ENVIRONMENT IN THE U.S.

J i m N e v a d a P r e s i d e n t , E n v i r o n m e n t , U . S .

OVERVIEW OF THE SECTOR

à  ± $30B in annual fees à  Consolidation of the industry continues to

change the landscape of the sector à  The mix of public and private sector work

for these services is 50/50 à  Manufacturing sector is one of the largest

buyers of Environmental services (compliance services)

à  Drop in oil & gas prices has affected many firms in the upstream and downstream space

à  High-tech and other cash-rich businesses tend to be first to market for sustainability and higher-end advisory services

SECTOR OVERVIEW E N V I R O N M E N T

92

à  People −  Aging population/increasing longevity −  Migration to South and West regions −  Urbanization in the U.S.

à  Climate −  Water quality and wastewater issues −  Severe weather and rising sea levels −  Cap-and-trade regulations

à  Infrastructure −  Aging infrastructure

à  Industrial −  M&A activity

ECONOMIC TRENDS E N V I R O N M E N T

93

COMPETITION

94 E N V I R O N M E N T

Compliance Natural Resource Sustainability Water and Wastewater

•  Local firms •  Disadvantaged/

minority business enterprises

OUR OPERATIONS IN THE U.S. ENVIRONMENT

96

SUMMARY OF OPERATIONS E N V I R O N M E N T

128 Employees

15 Offices

PROPORTION OF U.S. NET REVENUES

E N V I R O N M E N T 97

2%

Environment

KEY SERVICE OFFERINGS E N V I R O N M E N T

98

37%

26%

22%

9% 6%

Contaminated Site Solutions Environmental Planning Water/Wastewater Sustainability and Energy Environmental Health and Safety

SERVICES E N V I R O N M E N T

99

COMPLIANCE − Due Diligence

Support − Environmental Health

& Safety − Site Characterization − Air & Noise Quality −  Integrated Product

Compliance Management

SUSTAINABILITY − Sustainability

Assessments − Greenhouse Gas

Studies − Carbon Footprinting

and Analysis − Benchmarking

Services − Alternative Energy

Planning

NATURAL RESOURCES

− NEPA (National Environmental Policy Act) compliance

− Environmental Planning & Analysis

− Environmental Permitting

− Ecosystem Restoration

WATER & WASTEWATER

− Groundwater Modeling

− Water Supply − Wastewater

Treatment − Ports & Harbors

Stream Restoration

KEY MARKET SECTORS E N V I R O N M E N T

100

57% 23%

8%

5% 4% 3%

State and Local Government Agencies Industrial (Manufacturing) Legal, Financial & Insurance Services High Technology Energy Property

CONTRACTS FOR ENVIRONMENTAL SERVICES

E N V I R O N M E N T 101

43%

57%

Private

Public •  Work is performed under

standard contract vehicles, direct with owner or as a subcontract under a prime agreement

•  Vast majority of contract

terms are cost/plus or time & material arrangements

KEY CLIENTS

102 E N V I R O N M E N T

35% Net Revenues

NET REVENUES E N V I R O N M E N T

103

24.3 23.2 24.6

2012 2013 2014

In $M CAD

PROJECT MIX BY CLIENT TYPE AND REVENUES E N V I R O N M E N T

104

2%

98%

Public

Private

96%

4%

Fees for service

Fixed

BACKLOG E N V I R O N M E N T

105

10.1

12.1 12.1

2012 2013 2014

à  Environmentally-friendly California, the eighth largest GDP in the world, and a growing population

à  Demand for services increases as more of the Northern population moves South, including Texas

à  Planning and design services for coastal programs will grow as sea levels continue to rise

à  Improvements in water & wastewater will continue to increase demand

MARKET TRENDS E N V I R O N M E N T

106

à  Increased presence in major urban centers will improve the opportunities for integrated services

à  Permitting needs and new regulatory standards

à  Recent acquisition of ccrd can provide a platform for entry into the healthcare market

à  Expansion of planning and permitting services across a wider geographic footprint

REVENUE SYNERGY OPPORTUNITIES E N V I R O N M E N T

107

−  Grow market share in existing resource hubs

−  Add capabilities and make key investments (water, wastewater)

−  Build capabilities in new geographic and service markets (climate adaptation, site contamination and clean-up, EHS compliance, energy efficiency, water resources, and sustainability)

ORGANIC GROWTH INITIATIVES E N V I R O N M E N T

108

SELECTED PROJECTS

à  Complex excavation and construction project located partly on coal ash fill

à  Investigated and delineated ash and contaminated soil before construction

à  Developed unique process to manage affected ash and contaminated soil to facilitate construction

à  Conducted site-specific health and safety training for site workers

à  Project managed excavation of more than 1.6M tons of ash and contaminated soil

à  Received James D.P. Farrell Brownfield Project Award

U.S. COAST GUARD HEADQUARTERS E N V I R O N M E N T

110

à  Prepared portfolio of 42 sites for sale to evaluate EHS compliance and contamination liabilities

à  Phase I site assessments were completed at locations in China, India, UK, Italy, Germany, Romania, Mexico and the U.S.

à  Managed the project from the U.S., while coordinating global staffing needs

à  All client objectives were met with respect to quality of the deliverables, timing of uploads to the data room, and technical support throughout the bidding process

DUE DILIGENCE SERVICES E N V I R O N M E N T

111

à  Engineering support and modeling to characterize wake effects of upstream turbines

à  Provided technical due diligence on historical performance of the project

à  Reviewed all of clients’ Power Purchase Agreements (PPAs)

à  Provided energy yield accounting for wake effects from turbines

à  Reviewed all environmental permits, associated with the project

WIND FARM INVESTMENT DUE DILIGENCE E N V I R O N M E N T

112

à  Developed the Authority’s methodology and approach to greenhouse gas modelling, the results of which supported the appropriation of greenhouse gas reduction funds (GGRF) for the project

à  Helped boost public perception regarding the long-term, local and global environmental benefits of the project

à  Developed an offset program for the project’s construction emissions

à  Carried out compliance with California regulations, including contractor and GHG emissions reporting

CALIFORNIA HIGH SPEED RAIL AUTHORITY

E N V I R O N M E N T 113

QUESTION PERIOD

NOTES E N V I R O N M E N T

115

NOTES E N V I R O N M E N T

116