#1Investor Presentation Fourth Quarter 2018 Scotiabank®#2CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, our public communications often include oral or written forward- looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2018 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "foresee," "forecast," "anticipate," "intend," "estimate," "plan," "goal," "project," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would" and "could." By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved. We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; changes to our credit ratings; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; disruptions in or attacks (including cyber-attacks) on the Bank's information technology, internet, network access, or other voice or data communications systems or services; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward- looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2018 Annual Report, as may be updated by quarterly reports. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2018 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf. Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. Scotiabank®#3TABLE OF CONTENTS Scotiabank Overview • • • • • Canada's International Bank Well-Diversified and Profitable Business Medium-Term Financial Objectives Why Invest in Scotiabank? Increasing Scale, Improving Focus Track Record of Earnings and Dividend Growth • Strong Capital Generation and Position • Progress in Digital Banking • Corporate Social Responsibility Appendix 1: Business Line and Financial Overview • 2018 Financial Performance • • Q4 2018 Financial Performance Canadian Banking International Banking • Global Banking and Markets • • Credit Performance by Business Lines Wholesale Funding Composition Appendix 2: Canadian Housing Market Appendix 3: Key Market Profiles Appendix 4: Energy Exposure Additional Information Contact Information 4 5 6 7 8 9 10 11 12 13 14 15 16 17 23 26 28 29 30 36 44 46 47 Scotiabank®#4Scotiabank Overview Scotiabank®#5Canada's International Bank Top 10 Bank in the Americas 1,2 Americas 7th largest bank by market capitalization¹ 8th largest bank by assets¹ Full-Service Canada Mexico . Peru • Chile Colombia Caribbean Uruguay Wholesale Operations USA UK Hong Kong Singapore Australia Ireland China • Brazil South Korea Malaysia India • Japan 2018 Bank of the Year Latin America and the Caribbean by LatinFinance Europe Change Scotiabank³ FY2018 Y/Y Revenue $28.8B +6% Net Income $9.1B +10% Return on Equity 14.9% +20bps Operating Leverage 3.7% +390bps Productivity Ratio 51.7% -190bps Total Assets $998B +9% Ranking by Market Share4 Canada 3 USMCA U.S.A. Top 10 Foreign Bank Asia PAC Mexico Peru Chile Colombia 6335 1 Source: Bloomberg 10/31/18; 2 By assets and market capitalization; 3 Figures adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions and amortization of intangibles related to current and past acquisitions; 4 Market share in loans as of September 2018 for PACs, as of July 2018 in Canada; 5 For the twelve months ended October 31, 2018; 6 Excluding Corporate adjustments LEADING BANK IN THE AMERICAS Earnings by Geography3,5,6 Other Americas Other 10% 7% PAC 21% Canada 55% 7% U.S.A Americas (90%) Scotiabank® 5#6Well-Diversified and Profitable Business Diversified by business and by country, creating stability and lowering risk Earnings by Business 1,2,3 Earnings by Country 1,2,3 Canadian Banking Wealth Global Banking and Markets 20% 9% International Banking 31% Canadian Banking 49% Canadian Banking P&C 40% Other International 10% Colombia Other Americas 1% 7% Chile 5% EARNINGS MIX Peru 8% $8.9B Canada 55% Mexico 7% U.S. 7% Adjusted Return on Equity1 by Division 23.0% 15.8% 16.0% 14.9% Canadian Banking International Banking Global Banking and Markets All Bank 1 For the twelve months ended October 31, 2018; 2 Figures adjusted for Acquisition-related costs, including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions and amortization of intangibles related to current and past acquisitions; 3 Excluding Corporate adjustments GREATER SCALE, GREATER FOCUS 6 Scotiabank®#7Medium-Term Financial Objectives¹ 2018 results met or exceeded medium-term objectives METRICS OBJECTIVES FY2018 RESULTS2 (Y/Y Change) ALL BANK EPS Growth 7%+ +9% ROE 14%+ 14.9% Operating Leverage Positive 3.7% Capital Strong Levels 11.1% OTHER FINANCIAL OBJECTIVES Dividend Payout Ratio 40%-50% 47.7% CANADIAN BANKING Net Income Growth 7%+ +8% Productivity Ratio <49% (by 2020) 49.3% INTERNATIONAL BANKING Net Income Growth³ 9%+ Productivity Ratio <51% (by 2020) +16% 52.4% 13-5 year objectives. 2Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18; 3On a constant dollar basis Scotiabank® 7#8Why Invest in Scotiabank? ☑ Canada's international bank and a top 10 bank in the Americas Diversified exposure to high quality growth markets Increasing scale and market share in key markets Improving quality of earnings while reducing risk profile • • Unique footprint that provides sustainable and growing earnings and dividends Strong balance sheet, capital and liquidity ratios • Attractive dividend yield and long-term shareholder returns . Leading bank in the Pacific Alliance growth markets of Mexico, Peru, Chile and Colombia - a region of 230 million people with an under-banked market and a median age of 29 Earnings momentum in personal & commercial, wealth, and wholesale businesses Gaining market share in key markets of Canada and the Pacific Alliance countries Top 3 bank in Canada, Chile and Peru Increasing scale in Wealth and Pacific Alliance with $7B of strategic acquisitions in 2018 Approximately 80% of earnings from core personal and commercial banking businesses • Exited over 20 non-core countries and businesses since 2014 • Strong Canadian risk management culture – building stronger capabilities for AML, cyber and reputational risk Enhancing competitive advantage in technology and talent Leading levels of technology investment supports digital banking strategy. Increasing digital sales