Construction of a new Maintenance and Storage Facility

� Procurement of initial rail vehicle fleet

� Widening and rehabilitating 4 km of Highway 417

Project Overview and Key Parties – Planned Route

Project Overview and Key Parties – The Consortium

Proponent

Developers

40%

40%

20%

Maintenance Contractor

Construction Contractor

2,1 G CAD

12

Key Subcontractors

Maintenance Contractor

40%

40%

20%

40%

40%

20%

Canada Line

In transit BCCanada Line

InTransit BC Limited Partnership signed a 35-year concessionwith Richmond-Airport-Vancouver Project Management Ltd.(RAVCO) and the Greater Vancouver Transportation Authority(GVTA) to design, build, partially finance, operate andmaintain the Richmond-Airport-Vancouver (RAV) rapid transitline.

The RAV Line links Waterfront Station in downtown Vancouverto the airport and Richmond city centre. Completed sinceAugust 2009, the new transit line is a fully automated,driverless system that will use rotary-driven metro-typedriverless system that will use rotary-driven metro-typevehicles. It has 16 stations (eight underground, six elevatedand two at-grade stations) as well as an operations andmaintenance centre. InTransit BC, a limited partnershipformed by SNC-Lavalin, British Columbia InvestmentManagement Corporation (BCIMC) and the Caisse de dépôtet placement du Québec (CDPQ), will own and operate theCanada Line for 35 years and has subcontracted allengineering, procurement and construction (EPC) to SNC-Lavalin. InTransit also subcontracted the operation andmaintenance to ProTrans BC Operations Ltd., a wholly-ownedsubsidiary of SNC-Lavalin.

14

In transit BC

• Sector: Transport

• Client: Richmond-Airport-Vancouver Project Management Ltd. (RAVCO) and the Greater Vancouver Transportation Authority (GVTA)

• Location: Vancouver, British Columbia

• Total Project Cost : CA $1.9 B

• Sponsors: SNC-Lavalin, bcIMC, Caisse de dépôt et placement du Québec

• Project Structure: Public-Private Partnership

Canada Line

• Project Structure: Public-Private Partnership

• Financing Structure: $600 M long-term bank debt; $120M Equity

• Public Funds: $1,331 Million

• Estimated Savings to the Public Sector: $92 Million

• 35 years Contract

15

In transit BCIn transit BC

Value for MoneyValue for Money

Canada LineCanada Line

NPV of P3 Delivery is $92 Million lower than NPV by Public Sector Delivery

16

In transit BC

Risk Allocation

Canada Line

17

McGill University Health McGill University Health Centre Project - Montreal

Block E Shriners

Block D Block ABlock BBlock C

Children HospitalAdult Hospital

Research

19

Project Structure

EquityDebt Providers

EquitySNC-Lavalin 60%

Innisfree 40%

Design-Build ContractorSNC-Lavalin Services Ltd.

Service ProviderSNC-Lavalin O&M

Johnson ControlsConstruction

SNC-Lavalin Construction Inc.Pomerleau-Verreault

Simard Beaudry

DesignIBI Group / HDR /

Yelle MailleNFOE

Lifecycle ProviderJohnson Controls

20

The MUHC Glen Campus represents:

• 43-acre site Brownfield just West of downtown whose former vocation was a rail sorting yard. Environmentally remediated to the highest standards, this vast, reclaimed area will now become a vibrant healthcare campus;

• Exceptionally accessible site close to expressways, adjacent to subway station, commuter trains and bus circuits;

• Efficient mechanical and electrical systems, designed to meet MUCH energy

21

The Glen Campus

• Efficient mechanical and electrical systems, designed to meet MUCH energy target;

• Redundancy for major mechanical and electrical systems;

• Modern design to ensure access to natural light and other healing elements;

• Design that maximizes comfort levels and infection control;

• Integration of healthcare activities with teaching and research;

• A catalyst to accelerate the transfer of knowledge from the laboratory to the bedside to business and to the community;

• Interior parking.

• Adult Hospital (106,500 m2)• 346 beds

• 14 operation rooms

• Children Hospital (60,000 m2)• 154 beds

• 6 operation rooms

• Cancer Centre (12,500 m2)

• Research Institute (36,000 m2)

22

Project Features

• Research Institute (36,000 m2)

• Central Utility Plant (6,000 m2)

• Retail Space (3,000 m2)

•• TOTALTOTAL (224,000 m(224,000 m22))

• Parking• 2,852 Stalls

• 1,582 underground, 1,270 above ground

• Total Project Cost : CA $2.01 B

• Financing Structure

• $764 M$ Senior Secured Bonds

• $105 M Research Grant

23

Financial Datas

• $105 M Research Grant

• $191.8 M Equity

• $951.8 Million Public Funds

• 34 1/2 years Agreement

• The Project Agreement is the principal agreement detailing all of the Project requirements and revenues:

• This agreement is between MUHC and ProjectCo.

• Primary obligations of ProjectCo and MUHC under the Project Agreement include:

24

Project Agreement

Agreement include:

• MUHC will grant ProjectCo a licence for use and access to the Site and Facility;

• ProjectCo will be responsible for the design and construction of the Facility;

• ProjectCo will maintain the Facility and provide Facilities management services for the duration of the Operational Term.

WE CARE embodies SNC-Lavalin’s key corporate values and beliefs. It is the cornerstone of everything we do as a company. Health and safety, employees, the environment, communities and quality: these values all influence the decisions we make every day. And importantly, they guide us in how we serve our clients and therefore affect how we are perceived by our external partners. WE CARE is integral to the way we perform on a daily basis. It is both a responsibility and a source of satisfaction and pride by providing such important standards to all we do.

WE CARE about the health and safety of our employees, of those who work under our care, and of the people our projects serve.

WE CARE about our employees, their personal growth, career development and general well-being.

WE CARE about the communities where we live and work and their sustainable development, and we commit to fulfilling our responsibilities as a global citizen.

WE CARE about the environment and about conducting our business in an environmentally responsible manner.

WE CARE about the quality of our work.