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Investor Presentaiton

Energy Exposures1 Sector Amount (in $B) % PCLs (in $M) Cumulative Q1/15 - Q2/16 PCL ratio² Midstream $3.2 20% ($2) 0% Downstream $2.1 13% $2 0% E&P $9.2 56% $232 2.5% Services $1.8 11% $45 2.5% Total Drawn $16.3 100% $277 1.7% • • Drawn corporate energy exposure declined $1.6 Bn to $16.3 Bn • Approximately 50% investment grade Undrawn commitments of $11.4 Bn, down $2.7 Bn • Approximately 75% investment grade Focus on select non-investment grade E&P and Services accounts • Approximately two-thirds of focus accounts have issued debt ranking below the Bank's senior position Exposures relate to loans and acceptances outstanding as of April 30, 2016 and to undrawn commitments attributed/related to those (1) drawn loans and acceptances. (2) Cumulative PCL ratio calculated as total energy PCLs (Q1/15 - Q2/16) divided by the energy exposure amount in Q2/16. Scotiabank® 17
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