C.S.T. Consultants Inc. Canadian Scholarship Trust Family Savings Plan. Audited Financial Statements and Management Report of Fund Performance

C.S.T. Consultants Inc. Canadian Scholarship Trust Family Savings Plan Audited Financial Statements and Management Report of Fund Performance October 31, 2017 and 2016

Contents Management Report of Fund Performance 1 Management s Responsibility for Financial Reporting 7 Independent Auditor s Report 7 Statements of Financial Position 8 Statements of Comprehensive Income 9 Statements of Changes in Net Assets Attributable to Subscribers and Beneficiaries 9 Statements of Cash Flows 10 Schedule I Statement of Investment Portfolio 11 Schedule II Subscribers Deposits and Accumulated Income 13 Notes to the Financial Statements 14 Government Grants (Appendix I to Schedule I) 19 CAUTION REGARDING FORWARD-LOOKING STATEMENTS Certain portions of the Management Report of Fund Performance, including but not limited to, Results of Operations and Recent Developments, may contain forward-looking statements about the Plan, including its strategy, risks, expected performance and condition. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as expects, anticipates, intends, plans, believes, estimates and similar forwardlooking expressions or negative versions thereof. In addition, any statement that may be made concerning future performance, strategies or prospects, and possible future Plan action, is also a forward-looking statement. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about the Plan and economic factors. Accordingly, assumptions concerning future economic and other factors may prove to be incorrect at a future date. Forward-looking statements are not guarantees of future performance, and actual events could differ materially from those expressed or implied in any forward-looking statements made by the Plan. Any number of important factors could contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, and catastrophic events. It should be stressed that the above-mentioned list of important factors is not exhaustive. You are encouraged to consider these and other factors carefully before making any investment decisions and you are urged to avoid placing undue reliance on forward-looking statements whether as a result of new information, future events or otherwise, prior to the release of the next Management Report of Fund Performance.

Management Report of Fund Performance Introduction This annual management report of fund performance contains financial highlights but does not contain the complete annual financial statements of the Canadian Scholarship Trust Family Savings Plan ( the Plan ). A copy of the annual financial statements can be obtained on request, and at no cost, by visiting our website at www.cst.org, SEDAR at www.sedar.com, by calling our customer service team at 1-877-333-7377 or by writing to us by mail at 2235 Sheppard Avenue East, Suite 1600, Toronto, Ontario M2J 5B8. The Canadian Scholarship Trust Foundation, as the Plan sponsor, and C.S.T. Consultants Inc., as the Investment Fund Manager, view corporate governance and compliance as critical to overall corporate performance and long-term investment returns, and as such we review and support the proxy voting guidelines established by our investment managers. Each investment manager s proxy voting policy is available on request through our customer service area or by contacting us at cstplan@cst.org. Investment Objective and Strategy actively managed by CGOV Asset Management constructed The Plan s investment objectives are to protect Subscribers principal according to a focused portfolio composed of Canadian companies (net Contributions or Principal ), and to deliver a reasonable identified as having effective management with superior long-term positive return on investments over a long-term investment horizon prospects. All the above listed assets and investment agreements are within prudent risk tolerances. managed in accordance with our policies and agreements In the fourth quarter of Fiscal 2017, the Plan implemented changes to its investment structure to enhance diversification and Risk improve yield. The Plan transitioned from an actively managed, The risks associated with investing in the Plan remain as described in blended mandate of Canadian government and corporate bonds to a the prospectus. There were no material changes to the Plan during separate passive government bond and actively managed financial the financial year that affected the overall level of risk associated with institution bond mandate. A portion of the Plan s fixed income assets an investment in the Plan. were redistributed to passive U.S. equities, followed with the transfer Results of Operation of Canadian equity ETFs to an actively managed Canadian equity 2017 Plan Performance securities mandate. For 2017, the Plan s rate of return, net of fees, was 0.7% compared to With these changes, the Plan modified the blend of indices the investment policy benchmark ( Benchmark ) return of 1.1% and comprising its Benchmark beginning October 1, 2017 to the the FTSE TMX Canada Short Term Government Bond Index following, which more closely reflects the Plan s new strategic return of -0.7% ( Broad-based Index ). The Plan s return is after the investment mix (see Annual Compound Returns for further details): deduction of fees and expenses of 1.3%, while the Benchmark and 13.0% FTSE TMX Canada Provincial Bond Index Broad-based Index returns do not include any costs of investing such 26.0% FTSE TMX Canada Government Short Term Bond Index as fees, expenses and commissions. 26.0% FTSE TMX Financial Institution Bond Index In comparison to the Benchmark, the Plan s transition to the 26.0% S&P US Total Market Index (CAD) current investment mix in combination with added value provided 9.0% S&P/TSX Capped Composite Index by the Canadian equity allocation were the most significant contributors to Plan relative returns over the fiscal year. The Plan is invested according to a strategic mix with Principal In comparison to the Broad-based Index, the Plan s current assets invested in a combination of government fixed income allocation to U.S. equity ETFs and Canadian equity contributed to securities and Canadian financial institution debt rated A (mid) and positive gains. Overall, the Plan significantly outperformed relative to above. Income assets are invested in U.S. equity Exchange Traded the Broad-based Index. Funds ( ETFs ), and Canadian equity securities. The Plan s Canadian government fixed income securities are Economic Review passively managed by TD Asset Management Inc. according to pre- Global economic growth strengthened in 2017 with forecasts revised specified duration targets. Financial institution debt securities are upwards to 3.6 percent in 2017 and 3.7 percent in 2018 according to actively managed by TD Asset Management Inc. The active fixed the October 2017 World Economic Outlook ( WEO ). Global income portfolios focus on strategies where value can be added on a pickup in economic activity that started in the second half of 2016 sustainable basis and may rely upon sector allocation, credit research, gained further momentum in the first half of 2017. In advanced and duration management, dependent upon the managers expertise economies, growth was largely broad based, with stronger activity in and mandate. the United States and Canada, the euro area and Japan. Financial The Plan s US equity assets are managed by BlackRock Asset market sentiment was generally strong, with continued gains in Management Canada Limited. These assets are allocated to ETFs equity markets in both advanced and emerging market economies. traded on Canadian exchanges that replicate the performance of the Inflation remained soft and generally below target. S&P US Total Market Index. The Plan s Canadian equity assets are 1 Family Savings Plan

