January 2013

Shipbuilding

Oil & Gas

Defence

Power

Transport

More than just Canada’s largest shipbuilder

DELIVERING ON: TECHNOLOGY, WORKMANSHIP AND QUALITY

“A company doesn’t last for 187 years by standing still. It endures by reinventing itself, always striving to offer the right product and service in line with the time and market.

Davie has sustained its reputation as a leading specialised shipbuilder and industrial fabricator, always retaining its core skillsets and expertise. Our world-class facility is the result of significant capital investment over the past two decades and the pride in our workmanship has been passed down through generations.

The recent acquisition of Davie by ZM Industries brings vast experience in managing complex vessel construction projects.”

Alan Bowen, CEO, Davie

DAVIE: More than just Canada’s largest shipbuilder

DELIVERING ON: TECHNOLOGY, WORKMANSHIP AND QUALITY

IN NUMBERS:

715 ships built at Davie

1825 year established

$700morderbook 2013-2015

348metre drydock

4 construction slipways

6quays - up to 259m long

800t/month of steel production

LARGEST AND MOST MODERN SHIPBUILDING AND STEEL PROCESSING FACILITY IN CANADA:

> 57-hectare total land

> 2 x graving dry-docks: - # 1: 348m X 36.5m (can be divided into two separate dry docks) - # 2: 182.6m X 18.7m

> 4 x construction slipways: - 2x: 250m X 60m - 2x: 200m X 32m (one covered)

> 6 x quays ranging between 91m and 259m long

> Cutting edge fabrication facilities: - 24,500m2 steel shops - The largest Canadian yearly steel capacity - Electrical, piping, carpentry shops - 3D production line

> Cutting-edge design and engineering facilities

DAVIE: More than just Canada’s largest shipbuilder DAVIE: More than just Canada’s largest shipbuilder

Production and capital investmentOver the past 15 years, significant investment has been made to ensure Davie remains at the cutting edge of technology. This has involved:

> The installation of two Plasma cutting machines> Construction of new pipe shops> Enlargement of outfitting wharves> Installation of a semi-automatic stiffener and web line> Installation of a state-of-the-art panel line with one-sided welding> Installation of a process (TACT) line for the two main assembly bays> Acquisition of 3 transporters with a combined lift of 750t

Process and IT infrastructureYard management system (Tribon/Aveva) integrating: planning, production, engineering, work content evaluation, procurement, inventory, simulation and process flow management

Quality Control, Testing and CertificationDavie’s Quality assurance program is compliant to ISO 9001for engineering, program management and for the fabrication of offshore structures, military and commercial shipbuilding, conversion and repair and also heavy industrial components.

INVESTING IN THE FUTURE

PRODUCTS &SERVICES

SHIPBUILDING Oilfield services PassengerNavalArctic (Ice-class), LNG and other specialised notations

OFFSHORE FABRICATION Fixed platformsModulesJack-up and semi-sub drilling rigsPontoons, Barges, Caissons

SHIP REPAIR, CONVERSIONS & UPGRADES

Oilfield services vesselsVessel lengtheningRegulatory overhaulsDry-docking and repairs

INDUSTRIAL FABRICATION Heavy fabricationSonar DomesNuclear reactor airlocksHydro-electric gates

ENGINEERING & PROJECT MANAGEMENT

Conceptual designDetailed product designAdvanced integrationProject Management

FINANCE AND OFFSHORE SERVICES

Structured financingTime-Charter and Bareboat Charter products

Davie is a diversified company offering a wide range of products and services ranging from shipbuilding to industrial and offshore fabrication to drilling rig construction.

Petrobras P36

Hibernia topsides

Midnight Express

HMCS Calgary

Sonar domes for US Navy

PRODUCTS& SERVICES

DAVIE: More than just Canada’s largest shipbuilder

3 x DPIII Offshore Construction Vessels (OCV)(Hulls 717, 718, 719)

2 x DPII Accommodation Support Vessels(Hulls 721, 722)

2 x LNG Dual-Fuel Roll-On, Roll-OffFerries(Hulls 723, 724)

Hull 717 under construction - January 2013

2013-2015 BUILD PROGRAM

Sonar domes for the US Navy fabricated at Davie. The US Navy has built over 90 sonar domes at Davie due to the quality of Davie’s steel production and its capability to handle complex curves.

Hyrdo-electric dam gates fabricated at Davie for the Beauharnois hydro-electric project. Quebec is a world leader in hydro-electric power generation technology.

FABRICATION

The fabrication of complex structures is at the core of Davie’s skills and expertise. Programs have included a series of radar domes for the United States Navy where Davie’s capabilities in the engineering andfabrication of compund

curves have resulted in a long-term successful relationship. Other fabrications have included the manufacture of over one thousand rail cars, airlocks for nuclear reactors, pressure vessels and hydro-electric dam gates.

