Why Calgary? Our Economy in Depth

Why Calgary? Our Economy in Depth October 2018 Calgary Economic Development s collaborative energy makes us a conduit, connector and catalyst Calgary. 1

Table of Contents 01 Location Where is Calgary 02 About Us Who we are 03 Livability How we rank 04 Economy GDP, inflation and retail sales 05 Trade Imports and exports 06 Business Business formations, bankruptcies and taxes 07 Labour Market Employment, unemployment, labour force, income, earnings, wages and salaries 08 Demographics Population, immigration and migration 09 Education PSIs, STEM, K to 12 Schools 10 Real Estate Building permits, commercial rates, absorption, construction, major projects and residential housing 2

location 3

Global Perspective Calgary London New York Baghdad Tokyo Mexico City Hong Kong Caracas Rio de Janeiro Sydney 4

Canada/U.S. Proximity Calgary is ideally located, connecting the west and east of Canada and in close proximity to major American cities Vancouver Calgary Seattle Edmonton Saskatoon Regina Vancouver Winnipeg Montreal Ottawa Toronto Halifax San Francisco Denver Chicago New York City Washington, DC Los Angeles Dallas Houston 5

Western Canada s Business Centre More head offices per capita than any other Canadian city: Total of 115 head offices Second highest small business concentration of major cities in Canada Western Canada s distribution hub Highway 1 and Canamex Canadian Pacific Railway Canadian National Railway Grand Prairie Fort McMurray YYC has connections to 100 destinations Direct flights to 80 cities world-wide including Beijing, Mexico City and Zurich YYC handles 75 percent of Alberta s air cargo shipments and is Canada s second busiest airport for air cargo flights Banff Red Deer Edmonton 50 million people accessible by ground transportation within 24 hours Calgary 6

about us 7

Calgary Economic Development We work with business, government and community partners to position Calgary as the location of choice for the purpose of attracting business attraction & investment, fostering trade and developing Calgary s workforce. We are a steward of the 10-Year Economic Strategy for Calgary: Calgary in the New Economy. As conduit, connectors and catalyst, we collaborate to accelerate purposeful diversification, embrace shared prosperity and build a strong community. We are a not-for-profit corporation funded by he City of Calgary, community partners, other orders of government and the private sector 8

Emerging & Growth Clusters Established Clusters Calgary in the New Economy: Strategic Framework Talent Canada s destination for talent Transportation & Logistics Agribusiness Vision Calgary is the city of choice in Canada for the world s best entrepreneurs. We embrace innovation and create solutions to meet the world s needs in food, health, energy and transportation. Values Calgary is an inclusive and entrepreneurial city connected through our community spirit. 4 Focus Areas Innovation Canada s leading B2B innovation ecosystem Place Canada s most livable city Energy Industry Focus: Tourism Creative Industries Business Environment Canada s most business-friendly city Life Sciences / Health Financial Services 9

Calgary in the New Economy: Focus Areas Innovation Canada s leading B2B innovation ecosystem Business Environment Canada s most business-friendly city Talent Canada s destination for talent Place Canada s most livable city 10

Global Business Centre Considering starting a business in Calgary? Our Global Business Centre provides temporary office space for short-term or long-term business a perfect solution for national or international visitors looking test the economy in the Calgary region. For local companies, the process of expanding internationally can be daunting. The Global Business Centre customizes services, meeting the individual needs of each company. We provide the space, the information and the connections necessary for successful trade development activities. 11

Supporting our Partners Action Calgary is a corporate partnership program that engages visionary Calgary business leaders to influence the movement of our economy from good to great. For Calgary to compete on a global stage we need our business community to invest in the city's future to influence growth and economic prosperity in Calgary. 12

Our Services and Areas of Focus 13

livability 14

EIU Global Liveability Ranking Ranking of 140 global cities with 30 indicators Calgary is the 4 th Most Liveable City in the World and has placed as a Top 5 city every year since 2009 Criteria: stability, healthcare, culture and environment, education and infrastructure The Economist Intelligence Unit, 2009-2018 15

Quality of Living Canada ranks 1 st in quality of life, 2 nd overall and 2 nd in citizenship and education Ranking among 60 countries and 65 attributes U.S. News Best Countries, 2016 Calgary ranks #2 in Canada For healthy lifestyle and life satisfaction Ranking among 10 Canadian metropolitan areas Grade A overall Criteria: healthy lifestyle, life satisfaction, health care, population health City Health Monitor, The Conference Board of Canada, 2016 16

Attractiveness to Newcomers In an assessment of 43 features in seven categories that make cities attractive to newcomers here is how Calgary stacked up: #2 with Grade A in Overall Ranking #1 with Grade A for Economy #1 with Grade A for Innovation #5 with Grade A for Housing Conference Board of Canada - City Magnets III: Benchmarking the Attractiveness of 50 Canadian Cities, 2014 17

Community A focus on family and a sense of community Calgary schools are consistently top performers in Alberta Numerous charter and private schools Subsidies are available for eligible low- and middle-income parents who wish to use a licensed pre-school or child care facility There are 8 hospitals and 5 cancer care centres in Calgary Zone Calgary CMA charitable donations were the second highest median donation of major cities in Canada at $450 in 2016 Alberta s average annual charitable donations of $2,581 was the highest among Canadian provinces and territories in 2015 50 per cent of Albertans volunteer (higher than the national average of 44 per cent in 2013) Sources: 2017 Generosity Index, Fraser Institute; Statistics Canada, 2018 18

Getting Around Vast integrated network of roads, LRTs and buses The city is spread out covering more than 848 square kilometres Calgary boasts one of the most successful transit systems in the world The most rapid transit service per million residents of any major Canadian city Ridership of 110 million customers in 2015 4,369 km of transit routes 159 bus routes and 45 LRT stations Free and monthly permit parking at most LRT stations Among the easiest commutes of major cities in Canada Calgary is home to the car2go car sharing service with over 550 vehicles in the network and 100,000 members Several taxi companies serve Calgary Catch a taxi downtown at the cab stand 2 nd Street SW and 8 th Avenue SW (Stephen Avenue) Uber is available in Calgary Sources: The City of Calgary, Calgary Transit, INRIX, TomTom, Car2Go, Uber Fast Cities: A comparison of rapid transit in major Canadian cities, Pembina Institute, September 2014 19

Enviable Lifestyle Active and healthy lifestyle An hour s drive to spectacular Banff and the Rocky Mountains The most extensive urban pathway and bikeway system in North America (~850 km of regional pathways; 95 km of trails and 290 km on-street bikeways) World-class attractions and sporting amenities, including: Calgary Stampede, Spruce Meadows, Calgary Zoo, WinSport Canada Olympic Park, National Sports Hall of Fame, TELUS Spark Science Centre and the National Music Centre Abundant green space and parks including over 8,000 hectares of parkland and natural areas; 8,400 park benches; more than 1,100 playgrounds; over 700 rectangular sport fields and over 600 ball diamonds Calgarians are animal lovers - 1 in 10 choose to be proud pup parents! There are over 150 off-leash areas totaling more than 1,250 hectares A community rich in the arts, culture, entertainment and leisure activities and venues Home to St. Patrick s Island. Named one of 2016 s Great Places in Canada Source: The City of Calgary; Canadian Institute of Planners 20

economy 21

Key Stats Of 11 peer cities assessed, Calgary has the second highest level of economic power comparing GDP per capita - Deloitte, Benchmarking Calgary s Competitiveness, 2015 Of 11 peer cities assessed, Calgary has the second highest level of economic growth comparing GDP growth - Deloitte, Benchmarking Calgary s Competitiveness, 2015 Highest GDP per Capita in 2017 of major Canadian cities. - The Conference Board of Canada, Statistics Canada, 2018 8 of the Top 10 World Banks and 8 of the Top 10 Investment Banks have a presence in Calgary - The Banker Database, 2018; Banks around the World, 2018 22

Benchmarking Calgary s Competitiveness Calgary ranks 1 st in Population Growth (annual population growth rate) Calgary ranks 1 st in Labour Participation Calgary ranks 1 st in Education (highest education achieved) Calgary ranks 1 st in Industrial Land Price (price per sq. ft.) Calgary ranks 2 nd in Economic Power (GDP per capita) Calgary ranks 2 nd in Economic Growth (GDP growth) Calgary ranks 3 rd in Diversity (immigrant population) Calgary ranks 3 rd in Research & Development (annual R&D expenditures per capita) Calgary ranks 3 rd in Businesses per 100 people Calgary ranks 4 th in Commercial Real Estate (rent per sq. ft.) Calgary ranks 5 th in Housing Affordability (housing median multiple) Monitor Deloitte, December 2015 Peer Cities: Aberdeen, Atlanta, Brisbane, Chicago, Houston, Pittsburgh, Rio de Janeiro, Rotterdam, Singapore and Vancouver 23

Economic Scorecard Competitiveness Benchmarking 20 metro regions across 38 indicators: 22 economic + 16 social Social Overall Economy Calgary 1 st or A Calgary 2 nd Calgary 8 th or B Greater Vancouver Economic Scorecard, Greater Vancouver Board of Trade, May 2018 Peer Cities: Barcelona, Calgary, Copenhagen, Halifax, Hong Kong, Houston, Los Angeles, Manchester, Miami, Montreal, Portland, Rotterdam, San Francisco, Seattle, Seoul, Shanghai, Singapore, Sydney, Toronto and Greater Vancouver 24

Financial Competitiveness 8 of the Top 10 World Banks and 8 of the Top 10 Investment Banks have an office in Calgary. Total value of completed merger and acquisition deals in 2016 topped $85.6 billion, equivalent to more than onethird of all M&A activity across the country. High deal velocity and large deal size, with the average deal size estimated at $197 million, compared to $99 million in Toronto and $24 million in Vancouver. Highest concentration of head offices per capita in Canada, with 70.4 percent of head offices focused in energy and oil field services. Wealth management, private equity and asset management services have thrived in Calgary due to the concentration of private wealth in the city. Labour productivity in Calgary s Financial sector is 25 per cent higher than the Canadian average. The Banker, 2018; Banks Around the World, 2018; Statistics Canada, 2016; Stronger Together: The Strengths of Canada s Four Global Financial Centres, The Conference Board of Canada, 2016 FP500 Database, 2018 Edition 25

