#1PSP WE ARE A DEBT ISSUER Jan Feb Mar Apr May Jun Jul 63.932 71.507 11.052 Investor Presentation, August 2022 PSP#2Table of Contents 03 We are PSP 10 10 We are a debt issuer 16 Sustainable Financing 04 We are PSP 11 Credit ratings 17 Investing responsibly 05 PSP at a glance 12 Debt issuance benefits 18 Climate strategy 06 Our investment mandate 13 PSP Capital debt programs 19 Green bond program 10 07 Our investment approach 14 PSP Capital debt programs 20 Green bond framework 68 08 Our investment approach 15 15 Growing debt programs 09 Our results 21 Summary 23 Contact information 25 Annex 22 Useful links 24 Disclaimer MARAN PSP#3WE ARE PSP PSP#4We are PSP We invest our assets with a view to achieving a maximum rate of return, without undue risk of loss, having regard to the funding, policies and requirements of the plans* and the ability of the plans to meet their financial obligations. Our story Our strength Our edge 100% owned by the Canadian Government, mandated to manage amounts transferred to it in the best interests of the contributors and beneficiaries under the acts related to the Plans**. One of Canada's largest pension investment managers with C$230.5B in net assets, managing a diverse global portfolio across 100+ sectors and industries. As at March 31, 2022 Operationally independent Crown entity, AAA rated based on strong sponsorship, financial pillars and corporate governance we invest to meet the pension plan obligations. 4 We are PSP Complementary Information *The plans refer to the pension plans of the Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police and the Reserve Force. **From April 1st, 2000, for the Public Service, the Canadian Armed Forces, the Royal Canadian Mounted Police, and from March 1st, 2007, for the Reserve Force. PSP#5PSP at a glance Investment Board Complementary Information Montreal 100% owned by the Government of Canada and operationally independent; pension liability belongs to the Government Ottawa New York- Managing net contributions of 4 federal pension plans Purpose of over 900,000 contributors and beneficiaries Exclusive mandate Achieving a maximum rate of return without undue risk of loss Diversified portfolio Global outreach C$230.5B in net assets actively managed by 6 different asset classes (excluding the Complementary Portfolio) 5 offices on 3 continents managing a diversified global portfolio in 100+ sectors and industries 5 London 895 employees C$230.5B "No Act relating to the insolvency or winding-up of any corporation applies to the Board and in no case shall the affairs of the Board be wound up unless Parliament so provides." - PSPIB Act, art. 52 Hong Kong We are PSP As at March 31, 2022 PSP#6Our investment mandate Plan Members Contributions 6 Sponsor Government Gouvernement of Canada du Canada Over 900,000 contributors and beneficiaries Benefits Canada Communication with Stakeholders Net Contributions Investment Manager PSP Leveraging the balance sheet PSP CAPITAL INC. Financial arm of PSP Investments Positive net contributions for the next 5/10 years PSP Investments' investment mandate Bloomberg Ticker: PSPCAP Govt Complementary Information S MAZHAY - We are PSP PSP#7Our investment approach Complementary Information - We are PSP Mandate Reference Portfolio Communicated on behalf of the President of the Treasury Board by the Treasury Board of Canada Secretariat. Express the government's pension funding risk tolerance Investment Approach Design Policy Portfolio Long-term strategic asset allocation Asset Classes Geographic exposure Strategic currency hedging Protect Maintain alignment Offsets Rebalancing Dynamic Asset Allocation Dynamic Currency Management Enhance Improve Total Fund risk and return through innovation Improves the Total Fund's risk- return profile through innovation Active Mgmt. Actual Portfolio Includes active investment strategies within risk limits Environmental, social and governance (ESG) factors are considered at different stages of the investment process The Policy Portfolio is composed of private and public asset classes An investment approach supported by a rigorous portfolio construction process The Actual Portfolio delivers the Policy Portfolio and integrates active management PSP#8Our investment approach $230.5 Billion Net AUM Complementary Information ASSET MIX* C$ Billion Net AUM % Net AUM GEOGRAPHIC EQUITY 41.0% Public Market Equities DIVERSIFICATION 59.1 25.7 Private Equity. 