407 ETR Overview

Kevin SackVice PresidentCommunications, Marketing &Government Relations407 ETR Concession Company Limited

2

589 km added since 1999 = 48% of total highway

October 11, 2019

Prior to 407 ETR concession purchase

1999: 643 lane km

From time of 407 ETR concession purchase

+ 589 lane km investment to extend highway & manage traffic

2019: 1,232 lane km

3

Extending & Expanding the Highway Over the Years

12

HighwayOperationsbytheNumbers

entryandexitpoints

198

singlemodefiber

400km

wintermaintenancevehicles

81

missedbecauseofbad

weather:407ETRisequipped

tohandleallweather

0days4

W1-W3 C1 C2 C3-C6 C7 E1 E2

One additional lane in each direction

One additional lane in each direction

One additional lane in each direction

Maximum lane capacity reached

One additional lane in each direction

One additional lane in each direction

Two additional lanes in each direction

2020

5

Remaining Lane Expansion

1999 2018 Increase

300,000 transponders

Over 1.5 million transponders

5x

21 phone lines 640 phone lines 30x

1,400 sq. ft. call centre 13,800 sq. ft. call centre 10x

21 workstations 140 workstations 7x

Customer Service – Then and Now

The Customer Service Experience Through the Years

2004 2008 2012 2017 2018

First Call Resolution 61% 71% 79% 87% 88%

Customer Satisfaction 80% 88% 94% 99% 98%

Call Volume 1.15 million 774,869 639,188 616,671 616,120

Headcount 228 153 104 97 103

7

Best Practice

CQA Award (2014)

World Class Call

Centre (2015)

Supervisor of the Year

Award (2015)

Best Performing -Small/Mid-size Contact

Centre (2015)

FCR Improvement

Award -Collections

(2015)

World Class Call

Centre (2014)

FCR Leadership

Award (2013)

World Class Call

Centre (2016)

World Class Call

Centre (2017)

Supervisor of the Year

Finalist (2009)

Supervisor of the Year

Finalist (2017)

Supervisor of the Year

Finalist (2016)

World Class Call

Centre (2018)

First Call Resolution

Merit Award (2006)

Tolling and Traffic

0

500

1 000

1 500

2 000

2 500

3 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Million Total VKT

18,50

19,00

19,50

20,00

20,50

21,00

21,50

22,00

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Average Trip LengthKM

CAGR 0.68%(2007-2018)

CAGR 1.67%(2007-2018)

Traffic Performance

100

105

110

115

120

125

130

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Million Total TripsCAGR 0.99%(2007-2018)

350

365

380

395

410

425

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Average Workday TripsThousands

CAGR 0.87%(2007-2018)

+0.7% +0.7%

+1.4%+0.5%

9

2019 Toll Rates

$10.86 2018 average revenue per trip10

$6.96 2013 average revenue per trip

11

407 ETR Compared to Alternate Routes

12

Traffic at 401

Tolling Provider to the Government of Ontario

407 ETR as a Service Provider for MTO

▪ The Government of Ontario owns the new Highway 407 that runs east of Brock Road and will go to the 115/35 and also owns Highway 412 and the to soon be completed Highway 418.

▪ 407 ETR provides all customer services for the new highways under contract to MTO, including billing and collection and forwards the cash collected to the province on a daily basis.

14 Footer text: Calibri (body) size 11

Technology Systems

407 ETR Back Office Automation

95%

Trips

Automated

253M trip transactions

99.5%

Financial Transactions

Automated

188M entries

98%

Customer Interactions

Automated

65M interactions16

Customer Interactions

2.3 M transactions8.2 M visits

1.9M web accounts

616k callsCustomer wait time 34s

Satisfaction with CSR 91%49k front counter visits

Currently under development

98%

Customer Interactions

Automated

55k emails received8.5M transactional emails

2.7M email addresses

1 M letters sent461k transponders shipped

155k transactions processed

Footer text: Calibri (body): size 7

12M printed invoices7 M paperless invoices

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Customer Opinion

407 ETR vs. Alternatives

Percentage of 407 ETR drivers agreeing that 407 ETR is faster, less congested, more reliable, better maintained and safer year-to year