adoption with clear targets Well positioned in the Pacific Alliance to leverage technology, risk management and funding versus local and global competitors • Named to Top 25 "World's Best Workplaces" (2018) 8 Scotiabank®#9Increasing Scale, Improving Focus1 Gaining scale in key markets to drive earnings growth, improve earnings quality and reduce risk Gaining Market Share (Total Loans) Canada 2013 2018 0 2 4 6 8 10 12 14 16 18 20 Increasing Scale with Strategic Acquisitions (2017-2019) MD Canada Chile MD Financial Management JARISLOWSKY FRASER GLOBAL INVESTMENT MANAGEMENT BBVA Increases wealth management assets to $230B. Adds 110,000 potential primary customers. Doubles market share. Creates 3rd largest bank. Mexico Chile Peru Colombia Peru banco cencosud Creates #2 bank in credit cards. Colombia Citibank Creates market leader in credit cards. Dominican Republic Doubles customer base. Creates 4th largest bank. PROGRESO... Improving Earnings Quality $ Increased wealth AUM by 37% to $282B in 2018. Targeting earnings contribution to All-Bank earnings from Reduced contribution of trading to All-Bank revenue from 7.5% to 4.9% Reducing Risk Profile 57 countries 2013 38 countries 2018 Between 2013 and 2018, exited 19 countries with either low returns, small scale or higher operational risk: Turkey Russia • Haiti ⚫ Egypt Taiwan UAE ⚫ plus 13 others • • Exited 3 non-core businesses • Reduced wholesale funding (% of assets) from 29.6% to 23.4% • Reduced asset exposure in Asia by 21% 12% to 15% 15-year period 2013-2018 INCREASING SCALE, IMPROVING FOCUS 9 Scotiabank®#10Strong Track Record of Earnings and Dividend Growth Stable and predictable earnings with steady increases in dividends Earnings per share (C$)1.2 Total shareholder return³ $3.05 +9% CAGR $7.11 III Scotiabank Big 5 peers (ex. Scotiabank) 13.2% 11.1% 11.8% 12.0% 10.4% 6.6% 08 09 10 11 12 13 14 15 16 17 18 5 Year 10 Years 20 Years Dividend per share (C$) $1.92 08 09 +6% CAGR $3.28 10 11 12 13 14 15 16 17 18 1 Reflects adoption of IFRS in Fiscal 2011 2 Excludes notable items for years prior to 2016. For 2016 onwards, results adjusted for acquisition-related costs including Day 1 PCL impact on acquired performing loans, integration and amortization costs related to current acquisitions and amortization of intangibles related to current and past acquisitions. 3 As of October 31, 2018 INCREASING SCALE, IMPROVING FOCUS Scotiabank® 10 10#11Strong Capital Generation and Position Capital levels are well above minimum regulatory requirements. Expect CET1 stay above 11%. CET1 Ratio 11.2% 11.4% +33 bps +14 bps -65 bps 11.1% +10 bps -10 bps +1 bp Q3/18 Internal Capital RWA Impact Generation (ex. FX) Impact of Acquisitions Share issuance / (buybacks) (net) Other Including FX Q4/18 Impact of Announced Dispositions Q4/18 Pro- Forma Strong Capital Levels 14.9% 1.8% 1.6% 15.3% 14.6% 14.5% 14.3% 1.8% 1.9% 1.7% 1.5% 1.5% 1.4% 1.8% 1.4% 12.0% 11.5% 11.2% 11.4% 11.1% Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 CET1 Tier 1 Tier 2 Scotiabank® 11#12Progress in Digital Banking Progressing well against 2018 Investor Day digital targets Digital Retail Sales +11% 15 11 22 22 Digital Adoption +7% 26 29 29 33 33 In-Branch Financial Transactions -6% 26 23 20 F2016 F2017 F2018 F2016 F2017 F2018 F2016 F2017 F2018 Goal >50% Goal >70% Goal <10% • Solid progress made in all five key markets across various product suites including deposits, personal loans, insurance, etc. • Digitally-active users up over 30% in Mexico, Colombia and Peru. High single digit growth in Canada and Chile • Mobile transactions up over 30% in Canadian Banking, while in-branch transactions declined 6% Scotiabank® 12 12#13Corporate Social Responsibility Our Priorities Financial Knowledge Access to Finance 698 Diversity and Inclusion Investing in Young People Responsible Financing Climate Change Maintaining Trust 900,000 Canadian students participated in Talk With Our Kids About Money day in 2018 34% women in leadership positions (VP+) globally in 2018 Named as a Top 100 Company in 2018 by Thomson Reuters Diversity & Inclusion index Our Achievements $80 Million in donations globally in 2018 to support the communities we operate in Joint Lead Manager on $1 Billion World Bank Sustainable Development Bond to support women and youth Internal Carbon Price set at $15/tonne COz reinvested in energy efficiency initiatives Achieved recognition on the 2018 Dow Jones Sustainability Index North America Our Ability MEMBERSHIPS & ASSOCIATIONS MEMBER OF Dow Jones Sustainability Indices In Collaboration with RobecoSAM CDP DRIVING SUSTAINABLE ECONOMIES TCFD TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES COMPACT THE GLOBAL CP LC United Nations Global Compact EQUATOR PRINCIPLES CARBON PRICING LEADERSHIP COALITION FINANCE UNEP INITIATIVE We have financial expertise 97,000+ employees We have the reach We have the resources 25 Million+ customers around the globe $998 Billion in assets EURONEXT vigeoiris INDICES WORLD 120 Scotiabank® 13 33#14Appendix 1: Business Line and Financial Overview Scotiabank®#152018 Y/Y 2018 Financial Performance Strong adjusted earnings growth with positive operating leverage and productivity gains $MM, except EPS Reported YEAR-OVER-YEAR HIGHLIGHTS Net Income $8,724 +6% Diluted EPS $6.82 +5% . Adjusted Net Income up 10%³ Revenue $28,775 +6% • Expenses $15,058 +3% Productivity Ratio 52.3% (160bps) Core Banking Margin 2.46% PCL Ratio 1, 2 48bps +3bps PCL Ratio on Impaired Loans 1, 2 Adjusted³ 43bps (2bps) . Net Income $9,144 +10% Diluted EPS $7.11 +9% Expenses Productivity Ratio $14,871 51.7% +2% (190bps) Revenue up 6% 。 Net interest income up 8% 。 