LEDCOR EARNS GROWING OUR REDEVELOPING EXPANDING OUR SUNCOR OPERATIONAL PRESENCE IN SAN DieGO’S AVIATION SERVICES IN EXCELLENCE AWARD SASKATCHEWAN WATERFRONT NORTHERN CANADA THEGLOBE SPRING 2013 VOLUME ELEVEN – ISSUE ONE INVESTING IN NORTH AMERICA Ledcor GOES ANYWHERE OUR CLIENTS NEED US, discovering NEW OPPORTUNITIES AND NEW waYS to SUPPORT THEIR SUCCESS ALONG THE waY. Ledcor’s first out-of-province project was in 1957, when we entered Saskatchewan for our client, Texaco, now owned by Chevron. We were in a position to bring our construction services to the oil market, and within six months our team was doing 90 percent of the oil field work in the province for several clients. Fifty-five years later, we are still expanding across North America, travelling with clients to new markets, opening new offices, and entering new business ventures wherever we find opportunity. We bring our corporate standards to every new market, but always invest in local talent and suppliers. This approach is important to our growth strategy and provides stability to the company in the form of a more diverse, more resilient portfolio. In this issue of The Globe, you will learn about some of the projects and businesses that have taken us to new territories and helped our company and clients continue to grow. Sincerely, Dave Lede Chairman & CEO FIREBAG STAGE 4 17 WOOD CANTS FOR ASIAN 2 MARKETS 20 LEDCOR INVESTS IN NORTH AMERICA 8 BUILDING 20 forestrY Ruocco Park Wood Cants for Asian Markets Marciano Winery 21 transportation Ritchie Bros. Auction Facility Ledcor Acquires Arctic Sunwest Charters 77 Bloor Street West Renovation and Trinity Helicopters Seven Hills Business Plaza Wolf Willow Senior Cohousing 22 sustainaBilitY Target Retail Stores Ledcor Releases New Sustainability Report Starbucks Evolution Fresh Juice Facility 23 awards 14 communication Suncor President’s Operational Excellence Award Port Mann/Highway 1 Network Infrastructure One of Canada’s Top Employers 15 mining Gold and Silver for BC Projects Mineral Ridge 24 communitY 16 oil & gas $150,000 Donation to Make-A-Wish Over $1 Million for The United Way Albian Sands Firebag Stage 4 25 personnel 18 infrastructure Building Careers at Ledcor South Fraser Perimeter Road Highway 63 8 9 15 21 Canary District Toronto, ON 2 THE GLOBE SPRING 2013 INVESTING IN NORTH AMERICA WE’re growing and diversifYing right alongside OUR clients. FOR Ledcor, NO location is out OF reach. Since the beginning, we have gone wherever our clients take us, and anywhere that we discover new opportunities. By diversifying our portfolio geographically and continuously adding new services, we strive to create significant value for our clients and stabilize our company against changes in regional markets. Our clients can feel confident working with a company that is globally experienced, has solid relationships with vendors across North America, and can mobilize quickly in new locations. THE GLOBE SPRING 2013 3 Target Various Locations We believe there’s good reason for us to be proud of our (35 acres) of an undeveloped section of the West Don many achievements across North America and beyond. Lands in Toronto. We are pleased to be working in a joint Over the last few years, we have made significant venture to earn a project of this scale and are actively investments to support operations in new markets, seeking similar opportunities. whether that’s opening new offices, launching new services, or taking on projects in new locations to support We also introduced a much needed new service our clients’ growth. offering based in Ontario under Ledcor Renew, which responds to the need for improvements to existing We’ve been working in Ontario for decades — in mining, buildings throughout Canada. Ledcor Renew modernizes pipelines, building and telecommunications — but over the efficiency of buildings, creating cost-efficient the last few years we have boosted our presence in the operations, a healthier environment for people to live province across several lines of business. and work in, and increased asset value for our clients at the same time. Ledcor Renew is currently undertaking Ontario’s building sector remains strong, and we have a project for a 20-story office building, 77 Bloor Street had continual success with projects across the province. West, which will improve the productivity of the building In the last few years we have built some of the largest while targeting LEED® Gold. projects in Western Canada, and we are in the process of doing the same in Eastern Canada. In 2011, we entered Our extensive experience supporting the expansion into a joint venture to take on our biggest building plans of our national clients earned us a contract with project in Toronto to date, the Canary District, home a new client, Target. We are currently working across of the CIBC Pan Am/Parapan Am Athletes’ Village Alberta, British Columbia, and Ontario to help them development, which will be situated