Ocean Newsletter - Summer 2017 - n°17

NO 17

SUMMER2017

Newsletter

IN THIS EDITION EDITORIAL

Ocean celebrates its 45th anniversary

CORPORATE OBJECTIVES 2016-2017 LEADERSHIP DEVELOPMENT PROGRAM NCR - NAVAL CONSTRUCTION AND REPAIR OTN - TOWING AND NAVIGATION MWD - MARINE WORKS AND DREDGING PRACTICAL INFORMATION

Health, safety and Environment

OUR WORLD - NEWS

NEW FORMAT THE QUARTERLY NEWSLETTER IS DESIGNED IN THE 45TH’S COLOURS. COME AND DISCOVER IT! ENJOY YOUR READING!

POWERED BY OUR 45TH ANNIVERSARY When Gordon Bain, President and founder of Ocean, founded Aqua-Marine, a company specializing in underwater work, in May 1972, his project was ambitious! Passionate about diving, he had a great dream: the creation of an integrated maritime services company, rock solid; an inclusive company offering superior service to its customers throughout the St. Lawrence River and the Great Lakes. Today, 45 years later, we can say in all humility: Great success!

If you have any comments or suggestions for improving our newsletter, please let us know!

Contact: communications@groupocean.com

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OCEAN CELEBRATES ITS 45TH ANNIVERSARY It was with pleasure that we celebrated, on June 7, from the City of Québec to SeptÎles, including Isle-aux-Coudres and Montréal, Ocean’s 45th anniversary. This event was also the opportunity to unveil our new brand image and our new slogan GO FULL POWER. This reaffirms our commitment to move forward and our commitment to be a world-class company and a valuable and trusted business partner for our customers.

With the addition of an anniversary image and new slogan, the new version of the OCEAN logo takes on a new, simple and well-defined form, in the image of the strength of Ocean Group (GO).

This event was also an opportunity for management to thank you for making Ocean, the business it is today.

Jacques Tanguay, Chief Executive Officer of Ocean, shared a few words with us: «Over the years, we have developed enviable expertise with positive impact in many industries and the Canadian economy. This positioning gives us a leading position and reinforces the goal of positioning ourselves as a world-class player.»

In 2012, at our 40 anniversary, Ocean already had 650 employees. Since then, nearly 200 new colleagues have joined our team. And as Gordon Bain, President and founder of Ocean, likes to emphasize: You are our most precious capital! th

We look to the future with strength and determination. We will continue to seize all opportunities to strengthen our offer of services in our territory and abroad. Our latest acquisition, the three tugs from Svitzer, supports our approach and allows us to strengthen our positioning. Our well-known knowledge, expertise and optimism will enable us to forge the future in our own way, in the Ocean way!

From left to right

JEAN-PHILIPPE BRUNET EXECUTIVE VICE PRESIDENT CORPORATE AND LEGAL AFFAIRS

JEAN-FRANÇOIS DION GENERAL MANAGER – TOWING AND NAVIGATION

JACQUES TANGUAY CHIEF EXECUTIVE OFFICER

FRANÇOIS LESSARD GENERAL MANAGER – MARINE WORKS AND DREDGING

Thank you all to stay on course, a firm hand on the helm, always together, and in the same direction: GO FULL POWER!

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A WORLD-CLASS ORGANISATION

CORPORATE OBJECTIVES 2016-2017 To continue growing and pursue the work undertaken, making Ocean Group a worldclass player, we have set ambitious targets for this year but nevertheless necessary for our growth.

To achieve this, we want to focus on three areas: • Growth of our business • Increasing our organizational effectiveness by applying sound cost management and the control of the productivity of our operations • Strengthen our corporate culture, in order to encourage excellence and accountability in our management practices

GROWTH OF OUR ACTIVITIES First, we intend to continue to pursue the growth of our activities through each of our business units.

We must protect our leadership in all our markets.

The turning point initiated last year at the level of the “Customer experience” policy takes on all its significance. More than ever, we must stand out in the excellence of our services, every time we are in contact with our customers to demonstrate our ability to innovate, our know-how and our excellence.

The key to our success lies in our ability to get closer to our customers in order to better understand their needs and influence them positively in the development of solutions where we can demonstrate our full value.