Economic Indicators Summary GDP Growth Calgary CMA 2012 2013 2014 2015 2016 2017 2018F 4.1% 5.6% 6.7% -3.6% -3.5% 6.3% 2.9% Alberta Capital Expenditure on Oil and Gas Extraction (Billions) $58.8 $65.1 $76.1 $38.0 $27.5 $25.6 $22.5 Price of Oil WTI (EIA STEO Data Browser; $USD/barrel) $94.08 $97.98 $93.17 $48.67 $43.33 $50.79 $68.46 WCS (AER; $USD/barrel) $57.87 $58.96 $43.24 $22.51 $29.65 $38.69 $39.50 Price of Gas Henry Hub Spot Price (EIA STEO Data Browser; $USD/mmBTU) $2.75 $3.73 $4.39 $2.63 $2.51 $2.99 $2.99 AECO-C (Bloomberg + Birchcliff Energy Ltd.; $CDN/GJ) $3.01 $3.68 $3.05 $2.19 $2.05 $2.05 $1.52 Unemployment Rate 8.2% CMA (December) September 2018 Net Migration CMA; July 1 to June 30 of previous year; updated annually in February Office Vacancy 27.3% Downtown (Q4) Q3 2018 Building Permits $3.77 CMA (Billions) YTD August 2018 Benchmark Home Price $426,800 All Housing Types (December) August 2018 Housing Starts Single-Detached 4.9% 4.5% 4.5% 6.8% 28,781 5.0% 37,286 35,388 18,563 9.1% 9.8% 17.6% $5.25 $7.14 $7.33 $7.17 10.2% 18,542 25.0% $5.42 $386,500 $421,000 $457,100 $448,100 $431,700 5,961 6,402 6,494 4,138 3,489 7.5% 13,716 27.7% $5.43 $427,400 4,423 4,200-4,600 Sources: Alberta Energy Regulator, Bloomberg + Birchcliff Energy Ltd., Canadian Real Estate Association, CBRE Limited, CMHC, The Conference Board of Canada, Industry Canada, Statistics Canada, U.S. Energy Information Administration 26

Major Canadian Cities Comparison Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 2017 Real GDP Growth 3.4% 5.0% 6.3% 2.8% 3.6% 3.1% 3.7% 3.4% 2018F Real GDP Growth 2.9% 2.8% 2.9% 2.0% 2.4% 2.2% 2.2% 2.3% CMA Population July 2017 2017 Population Growth 1.1% 1.8% 1.8% 2.9% 2.0% 1.9% 1.2% 1.2% Unemployment Rate September 2018 Participation Rate September 2018 Employment Growth 5,900 25,600-5,500 3,000 50,200 19,900 26,700 222,400 September 2018 0.4% 3.3% -0.7% 1.7% 1.5% 2.8% 1.2% 1.2% Full-Time Employment Growth September 2018 Part-Time Employment Growth September 2018 2,571,262 1,411,945 1,488,841 323,809 6,346,088 1,377,016 4.5% 6.3% 8.2% 7.4% 6.1% 4.5% 66.4% 72.6% 72.2% 69.9% 65.4% 67.4% -5.0% 12.6% -2.9% -2.7% -6.5% 9.0% 4,138,254 66.9% -8.4% 36,708,083 6.1% 5.9% 65.4% 2.0% 2.2% -0.4% 2.6% 3.1% 1.4% 3.1% 1.5% 0.0% Provincial Average Weekly Earnings July 2018 $955.85 $1,141.77 $1,141.77 $1,007.51 $1,003.22 $1,003.22 $920.72 $988.18 Source: Conference Board of Canada, Statistics Canada 27

GDP Annual Growth Rate Annual Real GDP Growth Rates Across Canada 10% 8% 6% 6.9% 6.3% 4% 2.9% 2% 0% -2% -4% -6% -5.1% -3.5% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F Vancouver Edmonton Calgary Toronto Ottawa Montreal Canada Source: Conference Board of Canada, June 2018 28

GDP Annual Growth Rate Annual Forecasted Real GDP Growth Rates Across Canada 3.5% 3.0% 2.9% 2.8% 2.5% 2.3% 2.5% 2.0% 1.5% 1.0% 2018F 2019F 2020F 2021F Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Conference Board of Canada, June 2018 29

2017 $90,000 $80,000 $70,000 Annual GDP per Capita Across Canada $62,914 $80,811 A leader in economic power, with the highest annual GDP per capita of major cities in Canada $60,000 $50,000 $52,130 $56,103 $55,033 $46,961 $53,420 $50,519 $47,441 $42,620 $40,000 $30,000 $20,000 $10,000 $0 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Canada Source: The Conference Board of Canada, June 2018, Statistics Canada, 2017; Population updated annually in March 30

Calgary Historical GDP by Industry Calgary s economy is diversifying Total GDP $50.8 Billion 52.5%, Primary & Utilities 33.4%, Primary & Utilities Total GDP $120.3 Billion 2.8%, Professional, Scientific & Technical 2.6%, Transportation & Warehousing 1.5%, Accommodation & Food Services 0.9%, Other Services 0.5%, Arts, Entertainment, Recreation 12.0%, Finance & Insurance, Real Estate 4.9%, Construction 3.6%, Manufacturing 17.8%, Finance & Insurance, Real Estate 7.3%, Construction 6.8%, Professional, Scientific & Technical 5.0%, Manufacturing 4.8%, Transportation & Warehousing 4.1%, Wholesale Trade 2.8%, Wholesale Trade 3.6%, Health Care 4.3%, Health Care 2.8%, Retail Trade 4.0%, Retail Trade 3.0%, Educational Services 3.0%, Educational Services 2.9%, Public Administration 2.9%, Public Administration 3.6%, Information & Cultural 2.6%, Information & Cultural 1.5%, Other Services 1.9%, Accommodation & Food Services 0.6%, Arts, Entertainment, Recreation 1987 2017 Source: The Conference Board of Canada, June 2018 31

Calgary Forecast GDP by Industry 2018 (2007 $ M illio ns) 2021 (2007 $ M illio ns) T o tal change 2018-2021 (% ) G o o ds-pro ducing Industries 5 6,8 0 8 6 1,5 1 3 7.7 % M anufacturing 6,2 4 3 6,7 0 3 6.9 % C o nstructio n 8,9 7 7 9,8 9 4 9.3 % Prim ary and U tilities 4 1,5 8 7 4 4,9 1 5 7.4 % Serv ices-pro ducing Industries 6 7,0 5 0 7 2,0 7 9 7.0 % W ho lesale Trade 5,1 4 0 5,5 1 3 6.8 % Retail Trade 4,8 6 4 5,2 0 3 6.5 % Transpo rtatio n and W areho using 5,9 0 9 6,3 5 7 7.0 % Info rm atio n and C ultural industries 3,1 9 1 3,3 1 4 3.7 % F inance, Insurance and Real Estate and Leasing 2 1,9 0 6 2 3,8 7 4 8.2 % Pro fessio nal, Scientific and Technical Serv ices 8,5 5 2 9,1 0 2 6.0 % Educatio nal Serv ices 3,6 6 7 3,8 8 7 5.7 % H ealth C are and So cial Assistance 5,3 0 1 5,7 2 0 7.3 % Arts, Entertainm ent and Recreatio n 697 746 6.5 % Acco m m o datio n and F o o d Serv ices 2,3 4 7 2,5 2 8 7.1 % O ther Serv ices 1,9 1 5 2,1 2 4 9.8 % Public Adm inistratio n 3,5 6 1 3,7 1 3 4.1 % All Industries 1 2 3,8 5 8 1 3 3,5 9 2 7.3 % Source: T he Conf erence Board of Canada, June 2 0 1 8 32

Mining, Quarrying, Oil and Gas Extraction Oil and Gas Extraction Transportation and Warehousing Public Administration Utilities Real Estate, Rental and Leasing Manufacturing Construction Agriculture, Forestry, Fishing, Hunting Educational Services Information and Culture Retail Trade Health Care, Social Assistance Wholesale Trade Accommodation and Food Services Finance and Insurance Professional, Scientific, Technical Services Administrative, Support, Waste Management, Remediation Arts, Entertainment, Recreation Other Services Management of Companies and Enterprises CAD$ Billions $4.2 $4.2 $4.2 $3.8 $2.5 $2.6 $1.5 $2.2 $1.7 $1.7 $1.6 $1.5 $2.0 $1.4 $1.4 $1.4 $1.1 $1.1 $0.9 $1.0 $0.6 $0.6 $0.6 $0.6 $0.6 $0.6 $0.3 $0.5 $0.4 $0.4 $0.3 $0.4 $0.2 $0.2 $0.1 $0.1 $6.6 $6.2 $26.5 $23.7 $25.6 $22.5 Alberta Capital Spending by Industry $35.0 $30.0 $25.0 2017 2018 Intentions $20.0 $15.0 $10.0 $5.0 $0.0 Source: Table 029-0045, Statistics Canada 33

Growth Rate Retail Sales Growth Across Canada 60% 51.9% 50% 47.5% 45.2% 40% 37.7% 39.2% 39.2% 39.2% 37.0% 33.0% 30% 28.4% 20% 10% 10.3% 4.8% 19.8% 20.8% 18.4% 16.3% 15.0% 12.5% 8.7% 8.1% 6.7% 6.8% 6.4% 5.7% 5.0% 3.6% 3.4% 2.6% 2.5% 2.6% 2.9% 2.3% 0% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 2016/2017 Retail Sales Growth 2017/2018F Retail Sales Growth 5-Year Retail Sales Growth (2013-2017) 10-Year Retail Sales Growth (2008-2017) Source: Conference Board of Canada, June 2018 34