35.4 15.3 4.6% 2.1% 6.4% 20.3% Real Estate REAL 31.1 13.5 ASSETS 10.7% Infrastructure 23.5 10.2 28.7% Natural Resources 11.6 5.0 16.6% GOVERNMENT Fixed Income 40.7 17.7 FIXED INCOME 20.2% Cash and Cash Equivalents 5.7 2.5 Canada CREDIT Credit Investments 9.5% 21.9 9.5 Europe Oceania ■Africa and Middle East 8 As at March 31, 2022 | *The remaining amount represents the Complementary Portfolio. □ USA Asia 39.3% We are PSP ■Central and South America PSP#9Our results Long-term investor 9.8% 9.0% 10.9% 10-YEAR NET ANNUALIZED RETURN 5-YEAR NET ANNUALIZED RETURN 1-YEAR TOTAL FUND NET PORTFOLIO RETURN C$25.9 Billion Cumulative net investment gains above the Reference Portfolio over 10 years C$126.9 Billion 9 As at March 31, 2022 Cumulative 10-year net portfolio income (excluding contributions) *The Government of Canada gives to PSP Investments a Reference Portfolio that communicates its tolerance for funding risk. - We are PSP PSP#10WE ARE A DEBT ISSUER MORRHANN PSP#11Credit ratings MORNINGSTAR DBRS MOODY'S S&P Global Fitch Ratings | A-1+/AAA | Rating Reports R1-High / AAA | P-1/Aaa F1+/AAA - We are a debt issuer Positive net contributions Strong corporate governance and liquidity management Low leverage and no pension liability Independent Board of Directors 100% owned by the Government of Canada Exclusive Investment Manager for federal pension plans ON A STAND-ALONE BASIS Strong corporate governance Conservative approach to leverage Focus on liquidity FROM THE SPONSORSHIP Likelihood of support Bond holders rank senior to the amounts due to pension plans AAA Stable 11 == PSP#12Debt issuance benefits - We are a debt issuer Benefits for PSP Debt issuance is used to increase Total Fund market exposure Efficient financing by issuing at the Total Fund level ― Long-term assets being financed by long-term funding ― Leverage allows us to enhance returns and fulfill our mandate AAA Rating - Exposure to Canadian Federal SSA issuer Positive spread vs. Government of Canada agencies - Frequent, predictable issuances ― Improved secondary liquidity ― Increasingly diversified and international investor base Benefits for investors 12 Complementary Information PSP#13PSP Capital debt programs 2,000 1,750 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2022 33 13 MTN Maturity Profile ($M*) 1,500 1.500 1,500 1,250 1,250 2023 ■C$ MTN US$ MTN 600 1,000 1,000 1,000 1,250 о 1,000 Debt Outstanding - as at March 31, 2022 $ TOTAL OF C$23.67B (CAD EQUIVALENT) Term Debt ($M) C$ 10,750 US$ 3,850 Short-Term Debt ($M) C$ 235 US$ 6,309 4544 101 - We are a debt issuer 2030 2032 *Notional value in local currency • PSP Capital's current yearly issuance program is C$5-6B • Most of the issuance is in the 3yr to 10yr maturity range Complementary Information: Credit Spread | Secondary Market | Investor Relations 2024 2025 2026 2028 $ $ $ Short-Term Programs Global Medium Term Notes Program 144A & RegS- Green Bonds Program PSP#14PSP Capital debt programs FY22 at a glance FY22 represents a turning point for our debt program which has evolved from domestic issuance to an international program that can offer green bonds, fixed and floating rate in major markets We issued 5 term debt transactions, totaling approximately C$6B February 2022 March 2022 Issuance of a floater: Series G-5, US$600M, 3yr, SOFR Fall 2021 Publication of our Green Bond Framework ✓ Issuance of our inaugural Green Bond transaction: Series G-4, C$1.0B, 10yr fixed September: Series G-2, US$1.25B, 3yr fixed ✓ October: Series G-3, US$1.0B, 7yr fixed 14 June 2021 ✓ Launch of our $20BIn CAD Global MTN funding program - 144A/RegS format Issuance of our inaugural US$ transaction: Series G-1, US$1.0B, 5yr fixed WE RAISED US$3.85B + C$1.0B A& TA ALM IN RUB PSP - We are a debt issuer#1515 We aim be a issuer in Growing debt programs the domestic & global markets Targeted markets: CA $ | US $ € | AU$ 24 22 20 الش The amount of yearly issuance should increase with the growth of the AUM We mainly focus on benchmark-size transactions to promote secondary market liquidity A private placement program complements our benchmark transactions and diversifies our funding We target one Green Bond transaction per year Billions (CAD equiv.) 18 2086420 16 14 12 10 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Evolution of Debt Programs Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Short Term Debt ■CAD Term Debt ■ USD Term Debt Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-16 Sep-15 Mar-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 PSP - We are a debt issuer#16SUSTAINABLE FINANCING PSP#17Investing responsibly RESPONSIBLE INVESTOR We have a longstanding practice of responsible investing as a means to better manage risk and generate the long-term returns needed to achieve our mandate. We believe that through our actions, we can encourage positive change on pressing social and environmental challenges, and contribute to a more inclusive, equitable and sustainable future. RESPONSIBLE ASSET MANAGER We aim to create a critical mass of standardized, comparable and performance-based