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Investor Presentaiton

Energy Exposures1 Sector Amount (in $B) % PCLs (in $M) Cumulative Q1/15 - Q4/16 PCL ratio² Midstream $4.2 27% ($2) 0% Downstream $2.2 14% $2 0.1% E&P $7.7 49% $268 2.9% Services $1.5 10% $70 3.7% Total Drawn $15.6 100% $338 2.1% • • . (1) (2) Drawn corporate energy exposure were $15.6 billion, down 3% Q/Q Approximately 52% investment grade Undrawn commitments of $11.1 billion, down $0.8 billion Q/Q • Approximately 68% 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 October 31, 2016 and to undrawn commitments attributed/related to those drawn loans and acceptances. Cumulative PCL ratio by sector is calculated as total PCLs over the period Q1/15 - Q4/16 divided by the average quarterly exposure over the period Q1/15 - Q4/16. 26 Scotiabank®
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