Inflation Growth Across Canada 20% 18.6% 18% 16.8% 16% 15.4% 15.4% 14% 14.2% 13.7% 13.3% 14.4% 12% 10% 8% 6% 7.8% 6.7% 6.7% 8.3% 8.6% 5.9% 5.5% 6.6% 4% 2% 2.8% 2.5% 3.4% 3.0% 2.2% 2.0% 2.0% 3.6% 3.1% 3.2% 1.9% 1.6% 2.0% 2.8% 1.9% 1.9% 0% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 2018 Growth Rate 2017 Growth Rate 5-Year Total Growth Rate (2013-2017) 10-Year Total Growth Rate (2008-2017) Source: Statistics Canada, August 2018 35

trade 36

Key Stats Alberta is the third largest exporter of agri-food products in Canada. - Alberta Agriculture, 2016 Alberta s Top Export Category in 2017 was Oil and Gas Extraction at $66.27 billion. - Trade Data Online, March 2018 There are 41 international consulate offices in Calgary. - Global Affairs Canada, 2018 Calgary s financial services sector handles 9.5 per cent of global energy M&A deal volume and 17 per cent of their total value - Five-Year Average, Bloomberg Data, 2012-2016 37

Alberta Exports 2017 Top 5 Export Categories (NAICS) CAD$ billion Oil and Gas Extraction $66.27 Resin and Synthetic Rubber Manufacturing $4.25 Petroleum Refineries $3.74 Animal Processing $2.72 Wheat Farming $2.13 Alberta exports in 2017 totaled $100.7B Top 5 Export Countries CAD$ billion United States $87.70 China $3.93 Japan $1.76 Mexico $1.31 South Korea $0.42 Source: Industry Canada - Trade Data Online, Revised March 2018 38

Alberta Exports 2016 Top 5 Export Categories (NAICS) CAD$ billion Oil and Gas Extraction $49.88 Resin and Synthetic Rubber Manufacturing $4.23 Animal Processing $2.65 Petroleum Refineries $2.08 Oilseed (except Soybean) Farming $1.91 In 2016, Alberta exports totaled $79.3B Top 5 Export Countries CAD$ billion United States $68.44 China $3.11 Japan $1.69 Mexico $0.94 South Korea $0.36 Source: Industry Canada - Trade Data Online, 2016 (Revised February 2018) 39

Alberta Imports 2017 Top 5 Import Categories (NAICS) CAD$ billion Petroleum Refineries $5.84 Aerospace Product and Parts Manufacturing $1.25 Metal Valve Manufacturing $0.76 Navigational, Measuring, Medical and Control Instruments Manufacturing $0.71 Alberta imports in 2017 totaled $28.2B Engine, Turbine and Power Transmission Equipment Manufacturing $0.57 Top 5 Import Countries CAD$ billion United States $18.58 China $3.04 Mexico $1.54 Germany $0.60 Italy $0.41 Source: Industry Canada - Trade Data Online, Revised March 2018 40

Alberta Imports 2016 Top 5 Import Categories (NAICS) CAD$ billion Petroleum Refineries $4.93 Aerospace Product and Parts Manufacturing $1.12 Navigational, Measuring, Medical and Control Instruments Manufacturing $0.64 Metal Valve Manufacturing $0.24 Engine, Turbine & Power Transmission Equipment Manufacturing $0.53 In 2016, Alberta imports totaled $25.0B Top 5 Import Countries CAD$ billion United States $16.36 China $2.42 Mexico $1.54 Germany $0.55 South Korea $0.42 Source: Industry Canada - Trade Data Online, 2016 (Revised February 2018) 41

business 42

Key Stats Second highest small business concentration of major cities in Canada. - Statistics Canada, 2017 Calgary ranked #3 of the top 10 large North American Cities of the Future for business friendliness. - fdi American Cities of the Future, 2017/18 Highest head office concentration of major cities in Canada. - FP500 Database, 2018 In 2015, Calgary had the highest research and development expenditures among its Canadian peers: $826 per capita. - Deloitte, Benchmarking Calgary s Competitiveness, 2015 43

Canada s Competitive Business Climate Canada ranks 1 st in Business Environment in the G7 and G20 The Economist Intelligence Unit, September 2017 Canada is the easiest place to start a business in the G20 World Bank, Doing Business 2018 Canada offers the lowest total effective tax rate* of the G7 *Sum of profit taxes, labour taxes and other taxes, PriceWaterhouseCoopers, Paying Taxes 2017 Canada offers one of the most generous R&D tax incentives in the G7 OECD Science, Technology and Industry Scoreboard 2017 Canada ranks 1 st in potential for investment and growth in its economic infrastructure Global Infrastructure Investment Index, ARCADIS NV Consulting, May 2016 Canada ranks 1 st in Soundness of Banks in the G7 and 2 nd in the world Soundness of Banks World Rank, Global Competitiveness Report, 2017-2018 Canada attracted the most FDI flows per capita in the G7 in 2007-2016 United Nations Conference on Trade and Development (UNCTAD) Canada ranks 2 nd in Entrepreneurship of the G7 Global Entrepreneurship Index 2017, The Global Entrepreneurship and Development Institute, November 13, 2016 Canada s talent pool is the most highly educated among OECD countries Education at a Glance, OECD, September 2017 Canada tops the G20 in overall prosperity of its citizens Legatum Prosperity Index 2017 Invest in Canada, March 2018 44

Investment into Calgary Amazon.com Distribution Centre Mission Produce RocketSpace Tech Accelerator Source: fdi Markets; Global Affairs Canada, 2017 45

FDI Investment into Calgary 8 FDI Projects in 2017 1,155 Jobs Created $301M Total Capital Investment 2017 Calgary FDI Investments ($Million) Jobs Created Industry Sector Project Date Amazon.com $172.15 750 Consumer Products October 2017 Mission Produce $52.58 76 Food & Tobacco May 2017 Regus Canada $44.95 7 Real Estate May 2017 Uber Technologies $12.65 38 Software & IT services April 2017 Green Cat Renewables $7.26 8 Business Services March 2017 Berkana Resources $5.88 50 Software & IT services May 2017 Viiz $4.38 217 Business Services September 2017 RocketSpace $1.13 9 Business Services May 2017 Source: fdi Markets; Global Affairs Canada 46

Location Cost Advantage Calgary ranked 1 st in business cost competitiveness in sectors: 1 st Food & Beverage Processing 1 st Drone Manufacturing 1 st R&D Access the EY Calgary Location Cost Index Study [External Link] Source: Comparing business investment and operating costs in Calgary and selected cities, EY Location Cost Index 2017-18 Cities: Albany, Calgary, Chicago, Columbus, Edmonton, Grand Rapids, Milwaukee, Minneapolis, Salt Lake City, San Jose, Saskatoon, Seattle, Toronto, Vancouver 47

Calgary CMA Businesses by Industry Real estate and rental and leasing, 2,393, 4.1% Professional, scientific and technical services, 11,426, 19.8% Management of companies and enterprises, 466, 0.8% Finance and insurance, 1,953, 3.4% Information and cultural industries, 620, 1.1% Transportation and warehousing, 2,309, 4.0% Retail trade, 4,941, 8.6% Administrative and support, waste management and remediation services, 2,633, 4.6% Educational services, 697, 1.2% Health care and social assistance, 4,752, 8.2% All Industries 57,782 Arts, entertainment and recreation, 560, 1.0% Wholesale trade, 2,467, 4.3% Accommodation and food services, 3,375, 5.8% Manufacturing, 1,600, 2.8% Construction, 6,711, 11.6% Utilities, 102, 0.2% Mining, quarrying, and oil and gas extraction, 1,149, 2.0% Agriculture, forestry, fishing and hunting, 272, 0.5% Other services, 4,107, 7.1% Public administration, 77, 0.1% Unclassified, 5,172, 9.0% Source: Total with Employees, All Industries 57,782, Statistics Canada, June 2018 48

Calgary CMA Business Establishments by Number of Employees 5-9 Employees, 8,931, 15.5% All Industries 57,782 Small Business (1-49) 55,073 10-19 Employees, 6,158, 10.7% 1-4 Employees, 35,743, 61.9% 20-49 Employees, 4,241, 7.3% 50-99 Employees, 1,476, 2.6% 100-199 Employees, 701, 1.2% 500+ Employees, 164, 0.3% 200-499 Employees, 368, 0.6% Source: Statistics Canada, June 2018 49

Small Business per Capita Across Canada 45.0 40.0 35.0 39.5 34.3 37.0 35.4 39.0 33.0 Second highest small business concentration 30.0 29.0 28.7 25.0 25.0 20.0 15.0 10.0 5.0 0.0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Alberta Canada Source: Statistics Canada, CMA Population, 2017 and Canadian Business Counts, June 2018 Less Than 50 Employees (Per 1,000 Population) 50

Number of Self-Employed per Capita (per 1,000 population) Self-Employed per Capita and 10-Year Growth 110 25% 100 90 80 70 60 50 40 30 20 10 0 92.8 21.07% 21.12% 19.9% 91.7 89.3 77.4 73.7 67.9 68.0 11.7% 9.4% 5.9% 7.2% 6.1% 4.7% 2.1% 3.3% 1.1% 1.3% -1.3% Vancouver Edmonton Calgary Toronto Ottawa Montreal Canada 20% 15% 10% 5% 0% -5% 10-Year Growth in Total Number of Self-Employed Self-Employed per Capita (per 1,000 population) 2017 Growth Rate 10-Year Total Growth (2008-2017) Source: Statistics Canada, 2017, per 1,000 Population 51

5,600 (2.7%) 1,500 (2.3%) 4,100 (2.2%) 15,200 (2.1%) 3,000 (4.1%) 5,300 (2.5%) 35,100 (14.4%) 25,300 (10.3%) 19,500 (17.6%) 24,400 (25.0%) 22,500 (14.8%) 11,700 (13.3%) 50,200 (23.6%) 28,400 (24.0%) 21,000 (21.5%) 9,200 (9.6%) 36,100 (24.2%) 31,900 (28.2%) 20,100 (22.8%) 25,400 (29.0%) 40,500 (14.4%) 70,000 (30.9%) 52,400 (18.0%) 30,200 (21.9%) 11,800 (8.7%) 23,200 (21.0%) 10,100 (9.7%) 32,900 (10.3%) 59,200 (10.1%) 82,800 (14.2%) 66,300 (22.9%) 73,300 (26.8%) 63,200 (23.0%) 128,300 (21.2%) 124,300 (24.8%) 157,100 (27.6%) Number of Self-Employed by Age Group 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Vancouver Edmonton Calgary Toronto Ottawa Montreal Ages: 15-24 Ages: 25-34 Ages: 35-44 Ages: 45-54 Ages 55-64 Ages 65+ Source: Statistics Canada, 2017 52

