Aecon Group Inc.Aecon Group Inc.

2008 Employee

Feedback Sessions

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A year of outstanding achievements:

Most notably … ranked as one of the 50 Best Employers in Canada – a full year sooner than targeted

Also importantly … achieved ‘08 eps guidance of $0.75 – a full year early

Secured improved bank line and bonding support

Closed two acquisitions – Karson and Alarie

Commenced dividend payments to shareholders

Added to the S&P TSX Index (and became best performer)

Contract margin in backlog near record levels

2007 – Year In Review

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2006 2007

2007 – Year In Review

Operating Profit $22 million Operating Profit $22 million $61 million $61 million

Gross Margin $97 million Gross Margin $97 million $142 million $142 million

Revenue $1.1 billion Revenue $1.1 billion $1.5 billion $1.5 billion

Net Income $11.5 millionNet Income $11.5 million $48.3 million$48.3 million

New Contract Awards $1.3 billionNew Contract Awards $1.3 billion $1.9 billion$1.9 billion

Year-End Backlog $786 millionYear-End Backlog $786 million $1.2 billion$1.2 billion

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Results by Segment

$ millions RevenueOperating

ProfitBacklog

2006 2007 2006 2007 2006 2007

Infrastructure 484 689 16.5 23.5 410 372

Industrial 290 398 19.5 36.2 186 384

Buildings 323 386 4.6 4.4 191 480

Concessions 36 58 (2.6) 4.0 n/a n/a

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Aecon has come a long way …but the ride has been bumpy at times

Cumulative losses of $56 million between 2002 – 2005

Liquidity, credit, and bonding all fell to critical levels

Morale and retention were both challenged

Environment in fall of 2005 looked bleak

• Only marginal profitability was forecasted for 2006 … even though our markets look poised for great strength.

• As one director phrased it: “Aecon is sitting atop a cake … but without a spoon to eat it”

Historical Context

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New strategic plan developed in ‘05: Vision, Mission & Core Values

Strategic Path/Focus• Focus on Canada

• Focus on our core

• Focus on profitability

• Focus on ‘singles & doubles’

• Invest in our people

Scorecards established for each division and dept

Strategic initiatives drive the strategy and objectives

Two key (and bold) objectives were established:

• $0.75 eps in 2008 (internal target of $1.00)

• Become an “employer of choice”

Historical Context

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Strategy drove strong improvement:

2006 saw return to profitability

• strong improvement in margins, flat top line

• 2006 earnings doubled Business Plan forecast

2007 showed strong growth in profit

• better margins, AND growth in revenues

• 2007 earnings more than doubled the Business Plan again

Backlog growing throughout (revenue and margin)

Employee retention and engagement levels strong (generally), and still improving

Historical Context

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Now, as we take stock again, we find:

1. Core markets continue to be in very good shape Transportation Infrastructure Oil Sands Energy Infrastructure Social Infrastructure

2. Backlog at record levels (seasonally adjusted)

3. Strong interest (and high expectations) in thecapital markets

4. Clients increasingly looking for: ‘turn-key’ solutions,

financing,

larger projects

Strategic Analysis

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5. Potential impact of broader economic trends conditions in U.S. of specific concern

6. Labour availability a constraining factor

7. External constraints have been reduced: Bonding Bank support Liquidity and cash position

8. Aecon’s competitive positioning is unique and working: Diversification Vertical integration

9. Aecon will be taxable in 2008 (for accounting purposes – no cash taxes)

Strategic Analysis

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In Summary . . .

1. Macro themes that contributed to strategy in 2005 remain intact.

2. If anything, situation has improved external constraints removed

Stronger base

3. Existing strategy clearly working

Therefore … Aecon’s Strategic Path should evolve, but remain fundamentally similar.

Strategic Analysis

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Vision• First company people go to when building things that matter

Core Values• Safety First … Trust and Candour … Passion for Excellence …

Learning Culture … Results

Strategic Focus• Invest in our People – become THE Employer of Choice

• Focus on our Core – infrastructure, industrial, buildingsand concessions

• Focus on ‘Singles & Doubles’, plus larger opportunitiesthat fit our risk tolerance and competencies

• Drive for more interdependent relationships – ‘decomoditize’ our competitive positioning

• Focus on Profitability – drive profitable growth, margin enhancement, and ‘think lean’

Strategic Analysis

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2010 Stretch Goals

“Two and Ten in 2010”

1. $2.00 eps

2. Top 10 Employer in Canada

Strategic Analysis

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Employer of Choice

Aecon

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Key Factor: “Engagement”

Engagement is . . .

A measure of an employee’s emotional and intellectual commitment to an organization

You’re considered “engaged” when you display allthree engagement behaviours:

1. SAY - Consistently say positive things about Aecon

2. STAY - Intend to stay with the organization

3. STRIVE - Strive to achieve above and beyondwhat is expected in your daily role

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How did Aecon do?

Engagement Element

QuestionAecon Average% Favourable

“SAY”

• I would, without hesitation, highly recommend this organization to a friend seeking employment

77%

“STAY”• It would take a lot to get me

to leave this organization 68%

“STRIVE”• This organization inspires me

to do my best work every day 68%

OVERALL ENGAGEMENT SCORE 71%

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How does INSERT compare?Engagement

ElementQuestion Aecon INSERT

“SAY”

• I would, without hesitation, highly recommend this organization to a friend seeking employment

77%

“STAY”

• It would take a lot to get me to leave this organization

68%

“STRIVE”

• This organization inspires me to do my best work every day 68%

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Where we Excel

Engagement DriverAecon

Average % Favourable

Safety • I feel that workplace safety receives

appropriate attention here92%

Learning and Development • This organization supports the learning and

development of its employees82%

Accomplishment • I get a sense of accomplishment from my work 80%

Benefits • My benefits meet my (and my family's) needs

well 78%

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Where we do well

Engagement DriverAecon Average %

Favourable

My role• I know exactly what I need to do to help

this organization meet its goals 77%

Decisions align with values• Senior leadership makes decisions

consistent with our organization’s values 73%

Accountable to values• We hold each other accountable for living

by our organization’s values 70%

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Where we need to improve

Engagement DriverAecon

Average % Favourable

Managing Performance

• The way my performance is measured makes sense to me 60%

• My manager provides me with on-going feedback about my performance 65%

Employee Recognition

• Our recognition programs recognize the right people for the right things 54%

• I receive adequate recognition (beyond pay and benefits) for my contributions and/or accomplishments

58%

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Where we need to improve

Engagement DriverAecon

Average % Favourable

Career Opportunities

• I know what career opportunities are available to me

65%

• There are sufficient opportunities within this organization for me to advance my career 65%

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Employer of Choice

Aecon