IFRS Impact on Canadian Tire

Consolidations Definition: ✓ Consolidation involves combining two or more separate entities into a single economic entity IFRS considerations: Consolidation decision is based on control concepts, not just share ownership majority ✓ Controlling entity must have the power to govern the financial and operating policies of an entity, so as to obtain benefits from its activities ✓ Considers which party absorbs a majority of the risks or rewards CTC Impact: ✓ Glacier Credit Card Trust (receivables originated by CTC) will come on B/S - increasing both assets and liabilities by approx $1.7B ✓ Franchise Trust (Dealer loans originated by third parties) will come on B/S- increasing both assets and liabilities by approx $700MM ✓ No material change to earnings 8

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