City of Calgary Business Openings and Closures 5,000 4,500 4,000 3,778 3,500 3,448 3,000 2,500 2,292 2,399 2,220 2,000 1,735 1,500 1,000 500 0 New Business Openings Business Closures 5-Year Average (2013-2017) 2017 2018 Note: Exclusive of moves/relocations. Source: The City of Calgary Corporate Economics, September 2018 53

City of Calgary Business Licenses 35,000 31,194 31,648 30,000 25,000 20,000 20,870 15,000 10,000 7,069 7,332 5,000 0 4,875 1,357 1,440 873 5-Year Average (2013-2017) 2017 2018 YTD New Business Licenses Issued Moved Renewal Licenses Issued Source: The City of Calgary Planning and Development, August 2018 54

Calgary and Alberta Business Bankruptcies 450 400 419 350 300 250 200 267 190 176 264 230 150 100 50 0 147 116 95 86 137 74 105 95 41 38 121 131 53 61 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018 66 25 Calgary Business Bankruptcies Alberta Business Bankruptcies Source: Office of the Superintendent of Bankruptcy Canada, Q2 2018 55

0.24 0.22 0.22 0.21 0.25 0.24 0.21 0.17 0.18 0.28 0.22 0.32 0.41 0.43 0.41 0.38 0.54 0.72 0.85 0.82 0.74 0.68 0.78 1.12 1.24 1.07 1.26 1.92 1.86 1.77 Business Bankruptcy Rates Across Canada 2.50 Low business bankruptcy rates 2.00 1.50 1.00 0.50 0.00 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Canada 2015 2016 2017 Source: Office of the Superintendent of Bankruptcy Canada, 2018, (Per 1,000 Businesses) 56

Head Offices per Capita (per 100,000 population) Head Offices per Capita Across Canada 14 12 10 8 6 4 2 12.1% 3.9 1.3-42.3% 7.7-23.0% 0.0% 4.6-22.2% -23.3% 2.3 2.9-14.5% 4.3 6.5% 1.2-21.5% 1.7 15% 5% -5% -15% -25% -35% 10-Year Growth Rate in Number of Head Offices Highest HQ Concentration in Canada 0 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal 2018 Head Offices per Capita 10-Year Per Capita Growth Rate (2009-2018) -45% Source: FP500 2018 Database, FP500 2009 Database, Statistics Canada, 2018 57

Number of Head Offices Across Canada 300 250 27.8% 280 276 266 21.4% 40.0% 30.0% 20.0% 200 10.0% 150-3.4% 0.0% -1.4% 0.0% 100 79 99101 124 119 115-22.2% -23.3% -13.4% 82 74 71-10.0% -20.0% 50 0-28.0% 30 25 24 19 23 18 11 11 11 9 8 7 14 18 17 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal 2009 Number of Head Offices 2017 Number of Head Offices 2018 Number of Head Offices 10-Year Growth Rate (2009-2018) -30.0% -40.0% Source: FP500 2018 Database, FP500 2017 Database, FP500 2009 Database 58

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Patent Applications per 1,000 People 1.4 Patents per 1,000 People Census Metropolitan Areas Across Canada Highest Patents per Capita in 2015 1.2 1 0.8 0.6 0.4 0.32 0.2 0 Calgary Ottawa Waterloo Rest of Canada Source: Benjamin Dachis and Jacob Kim, "Move over, Waterloo and Ottawa: Calgary is now out-innovating you," CBC News, May 31, 2018 59

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Number of Patent Applications Number of Calgary Patent Applications 180 160 140 120 100 80 60 40 20 0 Chemical Computing Engineering Petroleum Rock Drill Source: Benjamin Dachis and Jacob Kim, Intelligence Memo: How Calgary (Quietly) Took the Lead as Canada s Innovation Leader, C.D. Howe, June 13, 2018 60

Taxes Across Canada Vancouver / British Columbia Edmonton / Alberta Calgary / Alberta Saskatoon / Saskatchewan Winnipeg / Manitoba Toronto / Ontario Ottawa / Ontario Montreal / Quebec 2016 Total Effective Tax Rates (City Level) 35.3% 29.3% 30.1% 31.9% 36.3% 34.1% 37.7% 41.3% Provincial Sales Tax 7% 0% 0% 6% 8% 8% 8% 9.975% 2018 Provincial Personal Income Tax 5.06% - 14.7% 10% - 15% 10% - 15% 10.5% - 14.5% 10.8% - 17.4% 5.05% - 13.16% 5.05% - 13.16% 15% - 25.75% 2018 Provincial Corporate Income Tax (General) 12.0% 12.0% 12.0% 12% 12.0% 11.5% 11.5% 11.7% 2018 Provincial Corporate Income Tax (Small Business) 2.0% 2.0% 2.0% 2.0% 0.0% 3.5% 3.5% 7.24% 2018 Provincial Payroll Tax (Employer Health Premiums) 0% 0% 0% 0% 2.15% or 4.3% 1.95% 1.95% 1.5% or 2.3% / 1.45% or 1.95% 2018 Land Transfer Tax 1% < $200K + 2% $200K<>$2M + 3% > $2M + 2% > $3M (Residential) + 20% Foreign Purchasers (Residential) 0.02% 0.02% 0.3% 0.5% $30K<>$90K + 1% $90K<>$150K + 1.5% $150K<>$200K + 2% > $200K 0.5% < $55K + 1% $55K<>$250K + 1.5% $250K<>$400K + 2% > $400K + 0.5% > $2M (1 or 2 Unit Family Dwelling) 0.5% < $55K + 1% $55K<>$250K + 1.5% $250K<>$400K + 2% > $400K + 0.5% > $2M (1 or 2 Unit Family Dwelling) 0.5% < $50.4K + 1% $50.4K<>$251.8K + 1.5% > $251.8K + 0.5% $503.5K<>$1.007M + 1% > $1.007M 2018 Local, Provincial & Federal Gasoline Tax 2018 Carbon Pricing (per tonne of emissions) 32.28 /L 29.67 /L 29.67 /L 25 /L 24 /L 29 /L 29 /L 32.2 /L $30 $20 $20 $10* $25 $10* $10* $18 2018 Health Care Premiums (Annual) $0 - $900 $0 $0 $0 $0 $0 - $900 $0 - $900 $0 - $638 *Ontario will end the cap-and-trade carbon tax regime effective July 3, 2018; Ontario and Saskatoon intend to challenge the Federal Government's authority to impose a carbon tax. The Federal Carbon price starts at $10 per tonne in 2018, gradually rising by $10 per tonne every year, to $50 per tonne in 2022. PwC Tax Facts and Figures, Canada 2018 Sources: PwC Tax Facts and Figures, Canada 2018; Revenue Canada, Government of Alberta, Government of British Columbia, Government of Ontario, Government of Quebec, Government of Saskatchewan, 2016 KPMG Competitive Alternatives: Focus on Tax Report 61

45.0% Calgary's Tax Advantage 41.3% 40.0% 37.7% 35.0% 30.0% 29.3% 30.1% 31.9% 34.1% 35.3% 10.8% 23.0% 25.0% 10.8% 10.9% 11.1% 15.5% 23.6% 20.0% 10.2% 15.0% 4.3% 5.2% 8.8% 6.7% 10.2% 10.0% 5.9% 5.0% 14.2% 14.0% 12.0% 11.9% 14.3% 8.2% 8.1% 0.0% Edmonton Calgary Saskatoon Toronto Vancouver Gatineau (National Capital Region) Corporate Income Taxes Other Corporate Taxes Statutory Labour Costs Montreal Source: KPMG Competitive Alternatives: Focus on Tax Report, 2016 62

Estimated Commercial Property Taxes per $40.00 $35.00 $1,000 of Assessment FIGURES IN THIS CHART ARE CALCULATED BY MULTIPLYING THE COMMERCIAL TAX RATE BY 1000 TO GIVE THE TAXES PAID PER $1,000 OF ASSESSMENT. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO. $37.23 Low commercial property taxes $30.00 $28.52 $25.00 $25.20 $20.00 $20.76 $17.74 $15.00 $12.44 $14.57 $10.00 $5.00 $0.00 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal It should be noted that The City of Calgary is consolidating the business tax (0.0427) with the non -residential property tax. This is an incremental process, culminating with the elimination of the business tax by 2019. Source: Altus REALpac, 2017 63

labour market 64

Workforce Attraction Ranking of 150 global cities Calgary ranked in the global Top 10 Most Attractive Cities for Workers Financial (salary levels, living costs, taxes) + Lifestyle (quality of living, social benefits) AIRINC, Global 150 Scorecard, March 2017 65

Key Stats Of 8 peer cities assessed, Calgary has the highest level of educational attainment. - Deloitte, Benchmarking Calgary s Competitiveness, 2015 Calgary has the highest labour force productivity and labour force participation of major Canadian cities. - The Conference Board of Canada and Statistics Canada, 2017 Calgary has the highest proportion of STEM graduates of major Canadian cities. - Census 2016, Statistics Canada Calgary has the highest millionaires per capita of major Canadian cities. - Statistics Canada, 2016 Calgary has the highest number of engineers and geoscientists per capita of major Canadian cities. - Statistics Canada, 2017 Calgary is ranked as a top tech talent market in Canada. - Scoring Canadian Tech Talent, CBRE, 2017 66