Economic growth in the United States rebounded in the second We are confident our investment strategy and conservative quarter with improved consumption growth and persistent business management approach will continue to provide value over the long investment. The Federal Reserve Board raised interest rates in March term horizon of the Plan. Our goal, as always, is to provide safety of and June of 2017 and announced in September plans to reduce principal and deliver a reasonable return within our investment quantitative easing measures. Core inflation marginally declined in policy guidelines and risk tolerances for our subscribers and 2017 with an expectation by the Federal Reserve Board of reaching beneficiaries. 2 percent by 2019. Future Accounting Standards The Canadian economy grew rapidly in the second quarter of In July 2014, the IASB finalized the reform of financial instruments 2017, as growth was broad based across regions and industries. The accounting and issued IFRS 9 (as revised in 2014), which contains Bank of Canada increased the overnight rate in July and September the requirements for the classification and measurement of financial of 2017; however, elected to pause further tightening in light of assets and financial liabilities, impairment methodology, and general uncertainty from geopolitical developments, notably the hedge accounting. IFRS 9 (as revised in 2014) will supersede IAS 39 renegotiation of the North American Free Trade Agreement. Financial Instruments: Recognition and Measurement ( IAS 39 ). IFRS 9 Inflation marginally crept upwards through 2017 reflecting stronger will be effective for the Plan s financial statements during its fiscal economic activity and higher gasoline prices and is projected by the 2019 year. Bank of Canada to rise to 2 percent for the second half of 2018. IFRS 15 was issued in May 2014, replacing existing guidance The Canadian fixed income market experienced negative returns related to revenue recognition and will be effective for the Plan s following each of the Bank of Canada s interest rate hikes. Bond financial statements during its fiscal 2019 year. IFRS 15 includes a prices partially recovered in October as yields fell on the expectation single revenue recognition model based on the principal that revenue the Bank of Canada would refrain from further rate hikes for the is recognized when control of a good or service is transferred to the remainder of 2017. In this environment, long term federal bonds customer. When appropriate, contracts with customers are divided were amongst the worst performing market segment with losses into separate performance obligations, each of which represent exceeding 5% over the year. Provincial bonds outperformed relative promises to deliver distinct goods or services. IFRS 15 provides to federals, however were still in negative territory. Corporate bonds guidance for recognizing revenue from performance obligations that including Financials generated positive returns over the year as are delivered at a point in time, or delivered over time and also spreads tightened in October. includes additional disclosure requirements. U.S. equities, as represented by the S&P 500 (a broad index of U.S. large cap stocks), continued to soar with an annual return of Change in Prior Period Financial Statement Comparative Amounts 23.6% (USD). Index gains were widespread with 10 of the 11 S&P During fiscal 2017, management of C.S.T. Consultants Inc. 500 sectors in positive territory with the majority providing double discovered an error in the accounting and allocation of Government digit annual returns. Amongst the gainers, the Information Grant investments and income that resulted in an understatement to Technology and Financials sectors were the strongest with annual income of the Plan in prior periods. The error was adjusted returns in excess of 35%. retrospectively in the Plan s financial statements. As a result, The S&P/TSX Capped Composite Index (a broad index of Canadian stocks) grew by 11.5% over the year with eight out of the eleven sectors in positive territory. Consumer Discretionary, Industrials, and Financials experienced strong growth with returns in excess of 20% over the period. Both the Energy and Materials sectors detracted over the period. Portfolio Manager Changes With the implementation of the current investment strategy, the Plan s portfolio managers and mandates were either re-aligned or changed. The fixed income portfolio managed by TD Asset Management was updated to a passive, customized blend of Canadian federal and provincial bonds in combination with an actively managed financial institution bond mandate. Canadian equity ETFs allocated to BlackRock Asset Management Canada were transitioned to an actively managed mandate of Canadian equity securities managed by CGOV Asset Management. A portion of Plan assets were allocated to BlackRock and are managed according to passive US equity ETF tracking the S&P US Total Market Index. Recent Developments and Other Information Recent Canadian economic data depicted mixed results as GDP unexpectedly shrank in August by 0.1 percent from July, followed with stronger than anticipated labour-force survey results released in October and November by Statistics Canada. The Bank of Canada announced on December 6, 2017 the decision to maintain the overnight rate at 1 per cent as a cautious approach in light of softening economic data and ongoing strained discussions related to the renegotiation of the North American Free Trade Act. Family Savings Plan 2

comparative amounts presented in the current period s financial statements were adjusted as follows: The following is a summary of the key account balances affected on the October 31, 2016 financial statements: October 31, 2016 Balance October 31, initially 2016 Account reported Adjustment Restated Statements of Financial Position Accrued interest and other receivables $ 41,895 $ 2,085 $ 43,980 Accounts Payable, accrued liabilities and unclaimed subscribers funds $ 453 $ 568 $ 1,021 Net Assets Attributable to Subscribers and Beneficiaries $ 292,134 $ 1,517 $ 293,651 Accumulated income held for future education assistance payments $ 52,382 $ 1,517 $ 53,899 Statements of Comprehensive Income Interest for allocation to subscriber accounts $ 6,307 $ 365 $ 6,672 Increase in Net Assets from Operations Attributable to Subscribers and Beneficiaries $ 10,885 $ 365 $ 11,250 Statements of Changes in Net Assets Attributable to Subscribers and Beneficiaries Net Assets Attributable to Subscribers and Beneficiaries, Beginning of Year $ 262,553 $ 1,152 $ 263,705 Increase in Net Assets from Operations Attributable to Subscribers and Beneficiaries $ 10,885 $ 365 $ 11,250 Net Assets Attributable to Subscribers and Beneficiaries, End of Year $ 292,134 $ 1,517 $ 293,651 3 Family Savings Plan