ESG data across the total fund and asset classes. We regularly engage with our portfolio companies and partners across all asset classes to encourage sustainable corporate conduct and enhance long-term performance. Strategy Risk management & cybersecurity Executive compensation. Product safety - Investment Deci Supply chain risks Board composition & effectiveness Shareholder protection & rights Conduct, culture & ethics Governance Climate change Long-term value creation Social Environment Community engagement Human capital management Pollution & waste reduction Health & safety Asset Management - Natural resource efficiency Training Sustainable financing See our Responsible Investment Report | Responsible Investments Policy | Proxy Voting Guidelines | Investment Beliefs | Joint Statement on ESG disclosures | ESG Data Convergence Project Signatory of: Sustainable INVESTOR Principles for Responsible ICGN 17 International Corporate Governance Network LEADERSHIP NETWORK CCGG Stock Exchanges FINANCE MONTREAL CDP SASB SSE Initiative IFD FSI 30% Club ALLIANCE DRIVING SUSTAINABLE ECONOMIES GROWTH THROUGH DIVERSITY ONGATIONAL MEMBER Investment ilpa INSTITUTIONAL LIMITED PARTNERS Diversity in Action#18Climate strategy The objective of our Climate Strategy is to support the global transition to net-zero emissions by 2050 by striving to integrate climate risks, unlock investment and carbon reduction opportunities associated with climate-aligned assets, strengthen carbon disclosure, and enhance collaboration with a wide range of stakeholders. We anticipate reducing our portfolio GHG emissions intensity by 20-25% by 2026 relative to a 2021 baseline*. Leadership & Collaboration PSP Engagement & Disclosure Physical risks Transition risks Integration Investment & Management Opportunities See our Climate Strategy Roadmap & our Corporate View on Climate Change 18 *Applies to 77% of AUM as at Sept. 30, 2021 (unaudited mid-year AUM) Short-Term Targets Green Asset Taxonomy Green Assets Transition Assets Carbon Intensive Assets Rest of Fund Dark Green Light Green Enabling Early Mature High Carbon Hard to Abate C$ 70B by 2026 (from C$ 40.3B in 2021) C$ 7.5B by 2026 (from C$ 5.1B in 2021) C$ 3.9B by 2026 (from C$ 7.8B in 2021) - Investments where carbon emissions are not a relevant consideration or where data is unavailable GHG data for 80% of in-scope portfolio by 2026** Assets representing 50% of our carbon footprint will have mature, science-based transition plans by 2026 **We have recently partnered with WSP to support climate analysis of timberland and farmland PSP - Sustainable financing#19Green bond program PSP has established five high-level pillars to guide the development of its Green Bond approach, which describe the real-world outcomes that we seek to achieve through our Green Bond program. Reduce GHG emissions by replacing fossil-fuels with low-emitting alternatives 19 Enable the transition to a low carbon economy through products, technology or services O Promote a circular economy through resource efficiency, waste recycling and pollution control - Sustainable financing PSP PILLARS -Increase society's capacity to adapt to climate change by improving resiliency to physical impacts Conserve natural resources through sustainable management practices and/or increased capacity to sequester carbon As part of our Climate Strategy, we will also aim to steer at least 10% of our long-term debt financing toward sustainable bonds by 2026 PSP#20Green bond framework Complementary Information Issuing Green Bonds will allow us to support sustainable business practices that contribute to positive environmental outcomes and foster ESG considerations in PSP Investments' long-term investment decisions. *CICERO We will target one Green Bond transaction per year We will report on our progress annually °C SHADING: MEDIUM GREEN GOVERNANCE SCORE: EXCELLENT Sustainable financing Pollution prevention and control Net proceeds will be allocated to assets supporting the transition to a low-carbon economy, with the intent to positively contribute to the long-term goals of the Paris Agreement, and sector-specific emissions reductions trajectories, as outlined in the International Energy Agency's Net-Zero Scenario, guidance from the Science- Based Targets Initiative, the Investor Leadership Network sector decarbonization pathways, or other credible modeling sources. Environmentally Renewable energy sustainable management of living natural resources and land use Green buildings Clean transportation Sustainable water and wastewater management Circular economy Energy adapted products, production technologies and processes efficiency LOOK BACK: PIPELINE: ELIGIBILITY PERIOD 36 MONTHS 24 MONTHS 20 20 See our Green Bond