Labour Demand ICT is outpacing all job growth by 4:1. Canada will need to fill 216,000 ICT professional positions by 2021. - ICTC, Labour Market Outlook, 2017-2021, April 2017 Finance, Insurance, Real Estate and Leasing will grow by 1.6% annually, reaching 4.8% of total employment in 2019 and gain 68,100 The Logistics sector in Alberta will grow by about 7,470 workers from 2016 to 2025. - APGC, 2016 Oil and Gas will require 11,100 workers in a modest recovery scenario and 15,400 in a delayed recovery scenario between 2018 to 2021. - PETROLMI/ENFORM, March 2017 jobs by 2024. - Government of Alberta, 2016; Statistics Canada, 2016 Clean Tech (including Renewables) will employ anywhere from 76,000 to Manufacturing accounts for 6.1% of total employment in Alberta, employment will grow by 1.1% annually and account for 6.5% of total employment by 2019. - Government of Alberta, 2016 100,000 Canadians directly by 2022, up from 55,600 jobs in 2014. - Analytica Advisors, 2016 Agriculture will need to fill 23,300 potential jobs in Alberta by 2025. - AgriLMI CAHRC, 2016 67

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Employment (thousands) Unemployment Rate Calgary CMA Historical Unemployment Rate & Level of Employment 900.00 12% Cycle highs and lows 800.00 826.00 793.30 827.90 10% 700.00 7.5% 698.30 8.9% 10.2% 8.2% 8.6% 8% 600.00 6% 500.00 4.6% 4.5% 4.4% 4% 400.00 300.00 2% 200.00 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Statistics Canada, September 2018 68

Unemployment Rate Across Canada 9% 8% 8.2% 8.4% 8.2% 7.9% 7.4% 7% 6% 6.3% 6.1% 5.8% 6.4% 6.1% 6.2% 5.9% 5% 4.4% 4.5% 4.5% 4.5% 4% 3% 2% 1% 0% Vancouver Edmonton Calgary Toronto Ottawa Montreal Saskatoon Canada September 2017 September 2018 Source: Statistics Canada 69

Youth Unemployment Rate Across Canada (Ages: 15 to 24 Years) 18% 16% 15.6% 15.5% 15.5% 14% 13.5% 14.2% 13.5% 12.7% 12.5% 12.5% 12.4% 12.6% 12% 10% 10.0% 11.7% 10.3% 8.9% 10.7% 10.6% 11.0% 9.5% 8% 7.9% 6% 4% 2% 0% Vancouver Edmonton Calgary Regina SMSMatoon Winnipeg Toronto Ottawa Montreal Canada September 2017 September 2018 Source: Statistics Canada 70

Labour Force Participation Rate Across Canada 76% 74% 72% 73.0% 72.6% 74.2% 72.2% Highest labour force participation rate in Canada 70.7% 70% 69.9% 68% 66% 67.1% 66.4% 66.0% 65.4% 67.8% 67.4% 67.2% 66.9% 65.7% 65.4% 64% 62% 60% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada September 2017 September 2018 Source: Statistics Canada 71

Mar-01 Dec-01 Sep-02 Jun-03 Mar-04 Dec-04 Sep-05 Jun-06 Mar-07 Dec-07 Sep-08 Jun-09 Mar-10 Dec-10 Sep-11 Jun-12 Mar-13 Dec-13 Sep-14 Jun-15 Mar-16 Dec-16 Sep-17 Jun-18 x 1,000 Calgary Labour Force and Employment 950 900 901.6 850 800 827.9 750 700 650 600 550 500 Calgary Labour Force Calgary Employment Source: Statistics Canada, September 2018 72

Growth Rate Labour Force Growth Across Canada 30% 25% 20% 19.6% 27.1% 20.6% 28.2% The employed are persons having a job or business, whereas the unemployed are without work, are available for work, and are actively seeking work. Together the unemployed and the employed constitute the labour force. Persons not in the labour force are those who, during the reference period, were unwilling or unable to offer or supply labour services under conditions existing in their labour markets (this includes persons who were full-time students currently attending school). 16.4% 15% 12.8% 11.1% 10% 9.0% 9.4% 9.2% 7.8% 9.3% 5% 0% 0.5% 1.3% 1.1% 1.5% 5.1% 4.6% 1.4% 5.1% 0.9% 0.9% 4.3% -0.9% -5% Vancouver Edmonton Calgary SaSMatoon Toronto Ottawa Montreal Canada 12-Month Labour Force Growth 5-Year Labour Force Growth 10-Year Labour Force Growth Source: Statistics Canada, September 2018 73

Growth Rate Employment Growth Across Canada 30% 25% 23.4% 24.0% 20% 19.2% 17.2% 15% 13.9% 15.0% 14.3% 10% 5% 3.3% 7.6% 5.4% 1.7% 6.1% 1.5% 7.3% 2.8% 6.7% 8.5% 7.4% 9.5% 5.4% 0% 0.4% 1.2% 1.2% -0.7% -5% Vancouver Edmonton Calgary SaSMatoon Toronto Ottawa Montreal Canada 12-Month Employment Growth 5-Year Employment Growth 10-Year Employment Growth Source: Statistics Canada, September 2018 74

Annual Employment Growth 15.0% 12.6% 10.0% 9.0% 5.0% 0.0% 0.4% 3.3% 2.0% 2.2% -0.7% -0.4% 2.6% 3.1% 1.7% 1.5% 2.8% 1.4% 3.1% 1.5% 1.2% 1.2% 0.0% -5.0% -5.0% -2.9% -2.7% -6.5% -10.0% -8.4% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Total Employment Growth Rate Full-Time Employment Growth Rate Part-Time Employment Growth Rate Source: Statistics Canada, September 2017 - September 2018 75

Calgary CMA Employment by Industry (827,900) Accommodation and Food Services 63,300 7.6% Information, Culture and Recreation 37,400 4.5% Other Services 41,700 5.0% Public Administration 25,800 3.1% Agriculture 1,600 0.2% Forestry, Fishing, Mining, Quarrying, Oil and Gas 46,400 5.6% Utilities 10,100 1.2% Construction 77,800 9.3% Manufacturing 44,800 5.4% Diverse employment Health Care and Social Assistance 95,800 11.5% Wholesale & Retail Trade 124,400 14.9% Educational Services 40,400 4.9% Business, Building and Other Support Services 30,300 3.6% Professional, Scientific and Technical Services 94,500 11.4% Transportation and Warehousing 56,600 Finance, Insurance, Real 6.8% Estate and Leasing 41,600 5.0% Source: Statistics Canada, September 2018 76

Calgary Historical Employment by Industry 8.8%, Health Care & Social Assistance 7.1%, Professional, Scientific & Technical 13.0%, Retail Trade 11.3%, Health Care & Social Assistance 11.3%, Professional, Scientific & Technical 10.5%, Retail Trade Total Employment: 367,775 9.9%, Finance & Insurance, Real Estate 5.6%, Construction 5.3%, Accommodation & Food Services 9.2%, Finance & Insurance, Real Estate 9.0%, Construction Total Employment: 829,675 11.3%, Primary & Utilities 7.3%, Accommodation & Food Services 5.7%, Transportation & Warehousing 6.1%, Educational Services 6.9%, Primary & Utilities 6.9%, Transportation & Warehousing 7.9%, Manufacturing 6.4%, Educational Services 2.1%, Arts, Entertainment, Recreation 2.8%, 4.6%, Other Services 4.3%, Wholesale Trade 5.4%, Public Administration 4.7%, Manufacturing 4.4%, Other Services 4.3%, Wholesale Trade 3.6%, Public Administration 2.8%, Arts, Entertainment, Recreation 1.3%, Information & Cultural 1987 2017 Source: Conference Board of Canada, June 2018 77

Economic Structue Calgary's Economic Diversity Economic Structure is a measure of economic diversity. Using the Hachman Index and employment by industry data, this measure benchmarks the economic structure of Calgary to that of Canada as a whole. The higher the number the higher the implied diversity in employment (highly diverse =1 and not diverse =0). For example, if Calgary s economic structure were exactly like Canada s then it would score a 1. If it were nothing like Canada s it would score a 0. We can say, over the years Calgary has become more diverse in employment - more than it has ever been before! 0.90 0.85 0.83 0.80 0.80 0.81 0.79 0.77 0.77 0.77 0.77 0.77 0.77 0.76 0.77 0.77 0.75 0.74 0.70 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: The Conference Board of Canada; Statistics Canada; 2018 78

2017 GDP per Employee Labour Force Productivity $160,000 $140,000 $145,014 Most productive workforce in Canada $120,000 $116,257 $100,000 $95,681 $104,794 $99,432 $95,750 $94,578 $80,000 $82,193 $60,000 $40,000 $20,000 $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Source: Conference Board of Canada, June 2018 79

Calgary CMA Average Overall Hourly Wages by Industry All Industries Agriculture, forestry, fishing and hunting Mining, quarrying, and oil and gas extraction Utilities Construction Manufacturing Wholesale trade Retail trade Transportation and warehousing Information and cultural industries Finance and insurance Rreal estate and leasing Professional, scientific and technical services Management of companies and enterprises Administrative and support, waste management and Educational services Health care and social assistance Arts, entertainment and recreation Accommodation and food services Other services Public administration n/a $30.71 n/a $31.95 $29.45 $33.02 $19.68 $28.47 $28.15 $29.84 $27.83 $37.95 $23.25 $35.14 $31.71 $20.79 $16.31 $23.21 $41.91 $49.68 $54.25 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 Source: Statistics Canada, 2017 80

BC AB SK MB ON QC NB NS PEI NL Canada Average Weekly Earnings Average Weekly Earnings Across Canada and Growth Rates $1,400 5.0% $1,200 $1,141.77 4.3% 4.0% $1,000 $800 $600 $955.85 3.3% 2.0% $1,007.51 3.5% $1,003.22 $1,019.16 $988.18 $933.37 2.9% $920.72 $903.95$876.22 $802.27 2.6% 2.4% 2.0% 3.0% 2.0% Growth Rate $400 1.1% 1.2% 0.8% 1.0% $200 $0 0.0% Average Weekly Earnings Growth Rate Over Previous Year Source: Statistics Canada, July 2018 81

N/A $46,506 $47,717 $44,296 $50,845 $44,991 $52,868 $53,465 $54,401 $52,524 $54,578 $50,645 $63,902 $65,565 $73,468 $75,658 Average Wages and Salaries Across Canada $90,000 6.0% $80,000 $70,000 4.0% 3.9% 5.0% $60,000 4.0% $50,000 $40,000 $30,000 $20,000 $10,000 $0 2.9% 3.0% 2.6% 2.6% 2.1% 2.0% 2.2% 1.8% 1.7% 1.4% 1.6% 0.1% 0.4% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada $0 3.0% 2.0% 1.0% 0.0% 2017F Average Wages and Salaries per Employee 2018F Growth Rate 2018F Average Wages and Salaries per Employee 2017 Growth Rate Source: Conference Board of Canada, June 2018 82