Non-interest income up 4% Expense growth of 2%3 Productivity ratio improved 190 bps³ ⚫ Full year operating leverage of +3.7%³ PCL Ratio 1, 2 41bps (4bps) • Improved PCL ratio on impaired loans 1, 2 ADJUSTED NET INCOME³ BY BUSINESS SEGMENT ($MM) +8% Y/Y 4,090 4,416 Canadian Banking +16% Y/Y -3% Y/Y 1,818 1,758 2,424 2,819 International Banking Global Banking and Markets ■ 2017 ■ 2018 12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 Scotiabank® 15#16Q4 2018 Financial Performance Strong revenue growth and higher NIM $MM, except EPS Q4/18 Y/Y Q/Q Reported Net Income $2,271 +10% +17% Diluted EPS $1.71 +4% +10% • Revenue $7,448 +9% +4% • Expenses $4,064 +11% +8% Productivity Ratio 54.6% +80bps +210bps Core Banking Margin 2.47% +3bps +1bp PCL Ratio 1,2 39bps (3bps) (30bps) PCL Ratio on Impaired Loans 1, 2 42bps +1bp Adjusted³ · Net Income $2,345 +13% +4% • Diluted EPS $1.77 +7% +1% Expenses $3,962 +9% +6% Productivity Ratio 53.2% (40bps) +140bps PCL Ratio 1, 2 39bps (3bps) (1bp) DIVIDENDS PER COMMON SHARE 0.03 0.03 0.79 0.79 0.82 0.82 0.85 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 ■ Announced Dividend Increase YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 13%³ Revenue up 9% 。 Net interest income up 10% 。 Non-interest income up 8% 3 Expenses up 9%³ Productivity ratio improved 40 bps³ Flat PCL ratio¹, 2 on impaired loans 12018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 2 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 Scotiabank® 16#17Canadian Banking Top 3 bank in personal & commercial banking, wealth and insurance in Canada • Canadian Banking provides a full suite of financial advice and banking solutions, supported by an excellent customer experience, to Retail, Small Business, Commercial Banking, and Wealth Management customers Retail 57% REVENUE MIX1 $3.4B Residential Mortgages 60% MEDIUM-TERM FINANCIAL OBJECTIVES Target 2018 Actual 2,3 AVERAGE LOAN MIX1 $340B Net Income Growth4 7%+ 8% Productivity Ratio5 <49% 49.3% CB ex Wealth <45% 46.0% 22% Wealth <65% 60.6% Personal Loan New Primary Customers +1MM +160,000 25% Credit Cards 18% 16% Wealth Commercial Business and Government Loans STRATEGIC OUTLOOK • • Improved productivity towards our 49% productivity ratio target (45% ex Wealth) by 2020 supported by higher revenue growth and mid-dingle digit expense growth. Integration of our recent acquisitions in Wealth: MD Financial Management ($49B AUM) and Jarislowsky Fraser ($40B AUM) • Leverage data analytics for prudent growth in higher margin credit card and small business banking • Increase core deposits; increase primary customers towards our 1 million new primary customer goal 1 For the three months ended October 31, 2018; 2 As at October 31, 2018; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18; 4 Attributable to equity holders of the Bank 5 3-5 year target. Scotiabank® 17#18Q4 2018 Canadian Banking Financial Performance Solid asset and deposit growth, margin expansion and positive operating leverage4 FINANCIAL PERFORMANCE AND METRICS ($MM)¹ Q4/18 Y/Y Q/Q Reported Revenue $3,443 +5% +2% Expenses $1,747 +7% +5% PCLS $198 (9%) +9% Net Income $1,115 +4% (1%) Productivity Ratio 50.7% +80bps +150bps Net Interest Margin 2.45% +4bps (1bp) PCL Ratio 2, 3 0.23% PCL Ratio on Impaired Loans², 3 0.22% (4bps) (5bps) +1bp +2bps Adjusted4 Expenses $1,705 +5% +4% · Net Income $1,146 Productivity Ratio +7% 49.5% (20bps) +70bps YEAR-OVER-YEAR HIGHLIGHTS Adjusted Net Income up 7%4 。 Asset and deposit growth, margin expansion Revenue up 5% 。 Net interest income up 6% Loan growth of 5% 。 Business loans up 13% 。 Residential mortgages up 3%; credit cards up 7% Deposit growth of 6% 。 Personal up 5%; Non-Personal up 7% • NIM up 4 bps 1,4 ADJUSTED NET INCOME ($MM) AND NIM (%) 2.41% 2.41% 2.43% 2.46% 2.45% . 1,073 1,107 1,022 1,141 1,146 • Q4/17 Q1/18 Q2/18 1 Attributable to equity holders of the Bank 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 Q3/18 Q4/18 • 。 Rising rate environment and improved business mix Expenses up 5%4 О Investments in technology and regulatory initiatives 。 Full-year productivity ratio improvement of 90bps4 Full-year operating leverage of +1.9%4 PCL ratio², 3 improved by 4 bps due to lower retail PCLs 3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures 4 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions Scotiabank® 18#19Canadian Banking: Retail Exposures High quality retail loan portfolio: ~92% secured • Residential mortgage portfolio is high quality 。 43% insured, and the remaining 57% uninsured has a LTV of 54%¹ • Market leader in auto loans 。 $37 billion auto loan portfolio with 7 OEM relationships (3 exclusive) o Prime Auto and Leases (~91%) 。 Lending terms have been declining with contractual terms averaging 77 months with effective terms averaging 54 months • Growth opportunity in credit cards o $7.3 billion credit card portfolio represents ~3% of domestic retail loan book and 1.3% of the Bank's total loan book Organic growth strategy focused on payments and deepening customer relationships 。 Upside potential from existing customers: ~80% of growth is from existing customers (penetration rate mid-30s versus peers in the low-40s) 。 Strong risk management culture with specialized credit card teams, customer analytics and collections focus 5% DOMESTIC RETAIL LOAN BOOK $286.2B 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data. Unsecured 3% Credit Cards 79% Real Estate Secured Lending -13% Automotive Scotiabank® 19#20Canadian Banking: Residential Mortgages High quality, diversified portfolio 。 