Back to the future:

An alliance rooted in independence

Chairman’s & President’s Club – Business Session

Capital Markets Introduction Fred Westra EVP, MD & Head of Capital Markets, iA Securities

Sept 2017

Capital Markets & Fixed Income Roadshow

3

iA Financial Group Overview

iA Financial Group •  4th Largest Life and Health Insurer in Canada •  $6 billion market capitalization •  $155 billion in Assets Under Administration

including HollisWealth •  History: 1892 Alliance Nationale was founded;

1905 merged with Industrial Life Insurance Co.

Wealth Management Expansion •  iA Securities is 100%-owned subsidiary of iA

Financial Group •  For the IIROC advisors, HollisWealth

will operate under a business division of iA Securities named HollisWealth

Size, Stability & Sponsorship

+

4

iA Securities Overview Combined Assets under Administration by Region

11% 46%

20% 4%

19%

5

Competitive Environment = Opportunity

BankOwnedDealers Independents SmallBou5ques PremierBou5ques

Widening Gap

Firm Ranking By Retail AUA 1. RBC $280.0 B 7. iA Securities $ 35.0 B

2. BMO $150.0 B 8. Raymond James $ 35.0 B

3. CIBC $150.0 B 9. Desjardins $ 30.0 B

4. Scotia $145.0 B 10. Richardson GMP $ 28.3 B

5. National Bank $105.0 B 11. Manulife $ 19.0 B

6. TD $ 85.0 B 12. Canaccord $ 9.8 B

Trends 1.  Compliance costs rising 2.  Margins compressing 3.  Capital constrained 4.  Banks dominate 5.  Disintermediation

6

Conferences and Site Visits

Hotel Lunch A discussion on Canadian Tourism and the

Canadian Hotel Property Sector

Royal York Hotel, Toronto 20th July 2015

Home is where the Heart is Residential Real Estate

and Financial Services Conference

7

Investment Bank / Corporate Finance

Capital Markets is the relationship manager with corporate clients

Capital Markets Group

Trading Support

Marketing Support

§  Mergers & Acquisitions

§  Divestitures

§  Management Buyouts

§  Restructuring

§  Shareholder Return Advisory

§  Equity

§  Fixed Income

§  Mezzanine Products

§  Non-Deal and Deal Investor Roadshows

§  Conferences

§  Investor Follow-up and Feedback

Research Financing Advisory

§  Trading Updates to Issuers and Team Members

§  Flow Trades

§  Liaise with Institutional and Retail Clients

§  Provide Market Intelligence and Industry Experience to Investors, Bankers and Sales & Traders

§  Regularly Publish Reports on Coverage List of Companies

§  Initiations on New Names

8

Investment Bank’s Role in Investor and Issuer Dealings

•  Match capital holders (investors) with consumers of capital (issuers) to investment targets and growth needs, respectively

•  Provide buy and sell advice to retail and institutional investors

•  Provide capital structure and strategic advice to issuers

•  Provide access to quality new issue products to investors

ECM

Sales & Trading

ISSUER

Research

IB

Retail

Institutional

INVESTOR

Intermediary

New Issue Deal is Dynamic

9

Equity Research

•  Sector Specialists •  Analyst coverage targets of 15-25 issuers per

analyst •  Provide in-depth market intelligence, sector

view and industry expertise •  Over 55 years experience, CFA Charterholders

and top ranked analysts

Mining & Metals

Power & Utilities

Energy E&P

Energy Services &

Infrastructure

REITs

Financials

Technology

Consumer & Industrial Products

•  Research Coverage •  100 names currently covered •  Sector coverage, More thematic

•  Corporate Access – Retail & Institutional

•  Conferences •  Bi-weekly analyst Retail calls

Coverage by Market Cap

10

Equity Research Performance

N.B. Bloomberg rankings only available for stocks covered over a 12 month period. Last price as of market close 18/04/2017

Analyst Number of Top 3 Bloomberg Rankings Number of Covered Names

Neil Linsdell Consumer and Industrial Products 6 11

Blair Abernethy Technology 6 12

Brad Sturges Real Estate and REITs 4 9

Dylan Steuart Financial Services 7 9

Elias Foscolos Energy, Oil and Gas Services 11 15

George Topping Metals and Mining N/A 7

Jeremy Rosenfield Power and Utilities 8 16

Michael Charlton Energy, Exploration and Production 8 15

11

Select Recent Transactions (Equity Issuers)

12

Select Recent Transactions (Equity Issuers)

13

Select Recent Transactions (Equity Issuers)

14

Select Recent Transactions (Structured Products)

15

Equity Capital Markets / Syndication

Syndicating - Inviting other investment dealers into the transaction to •  Reduce our capital liability on a firm commitment (Bought deal) •  Add sales capacity of other dealers and increase distribution •  Get reciprocal business

Executing •  Discussing the transaction with retail advisors, taking in expressions of interest and

allocating shares to institutional accounts and retail advisors

Opportunity •  New issues provide the highest margin in our business

16

Equity Capital Markets / Syndication

The Hub of Capital Markets The voice of our firm to all syndication desks in Canada

•  A strong syndicate partner; average retail demand is 250x

•  Successful distribution = future syndicate positions •  Increased retail sales = increased market share = more product for retail

The voice of our firm to/from iAS retail network •  Striving to get best fills on orders for iAS advisors

•  Get feedback on products of importance to retail

•  More new issues equity/debt •  More structured product new issues

17

Equity Capital Markets / Syndication

18

The natural fit between Capital Markets & iAS Retail

18

Capital Markets

•  Active research creates awareness & demand in the distribution network

•  Higher CM syndicate positions allow for better retail fills (higher retail commissions)

Retail

•  Large & informed distribution network allows for better demand decisions

•  More demand allows for syndicate positioning (higher CM commission)

Demand vs. Fills = Needs for integrated ECM + Banking + Research + Retail strategy •  Better demand for new issue allows

–  CM to market iAS to new issuers & Big dealers that lead issues (i.e. banks)

–  Get on syndicates –  Get bigger syndicate percentages

Sector Awareness for Retail •  Analyst roadshows •  Weekly analyst calls •  Research portal & Research distribution •  Conferences

19

Why is New Issue Business Important to You?

