10 ANNUAL REPORT 2012 MANAGEMENTS DISCUSSION AND ANAL YSIS OF OPERA TING RESUL TS AND FINANCIAL CONDITION DECEMBER 31 2012 Particular focus for 2013 Within this context the Company is pursuing a number of programs and key initiatives to fulfll this strategy this year including Launch of Aecon University to train develop and advance the careers of Aecons employees and implement retention and recruitment programs to ensure its capacity to effectively execute on the substantial pipeline of work Further enhance and ensure Aecons excellent safety track record in order to protect its employees enhance client value and compete for business on the basis of more than just price Deliver on improving EBITDA margins toward the 9 per cent target in 2015 Focus on organic growth building partnerships and alliances for longer term project opportunities particularly in its three core target markets infrastructure energy and mining Continuous improvement in project execution performance operational discipline and risk management and refne and consolidate best practices across the organization and Realize synergies from the One Aecon approach and shared services such as fnance procurement and business development CONSOLIDATED FINANCIAL HIGHLIGHTS Three months ended Year ended millions except per share amounts December 31 December 31 2012 2011 2012 2011 Revenue 9487 7903 29468 28962 Gross proft 1104 1127 3150 2741 Marketing general and administrative expenses 385 416 1572 1388 Income from construction projects accounted for using the equity method 58 37 144 141 Foreign exchange gains losses 03 02 02 03 Gain on sale of assets and investments 01 10 09 159 Other gains losses 25 25 EBITDA 781 736 1733 1631 Depreciation and amortization 178 168 636 625 Operating proft 603 568 1098 1005 Financing expense net 51 98 271 312 Fair value gain on convertible debentures 39 03 43 43 Proft before income taxes 591 467 869 736 Income tax expense 06 98 59 114 Proft attributable to noncontrolling interests 21 03 30 46 Proft attributable to shareholders 564 367 780 576 Proft attributable to shareholders 564 367 780 576 Exclude Fair value gain on convertible debentures 39 03 43 43 Income tax on fair value gain 10 01 11 12 Adjusted proft attributable to shareholders 535 369 748 545 EBITDA 781 736 1733 1631 Exclude Gain on sale of assets and investments 01 10 09 159 Adjusted EBITDA 780 726 1724 1472 Gross proft margin 116 143 107 95 MGA as a percent of revenue 41 53 53 48 EBITDA margin 82 93 59 56 Adjusted EBITDA margin 82 92 59 51 Operating margin 64 72 37 35 Earnings per share basic 107 069 147 107 Earnings per share diluted 072 049 118 084 Adjusted earnings per share basic 101 069 141 101 Adjusted earnings per share diluted 072 049 118 084 Backlog 2428 2390