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IFRS Impact on Canadian Tire

Securitizations Definition: ✓ In this context, securitization involves the transfer of ownership interest in underlying receivables to a 3rd party conduit which converts the receivables into new financial instruments and then sells the repackaged instruments to investors. IFRS considerations: Securitizations of receivables will no longer qualify for off-balance sheet treatment ✓ Past securitization gains/losses will be reversed and future securitizations will not result in gains/losses CTC impact: ✓ Financial Statements will no longer reflect gains and losses from securitization transactions Securitizations will continue to be a funding source to the extent it is cost effective 9

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