Introduction to EllisDon

June 2012

Key Facts

• Founded in 1951• Canada’s 2nd largest constructor• 2011 Revenues over $3 billion• International company – have worked in 17

countries• Core strength in social infrastructure –

particularly healthcare and justice facilities• One of two most successful PPP developers and

builders in Canada

Healthcare experience

• Canada’s largest hospital builder• 200+ hospitals• Healthcare construction value over $15 billion • In last 30 years never a time when EllisDon

wasn’t building a hospital somewhere in Canada• Almost all EllisDon staff have healthcare

construction experience

South Health Campus – CM projectCalgary, Alberta

• $1.3B project – over 2.5M s.f. • Ongoing VE and planning • Fast-track 4 year schedule

Justice Facilities

• Over 150 justice projects – in Canada and the U.S. Prisons Courthouses Police facilities Forensic Mental Health

• Currently building the largest PPP prison in Canada

• Currently building two PPP courthouses

Public Private Partnerships

• Won the first two Canadian PPP projects• Participate as developer, design-builder and

(sometimes) facility operator• Have reached financial close on 24 PPP projects

Hospitals Prisons Courthouses Housing Sports/entertainment facilities

Surrey Memorial Hospital – PPP projectSurrey, British Columbia

• $512M expansion project •151 acute care beds, new Emerg Dept• financial close December 2010

Public Private Partnerships

• Pros Full risk transfer for design, construction, building

operations – guaranteed performance Best-in-class asset management – FM/life cycle Private finance provides discipline & capacity Faster delivery – inception to completion

• Cons Higher transaction costs Higher finance costs for the private finance portion Less flexibility to handle changes during operating

period

Comments - P3/Concession procurement

• Output Specs typically exceed industry norms • Transaction costs are relatively high• Not all risk transfer is good value• Expectations can be unrealistic – innovations,

retail revenues etc.• Projects are most successful when all parties

focus on the “partnership” • The condition of the asset during the operations

phase is better than with non-P3 assets