76%78%78%

77%79%

74%76%

65%62%

75%79%78%78%78%

73%74%

65%64%

61%64%

61%

64%54%

56%49%49%

20%20%

18%19%

17%22%19%

27%33%

21%19%

18%18%17%

22%22%

28%30%

26%26%

26%

23%34%31%

35%35%

3%2%

3%3%4%3%

4%8%

4%

3%1%

3%2%4%

2%2%

6%5%

12%9%

11%11%11%11%

11%13%13%

Nov '18

Nov '16

Dec '14

Nov '12

Nov '10

Nov '18

Nov '16

Dec '14

Nov '12

Nov '10

Nov '18

Nov '16

Dec '14

Nov '12

Nov '10

Faster

More Reliable

Less Congested

54%53%

52%58%

52%50%51%

43%40%

48%44%

46%44%44%

38%42%

39%31%

23%28%

25%21%

25%27%26%

33%36%

25%34%

28%26%

29%30%

31%30%

35%

22%19%

21%19%

21%21%22%

22%23%

25%20%

23%26%

25%28%

25%28%

30%

Nov '18

Nov '16

Dec '14

Nov '12

Nov '10

Nov '18

Nov '16

Dec '14

Nov '12

Nov '10

Better Maintained

Safer

2018

2017

2016

2015

2014

2013

2012

2011

2010

2018

2017

2016

2015

2014

2013

2012

2011

2010

2018

2017

2016

2015

2014

2013

2012

2011

2010

2018

2017

2016

2015

2014

2013

2012

2011

2010

2018

2017

2016

2015

2014

2013

2012

2011

2010

Almost 80% of 407 ETR drivers

agree that 407 ETR is faster, less congested, more reliable, better maintained and safer.

19

37%

37%

36%

36%

37%

32%

28%

30%

26%

25%

23%

22%

41%

45%

44%

44%

41%

47%

41%

43%

41%

47%

44%

45%

15%

12%

14%

13%

15%

15%

21%

20%

23%

20%

23%

22%

4%

4%

5%

5%

5%

6%

8%

5%

7%

6%

7%

9%

Nov' 18

Oct '17

Nov '16

Nov '15

Dec '14

Nov '13

Nov '18

Oct '17

Nov '16

Nov '15

Dec '14

Nov '13

Saving Drivers Money

Percentage of 407 ETR drivers strongly or somewhat agreeing that toll highways saves drivers money.

Since toll highways are less congested, they tend to save drivers money on gas as less gasoline is used idling in traffic gridlock.

Since toll highways are less congested, they tend to save drivers money on maintenance and repair since there is less wear and tear on cars.

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Overall Customer Service Quality

Percentage of 407 ETR drivers agreeing that when contacting 407 ETR, they are very satisfied with their customer service.

43%

47%

42%

39%

38%

39%

36%

30%

29%

25%

23%

23%

23%

19%

14%

14%

44%

41%

41%

45%

47%

46%

48%

47%

49%

42%

46%

46%

44%

47%

33%

45%

7%

8%

10%

9%

10%

9%

10%

14%

14%

18%

18%

20%

18%

20%

22%

25%

4%

3%

5%

4%

4%

5%

5%

7%

7%

12%

10%

9%

13%

13%

19%

13%

Very Satisfied (9,10) Satisfied (6,7,8) Dissatisfied (3,4,5) Very Dissatisfied (1,2)

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004 (Dec)

2004 (Feb)

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62%

65%

60%

59%

58%

58%

59%

47%

57%

48%

51%

46%

34%

31%

29%

22%

24%

26%

32%

30%

32%

32%

37%

35%

35%

43%

34%

40%

36%

41%

47%

42%

42%

41%

44%

41%

5%

4%

5%

5%

3%

5%

5%

8%

8%

9%

9%

11%

16%

19%

21%

25%

24%

24%

Strongly agree (9,10) Somewhat agree (6,7,8) Somewhat disagree (3,4,5) Strongly disagree (1,2)

Congestion

Percentage of 407 ETR drivers agreeing that 407 ETR is less congested than other major roadways.

2018

2017

2016

2015

2014

2013

2012

2011

2010 (Nov)

2009

2008

2007

2006

2005

2004

2003

2002

2010 (Mar)

94%

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▪ More than 8-in-10 agree that driving at consistent speed reduces environmental impact.

Reducing the Environmental Impact of Driving

Percentage of 407 ETR drivers agreeing that driving at a consistent speed reduces environmental impact of driving, such as CO2

emissions, compared to driving in stop and go traffic on other routes.

23

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407 ETR Community Engagement

Thank you