#1PROVINCE OF BRITISH COLUMBIA Ministry of BRITISH COLUMBIA Finance#2Quick Facts on British Columbia Population of 5.399 million (January 1, 2023) 944,735 square km on west coast Canada; third-largest province; size of France and UK combined Largest city is Vancouver Borders the Pacific Rim Strategic ports for North America trade Parliamentary system of government 2021 nominal gross domestic product: C$351 billion (14% of Canadian economy) 2#3Jurisdictional Authority in Canada Federal Provincial Federal/Provincial Foreign Policy National Defence Criminal Law Citizenship Immigration Trade Indirect Taxation Health Education Social Welfare Property and Civil Rights Natural Resources Local Affairs Agriculture Employment Housing Environment Economic Development Income Security Justice Transportation Communication Direct Taxation Aboriginal Issues 3#4BC's Diversified Economy B.C.'s GDP by Major Industry Manufacturing & Utilities 8% Retail Trade Wholesale & 10% Transportation & Warehousing 5% Natural Resources 7% Construction 10% Public Admin., Health Care & Education 19% Finance, Insurance & Real Estate 24% B.C.'s International Goods Exports Other Asia* 13% Japan 9% China 13% Other 8% US 57% Other Services 18% Source: 2021 shares of B.C. GDP at basic prices by major industry; Statistics Canada (may not add to 100 per cent due to rounding) *Other Asia includes Hong Kong, Taiwan, South Korea, India and ASEAN member countries Source: 2022 shares of B.C. international goods exports; BC Stats (may not add to 100 per 4 cent due to rounding)#5BC's Technology Sector at a Glance (2020) #1 in Tech job growth in NA ~11,000 BC Tech Companies $35B Annual Revenues $4B In R&D Investment ~131,000 $8B BC Tech Workers in Exports Source: CBRE Tech Report 2022 KPMG BC Technology Report Card, Nov 2020 #1 Fastest Growing Sector in BC LO#6■ Government Support for Tech and Innovation InBC: $500 million strategic investment fund for growth of B.C. businesses Quantum Algorithms Institute: application of quantum computing technology to real-world problems government funded - Innovate BC: Crown Agency delivering programs for entrepreneurs to help start and scale companies 2 The BC Knowledge Development Fund: ~ $862 million investment in research infrastructure since 1998 AbCellera Biologics Inc.: major expansion to build a state-of-the-art biotechnology campus 6#72022/23 Updated Q3 Forecast The updated 2022/23 forecast projects a Q3 surplus of $3.6 billion, which is $9.1 billion improvement from the $5.5 billion deficit forecast at Budget 2022 Taxpayer-supported debt metrics: Debt to GDP ratio: 16.4% ☐ Debt to Revenue ratio: 78.7% 20 ADA 20 20 CANADA Interest bite: 2.4 cents per revenue dollar 1778647706 AY28647706 20 7#84.0 $ billions 3.0 2.0 Historical Surplus (Deficit) 1.0 1.7 0.3 0.8 (1.0) 2.8 1.5 0.3 (0.3) 1.3 3.6 (2.0) (3.0) (3.0) (3.8) (4.2) (5.5) (5.3) (5.2) (6.2) (4.0) (5.0) (6.0) 13/14 Actual 14/15 Actual 15/16 16/17 Actual Actual Actual/Forecast 17/18 18/19 19/20 20/21 21/22 22/23 Actual Actual Actual Actual Actual Forecast ■Contingencies and Forecast Allowance 23/24 24/25 Budget Plan 25/26 Plan 8#9Summary of Current Economic Situation Indicator Labour Market Consumer Spending Housing Market Inflation & Interest Rates Exports Global Growth Year-to-date performance in 2023 The unemployment rate is low (5.0% in May) but high job vacancies in some sectors is still a concern. Consumer spending on goods is softening (up only 1.0% year-to-date to March). Housing construction is strong (up 25.8% year-to-date to April) while sales activity is showing signs of picking up but remains at low levels. Inflation has started to ease (4.3% in April) but affordability challenges remain, while interest rates are high. The value of goods exports has weakened (down 5.9% year-to-date to April), while service exports continue to recover. Private sector projections for most of B.C.'s major trading partners (e.g., rest of Canada, U.S., and China) have improved for 2023 and worsened for 2024. 