Scotiabank Strategic Priorities and Track Record

Canadian Bail-In Resolution Framework • Eligibility criteria for bail-in debt and conversion into common shares under the CDIC Act - - Senior unsecured debt with original term to maturity > 400 days, issued or re-opened by a D-SIB after regulations come into force Tradeable and transferable; assigned a CUSIP, ISIN or similar designation Excludes deposits, secured liabilities (e.g. covered bonds), eligible financial contracts (i.e. derivatives) and structured notes • Mechanism - designed using no creditor worse off principle - - Upon determination by OSFI that a bank has ceased to be viable, CDIC will take temporary control/ownership and carry out bail-in conversion and/or other restructuring activities Creditors should not incur greater losses through bail-in resolution than if institution had been wound-up under normal insolvency proceedings Respects relative creditor hierarchy; complete write-off of all subordinate ranking claims before converting any bail-in securities (including legacy non-NVCC capital securities) Legacy debt not subject to the bail-in regime but subject to other resolution regimes available to CDIC Senior creditors should receive relatively better conversion terms vs. junior creditors Bail-in risk mitigated by extremely low probability of event Principles based approach to bail-in conversion No explicit conversion ratio 38 Scotiabank®

View entire presentation