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YVES LAGACÉ EXECUTIVE VICE PRESIDENT FINANCES AND PROCUREMENT

More specifically, we have seen several opportunities for growth in our various business sectors this year:

SHIPBUILDING AND REPAIR • • •

The awarding of federal government contracts for the construction and renovation of Coast Guard and Royal Navy vessels The relaunching of our operations at the New Brunswick Naval Center in Bas-Caraquet The promotion of our expertise in shipbuilding and repair in the fishing and aquaculture industry

MARINE WORKS AND DREDGING • •

The renewal of the maintenance contract for the “Traverse du Nord” The strengthening of our presence in the Caribbean thanks to our offer of integrated services

TOWING AND NAVIGATION •

The promotion of our turnkey harbour towing solutions

INCREASE OUR ORGANIZATIONAL EFFICIENCY Secondly, this growth will enable us to realize our ambitions insofar as we will continue to generate a healthy profitability in order to finance our future investment projects. To achieve this, we intend to fully capitalize on the significant efforts to implement our new Integrated Management System (SAP). We believe that the benefits of this investment are twofold: •

First, in terms of organizational effectiveness, we must take advantage of this tremendous opportunity that invites us to review our ways of doing things and incorporate the best management practices and increase productivity.

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Then, from an informational point of view, we anticipate that we may eventually benefit from a greater ability to plan and control our activities in order to increase profitability.

STRENGTHENING OUR BUSINESS CULTURE Finally, we want to strengthen Ocean’s organizational culture by capitalizing on what characterizes us and constituting our DNA, that being our entrepreneurial spirit, our ability to innovate and our great agility, but also by developing more the responsibility of our managers and tight management.

So we will work on two levels. First, by supporting our managers with an adapted training program and then, by enhancing our management systems to better equip them (performance evaluation, budget management, etc.).

IMPROVING OUR PERFORMANCE APPRAISAL MANAGEMENT SYSTEM

As part of our corporate goals of, among other things, increasing our organizational effectiveness and strengthening our corporate culture, improvements to our performance appraisal management system (GAP) are forthcoming.

These changes will come into effect in the upcoming evaluations in September for the period ending in August. They will simplify the current process while making the system even easier and more transparent.

The GAP form will now be on a single page. It will give managers greater leeway in evaluating employee performance by providing, in addition to the five ratings, an overall rating. The meetings will also be much more focused on an exchange between the employee and his/her manager in order to create a true climate of dialogue.

Over the next few weeks, the human resources team will be trained on the new tools and the new process of performance appraisal. Then, the managers who will keep their teams informed of improvements.

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LEADERSHIP DEVELOPMENT PROGRAM On April 26, the Leadership Development Program began. The management Ocean has at heart the progress of its employees. The company wants to invest in the development of its managers by increasing their awareness of the importance of effective leadership to inspire and engage employees.

Why develop our leaders? According to a Gallup poll, the quality of managers has a significant effect on the level of employee engagement.

A high level of employee engagement has a direct impact on the customer experience and business results: • • • • • • •

Reduced absenteeism Reduced staff turnover Improved quality Decreased OHS incidents Increased customer satisfaction Increased productivity Increased profitability

Approximately 30 managers with supervised staff in the operations of our three sectors of activity, were chosen to be part of it. The course, developed internally by the Corporate Human Resources Department, will take place over a one-year period. The best practices in leadership development were chosen to ensure the success of this program.

We wish success to all participants!

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JULIE BÉGIN PRINCIPAL ADVISOR ORGANIZATIONAL DEVELOPMENT CORPORATE HR

NCR - NAVAL CONSTRUCTION AND REPAIR FLOATING DRYDOCK: The first section of the floating drydock

is currently being built at Ocean New Brunswick. This major project is completed by more than 34%. We are building the central section of 1,555 tons (200 ‘long X 120’ wide x 40` high). Launching is scheduled for June 2018. The drydock will be towed to the port of Québec where it will be put into operation.

Naval Repair CCGS DES GROSEILLIERS - Canadian Coast Guard Icebreaker

SIMEC BARGES: The construction of the Simec barges is

progressing. In mid-July, the first barge will be delivered to our customer in the City of Québec. We will then do additional work at the client’s request. the one for Newfoundland and Labrador has a 46% advance, with delivery scheduled for mid-September.

ELLICOTT DREDGES: The construction of the dredge modules

for the American company Ellicott Dredges is progressing well. NIR is completing the assembly of the “transport piles” and the finishing work of the control room is in progress.

To finalize the operations, finishing work on the hydraulic and electrical parts will be carried out in the coming weeks.

BAIE-COMEAU CRUISES: A new customer for RNI. Baie-

Comeau Cruises has ordered three 20-foot container modules that can be converted into a waiting room, a stage and a welcome kiosk. The modules will be delivered in late July to accommodate cruise passengers in September.

FULMAR - Former trawler reassigned as a public service patrol boat by the French Navy.

