4 ANNUAL REPORT 2012 Over the course of the last few years we have been dedicated to two core objectives delivering improved margins through our continued focus on execution and performance and organic growth in our three core market sectors of Infrastructure Energy and Mining To support these objectives we have been building a high performance team a team best suited to serve our clients in these diverse sectors We further strengthened our management team with additional expertise and today we are focused on safety operational excellence project controls and risk management all within a disciplined framework towards reaching our target of a 9 per cent EBITDA margin in 2015 Last year I pledged to you that we planned to build on our 2011 achievements and again we delivered on that commitment in 2012 Aecon is at workfor you our shareholders The One Aecon approach providing comprehensive and integrated turnkey services to our clients is now entrenched within the operations of the organization and has gone from an initial concept to what is now the Aecon way of doing things Under the leadership of our Chief Operating Offcer Teri McKibbon we have fundamentally changed the way Aecon works The ability to selfperform a vast array of services allows for cost savings for both Aecon and our clients through economies of scale and resource sharing In 2012 Aecon successfully completed an impressive number of projects including the Toronto Rehab Centre the Bruce Nuclear Refurbishment project in Kincardine Ontario Autoroute 30 in Montreal Quebec the Picadilly Potash Mine in Sussex New Brunswick upgrades to Consumers Cooperative Refnery in Regina Saskatchewan and most recently the Quito International Airport in Ecuador Moving forward Aecon has a strong pipeline of work reporting 24 billion of backlog at December 31 2012 with an extended duration of work beyond the next twelve months representing 42 per cent of backlog versus 38 per cent in the prior year The focus on operational performance paired with Aecons turnkey capabilities has resulted in signifcant growth in proftability and margins in our Industrial business successful scaling of Aecons Mining business the expansion of our Utilities business in Western Canada and completion of the redefned mandate of our Buildings operations With over 40 per cent of Aecons revenue now coming from larger more complex projects the importance of building relationships partnerships and alliances is more of a priority than ever before We have positioned Aecon to be a partner our peers want to work with a partner with the fnancial strength to take on substantial projects which require a unique blend of operational expertise project management skills and longterm planning DEAR FELLO W SHAREHOLDERS