Yield More Financing Offered by Scotiabanks Indirect Business

Yield More Financing Offered by Scotiabank’s Indirect Business Financing Division

OUR OFFERING • Comprehensive Account Receivable management solutions for commercial and corporate companies, including: credit adjudication, funding and portfolio management • The western Canadian agricultural market leader with over 45% market share 2

The Value Proposition Convert sales and a/r into immediate cash that, in turn, can be deployed in more profitable business activities. Improves Liquidity Provides Customers with Competitive Financing Terms Allows Ag Partners to Focus on Core Business Benefits to Ag Partners Accelerates Cash Conversion Cycle Improves Rigor Around Credit and Collection Processes 3

The Yield More Financing Advantage Based on a Survey of Western Canadian Crop Input Dealers • Key aspects of Scotiabank’s Yield More Financing program include: – – ease of credit application process quick credit application turnaround times competitive product features personable / knowledgeable / professional / accessible support and service • Specifically, the survey noted that: – Scotiabank has had a good reputation for ease of application process and quick turnaround of approvals. – Scotiabank is seen to have outstanding people. The main interface is over the phone, but Dealers feel that they can easily reach people (whom they know by name) within Scotiabank who know them, know the product and can help them right away 4

Product Features • A seasonal line of credit that can be used to finance crop inputs on the Dealers invoice • No customer financial information required for credit limit requests less than $200, 000* • Early Fall financing available to buy crop inputs beginning September 1 • Extended repayment dates as long as 18 months, allowing customers to maximize cropmarketing opportunities – 100% due February 23, 2018 of Aug. 31, 2017 balance less any payments made since Sept. 1 • Ability for Customer to pay account balances via cheque, online/telephone banking, or using ABM 5

Credit Application Process • Customer completes a straightforward 2 page Credit Application – Provides financial statements for requests greater than $200, 000* • Dealer completes a 1 page Dealer Report, which includes the recording of 1 piece of Government approved photo identification • Or Dealer completes a Referral Form (with same information needed on Dealer Report) and Scotiabank completes application with customer. • Credit Application and Dealer Report are faxed/e-mailed to Scotiabank for processing • Decision Standards - typically not longer than 48 hours – Additional time may be needed if/when additional credit information is required • Dealers receive an email advising them of the credit application’s outcome • Customer receives written notification, along with a terms and conditions booklet, advising them of their Yield More Financing credit limit 6

Interest Rates, Fees and Security • Interest is calculated daily, compounded monthly, from date of electronic debit to date paid • Interest rates: – Prime + 2. 95% for lines of credit up to $200, 000 – Prime + 1. 95% for lines of credit more than $200, 000 – 18% per annum on past due balances • No account set-up fees • No penalty for early repayment • For credit limits above $50, 000, both security over Crops and Proceeds and a General Security Agreement are required 7

Annual Credit Reviews • The Yield More Financing portfolio is monitored regularly and is automatically renewed annually, providing: - the account is not delinquent and has been handled in a satisfactory manner, and - no deterioration of overall credit repayment is evident - For accounts over $50, 000, annual crops and proceeds letter returned - Credit limit is less than or equal to $200, 000 • Credit Review Fees may be charged for those accounts where an annual review of credit is necessary 9

Credit Policies and Portfolio Management • Credit policies have been developed in consultation with our Corporate Sponsors and participating Dealers to meet their needs as well as those of the Customer. Policies are updated and enhanced on an ongoing basis • A dedicated team of Scotiabank – Yield More Financing specialists manage all aspects of your portfolio, including: – Toll free Customer/Dealer service • Hours of operation are between 8: 00 a. m. and 5: 00 p. m. CST, Monday through Friday – – Credit application processing and assessment Day-to-day account management and collection of overdue accounts Annual credit reviews Program management and support 10

Innovative Solutions for Your Business Scott Van Alstyne – Relationship Manager scott. vanalstyne@scotiabank. com 204. 934. 2617 11