Average Wages and Salaries Growth Rates Across Canada 30% 28.5% 25% 20% 15% 15.4% 18.5% 15.2% 17.2% 16.1% 20.2% 10% 5% 5.3% 10.3% 4.2% 5.8% 7.2% 9.7% 3.9% 7.7% 8.1% 0% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada 5-Year Total Growth Rate (2013-2017) 10-Year Total Growth Rate (2008-2017) Source: Conference Board of Canada, June 2018 83

$70,000 Personal Income per Capita $65,435 6.5% 5.5% $60,000 $50,000 $40,000 $50,199 4.2% 3.0% $55,761 $53,982 $50,157 $46,875 $47,796 $50,642 3.4% $45,350 4.5% 3.5% $30,000 $20,000 2.4% 2.0% 2.8% 1.8% 2.4% 2.5% 1.9% 2.4% 2.1% 1.7% 1.5% 2.6% 2.6% 2.5% 1.5% $10,000 1.0% 0.3% 0.5% $0 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal 2018F Personal Income per Capita 2018F Growth Rate 2017 Growth Rate -0.5% Source: Conference Board of Canada, June 2018 84

Personal Income per Capita Historical Growth Rates 30% 25% 25.4% 24.5% 23.1% 20% 15% 15.5% 17.0% 16.4% 19.6% 19.5% 18.3% 15.9% 11.8% 10% 9.8% 9.9% 6.2% 5% 4.1% 3.4% 2.1% 3.4% 0% Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal 5-Year Total Growth Rate (2013-2017) 10-Year Total Growth Rate (2008-2017) Source: Conference Board of Canada, June 2018 85

Millionaires Per Capita 100 90 90.2 80 70 60 50 40 30 59.0 27.4 81.9 38.1 45.3 Millionaires in Calgary reported a median income of $1.42 million in 2016. 35.4 20 20.0 10 0 Vancouver Edmonton Calgary Toronto Ottawa Montreal Alberta Canada 2016 Millionaires Per Capita (per 100,000 population) Data released on a 2 year lag to current year. Source: Statistics Canada, 2016, Per 100,000 Population 86

Calgary Companies Hiring Tech Software Engineer / Developer Computer Programmer / Web Developer September 2018 September 2018 Glassdoor Indeed Glassdoor Indeed Benevity City Wide Towing Ltd. Clio AGAT Laboratories Cisco Systems Guardant Health Cohesic Avantech Inc. General Dynamics GuildOne Inc. Deloitte Chatterson Drive Getty Images Intaver Habanero Cropshop Supply Co. NovAtel Livewire Automation Inc Intellex Systems Group Eguana Technologies Inc. Paysafe Group MacMoro MAGTEC Products Graham Construction Renoworks Software STRATACACHE PBS Systems ID Technologies Inc. RS Energy Group TELUS Communications Skrill Pantheon Snyopsys VMG, A Schlumberger Technology True Market Sierra Systems Trimble Wood Vantix Systems Solium Capital Glassdoor Indeed 87

demographics 88

Key Stats 76.7 per cent of Calgarians are aged 20 and older; 47.3 per cent are within the core working age group of 25 to 54. - Calgary CMA, Statistics Canada, 2017 29.4 per cent of Calgary s population are immigrants and 33.7 per cent are visible minority. - Calgary CMA, Census 2016, Statistics Canada Calgary has the highest population growth over the past decade of major cities in Canada. - Statistics Canada, 2017 Most frequently reported ethnic origins for Calgary are English (21.7 per cent), Canadian (20.1 per cent) and Scottish (17.5 per cent). - Calgary CMA, Census 2016, Statistics Canada 89

Who are Calgarians? Calgarians are young. The median age is 36.8 years old. 36 $ $99,583 median 2015 total household income. - Calgary CMA, Census 2016, Statistics Canada - Calgary CMA, Statistics Canada, 2017 More than 120 languages spoken in Calgary. - Calgary CMA, Census 2016, Statistics Canada 120 Calgary has the 3 rd highest education level attained of major cities in Canada. - Calgary CMA, Census 2016, Statistics Canada 33.7% of Calgary s population is visible minority. 34% Average household is comprised of 2.6 people. - Calgary CMA, Census 2016, Statistics Canada - Calgary CMA, Census 2016, Statistics Canada POPULATION: 1.47 MILLION - Calgary CMA, Metropolitan Outlook, Conference Board of Canada, 2016 90

Persons Calgary and Region Population 1,800,000 1,700,000 1.74% 1,600,000 1,500,000 1,405,719 1,457,279 1,505,786 1,401,462 1,538,004 1,432,169 1,570,373 1,597,701 1,462,927 1,488,841 1.77% 1,400,000 1,363,607 1,354,223 1,300,000 1,200,000 1,100,000 1,000,000 1,304,711 1,264,460 1,120,225 1,090,936 3.25% 2.68% 1,230,915 1,235,171 1,195,194 1,156,686 2.90% 0.36% 3.33% 1,246,337 1,267,344 0.90% 1.69% 2021 Calgary CMA forecast population 1.602 900,000 2011 2012 2013 2014 2015 2016 2017 2018 million City of Calgary Calgary CMA Calgary Economic Region Source: City of Calgary Civic Census (as at April 1), Statistics Canada (as at July 1), Tables 051-0056 and 051-0059 91

Population Growth City of Calgary Population Growth 40,000 35,000 36,461 38,508 35,721 4.5% 30,000 28,183 29,289 3.5% 25,000 20,000 17,631 22,950 22,563 19,421 19,658 26,201 28,017 24,909 21,007 2.5% 15,000 12,441 12,920 9,563 11,588 10,000 6,060 4,256 11,166 974 1.5% 5,000 10,552 9,695 9,643 10,214 9,858 9,631 10,260 10,491 10,812 10,783 10,192 9,419 0-5,000-10,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018-4,154-6,527 Natural Increase Net Migration Annexation Annual Growth Rate 0.5% -0.5% Source: City of Calgary, Civic Census is Conducted Annually on April 1 92

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Population Growth 60,000 50,000 Calgary CMA Components of Population Growth In 2016, 59.7% of migrants to Calgary were from international origins. Over the last 5 years, 43% of people moving to Calgary were of international origin. 49,220 47,239 International migration accounted for 59.7 percent of 2016 population growth 40,000 30,000 20,000 10,000 0 40,251 40,251 32,043 20,787 33,382 20,771 30,758 30,707 31,825 15,857 25,914 24,302 18,563 19,153 20,964 24,302 24,302 8,849 21,331 2,232 13,644 16,525 9,359 11,998 12,845 6,494 7,119 6,644 4,956 1,282 3,085 3,565 2,855 2,619 2,595 1,756 1,756 403 10,864 11,359 11,438 11,209 11,470 11,934 11,851 12,144 12,216 12,198-205 -1,985-1,881-2,029-2,043-1,693-4,545-4,565-10,000 Natural Increase Net Intraprovincial Migration Net Interprovincial Migration Net International Migration Residual Deviation Source:Calgary Census Metropolitan Area (CMA), Statistics Canada, July 1, 2017 (Updated February 2018) 93

Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Population CMA Population Across Canada 7,000,000 6,000,000 Canadian Population: 36,708,083 Growth Over Previous Year: 1.22% 2.87% 6,346,088 3.50% 3.00% 5,000,000 2.44% 2.50% 4,000,000 1.81% 1.77% 1.82% 1.96% 1.92% 4,138,254 2.00% 3,000,000 2,571,262 1.19% 1.50% 2,000,000 1.14% 1,411,945 1,488,841 1,377,016 1.00% 1,000,000 825,713 0.50% 253,220 323,809 0 0.00% Source: Statistics Canada, July 1, 2017; Updated February 2018 94

Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Canada 1.1% 1.3% 5.1% 1.81% 2.1% 1.77% 2.1% 2.4% 2.7% 2.9% 3.2% 1.8% 2.1% 2.0% 1.8% 6.3% 1.9% 1.6% 5.7% 1.2% 1.1% 4.0% 1.2% 1.2% 4.4% 7.2% 10.1% 9.9% 9.7% 11.4% 10.3% 10.4% 14.1% 14.2% 15.3% 14.1% 24.8% 25.6% 23.4% 29.7% CMA Population Growth Rates 35% Across Canada 30% 25% 20% 15% 10% 5% 0% 2017 Growth Rate 2016 Growth Rate 5-Year Total Growth Rate (2013-2017) 10-Year Total Growth Rate (2008-2017) Source: Statistics Canada, July 1, 2017, Updated February 2018 95

Components of Population Growth 140,000 Across Canada 120,000 113,074 100,000 80,000 60,000 52,158 40,000 39,885 32,321 20,000 0-20,000 16,525 7,764 9,748 12,244 12,198 4,727 5,721 1,756-2,556-9,926-4,565 13,450 14,966 11,658 6,004 2,457 5,858-10,325-8,284-40,000-36,755-60,000 Vancouver Edmonton Calgary Toronto Ottawa Montreal Natural Increase Net Intraprovincial Migration Net Interprovincial Migration Net International Migration Source: Statistics Canada, July 1, 2017 (Updated February 2018) 96

Generation Z Born: 1995-2025 Millennials Born: 1980-2000 Generation X Born: 1965-1984 Baby Boomers Born: 1946-1964 Silent Generation Born: 1925-1942 Greatest Generation 1900-1924 Calgary CMA Population by Age Group -2,092 90 years and over 5,399-5,187-8,271-11,751 85 to 89 years 80 to 84 years 75 to 79 years 7,897 10,929 14,699-29,115-19,36870 to 74 years 65 to 69 years 21,416 29,872-49,043-51,083-41,348 60 to 64 years 55 to 59 years 50 to 54 years 39,751 47,360 47,278-66,303-55,370-58,426 45 to 49 years 40 to 44 years 35 to 39 years 51,421 55,914 63,886-69,378 30 to 34 years 67,914-58,708 25 to 29 years 59,059-47,728-41,004-42,133-47,381-47,320 20 to 24 years 15 to 19 years 10 to 14 years 5 to 9 years 0 to 4 years 46,098 39,021 40,355 44,457 45,106 Males Females Source: Statistics Canada, July 1, 2017 (Updated February 2018) 97