9#10B.C. Total Net Migration (persons) 170,000 150,000 130,000 110,000 90,000 70,000 50,000 30,000 10,000 Total Net Migration Net International Migration Net Interprovincial Migration -Total Net Migration -10,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sources: Statistics Canada; Haver Analytics 10#11Budget 2023 Economic Outlook B.C. real GDP (annual per cent change) 4.0 2.0 2.8 3.0 0.0 2022 0.5 0.4 2023 1.5 1.6 2024 ■B.C. Ministry of Finance □ Economic Forecast Council 2.4 2.3 2.3 2.3 2.2 2.1 2025 2026 2027 11 Sources: B.C. Ministry of Finance; Economic Forecast Council#12Budget 2023 Fiscal Plan Updated Forecast ($ millions) 2022/23 Budget Estimate 2023/24 Plan 2024/25 Plan 2025/26 Revenue 82,700 77,690 79,724 82,223 Expense (74,393) (80,206) (82,978) (84,766) Pandemic Recovery Contingencies (2,000) (1,000) Supplementary Estimates (2,715) Forecast allowance (700) Surplus (Deficit) 3,592 (4,216) (500) (3,754) (500) (3,043) Capital spending: Taxpayer-supported capital spending Self-supported capital spending 4,055 8,117 11,813 4,027 Total capital spending 12,172 15,840 12,634 13,098 4,116 2,853 16,750 15,951 Declining deficits of $4.2 billion in 2023/24 to $3.0 billion in 2025/26 $37.5 billion in taxpayer- supported capital spending over the three-year plan Debt metrics are lower Provincial Debt: Taxpayer-supported debt Self-supported debt. Total debt (including forecast allowance) 63,701 Taxpayer-supported debt to GDP ratio 16.4% Taxpayer-supported debt to revenue ratio 78.7% 100.1% 75,617 29,788 31,607 33,671 34,405 93,489 107,924 122,607 134,300 18.9% 21.3% 23.0% 114.8% 124.9% 88,436 99,395 than in Budget 2022 12#13Summary of Budget 2023 Public Sector Wage Agreements - cost of $10.8 billion through 2024/25 $37.5 billion for taxpayer-supported capital infrastructure over the three- year plan ESG Framework for capital investments Focus on long-term fiscal sustainability, while continuing to invest in near- term needs and priorities Prudence built into fiscal plan: $15 billion in Contingencies & Forecast allowance of $1.7 billion 13#14Sustainable Debt Levels Taxpayer-Supported Debt-to-GDP Per cent Budget 2022 22.8 23.0 21.8 20.0 21.3 19.3 17.8 17.7 18.9 Budget 2023 16.4 7.4 Interest Bite for Taxpayer-Supported Debt Cents per dollar of revenue 6.1 3.9 4.1 3.9 3.5 3.2 2.9 2.4 2020/21 2021/22 2022/23 98/99 01/02 04/05 07/08 10/11 13/14 16/17 19/20 2023/24 2024/25 2025/26 22/23 25/26 14#15B.C.'s ESG Profile ENVIRONMENTAL Clean BC - 40% reduction of 2007 GHG emissions by 2030 Carbon Tax - first in North America Climate Change Accountability Act and Report Clean BC Industry Fund- world leading benchmarks across industry Carbon Neutral government operations - including schools, hospitals, universities and core government SOCIAL Reconciliation with Indigenous Peoples Budget 2023 makes $37.5 billion commitment to capital investments in health, transportation and education sectors Pandemic Action Plan Social Infrastructure Investment Affordable Housing Robust & Diversified Economy Poverty Reduction Child Care Employer of Choice Earthquake/Fire Prevention Preparedness & Response GOVERNANCE ESG Centre for Excellence Declaration on the Rights of Indigenous Peoples Act Gender Equality Budget Transparency & Accountability Act Balanced Budget & Ministerial Accountability Act Freedom of Information and Privacy Act Ethics Advisor Public Interest Disclosure Act Information Security 15#16Gross Debt Outstanding by Source at June 16, 2023 Gross Debt Outstanding: $86.4 Billion Europe Public/Private, 5% Australia Public / Private 1% Canada Private 12% USA Public Canada CPP & Other 13% 3% Canada Public 66% 16#17Debt Management ரி 2023/2024 Borrowing Program: $19.1 billion (Budget 2023) 2024/2025 