Financial and Operating Highlights (with comparative figures) The following table is intended to help you understand the key financial results for the past five fiscal years ending October 31 for the Plan, which includes assets and income allocated from Government Grants. This information is derived from the Plan s audited annual financial statements. ($ thousands) 2017 1 2016 1 2015 1 2014 1 2013 2 Statements of Financial Position Total Assets $320,836 $294,876 $263,803 $241,052 $222,055 Net Assets 317,663 293,651 262,553 239,036 97,784 % Change of Net Assets Attributable to Subscribers and Beneficiaries 8.2% 11.8% 9.8% 144.5% 11.8% Statements of Comprehensive Income Net Investment Income $ 4,347 $ 11,250 $ 4,515 $ 2,707 $ 1,435 Statements of Changes in Net Assets Education Assistance Payments $(12,992) $ (13,298) $ (13,299) $ (12,429) $ (12,097) Government Grants Repaid (net of receipts) (381) (812) (933) (1,003) (746) Government Grant payments to Beneficiaries (5,919) (5,535) (5,084) (4,642) (3,862) Other Total number of Agreements 61,082 57,986 54,695 51,299 47,537 % Change in the total number of Agreements 5.3% 6.0% 6.6% 7.9% 10.5% Note: 1 Based on financial statements in accordance with IFRS 2 Based on financial statements in accordance with Canadian GAAP Family Savings Plan 4

Management Fees Asset Mix as at October 31, 2017 Administration Fees An administration fee of $3,243 thousand (2016 $2,989 thousand) comprising Plan administration and processing fees and financial reporting expenses was paid to the Canadian Scholarship Trust Foundation ( the Foundation ), the sponsor and administrator of the Plan, in accordance with subscribers Education Savings Plan Agreements. The administration of the Plan includes processing and call centre services related to new agreements, Government grants, plan modifications, terminations, maturities and Education Assistance Payments ( EAPs ). The annual administration fee is calculated as 1.0% of the total amount of net Contributions, Government Grants and income earned on these amounts, subject to applicable taxes, and is paid monthly. The Foundation has delegated certain administrative and distribution functions to its wholly-owned subsidiary, C.S.T. Consultants Inc., which is registered as the Plan s Investment Fund ETFs and Equities, 36.4% Cash and Cash Equivalent, 0.8% Financial Institution Bonds, 24.2% Federal, Provincial and Municipal Bonds, 38.6% 28DEC201705511196 The following table details the top 25 long positions in the Total Portfolio Assets of the Plan. The Plan is prohibited from holding short positions in securities. % of Plan Fair Value Portfolio Issuer Rate Maturity Date ($ 000 s) Assets ishares Core S&P U.S. Total Market Index ETF 61,861 28.1% Province of Ontario 3.15% 02 Jun 2022 9,407 4.3% Province of Ontario 4.00% 02 Jun 2021 6,035 2.7% Manager in Ontario, Quebec, Newfoundland and Labrador, and Province of Ontario 4.20% 02 Jun 2020 6,032 2.7% Scholarship Plan Dealer under securities legislation of each of the Royal Bank of Canada 2.86% 04 Mar 2021 5,846 2.7% provinces and territories of Canada in which it operates to sell Bank of Montreal 3.40% 23 Apr 2021 5,825 2.6% scholarship plans. C.S.T. Consultants Inc. is the exclusive distributor Province of Québec 4.50% 01 Dec 2020 5,674 2.6% of the Canadian Scholarship Trust Plans. Toronto Dominion Bank 3.23% 24 Jul 2024 5,556 2.5% In exchange for its administrative services, C.S.T. Consultants Caisse Centrale Desjardins 2.44% 17 Jul 2019 5,340 2.4% Inc. receives an amount equal to the administration costs incurred Province of Québec 4.25% 01 Dec 2021 5,175 2.3% plus a percentage of such costs from the Foundation. The National Bank of Canada 2.11% 18 Mar 2022 5,089 2.3% administration services agreement is renewable on an annual basis. Province of Québec 4.50% 01 Dec 2019 4,570 2.1% Province of Ontario 4.40% 02 Jun 2019 4,336 2.0% Portfolio Management Fees Manufacturers Life Insurance The Plan s annual investment management fee was 0.12%, including Company 2.10% 01 Jun 2025 3,972 1.8% taxes, (2016 0.15%) of the average market value of assets based on HSBC Bank Canada 2.91% 29 Sep 2021 3,652 1.7% the Investment Management Agreements with portfolio managers. Toronto Dominion Bank 2.05% 08 Mar 2021 3,152 1.4% The portfolio managers provide investment advisory and Province of Québec 4.50% 01 Dec 2018 2,478 1.1% discretionary managed account services with respect to purchasing, Royal Bank of Canada 4.93% 16 Jul 2025 2,253 1.0% selling, and dealing in securities. Province of Ontario 2.10% 08 Sep 2019 2,121 1.0% Province of Alberta 4.00% 01 Dec 2019 2,071 0.9% Trustee and Custodian Fees Province of British Columbia 3.70% 18 Dec 2020 2,013 0.9% The Plan pays trustee and custodian fees to RBC Investor Services Province of New Brunswick 4.40% 03 Jun 2019 1,603 0.7% Trust to settle all investment trades and disburse fees, EAPs and other Bank of Nova Scotia 1.90% 02 Dec 2021 1,353 0.6% amounts in accordance with the terms of the Plan Agreement. For Province of New Brunswick 4.80% 03 Jun 2041 1,263 0.6% 2017 these fees charged to the Plan amounted to $94 thousand Province of Alberta 1.35% 01 Sep 2021 1,258 0.6% (2016 $48 thousand) and were 0.03% including taxes (2016 Top 25 long positions as a percentage of Total Portfolio Assets of 0.02%) of the average market value of assets. the Plan 71.6% Summary of Plan Investment Portfolio Past Performance The Plan s Total Portfolio Assets are comprised of the Principal and Income for all education savings plan agreements that have not been paid out to beneficiaries and/or withdrawn by subscribers. Government Grant assets and related investment income are specific to each beneficiary, but are invested together with funds from other Plans administered by the Foundation. Any payments to beneficiaries from Government Grant assets are treated as separate payments and not included in EAP values paid out. The Plan s Total Portfolio Assets as presented and as defined in this report, reflects only the Principal and Income assets. The Plan s Total Portfolio Assets do not include the allocation of assets from the Government Grant asset pool that are attributable to this Plan. The following chart illustrates the Plan s Total Portfolio Assets by investment categories. The returns presented in the following chart and the annual compound returns table are based on the investment performance of the Plan s Total Portfolio Assets only and do not reflect the investment performance of assets from the Government Grants. Investment returns have been calculated using market values and time-weighted cash flows during the periods. Total expenses incurred by the Plan, including administration, portfolio management, custody and trustee fees, and Independent Review Committee expenses have been deducted and only net returns are displayed in each period. Past returns of the Plan do not necessarily indicate how it will perform in the future. Plan changes as described within the Investment Objective and Strategy section could have affected the performance of the Plan s Total Portfolio Assets had they been in effect throughout the performance measurement periods presented. 5 Family Savings Plan