19

Opportunities for Retail •  Increase revenue •  Improve client retention •  Attract high net worth clients •  Access to new issues •  Build wall around clients

More reasons •  Offers all types of clients suitable alternatives (i.e. high and mid-low risk alternatives) •  Bypasses mutual funds (and fees therein) •  Your competitors are doing new issue business and attracting your clients •  Revenues derived from new issues are amongst the highest margin for the firm •  Most importantly, historical returns have been extremely positive

20

Why are You Important to New Issue Business?

•  Investment banking relationship

•  Research coverage: 8 research analysts covering 96 names

•  Trading their stock

•  Institutional and Retail distribution

Our ability to distribute stock is crucial and in many cases, is a key differentiator between ourselves and our competition

Corporate issuers are attracted to do business with iA Securities

20

21

éFills

Investment Banking / ECM Role in New Issues

Increased Retail Demand = Increased Market Share Successful Distribution = Larger Syndicate Positions Failed Distribution = No Syndicate Position

Institutions

Syndicate Retail

Selling Group Retail

Fills

New Issue Offering

é Demand

é Outperformance

é Syndicate Participations

Always outperforming means always moving up &

getting more access to producers

éCommission

Marketing our Retail

Placement Abilities

Participation in Equity

Transaction

Retail Sales PERFORMANCE

Market our performance

back to Issuer

Increased Participation /

Allocation

New Issues Sales Cycle

22

How We Can Work Together… To Get Started In New Issues

Read emails/research to start understanding the various products

Be Informed

Participate

Communicate

Act

Log-on, listen, participate in conference calls with issuers and call Syndication with questions

Talk to clients and participate in the new issuer meetings, Retail Roadshows, iA Conferences

Begin to allocate parts of portfolios towards new issues

Be Informed

YOUR JOB Continue to focus on tier one corporate clients with long-term successful growth profiles & bring you top quality products

Focus on Top Names

Maximize Deal Flow

Strengthen Relationships

Support You

Continue to increase our deal flow in order to maximize the variety of product

Educate & build relationships with retail advisors to understand your needs

Make you feel welcome to call Syndication with questions and comments

OUR JOB

23

Our Journey to Success

23

Phase I Phase II Phase III

2017 2018

60-80 120 200

2% 3-4% 5-8%

2-4 6-8 10-15

2019

2016-Current

βeta Phase

Avg. Syndicate Positions:

Number of Leads:

Number of Syndicates:

Create Enterprise Value for the Firm

Buying New Issues à

WALK

RUN FLY

$9B à $35B Transitory Period

32

1%

--

24

iA Securities Capital Markets Team

24

RichardLegault,CFAPresident

PatrickLaperriere,CFAMD,Ins/tu/onalEquitySales

GeorgeToppingMiningAnalyst

FrederikWestraSVP,MD,HeadofCapitalMarkets

Pierre-FrancoisRoyMD,Co-HeadofECM

SeanMcPhersonResearchAssociate

TrevorConway,MBAMD,InvestmentBanking

LauraCristelloSyndica/on

EliasFoscolos,M.Sc.EnergyServicesAnalyst

DylanSteuart,CFAFinancialServicesAnalyst

JeremyRosenfield,CFAPower&U/li/esAnalyst

FredericDulude,CMTIns/tu/onalEquityTrader

RichardWilliamsMD,Ins/tu/onalEquityTrading

BlairAbernethy,CFAMD,TechnologyAnalyst

StephenLloyd,MBA,CFAIns/tu/onalEquitySales

BradSturges,CFARealEstate&REITAnalyst

NeilLinsdell,CFAMD,HeadofResearch

Louis-SimonGingrasResearchAssociate

DimitriTroulisResearchAssociate

JohnRak,M.ScInvestmentBanking

VilmaJonesMD,Co-HeadofECM

DaveHammondIns/tu/onalEquitySales

John-PaulGrabowski,MBAInvestmentBankingAssociate

RichardLieuResearchAssociate

Valen5nPadureResearchAssociate

RichardKassabian,CFAECM,HeadofStructuredProducts

KevinThompson,MBA,CMAInvestmentBanking

JeretBode,MBAMD,InvestmentBanking

MichaelCharltonEnergyAnalyst

AlexMacIssac,MBAResearchAssociate

GrahamFarrellIns/tu/onalEquityTrader

CharloSeElliotIns/tu/onalEquitySales

DavidBeaSyMD,InvestmentBanking

MontrealHeadOffice2200McGillCollegeAve,Suite350Montreal,QuebecH3A3P8

CalgaryOffice3018thAveSW,Suite600Calgary,AlbertaT2P1C5

TorontoOffice26WellingtonStE,Suite900Toronto,OntarioM5E1S2

DanHardieSeniorInvestmentBanker

Panel Q&A

Thank you! We are looking forward to being your Capital Markets partner.