and 2025/2026 Borrowing Programs: $20.5 billion and $19.4 billion Manageable borrowing program Will rely on province's significant access to domestic and international capital markets 17#18B.C.'s Strong Credit Rating Agency Rating Outlook Moody's Investor Service Aaa Stable Fitch DBRS Morningstar Standard and Poor's AA+ Stable AA (high) Stable AA Negative 18#19APPENDIX BUDGET 2023 StrongerBC for everyone WWW.BCBUDGET.CA BRITISH COLUMBIA 19#20$ millions Record Level Capital Spending Budget 2023 Plan 16,750 15,840 15,951 4,116 2,853 4,027 Self-supported 12,172 9,732 4,055 9,158 8,903 8,558 3,730 6,637 6,384 5,895 6,032 4,386 3,475 4,106 2,729 2,725 2,488 2,573 8,117 6,002 5,428 4,452 4,772 3,407 3,459 3,659 3,908 12,634 13,098 11,813 Taxpayer-supported 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 20#21Economic Plan Stronger BC is British Columbia's roadmap to building a resilient economy Clean Growth: Meeting BC's Climate Commitments Leading on Environmental & Social Responsibility Fostering Innovation Across Our Economy Inclusive Growth: Supporting People & Families Building Resilient Communities Advancing Reconciliation with Indigenous Peoples 21#22Welcoming Business Environment Committed to balancing a competitive business climate and sustainable, inclusive economic growth • B.C. actively encourages investment by non- • Canadians Recognized for ease of setting up business • Close to 1,000 foreign-owned firms operate in B.C. (26% of all corporations) • Streamlined regulations, dependable legal system . • Consistent triple A credit rating • Progressive climate legislation and commitment to a sustainable economy 22#23☐ B.C. Launches International Trade Strategy Supports more B.C. exports and investment B.C. businesses have more trade and investment opportunities in new markets B.C. has a greater number and diversity of businesses exporting goods and services Increase the diversity of exporters and global markets to ensure a stronger, more resilient economy Specifically identifies key actions to increase export and investment opportunities in three new targeted markets, while expanding in existing markets Mexico, Vietnam and Taiwan - valuable new markets The Trade Diversification Strategy will provide funding to successful programs. that promote better access to international trade opportunities 23#24Update on Export Oriented Energy Projects Yukon Terrory Northwest Territories Fadiities LNG Canada Cordova Basin Liard Basin Hom River Basin Fort Nelson Tilbury LNG Ridley hland Propane Export Terminal Partner(s) Shell/PETRONAS/ PetroChina Mitsubishi/KOGAS Forth BC Altaas Pembina Propane Export Terminal Woodfire LNG Ksi Lims LNG Montney Basin Cedar LNG Port Edward LNG Pembina Pacific Oil and Gas Nisga'a/Western LNG Rockies LNG Hala Nation Pembina Port Edward LNG North Montney Mainline - Under Construction/Operational Proposed Partner(s) Pipe Fort St. John Alliance Pipeline BC Pipeline Pipelines Enbridge Enbridge FortBC Pipeline System FortisBC Westcoast Connector Trans TriSummit Utilities Pacific North Dawson Creek North Money Mainline Trans Canadia Tumbler Ridge Prince Rupert Pec Northern Gas Pipeline Coastal Gaslink Pipeline Westenast Corector Gas Transmission Prince Rupert Gas Transmission **** Eagle Mountain Woodfibre Ta Enbridge Tra Forth BC Prince Kitimat Coastal Casting Pippino George Existing Pipeline Natural gas production was approximately 9% higher in 2022 than in 2021. Upwards of 85% of natural gas production continues to be exported out of the province into Alberta and Washington State. Exports to commence mid-decade from LNG Canada. Other facilities could come online later in the decade. Propane exports to Japan and South Korea continue to grow. Alaska USA Pacific Ocean Shipping Times Tokyo - 8 days Seoul - 10 days Chennai-19 days Canada USA Quesnel Williams Lake BC Pipe Under Construction Pipeline ***Proposed Pipeline British Columbia has over 3,300 TRILLION CUBIC FEET of natural gas Alberta Cache Kamloops Creek Salmon Arm Elkford Merritt Campbell River Courtenay Port Alberni Powell River Whistler Fortis BC Pipeline System Kelowna Nelson Sechelt Squamish Eagle Min Woodbre Looping Vancouver Kimberley Fernie Cranbrook Castlegar Nanaimo Victoria "Proposed projects include projects that have either entered into an Environmental Assessment process or an actively ngaged in front and engineering and design (FEED) work. Washington, USA Montana, USA Idaho, USA#25Recent Mineral Investment Transactions in BC February 2023 - Artemis Gold Closes $385 million project loan financing and $40 million standby cost overrun facility to fund construction costs of its Blackwater Gold Project. February 2023 - Taseko Mines acquires an additional 12.5% interest in the Gibraltar copper mine from Sojitz Corporation for $60 million. January 2023 - Ascot Resources closed $200 million in project financing for construction of its Premier Gold Project. January 2023 - Skeena Resources closed a royalty sale with Franco-Nevada Corp. 55 010 N 50"010 N 135"0" W Thom (Camp Creek) Thom (Trapper Gold) • Ruby Creek 130°0'0"W 1250000 120-0-0 W Silvertip Fireside An • Atlin Goldfields Cassiar Gold Blue Atsutla Gold New Polaris Tumagain Kutcho Big Red Red Chris Williams Schaft Creek Galore Creek Newmont Lake- BAM (Jan Copper) BAM (Monarch Gold) -Foremore Eskay Snip Gold Iskut E&LI Eskay-Corey DOC Scottie Gold Mine Porter-Red Mountain Ranch Muskwa 9 Fort Nelson 11500W 60°0'0"N 110°0'0" W Project type Coal ° Property status coloured by project type Operating Mine* Mine in Care and Maintenance** Mine Development Temporary Shutdown Proposed Mine Exploration Project "Operated in or for a portion of 2022 "Operated within the years Geology Post accretionary assemblages Intrusive rocks © Cu-Mo, Cu-Au-Ag, Mo (porphyry) Precious metal 0 Base and precious metal O Cobalt, base and precious metal © Ni-Cu-Co-precious metal ⚫Tungsten Selected critical minerals (Nb, REE, Mg. Ta, Ti, graphite) ◊ Industrial mineral Aggregate Supracrustal rocks Slide Mountain Stikinia Neogene to Quaternary volcanic rocks Outboard Cache Creek and affiliates Terranes Quesnellia Alexander Wrangellia Lawyers Shasta Joy 13. Kemess East Kemess Underground Oweegee Creek East Niv Treaty Creek Brucejack KSM Kliyul Aley RDP Stardust Premier Gold Kitsault Valley (Homestake Ridge) Kitsault Valley (Dolly Warden) Kwan ka QCM Mt. Milligan (Brownfield) Mt. Milligan (Greenfield) Golddigger Willow Creek Brule Surge Nickel (N100) Anyox Lorraine Hudette Sukunka NAKL Dukel Mt. Mi gan Dome Smithers Jean Marie Cassiar Wolvenne Kalum Tenas* Mountain Decar Nickel District Wolverine ㅁ Prince Rupert Gold Surge Nicke. (HN4) Ridley Island ⚫ Midas Silver Hope (Hermann Pit) Wicheeda Giscome Poplar JBuck Quesnelle Gold Berg Cotsa Indy 0 75 150 300 Kilometres 135'00"W 130°0'0 Rainbow Lake South Sand Hi Robinson Lake Trail Silver Queen Prince George Quartz Blackwater Gold 3Ts Goldrangea Nazko Beaver Wingdam Quesnel & Nickel Gibraltar Lynx Quintette Ancestral North America Deep-water basin Cariboo Gold Bonanza Ledge II Gold Creek Spanish Mountain Mount Palley Fox Tungsten Ruddock Creek Reve Yukon-Tanana Platformal strata Craton and cover Foreland Informon bina Coast กรเ Cordilleran morphogeological bells Moberly Sica Adamant Ice River Horse Creek Silica Duncan Lake Zinc Kootenay Big Ledge Then Mount Brussilof -Elkhom Yellowhead Ridge IZ-1 a Chu Chua Ashcraft Red Lake New Afton FG Gold Woodjam New Prosperity Newton Lac La Hache Eldorado Orca Black Bear Mount Meager Pumice Vulcan Sa alf Gold Bridge Bralorne 22 North Island Bute Inlet Imperial Limestone, Texada Quarry Cabin Group Blackdome Elizabeth Reliance Gold Skoonka Spumoni Creek Okeover a "New Craigmont Shovelnose- New Brenda West Slocan Graphite MPD VEIK Kettle