SNC-Lavalin provides an update on commitments made over the past two years to improve ethics and compliance following challenges to its reputation. It summarizes initiatives undertaken, including implementing board recommendations, cooperating with authorities, renewing board and management, and focusing on growth sectors. SNC-Lavalin states it has delivered on promises and established checks and balances. It hopes to regain opportunity to bid on projects in Quebec and maintain its relationship with the province, where its expertise remains unchallenged and is needed. With a renewed team, SNC-Lavalin is ready to serve Quebec again.

1. SNC-LAVALIN’S
COMMITMENT TO YOu
Over the past two years, we at SNC-Lavalin have lived through the greatest challenges of
our 102-year history. A year ago, we published an open letter to the people of Quebec in the
province’s major newspapers. In it, we listed the various initiatives we were undertaking to
become a world leader in ethics and compliance. Today, we want to report on our program.
We have lived up to our word.
Last year, we made a commitment to:
Implement the corrective measures
pertaining to ethics and compliance recommended
by the Board of Directors. For example:
Cooperate with authorities. For example:
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Cooperating with authorities and governing
bodies on a continual basis.
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Reaching a settlement agreement with the
World Bank Group.
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Producing an Anti-Corruption Manual.
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Distributing a Business Partners Policy.
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Creating a dedicated Ethics and Compliance team.
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Appointing compliance officers in all of the company’s
business units and regional offices worldwide.
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Reinforcing the Code of Ethics and the
Whistleblower Policy.
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Offering compliance training.
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Reinforcing internal controls and procedures.
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Selling a portion of our infrastructure concessions.
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Creating an Amnesty program to uncover
any other potential issues.
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Restructuring our activities.
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Replacing most of the members of our upper management.
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Reducing selling, general and administrative expenses.
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Focusing on growth in our resource sectors
(oil and gas, mining and metallurgy, environment
and water).
Renew the Board of Directors. For example:
››
Appointing new Board members
at the Annual General Meeting on May 2, 2013.
Present a new strategic plan for the company.
For example:
Today, we want to tell you that we have honoured each of these commitments.
SNC-Lavalin has established checks and balances to ensure that actions like those that tarnished its reputation do not happen again.
We have delivered on our promise. And we are continuing our transformation journey.
We believe it is time to look toward the future and we hope you agree. Here’s why:
First, SNC-Lavalin wishes to once again have the opportunity to bid on major projects in Quebec. This wish is shared by our thousands of
employees, their families, our partners, our clients and our investors. Allowing local firms to compete for contracts on large-scale projects,
such as the Turcot Interchange and the Champlain Bridge, will benefit the entire Quebec economy by ensuring that high-quality jobs are
kept in the province.
Second, the fact that the government and the people of Quebec want compensation, in light of the allegations facing consulting-engineering
firms, is perfectly legitimate. SNC-Lavalin is committed to doing whatever it takes to reach an agreement that is all-encompassing, final
and fair, and that would allow us to move on.
It is important to remember that, despite everything that has been said about SNC-Lavalin, our company’s world-class expertise has never
been called into question. Our ability to build structures that contribute to the development of our communities remains unchallenged.
This is thanks to the talent of our 34,000 employees worldwide, of which 6,000 are in Quebec. The Maison symphonique de Montréal, the
northern Montreal metro extension, the Restigouche Hospital Centre for psychiatric care in New Brunswick, Highway 407 in Ontario, and
the Confederation Line in Ottawa are just some of SNC-Lavalin’s achievements. Achievements we are proud of. Achievements we believe
have improved the quality life of many Quebecers and Canadians.
SNC-Lavalin wants and needs to maintain its strong relationship with the Province of Quebec,
where the company was founded more than 100 years ago.
Quebec needs the expertise of SNC-Lavalin.
With a renewed management team, SNC-Lavalin is ready to serve the people of Quebec once again.
Ian A. Bourne, Chairman of the Board
Robert G. Card, President and CEO
To learn more about the improvements we are making, please check out our “Follow Us” page at:
www.snclavalin.com/followus