Year-by-Year Returns The following bar chart illustrates the annual performance in each of the past ten years to October 31, 2017 of the Plan s Total Portfolio Assets. The chart illustrates in percentage terms how much an investment in the Plan s Total Portfolio Assets, made on the first day of each financial year, would have increased or decreased by the last day of each financial year: % Return Year-by-Year Returns (Net of fees, for years ended October 31) 8 7 6 5 4 3 2 1 0 3.2 2.8 1.6 1.7 0.7 0.1 0.9 2008 2009 2010 2011 2012 2013 2014 2015 2.3 4.5 0.7 2017 3JAN201823061340 2016 The FTSE TMX Canada All Corporate Bond Index is a broad measure of Canadian investment grade fixed income securities issued by corporations, with maturities greater than one year. The FTSE TMX Canada 91-Day Treasury Bill Index is based upon the average daily yield of 91-Day Treasury Bills. The S&P US Total Market CAD Index is designed to track the broad U.S. equity market, including large, mid, small, and micro-cap stocks. The S&P/TSX Capped Composite Index reflects price movements of selected securities listed on the Toronto Stock Exchange and weighted by market capitalization, with a capped weight of 10% on all of the constituents. The following table illustrates the annual compound returns of the Plan s Total Portfolio for the periods shown ending on October 31, 2017. Period 1 Yr 3 Yr 5 Yr 10 Yr Net Plan Return* 0.7 2.5 1.7 1.8 Benchmark 1.1 3.4 2.7 3.1 Annual Compound Returns Broad-based Index: FTSE TMX The Plan s Benchmark currently comprises the following specified Canada Short Term indices in the weights and for the periods of time indicated: Government Bond Index 0.7 1.2 1.4 2.9 From: From: July 2, Aug 1, From: Note: 2011 2014 Oct 1, * The Plan returns are after the deduction of fees and expenses, while the Benchmarks and Prior to: To: To: 2017 Broad-based Index returns do not include any costs of investing such as fees, expenses July 1, July 31, Sep 30, To: and commissions. The Plan s fees and expenses were 1.2% for the three and five-year Index 2011 2014 2017 Current returns, and 1.3% for all other periods. FTSE TMX Canada All Gov t Bond Index 62.0% FTSE TMX Canada Provincial Bond Index 13.0% For commentary on the market and/or information regarding FTSE TMX Canada Financial Bond Index 26.0% the relative performance of the Plan compared to its Broad-based FTSE TMX Canada Short Term Gov t Bond Index and Benchmark, see the Results of Operations section of Index 70.0% 64.0% 26.0% this report. FTSE TMX Canada Short Term Corporate Securities regulations require that we also show Benchmark Bond Index 6.0% returns that would have been applicable to the time periods if the FTSE TMX Canada All Corporate Bond Benchmark was not modified as previously described (the Former Index 21.0% Benchmark ). The Former Benchmark return for the above time FTSE TMX Canada 91 Day Treasury Bill 30.0% 30.0% 10.0% periods were 0.4% (1 Year), 3.1% (3 Year), 2.6% (5 Year) and 3.1% S&P US Total Market Index (CAD) 26.0% S&P/TSX Capped Composite 7.0% 9.0% (10 Year). The Former Benchmark is comprised of the following specified indices in the weights and for the periods of time as indicated: The FTSE TMX Canada All Government Bond Index is a broad measure of Canadian investment grade fixed income securities, issued by the Government of Canada, including Crown Corporations and provincial governments, with maturities greater than 1 year. The FTSE TMX Canada Provincial Bond Index is a broad measure of Canadian investment grade fixed income securities, issued by the Provinces of Canada, including Crown Corporations, with maturities greater than 1 year. The FTSE TMX Canada Financial Bond Index is a broad measure of Canadian investment grade fixed income securities, issued by bank, insurance, financial service, and auto finance corporations, with maturities greater than one year. The FTSE TMX Canada Short Term Government Bond Index is a broad measure of Canadian investment grade fixed income securities, issued by the Government of Canada, including Crown Corporations and provincial governments, with maturities between 1 and 5 years. The FTSE TMX Canada Short Term Corporate Bond Index is a broad measure of Canadian investment grade fixed income securities issued by corporations, with maturities between 1 and 5 years. From: From: July 2, Aug 1, 2011 2014 Prior to: To: To: July 1, July 31, Sep 30, Index 2011 2014 2017 FTSE TMX Canada All Gov t Bond Index 62.0% FTSE TMX Canada Provincial Bond Index FTSE TMX Canada Financial Bond Index FTSE TMX Canada Short Term Gov t Bond Index 70.0% 64.0% FTSE TMX Canada Short Term Corporate Bond Index 6.0% FTSE TMX Canada All Corporate Bond Index 21.0% FTSE TMX Canada 91 Day Treasury Bill 30.0% 30.0% 10.0% S&P US Total Market Index (CAD) S&P/TSX Capped Composite 7.0% In comparison to the Former Benchmark, an overweight to U.S. equities, transition to the current investment asset mix, and outperformance by the actively managed Canadian equity allocation were the most significant contributors to Plan relative returns over the fiscal year. Family Savings Plan 6