Framework and CICERO Shades of Green Second-Party Opinion on PSP Investments PSP#21Summary PSP ― A Crown entity 100% owned by the Canadian Government, operating at arm's length A clear, exclusive government mandate A pension investment manager, with no pension liability responsibility Government of Canada obligation to fund pensions in case of actuarial shortfall Positive projected net contributions for the medium term AAA ratings based on strong financial pillars, sponsorship and governance - Use of capital and influence to foster ESG considerations into investment approach and accelerate the transition to global net-zero emissions - Conservative approach to leverage - Attractive spread for a AAA Canadian Federal SSA issuer - Growing debt programs, including an expanding curve in the US market and a well-established Canadian market presence - A frequent issuer with increasingly diversified debt products, to satisfy broader interest from the investor community - A robust Green Bond Framework — Improving secondary market liquidity 21 24#22Useful links PSP Investments: https://www.investpsp.com/en/ PSP Debt Programs: https://www.investpsp.com/en/we-are-debt-issuer/ PSP Annual Report & Responsible Investment Report: https://www.investpsp.com/en/investment-performance/reports/ Treasury Board of Canada Secretariat: https://www.canada.ca/en/treasury-board-secretariat.html Office of the Chief Actuary of Canada: http://www.osfi-bsif.gc.ca/eng/oca-bac/pages/default.aspx Public Services and Procurement Canada: https://www.tpsgc-pwgsc.gc.ca/comm/index-eng.html Public Service Pension Advisory Committee: https://appointments.gc.ca/prflOrg.asp?OrgID=PSPAC&lang=eng& PSPIB Act: https://laws-lois.justice.gc.ca/eng/acts/p-31.7/page-1.html Superannuation Acts: https://laws-lois.justice.gc.ca/eng/acts/p-36/page-1.html https://laws-lois.justice.gc.ca/eng/acts/c-17/page-1.html https://laws-lois.justice.gc.ca/eng/acts/R-11/page-1.html Public Pensions Reporting Act: https://laws-lois.justice.gc.ca/eng/acts/p-31.4/page-1.html Office of the Chief Actuary Actuarial Reports: http://www.osfi-bsif.gc.ca/Eng/oca-bac/ar-ra/Pages/default.aspx Funding Policy for the Public Sector Pension Plans: https://www.canada.ca/en/treasury-board-secretariat/services/pension-plan/plan- information/funding-policy-public-sector-pension-plans.html#ToC 8 Report on Public Sector Pension Plans: https://www.canada.ca/en/treasury-board-secretariat/services/pension-plan/pension- publications/reports/report-public-sector-pension-plans.html 22 22 PSP#2323 23 Contact information PSP Investments 1250, Boulevard René-Lévesque West Suite 1400 Montréal (Québec) Canada H3B 5E9 www.investpsp.com in ✔ Renaud de Jaham Managing Director and Head of Treasury Treasury +1 (514) 939-5361 [email protected] Andrew Bastien Senior Director, Liquidity & Funding Treasury +1 (514) 939-5328 [email protected] PSP#24Disclaimer The contents of this presentation and any related materials (together, this "Presentation") are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose without the written consent of the Public Sector Pension Investment Board ("PSP Investments"). This Presentation is being provided to you for information purposes only. It is not intended to form the basis of any investment decision, nor does it constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. This Presentation is not an offer of securities, an offering memorandum or a prospectus. The distribution of this Presentation, or any part of it, may be restricted by law in certain jurisdictions, and any persons into whose possession this Presentation or any part of it comes should inform themselves about, and observe, any such restrictions. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction. No representation or warranty, express or implied, is made or given by or on behalf of PSP Investments, PSP Capital Inc. ("PSP Capital"), a wholly-owned subsidiary of PSP Investments, or their respective directors, officers or employees, advisors, agents, subsidiaries or affiliates (together, the "PSP Group") as to the accuracy, reliability, completeness or fairness of the information or opinions contained in this Presentation or for any errors, omissions or misstatements, negligent or otherwise, in the information or opinions contained in this Presentation or as to the suitability or appropriateness of the information or opinions contained in this Presentation for any purpose, and no liability or responsibility is accepted for any such information or opinions. Without prejudice to the foregoing, the PSP Group accepts no liability whatsoever for any loss howsoever arising, directly or indirectly, from use of this Presentation or otherwise arising in connection therewith. The information in