DAVIE: More than just Canada’s largest shipbuilder

Davie has been serving the offshore industry since 1969 and has been involved with a number of construction, fabrication and upgrade projects involving most asset-classes involved in both shallow and deep-water exploration and production.

Past projects include:

> Fabrication of 12x Le Tourneau 116 design jack-up drilling rigs > Upgrade of Petrobras Semi-Submersible production unit from 100,000bbd to 180,000bbd > Conversion of a LASH carrier to a DP pipelay vessel (now Helix Express) > Fabrication of 9 topside modules for Canada’s Hibernia field development

OILFIELD SERVICES

Topside modules built at Davie for the Hibernia and Panuke field developmentprojects

Le Tourneau 116 fabrication at Davie. Clients of the 12 rig build program included Petrobrasas well as European and other South American clients

Midnight Express (Helix Express) USD 80m conversion of a LASH carrier into a DP pipelay vessel at Davie.

P36 production platformSemi-submersible production platformUSD 100m+ upgrade for Petrobras to optimise production capacity at Davie.

NAVALSERVICES

Davie is the most prominent builder of vessels for the Ca-nadian navy having been involved in nine Canadian Navy and a number of Canadian coastguard programs involving destroyers, minesweepers, corvettes, frigates, auxiliary vessels and icebreakers.

HMCS Calgary was part of a three-ship build pro-gram at Davie. HMCS Calgary is presently operating in the Gulf of Aden on anti-piracy missions. HMCS Calgary has served with various carrier groups in-cluding those within the United States Navy.

HMCS Iroquis underwent a major upgrade at Davie. Other major refit programs included a CAD 500m modernisation of four Destroyers.

> NEWBUILDING> IN-SERVICE SUPPORT> MODERNISATION

DAVIE: More than just Canada’s largest shipbuilder

From cruise vessels to day-ferries, Davie has over 150 years experience in building vessels for the passenger market, specifically vessels with high ice-class notations.

2013 marks a new era for Davie, by building one of the first ever dual-fuel LNG day ferries in partnership with Wartsila for the government of Quebec.

Roll-on, roll-off ferry construction for Marine Atlantic, a Canadian Crown corporation. Two sister vessels were built by Davie to operatebetween Nova Scotia and Newfoundland.

m/v Norwegian Sky undergoing repairs and renovation at Davie. Quebec’s maritime hub provides a large, qualified network of subcontractors, ideally suited for cruise ship repairs where the need for speed and quality is of the essence.

STQ, the provincial government-operated ferry company Is one of Davie’s leading clients. Davie has built several series’ of ferry for STQ.

PASSENGERVESSELS

DAVIE: More than just Canada’s largest shipbuilder

SHIP REPAIR& CONVERSION

An important part of the company’s structure is its ability to offer an efficient shiprepair service.

Strategically located on the busy St. Lawrence/Seaway network and close to the East Coast of Canada and the United States, many shipowners take advantage of our vast experience and fast turn around service.

Davie’s experienced management andtechnical staff offers shipowners a comprehensive capability to solve their operational and maintenance requirements.

> DRY-DOCKING> FLOATING REPAIRS> CONVERSIONS

DAVIE: More than just Canada’s largest shipbuilder

LEASINGThrough its partners and shareholders, Davie is able to provide both Bareboat and Time-Charter lease arrangements for its clients.

GOVERNMENT INCENTIVES

Industry Canada provides incentives for shipbuilding and conversion projects through its Maritime Policy by:

i. An interest rate buy-down of up to 10% of the contract price on any eligible project, on a net present value basis, at time of delivery. This support is on the form of a non-repayable contribution.

and

ii. Credit Insurance (Loan / Lease) which will insure a portion of a loan or lease on eligible project. The value of which can equate to 10% of the contract price.

The two (2) elements can be combined for a benefit of up to 15% of the net present value, at time of delivery to the customer.

Canada ’s official export credit agency can provide excellent financing options on new constructions, conversions, and life extension work. EDC financing typically involves up to 12 year term-facilities of up to 80% of contract value at around L+100. Financing is also available for repair work and industrial fabrication.

To develop shipbuilding activities, the provincial government offers a tax credit program aimed at compensating the shipyard for the development of new technologies in the form of a subsidy on labour costs (up to 35% reduction on total cost of labour)

FINANCIALSERVICES

FinanCing gROWTHDavie is able to provide a number of financial services for its clients. These include the arrangement of structured leasing productsand the organisation of certain governmental incentives.

DAVIE: More than just Canada’s largest shipbuilder

Davie Canada 22 George Street-D. Davie Lévis, Québec G6V 8V5 Canada

T: 1-418-837-5841E: marketing@davie.caW: www.davie.ca

DAVIE: More than just Canada’s largest shipbuilder