Audited Financial Statements Management s Responsibility for Financial Reporting The accompanying financial statements of the Canadian Scholarship Trust Family Savings Plan (the Plan ) are prepared by management and are approved by the Board of Directors of Canadian Scholarship Trust Foundation (the Foundation ). Management is responsible for the information and representations contained in these financial statements. The Board of Directors is responsible for reviewing and approving the financial statements and overseeing management s performance of its financial reporting responsibilities. The Foundation, through C.S.T. Consultants Inc., a wholly-owned subsidiary which administers the Plan, maintains appropriate processes to ensure that relevant and reliable financial information is produced. The financial statements have been prepared in accordance with International Financial Reporting Standards and include certain amounts that are based on estimates and judgments. The significant accounting policies, which management believes are appropriate for the Plan, are described in Note 2 to the financial statements. Deloitte LLP is the external auditor of the Plan. It has audited the financial statements in accordance with Canadian generally accepted auditing standards to enable it to express to the Board of Directors and Members of the Foundation its opinion on the financial statements. Its report is set out below. 15JAN201820183563 Sherry J. MacDonald, CPA, CA President and Chief Executive Officer 15JAN201820183324 Richard D Archivio, CPA, CA, CFA Vice President, Chief Financial Officer Toronto, Ontario December 19, 2017 Independent Auditor s Report To the Board of Directors and Members of the Canadian Scholarship Trust Foundation We have audited the accompanying financial statements of the Canadian Scholarship Trust Family Savings Plan, which comprise the statements of financial position as at October 31, 2017 and 2016, and the statements of comprehensive income, statements of changes in net assets attributable to subscribers and beneficiaries and statements of cash flows for the years ended October 31, 2017 and 2016, and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Canadian Scholarship Trust Family Savings Plan as at October 31, 2017 and 2016 and the results of its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards. 13JAN201709303058 Chartered Professional Accountants Licensed Public Accountants December 19, 2017 7 Family Savings Plan

Audited Financial Statements Statements of Financial Position As at October 31, 2017 and 2016 (in thousands of Canadian dollars) 2017 2016 Assets (Restated) Note 8 Cash and cash equivalents $ 2,409 $ 14,184 Receivables for securities sold 213 59 Investments, at fair value (Note 4 and Schedule I) 314,679 236,466 Accrued interest and other receivables 3,363 43,980 Government grants receivable 172 187 320,836 294,876 Liabilities Payables for securities purchased 585 204 Accounts payable, accrued liabilities and unclaimed subscribers funds 2,588 1,021 Net Assets Attributable to Subscribers and Beneficiaries 317,663 3,173 1,225 293,651 Represented by: Non-Discretionary Funds Accumulated income held for future education assistance payments 57,279 53,899 Subscribers deposits (Schedule II) 164,310 152,813 Government grants 65,676 58,338 Income on Government grants Unrealized Gains 23,863 6,535 21,873 6,728 $317,663 $293,651 Approved on behalf of the Board of Canadian Scholarship Trust Foundation. 15JAN201820183442 Colin E. Litton, FCPA, FCA Director 15JAN201820183563 Sherry J. MacDonald, CPA, CA Director The accompanying notes are an integral part of these financial statements. Family Savings Plan 8

Audited Financial Statements Statements of Comprehensive Income For the years ended October 31, 2017 and 2016 (in thousands of Canadian dollars) 2017 2016 Income (Restated) Note 8 Interest for allocation to subscriber accounts $6,441 $ 6,672 Realized gains on sale of investments 1,082 949 Change in unrealized gains (losses) (193) 6,382 Dividends 776 655 8,106 14,658 Expenses Administration and account maintenance fees (Note 3(a)) 3,243 2,989 Portfolio management fees 417 366 Custodian and Trustee fees 94 48 Independent Review Committee fees 5 5 Increase in Net Assets from Operations Attributable to Subscribers and Beneficiaries $4,347 3,759 3,408 $11,250 Statements of Changes in Net Assets Attributable to Subscribers and Beneficiaries For the years ended October 31, 2017 and 2016 (in thousands of Canadian dollars) Net Assets Attributable to Subscribers and Beneficiaries, Beginning of Year $293,651 2017 2016 (Restated) Note 8 $263,705 Increase in Net Assets from Operations Attributable to Subscribers and Beneficiaries 4,347 11,250 Transfers from internal and external plans 27,746 27,513 32,093 38,763 Receipts Net increase in Subscribers deposits (Schedule II) 11,497 11,078 Disbursements Government grants repaid (net of receipts) (381) (812) Payments to beneficiaries Education assistance payments (12,992) (13,298) Government grants (5,919) (5,535) Return of interest (286) (250) Total payments to beneficiaries (19,197) Receipts less Disbursements (8,081) Change in Net Assets Attributable to Subscribers and Beneficiaries 24,012 Net Assets Attributable to Subscribers and Beneficiaries, End of Year $317,663 (19,083) (8,817) 29,946 $293,651 The accompanying notes are an integral part of these financial statements. 9 Family Savings Plan