Residential mortgage portfolio of $213 billion: 43% insured; LTV 54% on the uninsured book¹ • Mortgage business model is "originate to hold" • New originations2 had average LTV of 63% in Q4/18 • Majority is freehold properties; condominiums represent approximately 13% of the portfolio ○ Three distinct distribution channels: All adjudicated under the same standards 1. Broker (~55%); 2. Branch (~25%); and 3. Mobile Salesforce (-20%) CANADIAN MORTGAGE PORTFOLIO: $213B (SPOT BALANCES AS AT Q4/18, $B) $107.0 $12.2 Freehold $185B Condos $28B 43% Insured Total Portfolio: $213 billion $94.8 $38.6 $9.2 $30.7 $3.6 $15.9 $29.4 $27.1 $1.8 $14.1 $11.4 $11.2 $0.2 $9.5 $8.8 $0.7 57% Uninsured Ontario BC & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan % of 50% 18% 14% 8% 5% 5% portfolio 1 LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet HPI data 2 New originations defined as newly originated uninsured residential mortgages and have equity lines of credit, which include mortgages for purchases refinances with a request for additional funds and transfer from other financial institutions Scotiabank® 20 20#21Canadian Banking: Residential Mortgages (continued) High quality portfolio, lower originations in Vancouver and Toronto NEW ORIGINATIONS: UNINSURED LTV* DISTRIBUTION GVA 59% BC & Territories 61% Growth/Change Q4/17 Q3/18 Q4/18 Y/Y Canada Total Originations ($B) 12.9 11.9 10.5 -19% Uninsured LTV 64% 63% 63% -1% GTA Total Originations ($B) Uninsured LTV 3.9 3.6 3.2 -18% 63% 62% 62% -1% Prairies 67% ON 63% QC 65% Atlantic Provinces 69% GVA Total Originations ($B) Uninsured LTV 1.8 1.4 1.1 -39% 61% 60% 59% -2% *Average LTV ratios for our uninsured residential mortgages originated during the quarter FICO® DISTRIBUTION - CANADIAN UNINSURED PORTFOLIO Average FICO Canada Score 787 GTA 790 GVA 790 57% . 16% 11% 12% 4% < 635 636-706 707- - 747 748-788 > 788 FICO is a registered trademark of Fair Isaac Corporation • <0.65% of uninsured portfolio has a FICO® score of <620 and an LTV >65% Canadian uninsured mortgage portfolio is $121 billion as at Q4/2018 Scotiabank® 21 21#22Tangerine Canada's #1 Digital Bank Tangerine Forward Banking Industry-leading customer service (NPS) ⚫ 97% digital transactions • 96% digital on-boarding ⚫ 91% digital sales Conscious Self-Directed ~50% multiple-product clients Primary clients +23% Y/Y STRATEGIC FOCUS: • Simplicity Simple, market-leading products that appeal to value- conscious and tech-savvy Canadians • Seamless digital client experience Highly competitive rates, simple products Velocity Enhanced self-service options, adding speed & agility • Nimble, modern platform supporting rapid development cycles • Low cost, scalable business model Partnerships • Accelerating momentum through the Toronto Raptors 50% New Clients via Referrals • Deepening client relationships by introducing SCENE Loyalty Tech-Friendly • Strong partnership with Scotiabank Modern Platform Speed & Agility Client-Driven Innovation Unique 'Orange' Culture Award Winning Approach 90 Scalable: Nimble, low cost systems provide a holistic client view. Rapid Deployments: Agile best practices enable quick & efficient new product & feature delivery. Incubator: Identify, explore, and pilot new technologies and solutions to meet evolving Client needs. > Team Tangerine: Our unique culture and lean team are an essential part of how we deliver. Third-Party Recognition: J.D. Power Customer Satisfaction seven years in a row, Finovate "Best in Class" for digital experiences. Scotiabank® 22 22#23International Banking Leading diversified personal and commercial franchise in high quality growth markets • International Banking operates primarily in Latin America, the Caribbean and Central America with a full range of personal and commercial financial services, as well as wealth products and solutions C&CA Asia 6% 24% REVENUE1 $3.1B 70% Business 51% Loans MEDIUM-TERM FINANCIAL OBJECTIVES LOAN MIX1 6% $144B Target 2018 Actual 2,3 Credit Cards Latin America Net Income Growth4 9%+ 16% 16% Personal 27% 26% Mexico 23% Peru Loans Productivity Ratio5 <51% 52.4% 2% Residential Mortgages Brazil Latin America Operating Leverage Positive +3.1% 5% Uruguay 18% Colombia 26% Chile STRATEGIC OUTLOOK Integration of acquisitions in Chile and Colombia. Close announced acquisitions in Peru and Dominican Republic. • Closing of dispositions of non-core operations in smaller Caribbean markets. • Margins (NIM ~450 bps) and credit quality are expected to remain stable with the level in Q4/18. • Maintain positive operating leverage 1 For the 3 months ended October 31, 2018; 2 As at October 31, 2018; 3 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18; 4 Attributable to equity holders of the Bank. 5 3-5 year target. Scotiabank® 23#24Q4 2018 International Banking Financial Performance Strong performance in the Pacific Alliance supported by acquisitions 1,2 YEAR-OVER-YEAR HIGHLIGHTS2 FINANCIAL PERFORMANCE AND METRICS ($MM) Q4/18 Y/Y Q/Q Reported • Adjusted Net Income up 22% 6 Revenue $3,134 Expenses $1,721 +23% PCLS $412 Net Income $712 +22% +11% +15% +32% (45%) +18% +36% Productivity Ratio 54.9% +50bps +200bps Net Interest Margin 4.52% (15bps) (18bps) PCL Ratio 1.05% (9bps) (153bps) 。 Strong asset and deposit growth in Pacific Alliance o Includes impact of acquisitions and alignment of reporting period Revenues up 22% o Pacific Alliance up 28% PCL Ratio on Impaired Loans³, 4 Adjusted 1.20% +6bps (13bps) • Loans up 29% Expenses $1,661 +19% +14% o Pacific Alliance loans up 42% PCLs $412 +32% +14% • NIM down 15 bps Net Income $746 Productivity Ratio 53.0% PCL Ratio 3, 4, 6 1.05% +22% +6% (100bps) +130bps (9bps) (18bps) • ADJUSTED NET INCOME ($MM) AND NIM5 (%) 4.67% 4.66% 1,6 4.74% 4.70% 4.52% 613 675 683 715 746 Q4/17 • · Q1/18 Q2/18 Q3/18 Q4/18 。 Mainly driven by the business mix impact of acquisitions Expenses up 19%Ⓡ o Business volume growth, inflation and higher technology costs 。 Full year productivity ratio improvement of 150bps6 Full-year positive operating leverage of 3.1% PCL ratio3, 4, 6 down 9 bps Scotiabank® 1 Attributable to equity holders of the Bank 2 Y/Y and Q/Q growth rates (%) are on a constant dollars basis, while metrics and change in bps are on a reported basis 3 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 5 Net Interest Margin is on a reported basis 6 Adjusted for Acquisition-related costs, including integration and amortization costs related to current acquisitions, amortization of intangibles related to current and past acquisitions and the Day 1 PCL impact on acquired performing loans in Q3/18 4 Provision for credit losses on certain assets - loans, acceptances and off-balance sheet exposures 24 24#25Scotiabank in the Pacific Alliance Countries Well positioned for long-term growth in large, growing market Population 1,2 Government Presidential Elections Financial Stability Economy GDP1 Exports5 Trade Partners5 Business Environment HDI Score Rank6 Banking Penetration1 Foreign Direct Investment¹ Scotiabank Market Share7 Key Highlights of Pacific Alliance countries (PACS) 230 million. 