Deloitte Socio-Economic Impact Study, February 2020

Seaspan Shipyards: Rebuilding an Industry and Creating Value for Canada

Socioeconomic Impact Report February 2020

This document contains information proprietary to Seaspan ULC, to its subsidiaries, or to a third party to which Seaspan ULC may have a legal obligation to protect such information from unauthorized disclosure, use or duplication. Any disclosure, use or duplication of this document or of any of the information contained herein for other than the specific purpose for which it was disclosed is expressly prohibited, except as Seaspan ULC may otherwise agree to in writing. Investing in Rebuilding the Industry infrastructure, innovation, people

Since the inception of the National Shipbuilding Strategy, NSS-related cumulative operating and Seaspan Shipyards has spent $1.5B capital spend, 2012-2019 in $M not only on shipbuilding operations, but also on modernizing shipyard infrastructure, integrating advanced shipbuilding technologies, and $ developing skilled workers. 1.5B Spent to date

Source: Deloitte LLP. Socio-economic Contribution Study of Seaspan Shipyards Operations and NSS-related Activities, Prepared for Seaspan Shipyards, February, 2020

Total economic contribution of our NSS-related activities to Canada, direct and indirect, $1 $1.3 from 2012-2019

For every $1 spent on NSS-related activities, Seaspan added $1 directly and indirectly to Canadian GDP, and $ $ $ approximately $1.3 when induced 1.5B 837M 256M impacts are included. Added to GDP Labour Income Gov’t Revenues Induced impact refers to the spending of wages and salaries, such as the purchase of household goods and services by employees.

Source: Deloitte LLP. Socio-economic Contribution Study of Seaspan Shipyards Operations and NSS-related Activities, Prepared for Seaspan Shipyards, February, 2020

Every year, Seaspan Shipyards activities translate into significant In 2018, Seaspan Shipyards … economic contributions.

With a long-term package of work under the NSS program and a growing reputation as a centre of excellence in ship building, repair, conversion and Spent service, Seaspan Shipyards will continue to make significant $ contributions to Canada’s economy for years to come. 648M in operational and capital investments *

Directly employed 2,494 people that comprised 31% of national ship and boat building employment *

* as of Dec. 31, 2018

SEASPAN SHIPYARDS ANNUAL OPERATIONS AND INVESTMENTS (2018) SEASPAN SHIPYARDS ACTIVITIES ASSOCIATED WITH THE NSS (2012-2019)

DIRECT INDIRECT INDUCED DIRECT INDIRECT INDUCED

EXPENDITURE $648M N/A N/A $1.5B N/A N/A

GDP $381M in GDP $291M in GDP $238M in GDP $663M in GDP $813M in GDP $474M in GDP

LABOUR $192M in labour $192M in labour $112M in labour $311M in labour $526M in labour $222M in labour INCOME income income income income income income

$92M in federal, $24M in federal, $106M in federal, $183M in federal, $73M in federal, $202M in federal, GOV’T provincial and provincial and provincial and provincial and provincial and provincial and REVENUES municipal taxes municipal taxes municipal taxes municipal taxes municipal taxes municipal taxes

Source: Deloitte LLP. Socio-economic Contribution Study of Seaspan Shipyards Operations and NSS-related Activities, Prepared for Seaspan Shipyards, February, 2020 5

Seaspan Proprietary as set out above. All disclosure or reproduction prohibited. © 2020 Seaspan ULC and Affiliates. All rights reserved. Expanding the Returns to Government – Annually & Over Time industry is expanding the tax base Government revenue from Annual Government revenue for Economic activity stimulated by the NSS-related activities, 2012-2019 Canada – all shipyards, 2018 NSS Program and by all three Seaspan shipyards generates significant revenues for both federal and provincial governments. $ Government revenues include taxes on 116M products and production, corporate income taxes and personal income taxes.

Annual Government revenue for BC – all shipyards, 2018 $ 41M

Source: Deloitte LLP. Socio-economic Contribution Study of Seaspan Shipyards Operations and NSS-related Activities, Prepared for Seaspan Shipyards, February, 2020

Seaspan Proprietary as set out above. All disclosure or reproduction prohibited. © 2020 Seaspan ULC and Affiliates. All rights reserved. 6 It’s not just Seaspan Stimulating Supply Chain Growth & Impact

Our supply chain is a growing economic contributor too. 2018 activities of Seaspan Shipyards’ Canadian suppliers contributed… We are helping build a marine supply chain of national, regional and local businesses that are maturing rapidly, stimulating significant economic activity of their own, and expanding their businesses throughout Canada and the world.

$ 291M 2,805 Jobs to Canada’s GDP

$ 24M $ 192M Labour income Federal, provincial and municipal taxes

Seaspan Proprietary as set out above. All disclosure or reproduction prohibited. © 2020 Seaspan ULC and Affiliates. All rights reserved. 7 Long-term partnerships NSS is Supporting, Scaling, Growing an Industry provide business confidence and unlock Between 2012 and 2019, Seaspan Shipyards … investment

Partnering with Seaspan Shipyards and with others in the supply chain gives businesses the opportunity to learn and committed added leverage innovative shipbuilding approaches, tools, and best practices. $ Suppliers gain valuable experience, far- 1B reaching reputations, and the confidence 360+ to pursue new markets. in contract value to NSS-related suppliers small and medium-sized Canadian businesses to the supply chain NSS is helping SMEs thrive awarded Long-term contracts provide a vital source of stable revenue that encourages $ suppliers, especially SMEs, to reinvest in 833.9M accounting for R&D, technology and process improvements, skills development and in NSS-related contracts training, and new infrastructure. % % to 60 & 78 of NSS-related of NSS-related 660+ purchase orders contract value Canadian suppliers -- small, medium, large businesses from coast to coast.