Audited Financial Statements Statements of Cash Flows For the years ended October 31, 2017 and 2016 (in thousands of Canadian dollars) Operating Activities 2017 2016 Increase in Net Assets from Operations Attributable to Subscribers and Beneficiaries $ 4,347 $ 11,250 (Restated) Note 8 Net proceeds for investment transactions (77,097) (14,078) Items not affecting cash Realized gains on sale of investments (1,082) (949) Change in unrealized (gains) losses 193 (6,382) Change in non-cash operating working capital Decrease (increase) in Accrued interest and other receivables 40,617 (7,531) Decrease (increase) in Government grants receivable 15 (50) Increase (decrease) in Accounts payable, accrued liabilities and unclaimed subscribers funds 1,567 (157) Cash flow used in Operating Activities (31,440) (17,897) Financing Activities Transfers from internal and external plans 27,746 27,513 Government grants repaid (net of receipts) (381) (812) Net increase in Subscribers deposits (Schedule II) 11,497 11,078 Payments to beneficiaries (19,197) (19,083) Cash flow from Financing Activities 19,665 18,696 Net (decrease) increase in Cash and cash equivalents (11,775) 799 Cash and cash equivalents, Beginning of Year Cash 1,076 342 Cash equivalents 13,108 13,043 14,184 13,385 Cash and cash equivalents, End of Year Cash 761 1,076 Cash equivalents 1,648 13,108 $ 2,409 $ 14,184 Supplemental cash flow information: Withholding Taxes $ 105 $ 91 Interest Income Received 7,030 6,253 The accompanying notes are an integral part of these financial statements. Family Savings Plan 10

Schedule I Statement of Investment Portfolio As at October 31, 2017 (in thousands of Canadian dollars) Interest Maturity Par Fair Average Interest Maturity Par Fair Average Security Rate (%) Date Value ($) Value ($) Cost ($) Security Rate (%) Date Value ($) Value ($) Cost ($) Bonds Bonds (continued) Federal 3.1% Provincial 35.5% (continued) Canada Housing Trust 2.35 15 Dec 2018 225 227 227 Province of Newfoundland Canada Housing Trust 1.95 15 Jun 2019 580 584 591 and Labrador 3.00 2 Jun 2026 125 128 126 Canada Housing Trust 2.00 15 Dec 2019 445 449 456 Province of Nova Scotia 4.15 25 Nov 2019 500 526 525 Canada Housing Trust 1.25 15 Jun 2021 200 196 200 Province of Nova Scotia 4.10 1 Jun 2021 650 699 696 Canada Housing Trust 1.50 15 Dec 2021 350 345 348 Province of Nova Scotia 2.10 1 Jun 2027 75 72 71 Canada Housing Trust 1.75 15 Jun 2022 120 119 122 Province of Ontario 4.40 2 Jun 2019 4,150 4,336 4,535 Canada Housing Trust 2.40 15 Dec 2022 350 357 355 Province of Ontario 2.10 8 Sep 2019 2,100 2,121 2,115 Canada Housing Trust 2.55 15 Mar 2025 275 282 280 Province of Ontario 4.20 2 Jun 2020 5,675 6,032 6,012 Government of Canada 0.50 1 Feb 2019 725 718 716 Province of Ontario 4.00 2 Jun 2021 5,625 6,035 6,008 Government of Canada 0.75 1 Sep 2020 100 98 98 Province of Ontario 1.35 8 Mar 2022 207 201 201 Government of Canada 3.25 1 Jun 2021 1,050 1,113 1,147 Province of Ontario 3.15 2 Jun 2022 8,970 9,407 9,481 Government of Canada 0.50 1 Mar 2022 118 113 115 Province of Ontario 2.85 2 Jun 2023 650 673 667 Government of Canada 1.00 1 Sep 2022 200 194 193 Province of Ontario 3.50 2 Jun 2024 575 617 610 Government of Canada 1.50 1 Jun 2023 210 208 208 Province of Ontario 2.60 2 Jun 2025 750 759 749 Government of Canada 1.50 1 Jun 2026 400 388 402 Province of Ontario 2.40 2 Jun 2026 375 371 366 Government of Canada 1.00 1 Jun 2027 460 422 423 Province of Ontario 2.60 2 Jun 2027 300 300 295 Government of Canada 5.00 1 Jun 2037 275 394 402 Province of Ontario 6.50 8 Mar 2029 175 239 235 Government of Canada 4.00 1 Jun 2041 200 261 267 Province of Ontario 5.85 8 Mar 2033 125 170 168 Government of Canada 3.50 1 Dec 2045 200 248 269 Province of Ontario 4.70 2 Jun 2037 600 749 719 Government of Canada 2.75 1 Dec 2048 125 137 139 Province of Ontario 4.60 2 Jun 2039 700 871 813 Province of Ontario 4.65 2 Jun 2041 500 633 602 6,853 6,958 Province of Ontario 3.45 2 Jun 2045 425 454 439 Provincial 35.5% Province of Ontario 2.90 2 Dec 2046 550 531 510 Province of Alberta 4.00 1 Dec 2019 1,975 2,071 2,170 Province of Ontario 2.80 2 Jun 2048 550 522 518 Province of Alberta 1.25 1 Jun 2020 950 939 945 Province of Québec 4.50 1 Dec 2018 2,400 2,478 2,586 Province of Alberta 1.35 1 Sep 2021 1,285 1,258 1,267 Province of Québec 4.50 1 Dec 2019 4,315 4,570 4,784 Province of Alberta 2.55 15 Dec 2022 440 449 452 Province of Québec 4.50 1 Dec 2020 5,250 5,674 5,716 Province of Alberta 2.20 1 Jun 2026 400 389 396 Province of Québec 4.25 1 Dec 2021 4,750 5,175 5,196 Province of Alberta 2.90 20 Sep 2029 100 101 99 Province of Québec 3.50 1 Dec 2022 465 496 507 Province of Alberta 3.45 1 Dec 2043 330 348 341 Province of Québec 3.75 1 Sep 2024 370 403 398 Province of Alberta 3.30 1 Dec 2046 200 206 214 Province of Québec 2.75 1 Sep 2025 400 409 404 Province of British Columbia 4.65 18 Dec 2018 900 932 932 Province of Québec 2.50 1 Sep 2026 325 324 320 Province of British Columbia 2.25 1 Mar 2019 275 278 278 Province of Québec 2.75 1 Sep 2027 125 127 125 Province of British Columbia 3.70 18 Dec 2020 1,900 2,013 2,004 Province of Québec 6.25 1 Jun 2032 200 280 274 Province of British Columbia 3.25 18 Dec 2021 1,150 1,211 1,205 Province of Québec 5.75 1 Dec 2036 200 280 273 Province of British Columbia 2.85 18 Jun 2025 250 258 256 Province of Québec 5.00 1 Dec 2041 400 532 516 Province of British Columbia 5.70 18 Jun 2029 200 259 267 Province of Québec 4.25 1 Dec 2043 300 363 351 Province of British Columbia 4.70 18 Jun 2037 200 252 245 Province of Québec 3.50 1 Dec 2045 425 459 443 Province of British Columbia 4.30 18 Jun 2042 225 276 261 Province of Québec 3.50 1 Dec 2048 400 436 420 Province of British Columbia 3.20 18 Jun 2044 200 207 195 Province of Saskatchewan 1.95 1 Mar 2019 520 523 524 Province of Manitoba 5.50 15 Nov 2018 250 260 260 Province of Saskatchewan 3.20 3 Jun 2024 125 132 136 Province of Manitoba 1.15 21 Nov 2019 675 669 667 Province of Saskatchewan 5.80 5 Sep 2033 125 169 166 Province of Manitoba 4.15 3 Jun 2020 575 610 608 Province of Saskatchewan 2.75 2 Dec 2046 300 278 277 Province of Manitoba 1.55 5 Sep 2021 925 912 908 78,191 78,636 Province of Manitoba 2.55 2 Jun 2023 75 76 78 Province of Manitoba 2.55 2 Jun 2026 250 249 253 Corporate 24.2% Province of Manitoba 5.70 5 Mar 2037 100 137 139 Bank of Montreal 3.40 23 Apr 2021 5,590 5,825 5,800 Province of Manitoba 4.05 5 Sep 2045 250 289 297 Bank of Nova Scotia 2.09 9 Sep 2020 285 285 284 Province of New Brunswick 4.40 3 Jun 2019 1,535 1,603 1,683 Bank of Nova Scotia 3.27 11 Jan 2021 800 829 825 Province of New Brunswick 1.55 4 May 2022 550 538 535 Bank of Nova Scotia 2.87 4 Jun 2021 340 348 347 Province of New Brunswick 3.65 3 Jun 2024 150 162 163 Bank of Nova Scotia 1.90 2 Dec 2021 1,370 1,353 1,352 Province of New Brunswick 4.80 3 Jun 2041 1,000 1,263 1,223 Bank of Nova Scotia 1.84 27 Apr 2022 1,240 1,216 1,215 Province of Newfoundland Bank of Nova Scotia 2.29 28 Jun 2024 370 364 361 and Labrador 1.95 2 Jun 2022 425 422 418 Caisse Centrale Desjardins 2.44 17 Jul 2019 5,285 5,340 5,324 The accompanying notes are an integral part of these financial statements. 11 Family Savings Plan