Top Source Countries for Permanent Residents, 2017 Philippines 4,220 24% Other (116 Countries) 5,915 33% Total: 17,885 Ethiopia 405 2% India 2,695 15% Syria 430 2% United Kingdom 460 3% United States of America 555 3% Pakistan 590 3% Eritrea 660 4% Nigeria 720 4% People's Republic of China 1,235 7% Source: Calgary CMA, IRCC, 2018 98

Top Source Countries for Permanent Residents, 2008 to 2017 Philippines 36,840 22% Other (144 Countries) 58,640 34% Total: 172,100 India 25,900 15% Mexico 3,165 2% Iran 3,410 2% Korea, Republic of 3,465 2% United States of America 5,460 3% United Kingdom and Overseas Territories 6,835 4% Nigeria 7,515 4% Pakistan 8,975 5% China, People's Republic of 11,895 7% Source: Calgary CMA, IRCC, 2018 99

Permanent Residents Level of Education, 2017 Secondary or Less 4,770 29% Total: 17,885 Not Stated 4,620 28% Formal Trade Cert. or Apprenticeship 730 4% Non-University Certificate or Diploma 840 5% Doctorate 90 1% Master's Degree 815 5% Some Post-Grad. Education - No Degree 210 1% Bachelor's Degree 3,390 20% Some University - No Degree 1,140 7% 25% with Bachelors or Higher Source: Calgary CMA, IRCC, 2018 100

Permanent Residents by Age Group 2017 15 to 29 years old 5,280 29% Total: 17,885 0 to 14 years old 3,015 17% 30 to 44 years old 6,230 35% 75 years old or more 275 2% 60 to 74 years old 1,400 8% 45 to 59 years old 1,685 9% Source: Calgary CMA, IRCC, 2018 101

Median Age Across Canada 42 41 40.6 Young population 40 40.0 39.3 40.0 39 38.8 38 38.1 37 36.8 36.3 36.2 36 35 34.9 34 33 32 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Canada Source: Statistics Canada, July 1, 2017; Updated February 2018 102

Visible Minority Rate Across Canada 60% 50% 48.9% 51.4% Third most diverse metropolitan area in Canada 40% 33.7% 30% 28.1% 25.7% 21.6% 22.6% 22.3% 20% 17.1% 17.7% 10% 0% Vancouver Edmonton Calgary Saskatoon Regina Winnipeg Toronto Ottawa Montreal Canada Source: Census 2016, Statistics Canada 103

Migrants per 1,000 Persons Migration Rate Across Canada 25 Attractive to migrants 21.3 20 18.2 15 14.2 14.1 14.5 10 10.2 10.9 9.2 8.1 9.0 5 0 Vancouver Edmonton Calgary Regina Saskatoon Winnipeg Toronto Ottawa Montreal Canada Source: Statistics Canada, July 1, 2017; Updated February 2018 104

education 105

High Degree of Learning University of Calgary ranked as a Top 20 University Under 50 Years Old Highest proportion of STEM graduates of population 25 to 64 of major Canadian cities 18,515 postsecondary program completions in Calgary Times Higher Education, 2016 Census 2016, Statistics Canada Alberta Advanced Education Program Completions 2016/2017 106

Post-Secondary Enrolment More than 88,000 students enrolled in Calgary post-secondary institutions SAIT 26,048 Bow Valley College 11,966 ACAD 1,196 Ambrose University 725 University of Calgary 34,212 Mount Royal University 13,771 Olds College 1,710 St. Mary s University 871 Source: Alberta Advanced Education, Full-Time and Part-Time Students, Calgary Economic Region, 2016/2017 (Last Updated January 2018) 107

4,110 Post-Secondary STEM Completions STEM programs account for 27 percent of all bachelors degree or higher program completions in Calgary 1,300 science completions 90 technology completions 2,140 engineering & engineering technology 580 mathematics & computer science completions completions Source: Alberta Advanced Education, Credential Completions by 6-digit CIP code, 2016/2017 108

Public and Private K to 12 Schools 357 +60 +40 4 37 announced, public private public and Chinese / new or schools schools private French Mandarin modernized immersion schools schools Source: Calgary Board of Education, Calgary Catholic School Board, 2017/2018 109

real estate 110

Real Estate Indicators Summary Housing Starts Date Value Change/Rate (%) Year-to-Date Year-Over-Year C hange; YTD September 2018 Geography 8,919 6.3% Calgary CMA Total Monthly Value of Building Permits Thousands; Year-Over-Year % C hange August 2018 $462,722 7.7% Calgary CMA Major Calgary Projects Billions; Month-Over-Month C hange September 2018 $23.3-0.8% City of Calgary Benchmark Detached Calgary House Price Year-Over-Year C hange September 2018 $493,100-2.97% City of Calgary Downtown Office Vacancy Rate Q3 2018 27.3% City of Calgary Suburban Office Vacancy Rate Q3 2018 22.9% City of Calgary Industrial Real Estate Vacancy Rate Q3 2018 6.5% City of Calgary * Seasonally adjusted, 3 month moving average Sources: City of Calgary Corporate Economics, Statistics Canada, Conference Board of Canada, CMHC, CB Richard Ellis, Calgary Real Estate Board, Alberta Enterprise and Advanced Education, Alberta Major Projects 111

Major Canadian City Comparison Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Housing Starts YTD August 2018 16,813 7,314 8,085 921 26,508 5,776 14,506 117,458 Total Value of Building Permits (Billions) YTD August 2018 $7.60 $3.44 $3.77 $0.55 $12.03 $2.58 $7.31 $65.46 Downtown Office Vacancy Rate Q3 2018 4.4% 16.5% 27.3% N/A 3.1% 7.5% 9.5% 10.6% MLS Single Detached Benchmark Housing Price August 2018 $1,564,100 $382,400 $477,500 $312,200 $863,900 $429,400 $364,400 $678,600 MLS Composite Benchmark Housing Price Growth 5.2% -2.1% -2.2% -7.2% 1.2% 7.1% 5.9% 3.8% August 2017 August 2018 Source: Canada Mortgage and Housing Corporation, Canadian Real Estate Association, CBRE Limited, Statistics Canada 112

Total Value of Building Permits ($ Billions) Total Value of Building Permits Across Canada $25 43.0% 50% 40% $20 $19.1 23.8% 24.0% 25.3% 30% 20% $15 $10 $9.47 $7.60-6.4% $12.0 $9.60 $7.31 10% 0% -10% Five-Year Growth Rate $5 $5.16 $5.43-24.0% $3.44 $3.77-31.4% $3.40 $2.58-20% -30% $0 $0.95 $0.55 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal -40% 2017 Total Value 2018 Year-to-Date Total Value Five-Year Growth Rate (2013-2017) Source: Table 026-0021, Seasonally Adjusted, Statistics Canada, August 2018 113

Total Value of Permits ($ Billions) City of Calgary Annual Building Permit Values $7 $6 Note: Number of permits does not include demolition permits. $6.05 (17,944 permits) 35.3% $6.50 (18,350 permits) $6.30 (15,630 permits) 44% 32% $5 $4 $3 $2 $1 $4.47 (16,592 permits) $1.88-1.3% $2.59 $2.61 $3.43 $2.48 7.5% $4.02 $2.62-3.2% $3.67 $4.66 (14,683 permits) $1.85 $2.81 $4.58 (8,119 permits) $2.24-1.8% $2.34 $3.45 (12,350 permits) $1.28-9.3% $2.17 20% 8% -4% -16% Growth Rate Over Previous Year -26.0% $0 2012 2013 2014 2015 2016 2017 2018-28% Residential Non-Residential Growth Rate Over Previous Year (YTD) Source: City of Calgary, September 2018 114

28% Commercial Real Estate Vacancy Rates 27.3% Across Canada High quality space available to lease 24% 22.9% 20% 18.7% 18.1% 16.5% 16% 13.8% 14.7% 12% 10.8% 10.4% 9.9% 9.5% 10.6% 8% 7.0% 7.6% 7.0% 7.5% 4% 4.4% 2.3% 3.0% 3.1% 1.6% 3.4% 4.6% 3.3% 0% Vancouver Edmonton Calgary Winnipeg Toronto Ottawa Montreal Canada Downtown Office Vacancy Rate Suburban Office Vacancy Rate Industrial Availability Rate Source: CBRE Limited, Q3 2018 115

Overall Power SC Enclosed SC Community SC Street Front Neighbourhood SC Big Box Retailer Calgary Retail Vacancy 45,000,000 40,000,000 41,065,241 7.7% 8.0% 9.0% 8.0% 35,000,000 7.0% 30,000,000 6.0% 25,000,000 20,000,000 4.5% 4.1% 3.5% 4.9% 5.0% 4.0% 15,000,000 3.0% 10,000,000 5,000,000 10,452,180 0.7% 8,025,025 8,148,182 6,244,363 4,874,791 3,320,700 2.0% 1.0% 0 0.0% Total Area (SF) Vacancy Rate (%) Source: Barclay Street, Q3 2018, *Shopping Centre (SC) 116

Average Rental Rate (per square foot per year) Commercial Real Estate Net Rental Rates $40.00 $35.00 $34.99 Across Canada $32.91 Lowest downtown office Class A net rental rates compared to other markets $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $23.64 $21.11 N/A $11.74 $10.01 $16.28 $19.02 $7.34 $23.83 $22.10 $21.36 $17.64 $17.55 $16.25 $15.06 $9.40 $6.68 $7.48 $5.64 $0.00 Vancouver Edmonton Calgary Toronto Ottawa Montreal Canada Downtown Office Average Class A Net Rent Suburban Office Average Class A Net Rent Industrial Average Net Rent Source: CBRE Limited, Q3 2018 117

