Lines of BusinessLines of Business

Provides full service construction and construction-related services in the USA, Canada, and internationally

Primary Markets - Power Generation

- Industrial & Commercial Building

- Pulp & Paper

- Mining

- Transportation & Infrastructure

- Water & Wastewater Treatment

Lines of BusinessLines of Business

Construction-related services:- Engineering design

- Feasibility studies

- Regulatory approvals

- Financing

- Bonding

- Equipment procurement and installation

- Plant start-up

- Operator training

Atkinson

AtkinsonConstruction

CommonwealthConstruction

WalshConstruction

Heavy civil work - Hydroelectric power - Bridges, highways - Dams - Tunnels & shafts - Water & wastewater treatment facilities

Industrial facilities - Pulp & paper - Mining - Metallurgical processing - Water & wastewater treatment - Energy

Design-construct service - Power - Building

DiversificationDiversification Market diversification

DiversificationDiversification Geographical diversification - Domestic and international (nearly 40 countries)

- 20% of revenues from international markets

(Primary from Southeast Asia)

USA

Canada

Asia Others

Geographic Revenues in 1996 (in thousand)

Backlog of ContractsBacklog of Contracts

0

100

200

300

400

500

600

700

800

900

1000

1994 1995 1996

thou

sand

dol

lars

RevenueNew contracts awardedBacklog at end of year

Rapid increase brought by new contracts in 1995 Potential future profit

Management Change & DirectionManagement Change & Direction

Focusing on strengthening construction business

Targeting complex construction projects in the world

Goals to improve profitability, increase operating margins, maintain a strong balance sheet, improve return on equity, secure quality backlog, enhance shareholder value

Other Qualitative ConsiderationsOther Qualitative Considerations Position company at location where excellent bidding opportunities are available Maintaining its strong presence on the West Coast and at the same time expanding its market domestically and internationally Especially focusing on the East Coast and southeast Asia market, and established a new office in Boston and Manila respectively

Other Qualitative ConsiderationsOther Qualitative Considerations Southeast Asia market has a prospect for

success (high profitability)

-150%

-100%

-50%

0%

50%

1994 1995 1996

Gro

ss P

rofit

Mar

gin

USACanadaAsiaOthers

Other Qualitative ConsiderationsOther Qualitative Considerations Southeast Asia market has a prospect for

success (high profitability and high efficiency)

Strategy of Atkinson is rationalStrategy of Atkinson is rational

0.0

1.0

2.0

3.0

4.0

5.0

1994 1995 1996

Ass

et U

tiliz

atio

n

USACanadaAsiaOthers