Schedule I Statement of Investment Portfolio (continued) As at October 31, 2017 (in thousands of Canadian dollars) Interest Maturity Par Fair Average Number of Fair Average Security Rate (%) Date Value ($) Value ($) Cost ($) Security Securities Value ($) Cost ($) Bonds (continued) Equities 8.3% Corporate 24.2% (continued) Agrium Inc. 7 920 872 Canadian Imperial Bank of Alimentation Couche-Tard Inc. 13 810 792 Commerce 2.04 21 Mar 2022 270 268 266 Bank of Nova Scotia 10 866 828 HSBC Bank Canada 2.45 29 Jan 2021 560 565 564 Birchcliff Energy Ltd. 70 369 431 HSBC Bank Canada 2.91 29 Sep 2021 3,570 3,652 3,628 CAE Inc. 18 416 378 HSBC Bank Canada 2.17 29 Jun 2022 1,160 1,149 1,145 Canadian National Railway Company 4 426 413 Manufacturers Life Insurance Canadian Pacific Railway Company 3 761 707 Company 2.64 15 Jan 2025 260 263 262 CCL Industries Inc. 11 678 644 Manufacturers Life Insurance Enbridge Inc. 22 1,078 1,100 Company 2.10 1 Jun 2025 3,985 3,972 3,961 Manufacturers Life Insurance Enerflex Ltd. 40 697 744 Company 2.39 5 Jan 2026 290 291 290 Franco-Nevada Corporation 12 1,178 1,126 Manufacturers Life Insurance Freehold Royalties Ltd. 54 845 807 Company 3.18 22 Nov 2027 785 807 811 Intact Financial Corporation 9 917 890 National Bank of Canada 2.11 18 Mar 2022 5,125 5,089 5,058 Loblaw Companies Limited 15 1,019 1,020 National Bank of Canada 1.96 30 Jun 2022 290 286 283 Magna International Inc. 12 865 809 Royal Bank of Canada 1.92 17 Jul 2020 290 290 288 Maxar Technologies Ltd. 11 865 745 Royal Bank of Canada 2.86 4 Mar 2021 5,710 5,846 5,818 Mullen Group Ltd. 41 697 714 Royal Bank of Canada 2.03 15 Mar 2021 265 264 263 Pason System Inc. 29 544 556 Royal Bank of Canada 1.58 13 Sep 2021 960 939 933 Ritchie Brothers Auctioneers Inc. 22 799 860 Royal Bank of Canada 1.97 2 Mar 2022 1,135 1,122 1,115 Suncor Energy Inc. 21 929 905 Royal Bank of Canada 4.93 16 Jul 2025 1,945 2,253 2,227 TELUS Corporation 10 476 452 Toronto Dominion Bank 2.56 24 Jun 2020 265 269 268 Toromont Industries Ltd. 8 466 470 Toronto Dominion Bank 2.05 8 Mar 2021 3,155 3,152 3,130 Toronto Dominion Bank 14 1,032 978 Toronto Dominion Bank 2.62 22 Dec 2021 280 285 283 Westshore Terminals Investment Corporation 25 617 607 Toronto Dominion Bank 1.99 23 Mar 2022 855 847 840 Toronto Dominion Bank 1.91 18 Jul 2023 620 603 599 18,270 17,848 Toronto Dominion Bank 3.23 24 Jul 2024 5,325 5,556 5,481 Exchange-traded Funds 28.1% 53,328 53,021 ishares Core S&P U.S. ETF 2,420 61,861 58,024 Total Fixed Income 62.8% 138,372 138,615 Total Equities and ETFs 36.4% 80,131 75,872 Total Investments 99.2% 218,503 214,487 Cash and cash equivalents 0.8% Total Portfolio Assets 100.0% Investments Allocation (Note 4) Government Grants (Appendix I) Cash and cash equivalents (Appendix I) Total Investment Fund Represented by : Cash and cash equivalents Investments, at fair value 1,754 1,753 220,257 216,240 96,176 93,658 655 655 317,088 310,553 2,409 314,679 317,088 The accompanying notes are an integral part of these financial statements. Family Savings Plan 12