Square Feet Office Space Absorption Across Canada 1,000,000 905,107 800,000 600,000 598,458 400,000 200,000 59,854 121,135 193,640 119,614 58,099 85,971 264,952 230,368 209,941 53,070 0-39,272-39,075-200,000-133,700-142,388 Vancouver Edmonton Calgary Winnipeg Toronto Ottawa Montreal Canada Downtown Office Absorption Suburban Office Absorption Source: CBRE Limited, Q3 2018 118

Square Feet 16,000,000 Industrial Space Absorption Across Canada 14,000,000 13,718,685 12,000,000 10,000,000 8,000,000 6,000,000 6,170,514 4,000,000 2,000,000 1,459,405 1,860,208 2,393,315 0 285,598 164,557 195,366 Vancouver Edmonton Calgary Winnipeg Toronto Ottawa Montreal Canada Source: CBRE Limited, Q3 2018 119

Square Feet Under Construction Downtown Office Space Under 12,000,000 Construction Across Canada 9% 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 8.0% 1,916,693 4.1% 650,000 1.0% 430,000 6.9% 6,046,938 2.5% 1,104,701 10,340,095 4.0% 8% 7% 6% 5% 4% 3% 2% 1% Percentage of Inventory Construction Represents 0 Vancouver Edmonton Calgary Toronto Montreal Canada 0% Downtown Office Under Construction Percentage of Downtown Inventory Construction Represents Source: CBRE Limited, Q3 2018 120

Square Feet Under Construction Suburban Office Space Under Construction Across Canada 4,000,000 5% 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 3.4% 822,531 1.6% 0.8% 0.2% 81,758 39,495 58,000 1.0% 744,366 3.4% 1,026,440 3,633,254 1.7% 4% 3% 2% 1% Percentage of Inventory Construction Represents 0 Vancouver Edmonton Calgary Winnipeg Toronto Montreal Canada 0% Suburban Office Under Construction Percentage of Suburban Inventory Construction Represents Source: CBRE Limited, Q3 2018 121

Square Feet Under Construction Industrial Space Under Construction Across Canada 25,000,000 3.5% 20,000,000 15,000,000 10,000,000 5,000,000 2.5% 4,758,636 1.1% 1,549,322 2.9% 3,914,442 0.1% 0.7% 5,646,457 0.5% 1,522,000 19,512,099 1.1% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% Percentage of Inventory Construction Represents 0 88,200 Vancouver Edmonton Calgary Winnipeg Toronto Montreal Canada 0.0% Industrial Under Construction Percentage of Industrial Inventory Construction Represents Source: CBRE Limited, Q3 2018 122

$12.00 $10.00 Estimated Residential Property Taxes per $1,000 of Assessment FIGURES IN THIS CHART ARE CALCULATED BY MULTIPLYING THE RESIDENTIAL TAX RATE BY 1000 TO GIVE THE TAXES PAID PER $1,000 OF ASSESSMENT. WHERE MILL RATES ARE APPLICABLE, THE MILL RATE IS MULTIPLIED BY THE MILL RATE FACTOR BEFORE CALCULATING THE RATIO. $10.68 $9.88 Lower residential property taxes than other markets in Canada $8.51 $8.48 $8.00 $6.50 $6.62 $6.00 $4.00 $2.55 $2.00 $0.00 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Source: Altus REALpac, 2017 123

Year-to-Date Housing Starts Across Canada and their Five-Year Averages 25,000 22,103 20,000 18,237 15,000 13,714 11,816 12,863 10,000 9,097 5,000 0 6,349 5,401 5,067 5,369 3,429 3,885 4,405 3,466 3,804 3,099 2,716 3,653 1,972 3,062 3,315 772 1,643 478 443 1,432 1,752 853 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Detached Housing Starts YTD Multi-Family Housing Starts YTD Detached 5-Year Average (2013-2017) Multi-Family 5-Year Average (2013-2017) Source: Canada Mortgage and Housing Corporation, August 2018 124

$225,100 $201,200 $382,400 $297,100 $257,100 $312,200 $225,200 $174,100 $330,000 $293,900 $256,600 $283,200 $477,500 $429,400 $364,400 $283,100 $426,800 $410,500 $563,000 $505,500 $391,100 $345,600 Benchmark Resale Price $501,900 $472,500 $695,500 $678,600 $625,400 $846,100 $863,900 $764,800 $1,083,400 $1,564,100 Current Benchmark Resale Housing Prices $1,800,000 Across Canada Affordable housing prices $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Single Detached Townhouse Apartment All Housing Types Source: Canadian Real Estate Association, August 2018 125

Growth Rate Year-Over-Year Growth in Benchmark Resale 20% Housing Prices Across Canada Balanced housing market 14.4% 15% 10% 5% 8.7% 11.0% 9.7% 5.2% 7.8% 5.2% 5.7% 7.1% 5.9% 5.9% 5.8% 8.5% 5.2% 0.4% 1.2% 1.0% 3.8% 0% -5% -3.2% -2.2% -1.3% -2.4% -2.3% -2.1% -3.1% -3.0% -1.9% -5.8% -7.2% -1.6% -10% -15% -12.3% -14.1% Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada Single Detached Townhouse Apartment All Housing Types Source: Canadian Real Estate Association, August 2018 126

Average Price / Qualifying Income $260,400 $290,500 $302,800 $436,200 $562,500 $516,300 $474,700 $407,200 $331,300 $454,800 $662,600 $620,700 $1,044,600 $1,582,200 Housing Affordability Across Canada $1,800,000 $1,600,000 $1,400,000 Average Price - Single-Family Detached Average Price - Standard Condominium Single-Family Detached Affordability Measure Standard Condominium Affordability Measure 140% 120% 100% $1,200,000 $1,000,000 $800,000 $600,000 80% 60% Affordability Measure 40% $400,000 $200,000 20% $0 Vancouver Edmonton Calgary Toronto Ottawa Montreal Canada 0% Source: RBC Economics, Q2 2018 127

Average Rental Rate Average Two-Bedroom Apartment Rent & $2,000 Vacancy Rates Across Canada 12.0% Calgary is 19.3% more affordable than Vancouver and 11.2% more affordable than Toronto. 9.6% 10.0% $1,600 $1,552 Affordable and higher vacancy rates than other CMAs $1,404 $1,200 $800 $1,215 7.0% $1,247 6.3% $1,082 $1,232 $782 $1,021 8.0% 6.0% Vacancy Rate 4.0% 2.8% 2.7% $400 1.7% 2.0% 0.9% 1.0% $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada CMAs 0.0% Average Two-Bedroom Apartment Rental Rate Overall Apartment Vacancy Rate Source: Canada Mortgage and Housing Corporation, Fall 2017 (Updated Annually) 128

Average Rental Rate $3,000 Average Two-Bedroom Condo Rent & Vacancy Rates Across Canada Calgary is 19.7% more affordable than Vancouver and 34.3% more affordable than Toronto. 8.0% $2,500 6.9% $2,301 $2,301 7.0% 9.0% More affordable and higher vacancy rates than most other CMAs $2,000 $1,874 6.0% $1,500 $1,000 $1,346 $1,512 3.8% $1,566 2.9% $1,180 $1,421 5.0% 4.0% 3.0% Vacancy Rate 1.8% 1.6% 2.0% $500 0.6% 0.7% 0.7% 1.0% $0 Vancouver Edmonton Calgary Saskatoon Toronto Ottawa Montreal Canada CMAs 0.0% Average Two-Bedroom Condominium Rental Rate Overall Condominium Vacancy Rate Source: Canada Mortgage and Housing Corporation, Fall 2017 (Updated Annually) 129

Calgary LEED Buildings Canada ranked 2 nd globally in LEED-certified projects. Since 2003 all new City of Calgary buildings meet or exceed the LEED silver level rating. 448 12 79 80 LEED LEED LEED LEED Buildings Platinum Gold Silver Source: The City of Calgary, 2018; Canada Green Building Council (CaGBC), 2018; U.S. Green Building Council (USGBC), 2018 130

Calgary Major Projects September 2018 Developer Project Description Project Cost $ Millions Timing Status City of Calgary Green Line LRT $4,650.0 2020-2026 Proposed WAM Development Group / AIMCo StoneGate Landing $3,000.0 2010-2021 Under Construction Calgary Sport and Entertainment Corp. CalgaryNEXT Multisport Fieldhouse Stadium $1,800.0 Commencing 2021 Proposed City of Calgary Crowchild Trail Project $1,550.0 Commencing 2017 Under Construction Government of Alberta / Alberta Cancer Foundation Calgary Cancer Centre $1,400.0 2017-2023 Under Construction Maple Projects Inc. Highland Park Redevelopment $1,000.0 Proposed Oxford Properties Oxford Airport Business Park $500.0 2011-2019 Under Construction Shepard Development Corp. Shepard Suburban Office Campus $500.0 2014-2019 Under Construction ATCO Pipelines Calgary Urban Pipeline Replacement Project $450.0 2017-2018 Under Construction Telus / Westbank / Allied Properties Telus Sky Mixed-Use Tower $440.0 2014-2018 Under Construction Source: Alberta Major Projects, Government of Alberta 131

Alberta Major Projects September 2018 Sector Number of Projects Total Value of Projects $ Millions Agriculture and Related 13 $907.8 Biofuels 3 $1,970.8 Chemical 2 $7,500.0 Commercial 48 $2,655.6 Forestry and Related 0 $0.0 Industrial 14 $2,281.8 Infrastructure 175 $21,510.3 Institutional 135 $9,572.7 Metals 4 $875.0 Mixed-Use 28 $13,613.1 Oil and Gas 11 $9,998.5 Oil Sands 21 $54,713.0 Pipelines 13 $32,745.0 Power 19 $11,535.5 Residential 79 $5,355.1 Retail 15 $374.4 Telecommunications 7 $1,264.4 Tourism / Recreation 93 $5,495.1 Total 680 $182,368.1 Source: Alberta Major Projects, Government of Alberta 132

Why Calgary Built-in Incentives, Favourable High Enviable Competitive Real Estate Quality Lifestyle Tax Rates Market Talent 133

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