AECON GROUP INC 15 INDUSTRIAL Financial highlights Three months ended Year ended millions December 31 December 31 2012 2011 2012 2011 Revenue 3394 2301 10140 9183 Gross proft 428 327 1226 912 EBITDA 258 174 654 384 Adjusted EBITDA 260 174 655 387 Operating proft 239 155 579 302 EBITDA margin 76 76 65 42 Adjusted EBITDA margin 76 76 65 42 Operating margin 70 67 57 33 Backlog 751 874 For the year ended December 31 2012 the Industrial segment reported revenue of 1014 million compared to revenue of 918 million in the previous year representing a 96 million or 10 increase Most of the revenue increase occurred in Heavy Industrial operations primarily from higher volumes in the commodities mining sector as well as from increased pipe fabrication and module assembly work in Western Canada These revenue increases were offset in part by lower site construction work in Central Canada and lower revenue in IST For the three months and year ended December 31 2012 the operating proft in the Industrial segment increaseddecreased over the same periods last year as follows Three months ended Year ended millions December 31 December 31 Heavy Industrial Construction and Fabrication 75 313 IST 09 36 Increase in Industrial operating proft 84 277 For the year ended December 31 2012 the majority of the year overyear increase in Heavy Industrial operating proft was due to higher volume in the commodity mining sector and improved margins from module assembly and site construction operations in Western Canada In addition higher operating proft was also attributable to increased volume from Central Canadas fabrication operations Partially offsetting these increases was a decline in IST operating proft driven by the yearoveryear reduction in revenue Backlog at December 31 2012 of 751 million was 123 million lower than last year primarily due to lower backlog in Heavy Industrial operations New contract awards of 891 million in 2012 were 483 million lower than in 2011 Most of the decrease in new awards occurred in the commodities mining sector and in Western Canada This reduction refects the yearoveryear impact of several large multiyear project awards received in the second half of 2011 Most of the new awards for 2012 occurred in Heavy Industrial operations with the largest awards related to site construction projects in Central Canadas power sector As discussed in the Consolidated Financial Highlights section signifcant contracts awarded to Aecon based on time and material costplus and unit priced contracts including supplier of choice and alliance agreements do not show up as reported backlog when the number of units or volume of work cannot be estimated with reasonable certainty Therefore the Industrial segments effective backlog at any given time is greater than what is reported