this Presentation is given as of the date of the Presentation and is subject to updating, completion, revision, verification and amendment, and such information may change materially. The PSP Group expressly disclaims any and is under no obligation to update or keep current the information contained in this Presentation, to correct any inaccuracies which may become apparent, or to inform you of the result of any revision to the statements made herein except to the extent they would be required to do so under applicable law or regulation, and any opinions expressed in this Presentation are subject to change without notice. This Presentation includes certain forward-looking statements, beliefs or opinions, including statements with respect to the business, financial condition, liquidity, results of operations and plans of PSP Investments and PSP Capital. These forward-looking statements relate to matters that are not historical facts. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate", "may increase", "may impact" and other similar expressions, or future or conditional verbs such as "will", "should", "would" and "could." They appear in a number of places in this Presentation. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and involve numerous assumptions. A variety of factors, many of which are beyond the control of the PSP Group, may cause actual results to differ materially from the expectations expressed in the forward-looking statements. There can be no assurance that any of the results and events contemplated by the forward-looking statements contained in this Presentation will, in fact, occur. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Past performance cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this Presentation and the PSP Group expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this Presentation. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. By attending and/or accepting or accessing this Presentation, you agree to be bound by the foregoing limitations and conditions and, in particular, will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this disclaimer including, without limitation, the obligation to keep this Presentation and any related materials confidential. 24 24 PSP#25ANNEX PSP#26The federal employee pension plans Managing the amounts transferred to it by the Government of Canada for the funding of retirement benefits 26 26 Government of Canada Gouvernement du Canada Canada The Public Service The Public Service of Canada is the civil service of the Government of Canada. It serves as the staff of the Canadian Crown, developing and implementing government policy. The Public Service includes over 70 departments, agencies, commissions, Crown corporations, and other federal The Royal Canadian Mounted Police The Royal Canadian Mounted Police (RCMP) is the national police force of Canada. The primary role of the RCMP is to enforce federal laws across Canada. The Canadian Forces The Canadian Forces are the unified armed forces of Canada, including air, land and sea units referred to as the Royal Canadian Air Force, the Canadian Army and Royal Canadian Navy. The Reserve Force The Reserve Force is composed of Canadian Forces members who are enrolled for an indefinite period of service and volunteer to be prepared for duty when and if necessary. organizations. Back PSP#2727 27 The federal employee pension plans Back 1/3 I+I Government of Canada Gouvernement du Canada Canada Public Service Canadian Forces As at March 31, 2020 As at March 31, 2019 RCMP Reserve Forces As at March 31, 2018 As at March 31, 2019 Active Contributors Beneficiaries 331,406 307,373 71,532 22,474 18,217 116,124 21,222 9,094 Contributor / Beneficiary Ratio Pre-2000 Actuarial Surplus (Deficit) Post-2000 Actuarial Surplus (Deficit) PSP Net Assets by Pension Plan* 1.01 0.62 1.06 2.00 (C$7.3 billion) (C$2.4 billion) (C$886 million) N/A C$14.5 billion C$579 million C$572 million (C$173 million) C$168.1 billion C$44.7 billion C$16.5 billion C$0.96 billion *As at March 31, 2022 Noting that the government publishes these reports alternately and we include the latest ones in this table. PSP#2828 Pre-2000 and post-2000 pension benefits PSP was created to manage Post-2000 pension fund assets Three of the four pension plans have pre-2000 superannuation accounts and all four plans have post-2000 pension fund accounts (the Reserve Force plan was established as of 2007) For each pension plan, the Chief Actuary of Canada performs a funding actuarial evaluation of both the superannuation account and pension account, at a minimum of once every three years Pre-2000 Back 2/3 Funds were recorded to the Superannuation Accounts, managed by the Government of Canada Post-2000 Contributions