DESGAGNÉS BARGE: Transport Desgagnés has entrusted

us with the construction of a 104-foot barge that will be used for longshoring for Northern Quebec. This barge aims to replace the current 56-foot series and opens up opportunities for the construction of other 104-foot barges to be built within 2 to 3 years.

New construction SIMEC BARGES

FULMAR – NAVIRE DE LA MARINE NATIONALE FRANÇAISE: Ocean Industries recently won a four-year contract with the French Navy for the maintenance and repair of the Fulmar patrol vessel based in Saint-Pierre-et-Miquelon.

Emergency work has already been carried out during the month of May and the Fulmar will return to Isle-auxCoudres in September for four to six weeks to begin annual maintenance work.

DRYDOCK WORK: Fifteen drydock operations have taken place since September, more than half for external clients: the three STQ ferries, Armand-Imbeau, Joseph-Savard and Peter Fraser; Rio Tinto Fjord Eternity Tug, Fulmar, Cavalier Maxim of AML Cruises. A very good work of the teams.

FEDERAL CONTRACTS: NIR had a very busy spring with

several contracts from Fisheries and Oceans Canada. The CCGS PIERRE RADISSON is the most important with the life extension work (ELV) of the federal program. A lot of work has also been done on the CCGS AMUNDSEN and the CCGS DES GROSEILLERS in addition to six small boats in Sorel. NIR also provides support to FOC for the engine repair of the CCGS MARTHA L. BLACK.

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OTN - TOWING AND NAVIGATION

TOWING OF THE CANADIAN ROYAL NAVY NAVAL TANKER (AOR) - ACCOMMODATION BLOCK

SARNIA: Following the start of operations in Goderich, TOWING OPERATIONS IN BAIE-COMEAU: Since January 1st, Ontario, and the signing of several service agreements, the Hamilton team confirmed a need for harbour towing services in Sarnia. When the opportunity occurred during the mobilization of dredging equipment in Sarnia in the fall of 2016, the Towing team was able to use the tug ESCORTE to bring equipment from Québec to Sarnia. At the end of the dredging operations, ESCORTE was maintained in Sarnia where we continue to provide harbour towing services.

2017, Océan Remorquage Côte-Nord (ORCN) has put all its expertise and know-how in the management of crews and harbour towing operations for our client Cargill, which operates the tugboat Pointe-Comeau at its Baie-Comeau terminal. Operations include assistance to vessels for loading and unloading of Cargill grain and vessels berthing at the Baie-Comeau federal wharf and Alcoa aluminum wharf.

PORT-CARTIER: On June 15, 2017, ArcelorMittal Infrastructure NEW PILOTAGE STATION IN POINTE-DES-ORMES: The move to Canada s.e.n.c (AMIC) announced the termination of its towing operations at its port of Port-Cartier. Following the confirmation of the call for tenders, towing activities will now be carried out by Océan Remorquage Côte-Nord and will begin on October 1st, 2017 with two 30-m ASD tugs, 60 TBP.

DAVIE MANEUVER: On May 1st, the Resolve military supply

ship moved into the final stage of construction with the arrival, under good escort of the Ocean tugs, of the accommodation block. The Ocean Remorquage Québec team is proud to have contributed to the success of this impressive maneuver! Construction of the Royal Canadian Navy’s next Supply Ship (AOR) is entering its final phase and will be celebrated at an Open House event: Inaugural Ceremony of the Resolve Class AOR - July 20 at 2:00 pm at Davie Shipyard davie.ca/en/canada150/

HEBRON PROJECT: The towing of the HEBRON Offshore

Drilling gravity platform on its site 350 miles east of Newfoundland and Labrador is the end of a major contract for KKC / Exxon for which Ocean was a major partner. From 2013 to 2017, no fewer than five tugboats and thirty Ocean barges have been working at the Bull Arm site. More than 10,000 maneuvers were carried out without any major accidents. We have distinguished ourselves to the very end by the quality of our equipment, our personnel having been the only one to travel in the Bay during the severe ice conditions but also by our ice management during the exit of Trinity Bay. Very good work by the teams.

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the new pilot house in Pointe-des-Ormes was originally planned for the week of April 24-28. With the high level of the river, the move was postponed to May 23. The official inauguration took place on Tuesday, June 27, when more than 70 guests participated in the event.

HEBRON PLATFORM OUTPUT

MWD - MARINE WORKS AND DREDGING EQUIPMENT RENTAL

CHAMPLAIN BRIDGE

PORT-DANIEL: Hamel Construction’s marine equipment

rental contract for the construction of the McInnis Cement Plant in Port-Daniel began in June 2014 and ended in May. The ECHO II towed the Pugwash barge from the Port-Daniel shipyard to Trois-Rivières. The BOAT II service tug was returned to Québec in early June and the tug RF GRANT will do so in the coming weeks.

