Organic Capital Generation and IFRS Transition Outlook

39 Non-IFRS and Additional Financial Measures (cont.) • • Financial leverage measure - Debentures + Preferred Shares issued by a subsidiary/Capital: ° Category under Regulation 52-112: Supplementary financial measures. ° о Definition: Calculated by dividing the total debentures plus preferred shares issued by a subsidiary by the sum of total debentures plus shareholders' equity. Purpose: Provides a measure of the Company's financial leverage. Financial leverage measure - Coverage ratio: о Category under Regulation 52-112: Non-IFRS ratio. Definition: Calculated by dividing earnings for the past twelve months (before interest and taxes) by the sum of interest, preferred shares issued by a subsidiary, and dividends and redemption premiums on preferred shares issued by a subsidiary (if applicable). ° Purpose: Provides a measure of the Company's ability to meet liquidity requirements for obligations when they come due. о Reconciliation: There is no directly comparable IFRS financial measure disclosed in the financial statements of the Company to which the measure relates. Sensitivity measures: о о Category under Regulation 52-112: Supplementary financial measures. Definition: The impact of macroeconomic variations, such as interest rate and equity market variations, on other Company metrics, such as net income or the solvency ratio. Purpose: Used to assess the Company's risk exposure to macroeconomic variations. Assets under administration (AUA): о • Category under Regulation 52-112: Supplementary financial measures. о Definition: All assets with respect to which the Company acts only as an intermediary between a client and an external fund manager. о Purpose: Used to assess the Company's ability to generate fees, particularly for investment funds and funds under administration. о Reconciliation: There is no directly comparable IFRS financial measure disclosed in the financial statements of the Company to which the measure relates. Assets under management (AUM): о Category under Regulation 52-112: Non-IFRS financial measures that constitute historical information. о о ° Definition: All assets with respect to which the Company establishes a contract with a client and makes investment decisions for amounts deposited in this contract. Purpose: Used to assess the Company's ability to generate fees, particularly for investment funds and funds under administration. Reconciliation: "General fund assets" and "Segregated funds net assets" disclosed in the Company's financial statements are IFRS measures and components of the AUM calculation. A reconciliation is presented in the "Management's Discussion and Analysis" for 2021, which is available at sedar.com. Net impaired investments as a % of investment portfolio о Category under Regulation 52-112: Supplementary financial measures. о ° Definition: The sum of all investments with a market value below the value disclosed in the Company's balance sheet, as a percentage of the total investment portfolio. An investment considered impaired is written down in the Company's balance sheet to its current market value. Purpose: Used to assess the quality of the Company's investment portfolio, particularly with respect to impaired assets. о Reconciliation: There is no directly comparable IFRS financial measure disclosed in the financial statements of the Company to which the measure relates.

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