in excess of benefit payments and plan administration fees are transferred to PSPIB to be managed in the best interests of contributors and beneficiaries, with a view to achieving a maximum rate of return, without undue risk of loss Total Pension Obligation Public Service Pension Plan Canadian Forces Pension Plan Royal Canadian Mounted Police Pension Plan Reserve Force Pension Plan PSP#2929 29 Governance framework Back 3/3 The federal pension funds are governed by their Superannuation Acts Reporting requirements are imposed on the pension plans via the Public Pensions Reporting Act OSFI BSIF PSP is governed by the Public Sector Pension Investment Board Act PSP Investments Government Gouvernement of Canada du Canada Canada Superannuation Acts of: The Public Service The Canadian Forces (including the Reserve Force) The Royal Canadian Mounted Police The Superannuation Acts are the Federal Law that governs the four pension plans of the Federal government employees. The Office of the Chief Actuary of Canada is required to conduct actuarial reviews of pension plans of the Public Service, Canadian Forces and Royal Canadian Mounted Police, among others. The Office is responsible for conducting an annual actuarial valuation of the pension plans for accounting purposes as well as a funding valuation every three years. The Public Sector Pension Investment Board Act is the Federal Law that governs PSP as exclusive asset manager for the pension plans. PSP manages amounts transferred to it under subsections of the Superannuation Acts in the best interests of the contributors and beneficiaries under those Acts. PSP#30Relationship with the Government of Canada 30 30 PSP CAPITAL INC. Financing arm and wholly-owned subsidiary of PSP; PSP Capital debt is unconditionally guaranteed by PSP. I PSP 888 Communication with Stakeholders PSP is an asset manager and non-agent Crown entity established under Federal law, the PSPIB Act. PSP manages the funds transferred to it in the best interests of the contributors and beneficiaries. Government of Canada Gouvernement du Canada Canada Treasury Board of Canada Secretariat Public Services & Procurement Canada Office of the Chief Actuary of Canada Public Service Pension Advisory Committees Develops policy for the funding, design and governance of the plans. Develops legislation and communicates with plan members. Responsible for the day-to-day administration of the plans and maintains the books of accounts. An independent unit within the Office of the Superintendent of Financial Institutions. Provides actuarial services for the plans. Provide advice to the President of the Treasury Board on matters relating to the administration of the plans. Back PSP#3131 Risk management Risk Governance SHARED RISK CULTURE ✓ PSP benefits from a strong risk management culture Liquidity and leverage are monitored daily, using stress-testing and sensitivity analysis with stringent processes in place to ensure effectiveness ✓ Prudent use of leverage to enhance returns and manage liquidity Risk Appetite Statement (outlines the appetite, attitude and tolerances to risk) Risk Management & Related Policies Statement of Investment Policies, Standards and Procedures Enterprise Risk Management Policy Investment Risk Management Policy Non-Investment Risk Management Policy Leverage Policy Responsible Investment Policy Risk Identification and Assessment (annual risk and control self-assessment exercise and emerging risk monitoring framework) Back 1/2 PSP#3232 22 Billions 500 450 Our growth Historical and Projected Net AUM SCCURITY 866 Evolution! Actual vs Torget 400 350 300 250 200 150 100 50 0 2000 2002 2005 2008 2011 2014 2017 2020 2023 2026 2029 2032 ■AUM Back 2/2 NALYTICS DASHBONED oduc 11:13:55 ustower PSP Investments has significant amounts of capital to deploy in the coming years Cumulative amounts are based on historical contributions (net of benefit payments) and PSP Investments' assets up to March 31, 2022. PSP#3333 33 Capital Markets Capital Markets is comprised of two groups: Public Market Equities and Fixed Income Billion C$ 99.9 Net AUM Back 1/2 43.4% of total net AUM 3.0% 1-year rate of return 7.4% 5-year annualized return As at March 31, 2022 Billion Fixed Income C$ 40.7 Ret AUM Fixed Income is managed internally and externally by an experienced team of investment professionals that invests in Corporate Credit, Global Sovereign Interest Rates, and Emerging Market Debt. Billion Public Market Equities* C$ 59.1 Net AUM Public Market Equities are managed by both internal and external managers using a combination of traditional active, alternative investments, and passive strategies. The Public Market Equities portfolio has an investment philosophy grounded in a risk-adjusted