TRANSFORMING INTO A GLOBAL CHAMPION

PENSION DEFICIT ELIMINATED - SIGNIFICANT REALLOCATION OF CAPITAL TO OTHER USES As at January 1, 2016, aggregate solvency surplus in domestic registered pension plans is $1.3B Plans are in a solvency surplus position therefore no past service cost payments made in 2016 Plans funded at 105% or more therefore no contributions are required for current service as long as the solvency position is not reduced to less than 105% Total pension funding contributions are forecast to be $94M, on a cash basis, for 2016 vs $312M in 2015 - cash savings of $218M ■ Risk significantly mitigated - 75% of pension liabilities matched with fixed income products - Overall risk profile lower by 50% Improved financial flexibility to fund capital expenditure programs, lower debt levels and return value to shareholders 24

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