CHAMPLAIN BRIDGE: More than 130 sectional barges, nine

river barges and 15 working boats are rented to various contractors involved in the inspection and maintenance of the existing Champlain Bridge and the construction of the new bridge. We continue to submit proposals for the hiring of barges to meet the growing needs for storage and transportation of parts. The end of the year 2017 promises to be busy!

SUNCOR: The contract to rent workboats to break ice in

oil sands ponds at Suncor’s Fort McMurray oil facility was completed in April. Some of the boats are stored in Alberta for a possible renewal of contract for the next winter season. The MWD and NCR estimation teams have recently submitted an offer of services that has been received with interest by the client.

SUCCION DREDGING IN THE CARIBBEAN

MECHANICAL DREDGING ALCOA : A very big project where, once again, the creativity

of MWD was put to contribution. The project, which will run until the fall, consists of the construction of an immense submarine filter in the bay of Alcoa. Once construction is complete, contaminated sediment will be dredged and stored behind the filter. The construction of this huge filter represents a technical challenge for the teams present and, after a slow start, production is proceeding well.

The installation of a temporary docking berth, loading ramps, new buckets, crew transfer dock and ultra-precise positioning systems are completed in synergy with the Ocean teams. There are still some mobilizations to be done and dredging should start in the next few weeks.

JAN DE NUL: The biggest project in the history of Ocean

SUCCION DREDGING DREDGING CONTRACT IN THE CARIBBEAN: After a late

departure of the Ocean Traverse Nord dredge in February, and a one-month stop in the Bahamas, Ocean Dredging DS was awarded three projects in the Caribbean. Two projects took place in the Dominican Republic over a period of about two weeks in April and another project took place in May in Kingston, Jamaica, the latter becoming the fifth country where the dredge has worked.

Dredging DM is over. This large-scale project mobilized a very large number of personnel and equipment on a project that lasted over one year. The project consisted of constructing underwater trenches to receive an electricity cable in the Northumberland Strait. The teams then participated in the installation of stones to protect the cable from bad weather. The customer has repeatedly congratulated the teams on site for the quality and precision of the operations. The project allowed the teams to be part of an international project with Belgians (Jan De Nul), Koreans and Canadians.

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PRACTICAL INFORMATION HEALTH, SAFETY AND ENVIRONMENT A BEAUTIFUL GESTURE FOR OUR PLANET Management has validated the initiative of NCR’s Environmental Advisory Committee with plans to remove plastic disposable water bottles as of August 1st, 2017.

Employees will be provided with an Ocean water bottle that can be filled at various waterpoints.

SOME HIGHLIGHTS THAT HAVE LEAD TO THIS SUSTAINABLE AND RESPONSIBLE ENVIRONMENTAL SOLUTION: • Ocean consumes +/-50,000 bottles per year • It takes on average 3 to 6 liters of water to produce a 1-liter bottle • The production of this quantity of bottles alone requires 6,000 liters of oil • It is estimated that only 5% to 10% of plastic bottles are recycled in the world • 1,000 years: this is the time it takes for a buried water bottle to decompose

TRAINING | DO THE RIGHT THING During the past few months, trainings have been delivered to our operating staff to support them in their day-to-day operations and help them to do the right thing.

In particular, training and exercises were organized with the Quebec firefighters in the context of recovering a worker who fell in the water between a pontoon and a tug and also when a person falls into the bottom of a barge in confined space.

The objective was to improve our approach in the event of an incident involving the rescue of a person in distress and to see if the Ocean equipment currently available enabled us to do the proper actions and to be as operational as possible.

Very good trainings that allowed us to exchange on our practices and to see in real time how to proceed as efficiently and safely as possible.

ON COURSE TOWARDS MARINE EXPERTISE The CAP (Learning and Development Center) training team has offered several general and technical training courses throughout 2016 and 2017.

In collaboration with several internal and external trainers, over 1,500 qualifications have been added to the Ocean expertise since September 1st, 2016.

Other trainings are currently under development.

Visit the Intranet under the “CAP vers l’expertise” to find the next dates of the general trainings and the subjects covered.

Thank you all for your participation!

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OUR WORLD NEWS GRAND BAL MARITIME On May 19, the “Grand Bal Maritime 2017” was held at the Capitole in Québec, chaired by Mr. Jean St-Gelais, Chairman and Chief Executive Officer of the Capital Financial Group. A prestigious evening which welcomed, as guest of honor, our President and founder, Gordon Bain. A very nice recognition that emphasized the 45 years of existence of Ocean and the professional career of Mr. Bain. A pride for Ocean that was once again honored and rewarded by its peers.

