Why Innovation Matters

OMERS PENSION FUND OVERVIEW

• Founded in 1962

• One of Canada's largest defined benefit pension plans, with $95

billion in net assets

• Offices in major cities across North America, the U.K., Western

Europe, Asia and Australia

• Originating and managing a diversified portfolio of investments in

public markets, private equity, infrastructure and real estate

OMERS HAS A DIVERSIFIED BALANCE SHEET

PE/VC

Real Estate

Fixed Income

PublicEquity

2017 Asset Mix

Infrastructure

Canada

Rest of the

WorldEurope

United States

Geographic Distribution

Investment FocusWe invest across North America and beginning to target Western Europe. We are a lifecycle investor –patient, high value-add capital

Investment PhilosophyInterested in technology companies with market disrupting potential, using an entrepreneur-first approach

How We Leverage The Other 99%OMERS brand goes a long way in Canada. Helps get in the room with hottest companies but we don’t rest on that. Work closely with Capital Markets, Private Equity, Real Estate and Infrastructure teams to identify and assess opportunities, and then support our companies. Constantly learning how to better utilize the OMERS worldwide portfolio and ecosystem

OMERS VENTURES

OMERS Ventures has deployed over $500M into what we believe are top technology companies

OMERS VENTURESCAPITAL RAISED BY OUR PORTFOLIO COMPANIES

Technology is disrupting virtually all major industries, faster and

broader than ever before

The Industrial Revolution of the 18th century is credited with transitioning the economy to modern production methods

However, the Industrial Revolution never stopped, it only sped up with accelerating waves of innovation

Inn

ovation

Waves of Innovation

1st wave

2nd wave

5th wave

3rd wave

4th wave

6th wave

1785 1845 1900 1950 1990 2020

Iron, Water power

Mechanization, Textiles

Commerce

Steam power

Railroad

Steel

Cotton

Electricity

Chemicals

Internal

combustion

engine

Petro

chemicals

Electronics

Aviation

Space

Digital Networks

Biotechnology

Software

Information

technology

Sustainability

Radical resource

productivity

Whole system design

Biomimcry

Green chemistry

Industrial ecology

Renewable energy

Green nanotechnology

Sources: The Natural Edge Project 2004

Disruptive Technology is Here to Stay

2016 represented the first year where

the top 5 public companies by

market cap were all in the technology

segment

Sources: Visual Capitalist

2018

$1.06T $880B $770B$850B $450B

In the past 20 years, vertical technology disruption has caused the downfall of incumbents in several industries

Retail News TV/Film Transportation Lodging

• $870 billion USD market cap

• 533% increase in market cap in last 4 years

• $178 billion USD revenue in 2017; Germany is 2nd

biggest market with $17 billion USD in sales

• Over 300 million users, 100 million of which are Prime users

• 49% share of US retail ecommerce in 2018

• 566,000 employees

• More than 100,000 warehouse robots

3,500 U.S. retail store closures in 2017 attributed to Amazon’s total retail growth

Sources: Statista, NY Times

• $455 billion USD market cap

• $41 billion USD revenue in 2017

• $16 billion USD net income in 2017

• 2.5 billion people use at least one of Facebook’s apps

• 300 million photo uploads per day

• 60% decline in # of people working in US newspaper industry since 1990

• 30,275 employees

$20 billion in ad revenues for Facebook in 2018, double that of all US print newspapers

Sources: Statista, Zephoria, TechCrunch

• $154 billion USD market cap

• $27.4 billion USD revenue

• 130 million Global subscribers

• 6,000 titles in the US (30% TV Shows)

• $8 billion spent on original content in 2018

• 700 original TV shows and 80 original films in 2018

• 112 Emmy nominations in 2017

• 5,500 employees

10% decrease in U.S. cable subscriptions since 2012 vs. more than 100% increase in subscription for Netflix

Sources: Statista, Comparitech

• $62 billion USD current valuation

• $21 billion USD raised to date

• >600 cities, 78 countries

• 75 million riders (48 million projected adults expected to use Uber in 2018)

• 3 million drivers

• 10 billion rides taken to date (15 million average daily trips)

• $20 billion USD gross bookings in 2016

• 19,000 employees

Taxis and rental cars took up 90% of the US business traveler market in 2014, today it’s 27%

Sources: Statista

• $31 billion USD current valuation

• 150 million users

• 640,000 hosts

• 4 million listings

• 65k active cities, 190 countries

• 24 million projected users in Europe by 2020

• $1.7 billion revenue in 2016

• 3100 employees

Airbnb now has 4 million listings, more than the top five hotel brands combined

Sources: Statista, Bizjournals

The next wave of disruption is horizontal in nature, and bound to impact numerous industries simultaneously

Synthetic Biology and artificial intelligence will

help prolong life and create artificially

developed organisms.

Advances in artificial intelligence and robotics

will change a range of industries such as

manufacturing, energy, healthcare, etc.

Quantum Computing will revolutionize data analysis and allow for exponential gains in computing power.

"By 2100, our destiny is to become like the gods we once worshipped and feared. But our tools will not be magic wands and potions, but the science of computers, nanotechnology, artificial intelligence, biotechnology and quantum theory.“

- Dr. Michio Kaku, Theoretical Quantum Physicist

Future of Transportation will

change mobility, logistics and

infrastructure.

Blockchain and distributed ledger

technology will change any business model that involves intermediaries

today

ARTIFICIAL INTELLIGENCE & ROBOTICSOverview

OMERS PowerPoint Template 18

Wave 1: Pure Research

Wave 2:ML Infrastructure

Wave 3:Applied AI

Wave 4: ??

