Investor Day Summary

CANADIAN BANKING OVERVIEW A leader in personal & commercial banking, wealth and insurance in Canada BUSINESS OVERVIEW 2018 PRIORITIES STRATEGIC OUTLOOK • Full suite of financial advice and banking solutions to retail, small business and commercial customers • Investment, pension and insurance advice and solutions • Customer focus: Deliver a leading customer experience and deepen relationships with customers across our businesses and channels • Structural cost transformation: Reduce structural costs to build the capacity to invest in our businesses and technology to drive shareholder return Digital transformation: Leverage digital as the foundation of all our activities to improve our operations, enhance the client experience and drive digital sales • Business mix alignment: Optimize our business mix by growing higher margin assets, building core deposits and earning higher fee income Leadership: Grow and diversify talent and engage employees through a performance-focused culture • Solid Loan Growth: Expect solid loan growth across retail mortgages, • auto lending, commercial loans, credit cards and deposits Margins: Stable to slightly increasing margins • Provisions for Credit Losses (PCL): Higher PCLs driven by change in business mix, but risk adjusted margin should remain stable Productivity: Improving productivity will continue to be an area of focus • • Strategic Priorities: Deepen primary relationships and strengthen customer experience, optimize business mix, focus on cost initiatives and drive digital transformation Scotiabank 16

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