approach, which allows for the identification of the best opportunities in public equity and alternative investments. The diversified Public Market Equities team leverages external partners to complement the internal public market value proposition. Our internal equity research platform provides ongoing market insight to Capital Markets and across asset classes. *Excludes Cash and Cash Equivalents PSP#34同 10 34 = Private Markets overview Back 2/2 PRIVATE EQUITY Private Equity builds strategic relationships with external fund managers and investment partners, leveraging their networks and sector and geographic expertise to source long-term co-investment opportunities. CREDIT INVESTMENTS Credit Investments focuses on non-investment grade credit investments in North America and Europe across private and public markets, as well as rescue financing opportunities. From offices in New York, London and Montréal, our global team invests across the debt capital structure in the form of loans, bonds and preferred equity. The group balances credit quality, structure, fixed-floating deployment opportunity, risk-return profile, asset mix and portfolio diversification, among other considerations. * REAL ESTATE Real Estate focuses on building a world-class portfolio of assets in major international cities, based on global themes such as technology, logistics, lifestyle, urbanization and demographics. The group prefers to own assets directly with first-class partners that have local expertise and share its approach to creating value and generating returns. Real Estate also invests with select funds in specific markets or strategies where direct ownership is more challenging. INFRASTRUCTURE Infrastructure invests globally on a long-term basis in the sectors of transportation, communications, and energy. The asset class provides diversification, stability, and illiquidity premiums that enhance PSP Investments' overall risk-return profile. The group added a new strategy last year that focuses on assets providing strong inflation protection. The group has a flexible investment strategy incorporating platforms, consortium direct investments, as well as funds and co-investments. Platforms are companies we control that have sector-specific knowledge, operational expertise, key relationships, and on the ground presence to manage green-field assets and expand our reach in terms of access to investment opportunities. Direct investments are large minority investments alongside financial or strategic partners with strong alignment of interests between investors. Finally, funds are used to target complicated sectors or geographies that require specialized knowledge, and/or to gain access to co-investment opportunities. NATURAL RESOURCES Natural Resources focuses on real assets in agriculture and timber in investment-friendly jurisdictions around the world. The group partners with best-in-class local operators who share the group's long-term investment philosophy and responsible ESG culture. The group targets opportunities well poised to benefit from secular trends driving continued demand growth and increasingly constrained supply. Its investments are typically underpinned by a high component of land, water or biological assets that provide the fund with significant downside protection and uncorrelated returns. The group also invests in strategic, complementary post-farmgate opportunities which increase margins and reduce cash flow volatility.#3535 35 Government of Canada & related issuers Back Canada *EDC CANADA HOUSING TRUST CPP BOARD INVESTMENT PSP Issuer Government of Canada Export Development Canada Canada Housing Trust CPPIB Capital PSP Capital Ownership 100% Owned by the Government of Canada 100% Owned by the Government of Canada 100% Owned by the Government of Canada Legal Status Sovereign Agent of the Crown Support Credit Rating (Moody's/S&P/DBRS/ Fitch Ratings) Sovereign Risk Aaa/AAA/AAA / AA+ Agent of the Crown 100% Owned by the Government of Canada 100% Owned by the Government of Canada Non-Agent Crown Non-Agent Crown Irrevocable, full faith and credit obligation of the sovereign Irrevocable, full faith and credit obligation of the sovereign No sovereign risk; transfers from CPPIB are not permitted unless asset values exceed liabilities No sovereign risk; Government of Canada is responsible for pension liabilities Aaa/AAA/AAA / N/A Aaa/AAA/AAA / N/A Aaa/AAA/AAA / N/A Aaa/AAA/AAA / AAA PSP#3636 36 PSP offers good spread pick up to AAA Canadian agencies, such as Canada Housing Trust While not explicitly guaranteed by the Government of Canada, the Government has the responsibility to ensure the pension plans are fully funded Historical credit spread Spread (in I bps) 100 90 80 5yr PSP Capital