6.2x Canada's population. Projected growth outpaces Canada and G7 countries; median age4 of 29 ⚫ No elections scheduled until 2021 All sovereign credit ratings in IG category with central banks' policy targeting inflation since 1999 9th largest economy in the world 64% of exports related to manufacturing US, China and Canada are the PACs' largest trading partners, representing 72% of exports • Rank "High" or "Very High" (United Nations, 2017) Under-banked with average banking penetration at ~50% compared to over 90% in Canada and the U.S. FDI averaging 3.2% of GDP compared to 1.7% in Canada and the U.S. PACs (Total11/Average) 11.3% 4th Market Share Ranking? Mexico 7.1% 6th Peru 18.2% 3rd Chile 13.8% 3rd Colombia 6.2% 5th Strengths Mortgages and Auto Commercial, Personal and Credit cards Commercial, Credit cards and Mortgages Retail and Credit Cards Well positioned Average Assets³(C$B) $32.3 $24.0 $32.9 $12.3 $101.5 Revenue³(C$B) $2.2 $2.0 $1.7 $1.3 $7.2 Net Income after NCI³,9 (C$B) $0.6 $0.7 $0.4 $0.1 $1.9 ROE 8,9 26% 24% 11% 6% 17% # of Employees 8,10 13,204 11,032 9,386 9,658 43,280 Scotiabank® 1 Source: World Bank 2017 2 Population growth: World Bank DataBank 2017-2022 3 EM countries include: Argentina, Brazil, China, Greece, India, Indonesia, Poland, South Africa, Turkey, and Russia 4 Source: The World Factbook, CIA 2017 5 Source: United Nation Conference on Trade and Development (UNCTAD) 2017; Organization for Economic Co- operation and Development (OECD) 2016 6 Human Development Index. Source: United Nations Development Programme (UNDP) 2017. For more information, please refer to: http://hdr.undp.org/sites/default/files/2018_human_development_statistical_update.pdf 7 Total loans market share as of September 2018 8 As of October 31, 2018 or for the fiscal year 2018 9 Earnings adjusted for acquisition-related costs including the Day 1 PCL on acquired performing loans, integration and amortization costs related to current acquisitions, and amortization of intangibles related to current and past acquisitions 10 Employees are reported on a full-time equivalent basis 11May not add due to rounding 25 25#26Global Banking and Markets Second-largest Canadian wholesale banking and capital markets business serving global clients ⚫ Full-service wholesale bank in Canada, the United States and Latin America. Offers a range of products and services in select markets in Europe, Asia and Australia. Canada Business Banking Canada Latin Other 41% 4% Latin America 40% 7% America 15% 57% Asia 5% REVENUE 1,2 $1.3B Global Equities 18% Asia 7% REVENUE1 $1.3B AVG ASSETS1,2 $338B 9% Europe 16% Europe 21% 30% US FICC 30% US STRATEGIC OUTLOOK Up-tiering lending relationships, expanding our Investment Banking capabilities in key markets, increasing our investment in the Pacific Alliance to become a leader in local and cross-border banking and capital markets • Continued strong growth in deposits, improved corporate lending and investment banking results to absorb required regulatory and technology investments ¹For the 3 months ended October 31, 2018; 2 Latin America revenue contribution and assets reported in International Banking's results Scotiabank® 26#27Q4 2018 Global Banking and Markets Financial Performance Solid loan growth, strong credit quality and lower productivity ratio FINANCIAL PERFORMANCE AND METRICS ($MM) YEAR-OVER-YEAR HIGHLIGHTS Q4/18 Y/Y Q/Q • Revenue $1,073 (1%) (3%) • Expenses $553 (3%) +2% PCLS ($20) N/A N/A Net Income Productivity Ratio $416 51.5% Net Interest Margin PCL Ratio², 3 (0.09%) +6% (6%) (80bps) +260bps 1.72% (16bps) (10bps) (13bps) (4bps) (1bp) • • PCL Ratio on Impaired Loans², 3 (0.07%) (11bps) 1 NET INCOME AND ROE Reported Net Income up 6% Loans up 7% o U.S. loans up 13% NIM down 16 bps 。 Mainly driven by lower deposit and lending margins Expenses down 3% Productivity ratio improved 80 bps PCL ratio², 3 improved by 13 bps o Impaired loan provision reversals in Europe 16.2% 14.9% 16.9% 15.6% 15.3% 447 441 454 416 391 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 1 Attributable to equity holders of the Bank 2 2018 amounts are based on IFRS 9. Prior period amounts were based on IAS 39 3 Provision for credit losses on certain assets-loans, acceptances and off-balance sheet exposures Scotiabank® 27 27#28Credit Performance by Business Lines Stable all-bank PCL ratios on impaired loans IAS 39 ¦ IFRS 9 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 (As a % of Average Net Loans & Acceptances) PCLs on PCLs on Impaired Impaired Loans Loans PCLs on PCLs on Total PCLs on Total Total Total Impaired Impaired PCLS Impaired PCLS PCLS PCLS Loans Loans (adj.) Loans | Canadian Banking Retail 0.30 0.29 0.28 0.28 0.28 0.25 0.24 0.25 0.25 I Commercial 0.07 I 0.11 0.08 0.09 0.09 (0.04) 0.06 0.06 0.15 Total 0.27 I 0.27 0.25 0.25 0.25 0.21 0.21 0.22 0.23 Total - Excluding Credit Mark 0.28 | N/A N/A N/A N/A N/A N/A N/A N/A Benefits I International Banking Retail 2.00 2.28 2.39 2.26 2.16 2.36 2.254 2.38 2.21 I Commercial 0.32 I 0.28 0.201 0.55 0.341 0.38 0.311,4 0.07 (0.06) Total 1.14 I 1.25² 1.261,2 1.382 1.221,2 1.33 1.234 1.20 1.05 Total Excluding Credit Mark 1.34 N/A N/A N/A N/A N/A N/A N/A N/A Benefits I I Global Banking and Markets 0.04 (0.01) (0.04) 0.02 (0.05) (0.06) (0.05) (0.07) (0.09) All Bank 0.42 0.43 0.42 0.46 0.42 0.41 0.40 0.42 0.39 1 Excludes provision for credit losses on debt securities and deposit with banks 2 Not comparable to prior periods, which were net of acquisition benefits 3 On an reported basis; includes impact of Day 1 PCLs from acquisitions 4 On an adjusted basis; adjusted for Day 1 PCLs from acquisitions Scotiabank® 28#29Wholesale Funding Composition Wholesale funding diversity by instrument and maturity1,6,7 36% Senior Notes 0% Bail-inable Notes 2% $25 Asset-Backed Commercial Paper³ 3% Asset-Backed Securities 13% Covered Bonds $233B 31% Bearer Deposit Notes, Commercial Paper & Short-Term Certificate 2% Deposits from Banks2 of Deposits -10% Mortgage Securitization4 3% Subordinated Debt5 MATURITY TABLE (EX-SUB DEBT) (CANADIAN DOLLAR EQUIVALENT, $B) $24 $22 $6 $4 $8 $19 $4 $3 $1 $16 $2 $13 $5 $18 $15 $14 $15 $14 $8 < 1 Year 2 Years 3 Years 4 Years 5 Years 5 Years Senior Debt ABS Covered Bonds 1 Excludes repo transactions and bankers acceptances, which are disclosed in the contractual maturities table in the MD&A of the Interim Consolidated Financial Statements. Amounts are based on remaining term to maturity. 