This event was also an opportunity to raise funds to support the Parc des Navigateurs investment project and / or the Placements Culture matching grant program.

From left to right: Jean St-Gelais, Chairman and Chief Executive Officer of the Capital Financial Group - Renaud Beauchesne, Chairman of the Board of Directors of the Musée Maritime de Charlevoix - Gordon Bain - President and founder of Ocean

OCEAN AT THE HEART OF QUEBEC’S SUMMER ACTIVITIES Ocean makes a point of honor of supporting the regional activities of the Capitale-Nationale and the expertise of our Quebec maritime industries throughout the world. On this occasion, Ocean is proud to join and contribute to two major events that will punctuate the summer season in the City of Québec.

RENDEZ-VOUS 2017 TALL SHIPS REGATTA

N Organised by Sail Training International, in partnership with Québec City and in association

RDV 2017: In honor of the 150th anniversary of the Canadian Confederation 2017, more than 40 sailboats will sail on Canadian waters and will stop in some coastal cities, including Québec. Ocean will actively contribute to the coming of this large sailing race to be held from July 18 to 23, 2017 in Québec in the Louise Basin.

Do not miss this exceptional event and the arrival of these jewels of the seas. rdv2017.com/en

GRANDS FEUX LOTO-QUÉBEC: Once again this year, Ocean will take part in the organization of the Grands Feux Loto-Québec and will make available tugs, barges and the expertise of our teams for the organizers. The Grands Feux Loto-Québec will be held every Wednesday and Saturday from August 2 to 19. This year will also be punctuated by openair dances open to all. See their website for more information. lesgrandsfeux.com

with Le Rendez-vous Naval de Québec.

R Organisée par Sail Training International, en partenariat avec la Ville de Québec et en

association avec Le Rendez-vous Naval de Québec.

PT Organizada pela Sail Training International, em parceria com a Cidade de Québec e em

associação com o Le Rendez-vous Naval de Québec.

DESJARDINS ENTREPRENEURS AWARD Ocean was declared the national winner of the Prix Entrepreneurs in the growth category. The award was presented at a gala held at the National Museum of Fine Arts in Québec.

To have a chance at this national award, Ocean first won the title of regional winner for Eastern Québec sector last August.

For more information, see Jacques Tanguay on video produced by the Desjardins team as part of the Ocean nomination goo.gl/wt4C5A

From left to right: Nathalie Houle, Senior Vice President of the CPA Quebec Council, Gordon Bain and Jean-Philippe Brunet, respectively President and Executive Vice President of Ocean Group, and Jean-Yves Bourgeois, Vice President, Desjardins Capital Markets

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OUR WORLD NEWS “DÉFI ENTREPRISES” QUÉBEC JUNE 11 This year again, the “Défi Entreprises” was a real success.

More than 10,000 participants took up the challenges ranging from running and walking 5km and 10km to the BootCamp and Zumba activities. At the same time, the challenge of the steps to the Montmorency Falls took place.

Twenty-five people took off under the Ocean colors and joined the events that promote the development of healthy lifestyles.

The funds raised will be donated to various foundations, including the IUCPQ Foundation, whose role is to support and promote the work of the l’Institut universitaire de cardiologie et de pneumologie de Québec.

Congratulations to Ocean participants. We hope that you will be even more next year.

OCEAN GOLF - SEPTEMBER 23 The Ocean employee annual golf tournament will take place on Saturday, September 23 at the golf club Le StFerréol at 12:00 pm on a simultaneous start.

The event will bring together golf-friendly employees and their guests for a friendly tournament followed by a dinner.

Le St-Ferréol is an 18-hole natural golf course located 35 minutes from Québec.

It is accessible to all levels of golfers. Registration fees and terms will be communicated to you during the month of August by the organizing committee.

SOCIAL CLUB Your social club’s mission is to foster a rich social life in your workplace and contribute to the development of a sense of belonging. The committee plans many activities during the year that bring employees together outside the workplace.

In the past few months, your social club has organized a happy hour at the Pub du Vieux-Port, a family sugar shack activity in St-Nicolas and an outing at La Maison du Bootlegger. About fifty employees took part in these events.

This summer, other activities will punctuate the summer season and will allow you to enjoy warm and friendly time with Ocean colleagues. Stay tuned, you will be soon informed of the next activities in the Scoop. club.social@groupocean.com

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