Valley Kena Yee Haw Le Mare Empire Mine CTCT Myra Falls Hardy Island Earle Creek Sechelt Carbonate Rogers Creek Burnco Aggregate Sechelt Mine Vancouver Mount Sicker K2 (Ocean Pearl 12500W Cox Station Sumas Shale Pipeline Road (2) Pat River Ajaxx Rabbit North Falkland Highland Valley Copper Black Crystal Kootenay Miner Mountain Bromley Creek Winner Bud Copper Mountain Placer Mountain 12010070 Kenville Gold Mine Midnight/XL/OK Record Ridge Grand Forks Slag Bull River Bingay Main Fording River Greenhills Line Creek Crown Mountain Elkview Michel Coal Omineca 5000N CANADA UNITED STATES OF AMERICA 115 00 W Fig. 1. Mines, mine development, selected proposed mines, and selected exploration projects in British Columbia, 2022. Based on Clarke et al. (2023), British Columbia Geological Survey Open File 2023-01.#26Agency Moody's Investor's Service* Fitch* B.C.'s ESG Scores Score Scale Credit Impact Score: CIS-2 (neutral-to-low) Credit-Relevant ESG Score: 3 (minimally relevant) 1-5 (Positive to very highly negative) 1-5 (Irrelevant to highly relevant to the credit rating) MSCI ESG Rating: AA CCC to AAA (Worst to best) 26#27CO₂ CO2 Environmental ID 40% Below 2007 GHG emissions by 2030 $2.8 billion carbon tax revenue Budget Est. 2023/24 1000 tonnes marine debris Since 2020 $1.33 billion on climate related initiatives 2020/21 30+ electric buses now deployed 2023 Ao 29% Waste emissions since 2007 10,000 charging stations By 2030 315,000 tonnes plastic pollution Annually since 2020 20,000 tonnes new capacity to recycle plastics 2021/22 27#28Social 30,500 licensed child care spaces since 2018 More than 33,000 affordable homes complete or under way 2018-2028/29 $705 million GDP generated by Indigenous tourism 2019-2020 3.0% average real GDP growth for agriculture, food, fisheries Annual Growth Rate 2000-2021 Ŕ 1 million+ new sport opportunities supported since 2004 INTERNET 6,100+ lives saved through Essential Health Sector Interventions since April 2016 67,553 households benefited from improved internet access Since 2017 25.6% Total poverty rate ↓ 58.0% Child poverty rate As of 2019 136,000+ clients served through Employment Services program over the past 2 years 28#29田 Governance 오 New government buildings are constructed to comply with LEED Gold BC Energy Step Code 4 Annual Reports issued by all B.C. ministries Budget Transparency and Accountability Act $25+ million spent on cybersecurity each year 53% of our public service executive is female 2021 servants have had training from the Gender Equity Office As of October 2021 10,700+ public i $30 million spent on Freedom of Information request each year B.C. was the first to enact legislation to implement the UN Declaration on the Rights of Indigenous Peoples 2019 8 The B.C. Public services named as one of B.C.S Top Employers every year since 2008 BC's ESG Framework for Capital 29#30Pension Plan Positions Pension Plan Number of Members Most recent Valuation Actuarial Basis (millions) Accrued Basis (millions) Teachers' 102,000 Dec 31, 2020 College 33,000 Aug 31, 2021 $1,584 105.3% + $892 RSA $202103.2% + $146 RSA $3,096 114% - $477-111% Municipal 398,000 Dec 31, 2021 - Public Service 138,000 Mar 31, 2020 $3,761 105.3% $9,742M - 120.9% + $3,185 RSA $2,667-109.6% + $117 RSA RSA = Rate Stabilization Account - funds set aside to mitigate future contribution rate increases $3,258 - 115% 30#310000 Per cent 18.2 Federal Government Contributions Federal government contributions as a share of total revenue 19.7 18.5 17.2 16.8 15.8 16.1 17.4 20.7 15.9 15.8 16.3 16.5 Budget 2023 Plan 15.1 17.5 16.4 16.5 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 31#32CONTACT Websites: Debt Management Branch https://gov.bc.ca/provincialdebt Contact: Tricia Oates Client & Investor Relations Manager Debt Management Branch, Province of BC 778-698-5912 DMB.Investor [email protected] BRITISH COLUMBIA 32