2 Only includes commercial bank deposits raised by Group Treasury. 3 Excludes asset-backed commercial paper (ABCP) issued by certain ABCP conduits that are not consolidated for financial reporting purposes. 4 Represents residential mortgages funded through Canadian Federal Government agency sponsored programs. Funding accessed through such programs does not impact the funding capacity of the Bank in its own name. 5 Although subordinated debentures are a component of regulatory capital, they are included in this table in accordance with EDTF recommended disclosures. 6 As per Wholesale Funding Sources Table in MD&A. As of Q4/18 7 May not add to 100% due to rounding Scotiabank® 29 29#30Appendix 2: Canadian Housing Market Scotiabank®#31Canadian Household Credit Growth Moderating Public policy changes are moderating growth in household credit • Total household credit growing 4.4% in nominal terms in 2018, vs 2008 peak of 12% y/y Consumer loans excluding mortgages (cards, HELOCs, unsecured lines, auto loans, etc.) are growing 4.4% in 2018 vs >6% in late-2017 • Mortgage credit growing 4.4% year-to-date vs 2008 peak of 13% HOUSEHOLD CREDIT GROWTH CONSUMER LOAN GROWTH RESIDENTIAL MORTGAGE GROWTH 20 20 %, 3-month moving average %, 3-month moving average 18 15 yly % change 16 14 yly % change 12 10 5 8 20 %, 3-month moving average 18 16 y/y % 14 change 12 m/m% change, 10 SA 10 8 6 CO 6 st 4 2 0 m/m% change, SA 4 2 0 -5 0 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. m/m% change, SA 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Bank of Canada. Scotiabank® 31#32Housing Market Differences vs. U.S. Canada's housing market features distinct practices and policies Regulation and Taxation Product Underwriting Canada Mortgage interest not tax deductible Full recourse against borrowers in most provinces Foreclosure on non-performing mortgages - no stay periods Insurance Mandatory default insurance mortgages with LTV >80% CMHC backed by Government of Canada (AAA). Private insurers are 90% government backed o Insurance available for homes up to $1 million o Premium is payable upfront O Covers full amount for life of mortgage Homebuyers must qualify for mortgage insurance at an interest rate that is the greater of their contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate Re-financing cap of 80% LTV on non-insured mortgages Amortization Maximum 25-year amortization on mortgages with LTV > 80% Maximum 30-year amortization on conventional mortgages Down payment of > 20% required for non-owner occupied properties Conservative product offerings, fixed or variable rate options Much less reliance upon securitization and wholesale funding Asset-backed securities not subjected to US-style off-balance sheet leverage via special purpose vehicles • Terms usually 3 or 5 years, renewable at maturity Extensive documentation and strong standards U.S. • Tax-deductible mortgage interest creates incentive to borrow and delay repayment ⚫ Lenders have limited recourse in most states • 90-day to 1-year stay period to foreclose on non-performing mortgages • • No regulatory LTV limit Private insurers are not government backed • Can include exotic products (adjustable rate mortgages, interest only) 30-year term most common • Wide range of documentation and underwriting requirements Scotiabank® 32 32#33. Housing Policy Developments in Canada Consistent policy initiatives to maintain a balanced and sustainable market 2018 Ontario: Elimination of rent control on new rental units first occupied on or before November 1, 2018 ⚫ British Columbia: Extension of the Property Transfer Tax on non-resident buyers. Investment of more than $1.6 billion through FY2021 toward the goal of building 114,000 affordable housing units in the next 10 years • Canada: OSFI imposes more stringent stress tests for uninsured mortgages, including a minimum qualifying rate at the greater of the five-year fixed posted rate or the contractual rate plus 200 bps, effective January 1, 2018 • 2017 Ontario: 16 measures aimed to slow rate of house price appreciation Key aspects include: 。 15% non-resident speculation tax Expanded rent control to all private rental units in Ontario 。 Vacant home tax 。 $125 million five-year program to encourage construction of new rental apartment buildings • • 2016 Canada: Qualifying stress rate for all new mortgage insurance must be the greater of the contract mortgage rate or the Bank of Canada's conventional five-year fixed posted rate Low-ratio mortgage insurance eligibility requirements updated for lenders wishing to use portfolio insurance: 。 Maximum amortization 25 years o $1 million maximum purchase price o Minimum credit score of 600 。 Property must be owner occupied Elimination of primary residence tax exemption for foreign buyers • Minimum down payment on insured mortgages on homes valued $0.5-$1 million increased from 5% to 10% • British Columbia: 15% land transfer tax on non-resident purchases in Metro Vancouver introduced Scotiabank® 33 33#34Household Debt: Canada vs. U.S. Canadian households' balance sheets compare favourably to US Canadian debt-to-income ratio is now 5.5% below the U.S. peak in 2008 In the last 7 years, increases in Canadian debt-to-income ratio have slowed vs. 2002-10 Calculated on the same terms, Canada's debt-to-income is currently 164% vs. 134% in the U.S. Canadian debt-to-assets ratio remains below U.S. o U.S. households have incentive to pursue higher asset leverage in light of mortgage interest deductibility o Debt is a stock concept, to be financed over one's lifetime. Income is a flow concept measuring one single year's earnings. Debt should be compared to lifetime or permanent income, or assets • Ratio of total household debt-to-GDP remains lower in Canada than U.S. 