1. 1 Presentation for Queen’s University Pension Plan December 4, 2015 David Vanderwood, Senior Vice President & Portfolio Manager

2. 2 Queen’s Pension Plan: Burgundy Canadian Equity TSX Composite Index Quality, Value & Time + 335% + 151% Performance: (Inception) June 1, 2001 - October 31, 2015

3. 3 Investment Philosophy Quality, Value & Time Protect and Grow Capital 1.Avoid Incurring Permanent Loss of Capital 2.Own a Portfolio of High-Quality Businesses for the Long-term 3.Be Contrarian and Opportunistic: “Be fearful when others are greedy and greedy when others are fearful” - Warren Buffett

4. 4  Relentless Focus on Quality Businesses: Invest in businesses, not stocks  Buy and Hold: Buy quality companies and hold to compound capital long-term  Benchmark Agnostic: Building portfolios company by company – not by sectors  Risk = Permanent Loss of Capital: Not volatility to an index  Circle of Competence: Concentrated portfolios increases our chances of getting it right, or of not getting it wrong Guiding Principles: What We Do

5. 5 Valuation Estimate intrinsic value using discounted cash flow (DCF) analysis Managerial Characteristics Capable, honest management Excellent capital allocation record Equity ownership Good corporate governance Business Characteristics Barriers to entry Limited competition Economic resilience Industry leadership Quality Financial Characteristics Growth in free cash flow Low capital requirements High return on invested capital Strong balance sheet Buy Decision Margin of Safety Dream Team < 30 % ≥ 30 % Burgundy Investment What We Look For High Quality Businesses Available at a Discount

6. 6  We try to avoid: Earnings Risk Business Model Risk Balance Sheet Risk Valuation Risk  But even a Quality Value approach can’t avoid paying in Time Time There Is No Free Lunch

7. 7 Disciplined Process Case Study: Loblaw Performance: March 2007 – July 31, 2015 Intrinsic Value Loblaw Share Price Margin of Safety SELL Trim Add

8. 8 Queen’s Pension Plan: Burgundy Canadian Equity TSX Composite Index Quality, Value & Time + 335% + 151% Performance: (Inception) June 1, 2001 - October 31, 2015