Scotiabank Investor Day Summary

How Will Bail-in Work? Business as usual Resolution Bail-in conversion Stabilization / restructuring Heightened risk Point of non- viability Resolution weekend CDIC exits Good financial health • Financial difficulties DSIB may implement recovery plan actions under OSFI oversight • CDIC may monitor and undertake necessary preparatory activities • DSIB may experience declining market confidence, credit rating downgrades and funding capital raising challenges OSFI declares the DSIB non- viable • Minister of Finance, at the request of CDIC, recommends the Federal Cabinet to issue orders authorizing CDIC to assume temporary control or ownership of the DSIB and to execute a Bail-in conversion . CDIC takes control / ownership of the DSIB •OSFI triggers NVCC conversion • Management and Board of DSIB replaced if necessary ⚫ 1-week to 1- year timeframe • Common shares resulting from NVCC and BID conversion are issued (voting rights suspended) Execution of restructuring plan Liquidity support if necessary • 1 to 5-year timeframe • • Voting rights are resumed "No creditor worse off" determination and payment of compensation Scotiabank | 42

View entire presentation