Schedule II Subscribers Deposits and Accumulated Income As at October 31, 2017 and 2016 (in thousands of Canadian dollars) The following table provides a summary of Family Savings Plan agreements, Subscribers Deposits and Accumulated Income: Opening Inflow Outflow Closing Subscribers Accumulated Agreements Agreements Agreements Agreements Deposits Income 57,986 9,773 6,677 61,082 $164,310 $57,279 The changes in Subscribers deposits are as follows: 2017 2016 Net payments from subscribers 1 $ 8,739 $ 8,314 Inter-plan principal transfers 43,168 43,183 Return of principal (40,410) (40,419) Net increase in Subscribers deposits 11,497 11,078 Balance, Beginning of Year 152,813 141,735 Balance, End of Year $164,310 $152,813 1 Net of Sales charges collected of $10 (2016 $9) The accompanying notes are an integral part of these financial statements. 13 Family Savings Plan

Notes to the Financial Statements October 31, 2017 and 2016 (in thousands of Canadian dollars) Note 1. Nature of Operations The Canadian Scholarship Trust Family Savings Plan (the Plan ) is a self-determined Education Savings Plan that was established on March 1, 1997. The objective of the Plan is to assist parents and others to save for the post-secondary education of children. The Plan is managed and distributed by C.S.T. Consultants Inc. ( C.S.T.C. ), a wholly-owned subsidiary of the Canadian Scholarship Trust Foundation (the Foundation ). The Plan s registered place of business is 1600-2235 Sheppard Avenue East, Toronto, Ontario, Canada. Payments are made by a subscriber to an account maintained by the Plan s trustee on behalf of one or more beneficiaries. Payments of sales charges are made from the subscriber s initial contribution. The principal accumulated over the term of the subscriber s education savings plan agreement (the Agreement ) is returned in whole or in part at any time at the request of the subscriber. A beneficiary is deemed to be a qualified student upon receipt by the Foundation of evidence of enrolment in a qualifying educational program at an eligible institution. Education assistance payments ( EAPs ) paid to a beneficiary from the Plan are determined by the subscriber and are paid from the income earned on the subscriber s principal. There are a number of government grants that may be available to beneficiaries including the Canada Education Savings Grant Program ( CESG ), the Canada Learning Bond ( CLB ),, the Quebec Education Savings Incentive ( QESI ), the Saskatchewan Advantage Grant for Education Savings ( SAGES ) and the British Columbia Training and Education Savings Grant ( BCTESG ) (collectively, Government Grants ). The Government of Saskatchewan has announced a temporary suspension of the SAGES program effective January 1, 2018. The Plan collects Government Grants, which are credited directly into subscribers Agreements and invests these funds in accordance with the Plan s investment policies. The Government Grants, along with investment income earned thereon, are paid to qualified students. Agreements are registered with appropriate government authorities if all required information is provided, and once registered are subject to the rules for Registered Education Savings Plans under the Income Tax Act (Canada). The current tax legislation provides that income credited on subscribers principal is not taxable income of the subscriber unless withdrawn as an Accumulated Income Payment subject to certain eligibility requirements. The deposits are not deductible for income tax purposes and are not taxable when returned to the subscriber. Payments made to a beneficiary, including EAPs, Government Grants and investment income earned on Government Grants will constitute taxable income of that beneficiary in the year that the payments are made. Note 2. Significant Accounting Policies (b) Basis of measurement These financial statements have been prepared on the historical cost basis except for financial instruments classified as at fair value through profit or loss ( FVTPL ), which are measured at fair value. (c) Future accounting standards The following new accounting standards have been issued by the International Accounting Standards Board ( IASB ). These new standards are not yet effective and the Plan has not completed its assessment of the impact on its financial statements. IFRS 9 Financial Instruments ( IFRS 9 ) In July 2014, the IASB finalized the reform of financial instruments accounting and issued IFRS 9 (as revised in 2014), which contains the requirements for the classification and measurement of financial assets and financial liabilities, impairment methodology, and general hedge accounting. IFRS 9 (as revised in 2014) will supersede IAS 39 Financial Instruments: Recognition and Measurement ( IAS 39 ). IFRS 9 will be effective for the Plan s financial statements during its fiscal 2019 year. IFRS 15 Revenue from Contracts with Customers ( IFRS 15 ) IFRS 15 was issued in May 2014, replacing existing guidance related to revenue recognition and will be effective for the Plan s financial statements during its fiscal 2019 year. IFRS 15 includes a single revenue recognition model based on the principal that revenue is recognized when control of a good or service is transferred to the customer. When appropriate, contracts with customers are divided into separate performance obligations, each of which represent promises to deliver distinct goods or services. IFRS 15 provides guidance for recognizing revenue from performance obligations that are delivered at a point in time, or delivered over time and also includes additional disclosure requirements. (d) Financial instruments The Plan recognizes financial assets and financial liabilities when it becomes a party to a contract. Financial assets and financial liabilities, with the exception of those classified as FVTPL, are measured at fair value plus transaction costs on initial recognition. Financial assets and financial liabilities classified as FVTPL are measured at fair value on initial recognition and transaction costs are expensed when incurred. Investments, at fair value have been designated as FVTPL. (a) Statement of Compliance These financial statements have been prepared in accordance with International Financial Reporting Standards ( IFRS ). These financial statements were approved by the Board of Directors of the Foundation on December 19, 2017. Family Savings Plan 14