ASM & COAA

Adding Value to Alberta Energy Sector projects

The priority today

• Increase shareholder value

• Increase project profitability

• Reduce project risk

• Improving productivity is vital to industry success

Understanding our Customer

Understanding our Opportunity

The Buying Process - Kevin Davis, Topline Leadership

What is ASM doing to improve?

ASM – Competitive Advantages

1. Competitive Total Installed Cost 2. Capacity Improvements3. Safety 4. Quality5. A Sustainable workforce

Initial Purchase Cost Comparison

Delivery Format OptionsLogic Sequence

Total Installed Cost ComparisonAdjusted for Forex Changes

Alberta Capacity

1. Increasing through Investment, Expansion & Partnerships

2. Capacity – Alberta has PLENTY!

Revenues have DOUBLED

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

1000

2000

3000

4000

5000

6000

7000

$1.189 Bil-lion

$2.535 Bil-lion

*Related to Investment in Technology, Innovation & Continuous Improvement

Years

113% in-crease in ASM related products

Source: Gov’t of Alberta

Capacity IMPROVEMENTS

“ASM is INVESTED”• $885 MILLION invested in Fabricated

Metals industry

• $147.5 Million average investment/yr

Source: Govt of Alberta, 2007 – 2012, Major Indicators for the Metals & Machinery Industry

Success Stories - Capacity

“Through partnerships, our capacity can double market demand increases”

Source: Edmonton based ASM member

Success Stories - Capacity

“Doubled Manufacturing & Service capacity recently via capital investment”

Source: Edmonton based ASM member

Success Stories - Capacity

“Significantly INCREASED structural steel and modular manufacturing capacity”

Source: Source: Edmonton based ASM member

Structural Steel Capacity – Alberta Nov/13

Current/4 months – 26%12 months – 71%24 months – 95%

Source: Ground State Market Solutions – Quarterly Backlog report - Nov 13

Modular Assembly Capacity Available – AB

Current/4 months – 64% 12 months – 90% 24 months – 95%

Source: Ground State Market Solutions – Quarterly Backlog Report – Nov 13

ASM – A Strong Culture of Safety

“Alberta lost-time claim rates at an ALL TIME LOW of 1.39”

Overall, the lost-time claim rate for Alberta industry has dropped from 3.52 in 1993 to 1.39 in 2012

For Primary Metal Products industry, lost-time claim rate has reduced from 3.46 in 2006 to 1.61 in 2010

– a 53% REDUCTION Source: Workers Compensation Board

A Culture of Safety

WORKING

SAFELY

PROUCTIVELY

Increasing Quality – Independent Certification

Minimize re-work & project delays through Independent certification bodies (CWB, ABSA)

Success Stories – A Sustainable Workforce Improved labor pool through real time on-site CWB certification

Source: New Innovation from an Edmonton Based ASM Member

Project OptionsShareholder Goal•Maximize production at high oil prices by expediting or speeding up project schedule completion date

Project Solution – “Fast Tracking”•NOTE. To date, projects where fabrication starts earlier than normal using partial engineering have consistently led to cost & schedule overruns

ASM Value – Project Flexibility•Easily accessible local resources & expertise offer maximum flexibility to support changes to project engineering or schedule

Project Options

Shareholder Goal•Secure cost certainty

Project Solution – Lump Sum•Projects with fully engineered drawings allows fabrication suppliers more production efficiency, leading to cost savings and project certainty

ASM Value – Competitive Total Installed Cost•ASM experience is best equipped to support Lump sum bids at a very competitive Total Installed Cost

Project OptionsShareholder Goal• Maximize profitability • Secure LOWEST total installed project cost• Secure FASTEST schedule completion time• Reducing project risk

Project Solution – Fully Integrated Model• This model includes supply chain collaboration and expertise early on and

throughout project. • Through shared risk & reward, the lowest overall project cost and fastest

completion time is consistently delivered

ASM - Value through Collaboration & Expertise• ASM’s unique industry knowledge and proven experience will help you

exceed your shareholder expectations related to project cost, scheduling and project risk

ASM Value

• Our customer is our TOP priority • COLLABORATION with our customers &

partners is vital to our future • ASM is INNOVATIVE with UNIQUE value • ASM has CAPACITY• ASM is more COMPETITIVE & working

hard to improve

SUMMARY