Description

Never commercialized / pre-revenue acquihires

Limited commercial traction but acquired before reaching scale

Industry/category specific end-user applications

??

Examples ??

ARTIFICIAL INTELLIGENCE & ROBOTICSThe evolution of Atlas

ARTIFICIAL INTELLIGENCE & ROBOTICSThe evolution of Atlas

ARTIFICIAL INTELLIGENCE & ROBOTICSThe evolution of Atlas

ARTIFICIAL INTELLIGENCE & ROBOTICSReal life examples

Robo-advisors are moving towards group plans in an effort to disrupt the employer-operated pension industry.

AI can increase the relevance of recommendations for client resulting into

a higher chance of securing a sale.

Using AI, Amazon has created a store with no lines and no checkouts.

In March 2017, Domino’s Pizza announced a pilot program in Europe using autonomous robots to deliver pizza.

Siemens has been using neural networks to monitor its steel plants. It also opened an AI lab in Munich recently

evaluating the feasibility of new ideas.

BLOCKCHAINOverview

• Blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way

• First big use case is bitcoin which was launched in a white paper, however several blockchain-related startups have launched since 2013; many with applications outside cryptocurrency

• Blockchain is disruptive for a number of reasons:

▪ Transparency

▪ Efficiency

▪ Security

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ICO Mania

Total Amount Raised ($M) Number of ICOs

Sources: Coinschedule

BLOCKCHAINReal life examples

• An emerging group of startups are re-imagining existing Internet infrastructure using blockchain technologies

• Leveraging the distributed power of the network, these organizations are developing products and services intended to unbundle or eliminate many of the centralized applications that consumers and businesses use

TRANSPORTATIONOverview

Autonomous Connected Electric Shared

The Mobility industry is undergoing a wave of massive change driven by four main factors.

✓ Increased safety, changing travel habits and more efficient logistics will impact many industries

✓ Proprietary data assets which can assist in autonomous navigation will see rapid increase in value.

✓ Gradual shift to electric fleet will drive demand for charging infrastructure.

TRANSPORTATIONReal life examples

McKinsey estimates that self-driving vehicles could eliminate need for 5.7 billion square meters of parking

space in the US alone

Fewer younger people getting a drivers license - % of 20-24 yrolds fell from 92% in 1983 to 77% in 2014, a trend likely to

continue with the rise of Mobility-as-a-Service

Suncor is testing driverless trucks at its main oil sands mine in Fort McMurray

German government taking steps to ban sale of internal combustion engine vehicles by 2030

NYC connects ~$2B in traffic violations per year - Self-driving cars will result in fewer traffic violations, reducing police services revenue

QUANTUM COMPUTINGOverview

✓ A Quantum system replaces classical bits with quantum qubits

✓ Qubits follow the superposition principle and can exist as “0” and “1” at the same time

✓ Using qubits instead of bits, with a single input one could process all the possible combinations of “0” and “1”’s in a string at the same time

✓ Certain types of problems could be solved much faster than any classical computer

QUANTUM COMPUTINGApplications

Quantum computers empowering machine learning by enabling AI programs to search through gigantic datasets, impacting every

industry

Complex financial modeling and risk management within the financial industry (Monte Carlo Simulation)

Calculate traffic flows, identify most efficient routes, and optimize routing for retail

deliveries

Create, simulate and model molecular structures e.g. D-Wave solved the puzzle of how some proteins fold in 2012

Ensuring a set of satellites observe a large fraction of a coverage area as satellites change position

SYNTHETIC BIOLOGYOverview

2002 2013 2017

SYNTHETIC BIOLOGYReal life examples

Scientists created Syn3.0, a man-made synthetic bacteria. It is smaller than any other found in

nature.

Scientists successfully replicated the entire human genome as 23,040 different fragments

of cloned DNA.

Harvard used a gene-editing tool (CRISPR) to edit pig DNA, creating organs for human transplant.

Genetics to develop idealefficacy in pharmaceuticals.

DNA genome sequencing to customize healthcare.

What are the impacts of these disruptions

There are many…

• Privacy concerns?

• Rising unemployment?

• Increased inequality?

• Geopolitical unrest?

• Continued rise of nationalism?

• Longer life expectancy?

• Democratization of knowledge?

• Workforce flexibility?

• Global interconnectedness?

• New market opportunities?

• Sustainable/self-sufficient growth?

• Increased transparency and safety?

Increased Life Expectancy

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Longevity NaturalCatastrophe

The Price of Old Age

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1950 1960 1970 1980 1990 2000 2110 2020 2030 2040 2050 2060 2070 2080 2090 2100

Life Expectancy at Birth (Average for Both Genders)

U.S.

U.K.

Netherlands

Canada

Switzerland

Germany

LEGEND

In terms of costs, longevity risk in some developedEconomies far outstrips natural catastrophes.

Source: Risk Management Solutions

Sources: Statista, Zephoria

Rising Unemployment

Sources: Federal Reserve Bank, World Economic Forum

Does Sophia need retirement benefits?

The OMERS Investment division it attempting to prepare for upcoming disruption by first becoming experts ourselves

CAPITAL MARKETS

PRIVATE EQUITY

INFRA-STRUCTURE

Latest trends in cloud computing

Impact of BlockchainPotential disruptors to

portfolio companiesInnovation investing

through PropTech fund

EXA

MP

LES

STRATEGIC PARTNERS

Insights and knowledge sharing