Small and medium enterprises account for nearly half of Canada’s GDP. Partnering with Seaspan Shipyards helps SMEs stimulate business investment, create jobs, and gain access to new domestic and international opportunities. 27 employees 170 employees

Electrical design & engineering company Water treatment company based in Ottawa, headquartered in St. Catherines, Ontario. Ontario.

Working with Seaspan on the Offshore Fisheries Working with Seaspan to provide RCN Joint Science Vessels for the Canadian Coast Guard. Support Ships with potable drinking water systems.

Benefits of partnering with Seaspan: Benefits of partnering with Seaspan: ✓ added new office in BC ✓ New opportunities related to NSS, including work ✓ added 10 new positions in STEM for companies in BC ✓ closed international deals ✓ Enhanced exposure to western Canadian market and marine supply chain ✓ Access to procurement portals of Canadian leaders like BC Ferries, as well as international firms

MADE IN CANADA MADE IN CANADA

Seaspan Proprietary as set out above. All disclosure or reproduction prohibited. © 2020 Seaspan ULC and Affiliates. All rights reserved. 9 Expanding the Investing in Next Gen Shipbuilders knowledge base, developing leaders Over the past eight years, Seaspan Shipyards has invested $22 million in Seaspan Shipyards benefits from a training and development talented, diverse and experienced workforce today, and is committed to building a long pipeline of shipbuilders $ $ and leaders for tomorrow. 14M 6.3M Seaspan partners closely with leading organizations and institutions to: In skills training for To support learning, employees, including an research & skills • Invest in skills training internship program development in Canada’s • Fund education initiatives to grow marine industry including: knowledge • Support women in trades • Advance skills development within Indigenous communities $ • To BCIT to support $ 300K trades training for 1M indigenous students

For two new $ • To the STEP UP Masters programs 300K Coastal Skills initiative with UBC supporting female participation in trades

Source: Deloitte LLP. Socio-economic Contribution Study of Seaspan Shipyards Operations and NSS-related Activities, Prepared for Seaspan Shipyards, February, 2020

Seaspan Proprietary as set out above. All disclosure or reproduction prohibited. © 2020 Seaspan ULC and Affiliates. All rights reserved. 10 Putting innovation into NSS is Enabling Innovation and Adoption practice

Through its work under the NSS, Seaspan Shipyards is: $ * Supporting technology innovation like… • Integrating innovative marine 185M technologies into Canadian shipbuilding To develop one of the most modern shipyards • Supporting marine research at in North America ✓ Vancouver-based robotics company academic institutions ✓ 25 scientists and engineers ✓ $1M co-investment between Seaspan and BDC to • Developing marine research assets scale commercialization of its spool welding robot, for Canada which will help the marine industry deliver superior $ weld quality and ensure supply of skilled welding 2M capabilities.

To fund two research chairs at Benefits of partnering with Seaspan: UBC in naval architecture and ✓ Seed capital to hire additional R&D experts, and marine engineering launch & test products ✓ Entry into marine industry with product fit for marine use ✓ Access to global markets

Building the most advanced fisheries and oceanographic science MADE IN CANADA research vessels in Canada to support leading marine research.

Source: Deloitte LLP. Socio-economic Contribution Study of Seaspan Shipyards Operations and NSS-related Activities, Prepared for Seaspan Shipyards, February, 2020 * Sources: Deloitte LLP, Socio-economic Contribution Study, February 2020 and additional Seaspan Shipyards data Seaspan Proprietary as set out above. All disclosure or reproduction prohibited. © 2020 Seaspan ULC and Affiliates. All rights reserved. 11 Seaspan Shipyards Today

LNG conversion 3 1st 1st in North America 1 Full-service shipyards shipyard in Canada to Ship per week in Vancouver and design, build and commercial repair & Victoria, British Columbia deliver large vessels overhaul under the NSS

Management team with + $ 2,700 + 1B Employees 100 400+ 450 in contracts awarded to years of history as pioneer of years & ships shipbuilding and ship repair 600+ on Canada’s west coast building ships and subs delivered and serviced Canadian suppliers

The full study Socio-economic Contribution Study of Seaspan Shipyards Operations and NSS-related Activities was prepared for Seaspan Shipyards by Deloitte LLP in February 2020. The report was prepared for the purpose of estimating the economic contribution to Canada and British Columbia arising from Seaspan Shipyards operations and capital investments, including those associated with the National Shipbuilding Strategy (NSS) program.

The report analysis was based on data provided by Seaspan Shipyards. The economic contribution of Seaspan Shipyards overall operations reflects Seaspan Shipyards’ financials as of December 31, 2018. The economic contribution of Seaspan Shipyards’ work under the NSS program reflects Seaspan Shipyards’ financials as of December 31, 2019.