GENIVAR INC. ANNUAL INFORMATION FORM March 28
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GENIVAR INC. ANNUAL INFORMATION FORM Year ended December 31, 2012 March 28, 2013 TABLE OF CONTENTS Pages FORWARD-LOOKING STATEMENTS .............................................................................................................................. 1 INTRODUCTORY INFORMATION .................................................................................................................................... 1 Market and Industry Data .................................................................................................................................................. 1 Non-IFRS Measures .......................................................................................................................................................... 2 CORPORATE STRUCTURE ................................................................................................................................................ 2 Name, Address and Incorporation ..................................................................................................................................... 2 Intercorporate Relationships .............................................................................................................................................. 2 GENERAL DEVELOPMENT OF THE BUSINESS ............................................................................................................ 3 Three Year History ............................................................................................................................................................ 3 ACQUISITION OF WSP ....................................................................................................................................................... 6 TABLE OF ACQUISITIONS ................................................................................................................................................ 7 BUSINESS OF THE COMPANY ......................................................................................................................................... 8 Overview ........................................................................................................................................................................... 8 Clients by Market Segment ................................................................................................................................................ 9 Types of Contracts and Contract Management .................................................................................................................. 9 Global Engineering Services Industry Overview and Trends .......................................................................................... 10 Global Engineering Services Industry Key External Drivers........................................................................................... 11 Competition ..................................................................................................................................................................... 11 Capital Expenditures ........................................................................................................................................................ 11 Employees ....................................................................................................................................................................... 12 Occupational Health and Safety ....................................................................................................................................... 12 Sustainable Development ................................................................................................................................................ 12 Facilities........................................................................................................................................................................... 12 Insurance .......................................................................................................................................................................... 12 Credit Facilities ................................................................................................................................................................ 12 RISK FACTORS .................................................................................................................................................................. 14 Risks Related to the Transaction ...................................................................................................................................... 14 Risks Related to the Business .......................................................................................................................................... 14 Risks Related to the Industry ........................................................................................................................................... 19 Risks Related to Indebtedness ......................................................................................................................................... 20 Risks Related to Financial Results ................................................................................................................................... 21 Risks Related to the Common Shares .............................................................................................................................. 22 DESCRIPTION OF CAPITAL STRUCTURE .................................................................................................................... 23 Shares .............................................................................................................................................................................. 23 Preferred Shares ............................................................................................................................................................... 23 DIVIDENDS AND DISTRIBUTIONS................................................................................................................................ 23 Dividend Policy ............................................................................................................................................................... 23 Distributions and Dividends ............................................................................................................................................ 23 MARKET FOR SECURITIES ............................................................................................................................................. 24 Trading Price and Volume ............................................................................................................................................... 24 Transfer Agent and Registrar ........................................................................................................................................... 24 DIRECTORS AND OFFICERS........................................................................................................................................... 25 CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS.............................................................. 29 CONFLICTS OF INTEREST .............................................................................................................................................. 29 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS.................................................... 29 LEGAL PROCEEDINGS .................................................................................................................................................... 30 MATERIAL CONTRACTS................................................................................................................................................. 30 INTEREST OF EXPERTS ................................................................................................................................................... 31 ADDITIONAL INFORMATION ........................................................................................................................................ 31 AUDIT COMMITTEE CHARTER ................................................................................................................................... A-1 FORWARD-LOOKING STATEMENTS In addition to historical information, this annual information form (the "Annual Information Form") may contain certain forward-looking statements that are not based on historical facts. These statements relate to future events or future performance and reflect the expectations of management of the Company ("Management") regarding the growth, results of operations, performance and business prospects and opportunities of the Company or its industry. In some cases, forward- looking statements can be identified by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" or the negative of these terms or other comparable terminology. Such forward-looking statements reflect current beliefs of Management and are based on certain factors and assumptions as set forth in this Annual Information Form, including those in the "Global Engineering Services Industry Overview and Trends" section. While the Company considers these factors and assumptions to be reasonable based on information available