。 Calculated on a comparable basis, the ratio of household credit market debt is 98.2% in Canada vs. 101.3% in the U.S. Household Credit Market Total Household Liabilities Debt to Disposable Income 30 180 household credit liabilities 169.1 as % of disposable income 160 163.6 25 140 120 100 80 133.8 20 Adjusted Canadian* 15 Official Canadian Official US 60 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 10 * Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. As % of Total Assets household debt as % of assets US Household Credit Market Debt to GDP 130 % of GDP 120 110 US with unincorporated business debt 102.7 100 68 .*Original Canada 101.3 98.2 Canada* 90 18.0 80 70 10 Canada 16.7 560 75.1 Original US 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Federal Reserve Board, Statistics Canada. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 * Adjusted for US concepts and definitions. Sources: Scotiabank Economics, BEA, Federal Reserve Board, Statistics Canada. Scotiabank® 34 54#35Canadian Housing Fundamentals Remain Sound Solid indicators on several dimensions INTERNATIONAL IMMIGRATION 290 240 190 140 2018 Target = 310K чий % OF DISPOSABLE INCOME TOTAL DEBT-SERVICE RATIO 16 15 14 13 1990-2017 average 12 11 10 NUMBER OF IMMIGRANTS TO CANADA, 000S RATIO 90 95 00 05 10 15 Sources: Scotiabank Economics, Statistics Canada. RESIDENTIAL UNIT SALES TO NEW LISTINGS RATIO 1.0 0.8 0.6 0.4 0.2 0.0 سلہ Sellers' Market Balanced Market Buyers' Market 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, CREA MLS. Data through September 2018. % OF MORTGAGES IN ARREARS νε S MONTHS OR MORE www 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada. Data through 2018Q2. RESIDENTIAL MORTGAGES ARREARS 0 CO 5 + 3 2 0 U.S. Canada 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, CBA, MBA. Data through 2018Q3 (US) and June 2018 (Canada). Scotiabank® 35#36Appendix 3: Key Market Profiles Scotiabank®#37Economic Outlook in Key Markets Growth expected to accelerate across the Pacific Alliance 2018 AND 2019 REAL GDP GROWTH FORECAST (%) Real GDP (Annual % Change) Country 2000-17 Avg. 2018F 2019F 2020F Mexico 2.2 1.8 2.1 2.4 Peru 5.0 3.7 4.0 4.1 Chile 3.9 3.9 3.2 3.2 Colombia 3.9 2.5 3.5 3.6 PACS Avg. 3.8 3.0 3.2 3.3 2000-17 Avg. 2018F 2019F 2020F Canada 2.2 2.1 2.2 1.8 U.S. 2.0 2.9 2.4 1.7 Source: Scotiabank Economics. Forecasts as of October 15, 2018. Scotiabank® 37 32#38Focused on the Pacific Alliance Attractive growth opportunity for Scotiabank Pacific Alliance 。 Portfolio of high quality growth markets for Scotiabank ○ 223 million people with median age of 29 O Largest trading partner is the United States (64% of exports) О Largest sector is manufacturing (64% of exports) 。 Trade bloc with free trade agreements to liberalize commerce and improve integration • Supports trade flows with Asia in order to compete with Brazil and Argentina which participate in Mercosur 。 Accounts for 36% of Latin America's GDP, comparable to Brazil 。 Canada has bilateral free-trade agreements with all four Pacific Alliance countries and it has initiated an application for Associate Membership in the Alliance • Pacific Alliance is an Attractive Long-Term Opportunity o Region is the 6th largest goods exporter in the world 。 Trade bloc with governments supporting growth/significant infrastructure spending 。 Solid GDP growth rates relative to peers 。 Considerable room to increase banking penetration (avg. domestic credit/GDP of 66%) 。 Fast-growing middle-class with increasing financial demands 。 Favourable demographics for banking needs 。 Relatively stable legal, tax, and regulatory infrastructure in place o Central bankers have earned credibility and banking system is well-capitalized Scotiabank® 38 38#39Mexican Economy Diverse economy with a strong balance sheet • The Mexican economy reflects a solid mix of commodities, goods production, and services. Trade remains dominated by the US, but Mexico's diversification agenda is underpinned by 13 free-trade agreements with 47 countries that account for 40% of global GDP Despite NAFTA-related uncertainty, investment has rebounded in 2018 and trade has returned to making a positive contribution to economy- wide growth Contributions to Mexican GDP Growth 16.0% Finance, Insurance, & Real Estate 16.0% Other 3.2% Natural Resources 5.8% Health & Education MEXICAN GDP BY INDUSTRY (Q2 2018) 6.5% Transportation 1.9% & Warehousing Professional, 3.9% Scientific, & Technical Public Services Administration Top 5 Trading Partners 17.4% Wholesale & Retail Trade 15.9% Manufacturing 6.3% Mining and Oil & Gas Extraction 7.0% Construction 5 y/y % change 4 3 2 1 0 -1 -2 -3 16 Other Net Exports Inventories Investment Government Consumption Real GDP 17 Sources: Scotiabank Economics, Haver Analytics. 18 Others 21% Germany 3% Japan 3% United States Canada 4% China 10% 59% Scotiabank® 39#40Chilean Economy Advanced economy with wide-ranging trade links Chile's mix of economic activities reflects its status as an advanced market economy Chile's diversified trading relationships are supported by 21 free-trade agreements with 59 countries that account for 70% of global GDP Investment has been a strong contributor to growth in Chile over the past year, which should underpin future productivity gains. 