RISK ASSESSMENT PROGRAM Presented By John Quarrie MBA

RISK ASSESSMENT PROGRAM Presented By: John Quarrie, MBA, CPA, CMA Chief Operating Officer Con Cast Pipe Inc.

Pivotal Point Fiscal 2012 H&S Costs: WSIB H&S Premiums (5. 42%) = $616, 713 Workplace Injury Surcharges = $730, 682 Operating Asset Impairment = $486, 000 Total $1, 833, 395 Gross Sales of $18, 333, 950 Required to Fund H&S Costs 2

STRATEGIC PARTNERSHIP Gambit Contracted to Oversee the Risk Management Process 3

Audit Current State Gambit to Use Work. Well Framework: (1) H&S Policy: 40 / 50 (7) First Aid: 45 / 50 (2) Responsibilities: 10 / 100 (8) Inspections: 35 / 125 (3) Communications: 80 / 100 (9) Maintenance: 85 / 100 0 / 200 (10) Investigations: 25 / 50 (4) Standards: (5) JHSC: 10 / 50 (11) Management: 15 / 95 (6) Training: 30 / 60 (12) Return to Work: 80 / 110 Overall Performance Grade 34% - Work. Well Passing Grade 75% 4

Risk Assessment Process Begins Management, Supervision and JHSC increase competency by participating in a 2 day classroom event on hazard recognition, risk assessment and control training. 5

Risk Assessment Teams Front line management and hourly employee teams are formed to review all manufacturing activities and related processes. 6

Risk Assessment Tools Over 200 processes were reviewed and documented onto the Hazard Assessment Forms. A Risk Assessment Tool aided the assessment teams with hazard risk ratings and priority setting. 7

Team Responsibilities • The Risk Management Teams identified the need for professional assistance from strategic partners in the areas of Machine Guarding, Industrial Hygiene, and Electrical Safety. • Contracted professionals generated comprehensive reports that identified deficiencies, assigned risk levels, and included recommendations to correct hazards. 8

Machine Guarding Team A Machine Guarding Team was created consisting of a strategic engineering partner, 2 Millwrights, and an Electrician to correct all machine guarding deficiencies. 9

Project Management • A Risk Register was created to list all of the potential hazards, the associated risks and respective ratings by priority before and after the implementation of controls. • The Register provided a risk management history that systematically tracked the responsibilities and progress with risk control implementations. 10

Standardization All work practices are standardized and front line employees trained using Visual Safety Boards at work stations featuring Safe Work Instructions, Lockout Procedures, PPE, and Entrapment Procedures. 11

Present State Work. Well 2014 Audit Score: (1) H&S Policy: 45 / 50 (7) First Aid: (2) Responsibilities: 80 / 100 (8) Inspections: 105 / 125 (3) Communications: 90 / 100 (9) Maintenance: 85 / 100 (4) Standards: 170 / 200 (10) Investigations: 45 / 50 (5) JHSC: 40 / 50 (11) Management: 75 / 95 (6) Training: 50 / 60 (12) Return to Work: 95 / 110 Overall Performance Grade 84% - 45 / 50 Work. Well Passing Grade 75% Oakville Operation LTI Free for 476 Days - Guelph Operation LTI Free for 380 Days 12

RMP Improves Bottom Line Fiscal 2014 H&S Costs: WSIB H&S Premiums (5. 42%) = $676, 118 Workplace Injury Surcharges = $ 72, 988 Operating Asset Impairment = $116, 000 Total $865, 106 Annual H&S Costs are reduced by $968, 289 Gross Sales Funding Pressure is Reduced by $9, 682, 890 13