Spreads vs. Canada & Canada Housing Trust 70 60 50 40 30 20 10 0 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 5Y PSP-CHT 5Y CHT Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 5Y PSP Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 PSP Back 1/3#3737 37 Secondary market liquidity Back 2/3 Secondary market liquidity has been increasing over the years Millions 8,000 7,000 Quarterly PSP Capital Volume - Canadian Dealers 6,000 5,000 4,000 3,000 2,000 1,000 0 Q3-FY18 Q4-FY18 Q1-FY19 Q2-FY19 Q3-FY19 Q4-FY19 Q1-FY20 Q2-FY20 Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 PSP#38Prioritizing investor relations We have an increasingly diversified investor base Back 3/3 38 Our first issuance in 2008 had 27 investors, all from Canada Since then, we have been committed to strengthening our relationships with investors (888) As at March 31, 2022, 331 investors have participated in our term debt transactions (888 Among the 135 investors who participated in PSP Capital Inc. five term debt offerings in FY22: 87 were new investors ✓ 49 have participated in our inaugural Green Bond; and ✓ the order book sizes ranged from 120% to 200% on each deal North America Europe Asia 9% Africa 2% South America 1% By Region By Type Asset Manager 36% 47% Bank 41% Govt/OI/CB 22% 19% Pension 6% Hedge Fund 5% Insurance 4% Corporate 3% Other 5% PSP#39Green bond framework Second-Party Opinion PSP Investments' Second-Party Opinion | CICERO Back °CICERO SHADING: °C MEDIUM GREEN GOVERNANCE SCORE: EXCELLENT "Sound governance and transparency processes" "PSP has expectations for both portfolio companies and external managers to align their business models with the low-carbon transition 66 Relevant impact indicators for each project category " وو 39 ❝ Clear selection and monitoring process for investments under the framework ❝ Committed to transparent reporting Board seats and control over large-scale private markets investments will support the implementation and enforcement of the Green Bond Framework criteria " PROCESS FOR PROJECT EVALUATION AND SELECTION A Green Bond Working Group comprised of representatives from Treasury, Responsible Investment, Legal Affairs and various investment teams, has been established and will meet regularly. It is responsible for the assessment and selection of Eligible Green Assets, and the management of the Green Bond Register over the lifetime of all issuances. MANAGEMENT OF PROCEEDS The Treasury group will track, through the Register, the allocation of net proceeds from the sale of any Green Bonds to eligible Green Assets. The Green Bond Working Group will review it on an annual basis to ensure that the Eligible Green Assets continue to meet the eligibility criteria. Any assets that are sold will be removed from the Register. IMPACT REPORTING PSP Investments intends to publish its inaugural Green Bond Impact Report within one year from first issuance, and on an annual basis thereafter. This will be made publicly available on PSP's website and will include disclosure on both allocation and impact objectives. PSP#40Green project examples SUSTAINABLE FORESTRY The strategic alliance of TimberWest and Island Timberlands, leading to the establishment of Mosaic Forest Management, enabled the shared use of facilities, enhanced forest stewardship and alignment of best practices. Discover their Sustainability Progress Report RENEWABLE ENERGY PSP Investments and Ontario Teachers' Pension Plan are the sole shareholders (50-50 basis) of Cubico Sustainable Investments (Cubico), one of the world's leading renewable energy providers with operations across the Americas and Europe. Discover their ESG Report The company has an installed capacity of 4.6GW* and covers the whole energy chain, from development and construction, to operations and management of renewable assets. *As at March 31, 2022 One of its key commitments is to minimize emissions and maximize forest carbon sequestration by, inter alia, using timber to contribute to a sustainable and renewable resource, establishing and managing carbon offset projects, planting millions of trees every year, and protecting forests from wildfire. GREEN BUILDING Located in the heart of London, 22 Bishopsgate has prioritized the highest ESG standards since conception, which demonstrates its admirable commitment to sustainability. The building is net zero operational carbon, using certified renewable power and offset credits for the balance of carbon emissions. Discover their official website for more information Its circular economy principles and innovative green processes encourage tenants to efficiently reduce waste and energy consumption, among others, supporting their goal to have the smallest environmental impact possible. PSP PSP 40 40