15.1% Finance, Insurance, & Real Estate 8.9% Other 1.9% Restaurants & Hotels 8.4% Transportation & Warehousing 3.5% Natural Resources CHILEAN GDP BY INDUSTRY (JUN 2018) 19.1% Housing & Personal Services 9.6% Wholesale & Retail Trade -10.3% Manufacturing .12.4% Mining and Oil & Gas Extraction 6.2% Construction 4.6% Public Administration 8 y/y % change 6 4 2 0 -2 -4 -6 16 Contributions to Chilean GDP Growth 17 Sources: Scotiabank Economics, Haver Analytics. Net Exports Inventories Investment Government Consumption Real GDP 18 Top 5 Trading Partners Others 40% China 27% United States South Korea 4% 16% Japan Brazil 6% 7% Scotiabank® 40 40#41Peruvian Economy Resilient economic fundamentals • Peru's important resource sectors are increasingly balanced by stronger service-sector activity and solid economic fundamentals Peru has 16 free-trade agreements with 49 countries that account for 66% of global GDP Investment is making a consistently strong contribution to GDP growth, which should make the recent upturn in growth rates more sustainable 13.7% Manufacturing 9.4% Finance, Insurance, & Real Estate 29.9% Other PERUVIAN GDP BY INDUSTRY (Q2 2018) 19.7% Transportation, Information & Commerce 5.5% Construction 14% 7.7% Mining & Energy Natural Resources Contributions to Peruvian GDP Growth 8 y/y % change 6 4 2 0 Top 5 Trading Partners China 26% Others 44% -2 -4 Net Exports Inventories Investment United States Government 18% Consumption -6 Real GDP South Korea 16 17 18 3% Sources: Scotiabank Economics, Haver Analytics. Spain Brazil 4% 5% Scotiabank® 41#42Colombian Economy Gaining momentum . Services account for a rising share of Colombian GDP compared with traditional strengths in extractive industries Colombia continues to build on its 10 free-trade agreements with 42 countries that account for 38% of global GDP Rising consumption, supported by public spending, reflects an expanding middle class as growth gains momentum and converges toward the economy's underlying potential 14.1% Finance, Insurance, & Real Estate 6.8% Other 6.5% Natural Resources 2.9% Information & Communication 2.6% Arts & Entertainment COLOMBIAN GDP BY INDUSTRY (Q2 2018) 7.5% Professional, Scientific, & Technical Services 17.4% Wholesale, Retail Trade, Accommodation & Food Services 12.2% Manufacturing 8.2% Mining and Oil & Gas Extraction -15.2% 6.6% Construction Public Administration Top 5 Trading Partners Contributions to Colombian GDP Growth 5 y/y % change 4 3 2 United States Others 29% 44% 1 0 -1 -2 -3 16 17 Real GDP 18 Other Net Exports Investment Government Consumption Germany China 14% Brazil Mexico 3% Sources: Scotiabank Economics, Haver Analytics. 4% 6% Scotiabank® 42 42#43Other Regions Strong contribution from leading C&CA franchise and portfolio investments in Asia Caribbean & Central America 。 Operations in 16 countries contributing ~$0.7B in earnings in 2018 。 Well-established, diversified franchise that serves retail, commercial and corporate customers 。 Actively managing footprint to ensure scale in larger growth markets and reduce risk profile: Announced acquisition in Dominican Republic in August 2018 which doubles customer base and creates 4th largest bank. Announce sale of operations in 9 smaller countries in Caribbean in November 2018 Recognized by Euromoney for the "Best Commercial Banking" capabilities in the Caribbean and Bahamas (2017) o Recognized by Global Finance Magazine as: • Asia "Best Bank Award 2017" in the Bahamas, Barbados, Costa Rica, Turks & Caicos and U.S. Virgin Islands; "World's Best Consumer Digital Bank 2017" in 24 countries across Latin America and the Caribbean; and "Best in Mobile Banking" in the Caribbean region 。 Strategic portfolio investments in Asia 。 Thailand: 49% interest in Thanachart Bank (2007) $3.0 billion carrying value as of October 31, 2018 $590 million of net income for twelve months ended October 31, 2018 。 China: 19.9% interest in Bank of Xi'an (2009) $772 million carrying value as of October 31, 2018 $456 million of net income for twelve months ended October 31, 2018 Scotiabank® 43 43#44Appendix 4: Energy Exposure Scotiabank®#45Energy Exposure¹ High quality energy portfolio Loans and Acceptances Outstanding ($B) % of Total Energy Exposure % of Total Loans and Acceptances Outstanding % Investment Grade 6.6 45% 1.1% 64% Total Exploration and Production 3.4 23% 0.6% 83% Canadian Exploration and Production 1.2 8% 0.2% 88% WCS Exposure 4.9 33% 0.9% 55% Midstream 1.3 9% 0.2% 25% Services 1.9 13% 0.3% 86% Downstream Total Energy Exposure² 14.8 100% 2.6% 64% • Energy portfolio represents 2.6% of loans outstanding 64% is rated Investment Grade (IG). 88% of WCS exposure is IG Watch-list reduced to less than 1% of total exposures from 14% since Q4/16 RWA has decreased 37% since Q4/16 1 As of October 31, 2018 2 May not add due to rounding Canada (74%) 6.2 Asia (93%) C&CA (30%) Energy Exposure by Geography2 Europe 1.1 (67%) U.S. (33%) 2.5 $14.8B (%IG) 3 0.7 Latin America (48%) Mexico (42%) Scotiabank® 445#46Additional Information Scotiabank Listings: Toronto Stock Exchange (TSX: BNS) New York Stock Exchange (NYSE: BNS) Scotiabank Credit Ratings Scotiabank Common Share Issue Information: 064149107 CA0641491075 . CUSIP: ISIN: FIGI: BBG000BXSXH3 NAICS: 522110 Moody's Investors Services Standard & Fitch Ratings Poor's Dominion Bond Rating Service Ltd. Aa2 A+ AA AA- A2 A- AA- AA (low) Baa1 BBB+ A (low) A-1 F1+ R-1 (high) Legacy Senior Debt¹ Senior Debt² Subordinated Debt (NVCC) Short Term Deposits/Commercial Paper P-1 Covered Bond Program Outlook Stable Aaa Not Rated AAA Stable AAA Stable Stable 1 Includes: (a) Senior debt issued prior to September 23, 2018; and (b) Senior debt issued on or after September 23, 2018 which is excluded from the bank recapitalization "bail-in" regime 2 Subject to conversion under the bank recapitalization "bail-in" regime For further information, please contact: www.scotiabank.com/investorrelations Scotiabank® 46 46#47Contact Information Investor Relations Philip Smith Senior Vice President 416-863-2866 [email protected] Michael Lomas Managing Director Treasury Sales and Market Development 416-866-5734 [email protected] Steven Hung Vice President 416-933-8774 [email protected] Lemar Persaud Judy Lai Director 416-866-6124 [email protected] Director 416-775-0485 [email protected] Tiffany Sun Manager 416-866-2870 [email protected] For further information, please contact: www.scotiabank.com/investorrelations Scotiabank® 47