on 14 hectares completely transform existing Zellers locations into 4 THE GLOBE SPRING 2013 Starbucks Across Canada Canada’s first Target stores. Another client that is taking us across the country is Allstream, who leveraged the Hill Centre Tower III Regina, SK national coverage footprint of Ledcor Communications to complete the upgrade of WiFi and other networking equipment at over 860 Starbucks locations across Canada. Ledcor Communications is also quickly growing our footprint in Ontario, as we now have a field force of over 1,500 technicians serving all of North America – the largest mobile workforce of its kind. In Saskatchewan, we opened two offices in Regina and Saskatoon in 2011 to take part in the province’s booming economy and promising future, and we are seeing no shortage of work. A key to our success in this market was securing local talent to set up and run operations – and we now have over 50 local employees. We recently completed Hill Centre Tower III, the first office tower built in Regina in the past 20 years, and are working on several new mid-sized projects. We have been working in the USA for over 35 years and, like every company in the construction sector, have faced business challenges as a result of ongoing recession in several regional economies. In an effort to position our US operations for success as the economy recovers, we took advantage of our strong financials and THE GLOBE SPRING 2013 5 Edge Construction LLC San Diego, CA 6 THE GLOBE SPRING 2013 Arctic Sunwest Charters Yellowknife, NWT expanded our California construction operations through services are growing significantly with the acquisition the formation of a new entity – Edge Construction LLC of Arctic Sunwest Charters and Trinity Helicopters, both (“EDGE”) – which is based in Temecula and operates based in Yellowknife, Northwest Territories. We also as a member of The Ledcor Group of Companies. EDGE own and operate Summit Air, also based in Yellowknife. brings to Ledcor the local talent from an established We are in the process of joining Trinity’s vertical-lift company that specializes in public works construction, capabilities and Arctic Sunwest Charters’ fixed-wing with a specific emphasis on the education and office operations under Summit, to provide a fully integrated building sectors. This new company allows us to provide passenger and cargo service that will be unique to more advanced and diversified services to our clients Northern Canada. as we continue to grow. In May 2013, we expanded our senior executive team with the appointment of The expansion of our North American footprint is beneficial Chris Bourassa, President of US Construction, based in for the growth of our company, but more importantly, it San Diego, California. allows us to provide more comprehensive, more consistent services to our clients across the continent. We have also been diversifying outside of construction into aviation, marine services, and forestry. Our aviation THE GLOBE SPRING 2013 7 B UILDING RUOCCO PARK San Diego Unified Port District SAN DIego, CALIFORNIA. We recently completed the redevelopment of a waterfront site formerly known as Harbor Seafood Mart, creating a 1.3 hectare MARCIANO WINERY (3.3 acre) park and modifying an adjacent building Napa Vineland LLC and parking lot. Demolition of the original site involved partial St. HeLENA, CALIFORNIA. The barrel room at removal of an existing tenant space along with Marciano Winery required Ledcor to construct hazardous abatement and repair. A three-part specialty wood and steel framing for the fully circular prefabricated restroom and concession building was building. Wood framed walls covered in an Italian also added for special events in the park. The park plaster and roof sheathing made of individually cut features a mosaic, landscaping work, and a stunning radiused pieces of reclaimed timber create the sense public art installation that includes vertical cross- of being inside a barrel. The circular lantern-like sections of locally-sourced eucalyptus trees, which opening above the roof was made of hand-blown are suspended over the entrance to the park by steel glass, in which two colored pieces were laminated cables attached to support towers. together to achieve the proper hue. To date, Ledcor Napa has completed work on 14 wineries and has another three projects under construction. This will bring our total winery experience in the region to around 14,000 square meters (150,000 square feet). 8 THE GLOBE SPRING 2013 B UILDING RITCHIE BROS. AUCTION FACILITY Ritchie Bros. Properties LAS VegAS, NEVADA. Completed in April 2012, this Las Vegas facility features a 3,105 square meter (33,429 square foot) two-story auction building, including offices and a VIP viewing area. The project also included parking areas and site work. THE GLOBE SPRING 2013 9 B UILDING 77 BLOOR STREET WEST RENOVATION BAY BLOOR EQUITIES AND MORGUARD REALTY HOLDINGS TORONto, ONTARIO.