Tolko Industries Presentation

AN INTRODUCTION TO

N AVA C O R D General Insurance & Risk Management Services Provided through Navacord Broker Partners

PRESENTED TO

TOLKO

Tolko Industries Ltd.

TABLE OF CONTENTS Executive Summary 4 Navacord Overview 6 International Capabilities 8 A Team Aligned for TOLKO Commitment | Value Proposition

10

Account Team Structure

Service Offering 18 What We Offer Risk Services Claims Advocacy

OUR STORY Navacord exists to challenge, meet, and exceed industry standards.

Driven to grow, Broker Partners join forces to establish a new way forward.

With a unique ownership model and value proposition that benefits both clients and partners, Navacord combines expert local-touch experience with the backing and stability of a national firm.

WE ARE THE FASTEST GROWING MULTI-LINE BROKERAGE IN CANADA. Our purpose is to empower our Broker Partners, enable advisors, and provide opportunities to enrich the clients and the communities we serve. Our strategy allows the entrepreneurial spirit to thrive by preserving the independence and boutique experience of our Broker Partners, and building on the deeply rooted, long-standing business relationships of our top experts and trusted advisors to create transformative growth across Canada.

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TOLKO INDUSTRIES LTD. | True. Trusted. Tolko.

$700M

$700M

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$380M

LIVES HERE

2.5

250

R E V E NUE

A key component of our success has been our strategic increase in market share across the commercial insurance market and our

leadership in the niche sectors that drive the Canadian economy.

$256M

2.0

200

$191M

1.5

150 $122M

100

$50M

1.0

$80M

$0.5B

$60M

2014

2016

2018

2019

B2C PERSONAL LINES Whether it’s the best rates or seamless client-experience, our broker partners have the infrastructure and support for best-in-class personal insurance.

B2B BENEFITS & RETIREMENT Navacord broker partners are able to deliver innovative benefits packages and retirement solutions that help you standout from the competition.

$3B

$350M

P R E MI UM

GROWTH

$5B

2020

2021

2024

B2B

25% 10%

65%

COMMERCIAL LINES From construction to hospitality and beyond, we arm our broker partners with the niche expertise, resources, and solutions to help their business grow.

75% Commercial Insurance | Group Benefits & Retirement | NAVACORD

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Navacord Overview NAVACORD Navacord is a leading insurance and risk management brokerage firm dedicated to providing expert solutions to businesses across Canada. We are the preferred partner for entrepreneurial insurance brokerages nationwide, supporting them with long-term, strategic growth through our enhanced risk services, sector expertise, strategic capital and access to carriers while maintaining their unique identity. Majority employee-owned, Navacord is led by a passionate and engaged partnership group, with Navacord Broker Partners being committed to the success of their clients and delivering expert advice and local, attentive service—supported by the strength of a national brokerage.

In 2014, dynamic leaders in the industry joined forces to challenge the M&A environment and change the insurance landscape. As a result, Navacord was born—providing a unique brokerage ownership model and becoming the preferred partner for entrepreneurial insurance brokerages seeking to grow as a part of something bigger, while maintaining their distinct identity and culture.

Navacord is national strength built on a foundation of collaboration. Clients receive personalized attention, custom advice, and sophisticated service from a Navacord Broker Partner, but have the backing and breadth of a national organization.

THE NAVACORD ADVANTAGE Local Boutique Service.

National Strength To Support Your Business.

Expertise That Differentiates Your Business.

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We are passionate about providing attentive service

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We help you manage the complexities of risk and rapidly changing times

Our national strength is built on the expertise of our Broker Partners

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Our One Navacord culture of collaboration champions learning and sharing of best practices

We have technical knowledge and industry insight that results in more meaningful conversations

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Our claims advocacy is built on technical expertise and carrier relationships that help you minimize interruptions to your business and reduce additional costs

We understand your business, exposures and industry trends to help you make informed riskmanagement decisions

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We offer sector expertise and exclusive products that can help your business as it grows

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We build on the deeply rooted, long-standing business relationships of our top experts who serve and tailor solutions for your business needs

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We deliver trusted insurance and risk management advice anchored in a deep understanding of your business We help you face the future with confidence

TOLKO INDUSTRIES LTD. | True. Trusted. Tolko.

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Our methodology for technical coverage analysis ensures effective loss control and risk management

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Our national relationships with key insurance carriers are leveraged to ensure access to the specific contracts and coverage your business requires

NAVACORD FAST FACTS Navacord is distinctly Canadian. We focus on creatively servicing businesses through our nationwide network of Broker Partners with over 2000 dedicated and innovative employees. This allows Navacord to scale up, when needed, to influence top commercial markets and better serve our clients.

We are committed to preserving the independence and boutique experience of Navacord Broker Partners—building on the deeply rooted business relationships held by our trusted advisors who are making a difference in the communities they serve. Today, with over 40 Broker Partners and a true coast-to-coast presence, Navacord stands as one of the largest commercial brokers in Canada.

265+

COAST TO COAST

Markets Used in 2021

4TH

50,000+

2000+

~

~

Million in Revenue

Billion dollars in Annual Premium

Largest Canadian Commercial Broker

Employees Across Canada

Commercial Clients

$350

75% B2B 25% B2C $2.5

O U R B R O K E R PA R N T E R S

Commercial Insurance | Group Benefits & Retirement | NAVACORD

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International Capabilities NAVACORD'S GLOBAL REACH Navacord serves our clients from an international standpoint. Understanding that our clients are entrepreneurial in nature and always looking for the next strategic step for their business, many of our clients are not confined to Canadian borders. When this occurs, we serve as the main point of contact for our clients while providing local support through our partners in each country of operation.

Our International Practice will give our clients the peace of mind, expertise, and a global approach second to none.

In order to achieve this, Navacord has cultivated an exclusive relationship with the London market through Ed Broking and Lloyd's, and is the official Canadian affiliate of Brokerslink; a network of specialty brokers that employ over 10,000 professionals spanning over 122 countries with 400 offices. Together, Brokerslink has $30 Billion dollars in premium volume to leverage with our insuring partners. This is a big advantage for TOLKO as we can provide expert "boots-on-the-ground" advice in any country or territory where you operate.

GLOBAL REACH Brokerslink delivers a powerful alternative to the world’s largest brokers. Clients and markets get the best of both worlds: the expertise, services, and reach of an international giant, with the embedded local knowledge and relationships that only local brokers offer.

Brokerslink executes global business strategies. From relatively simple multi-country placements to capital markets transactions and captive solutions, our business development and risk management teams have unparalleled skills.

Clients benefit from the ability to do business at home with an independent, successful, trusted, and deeply embedded local broker. Through Brokerslink, each is able to provide the best-in-class risk services that customers need.

10,000+ Professionals

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TOLKO INDUSTRIES LTD. | True. Trusted. Tolko.

122

Countries

$30B+ Premium Volume

400+ Offices

“Boots on the Ground” in 117 Countries

BOOTS-ON-THE-GROUND IN OVER 122 COUNTRIES

Local Broker Presence Currently not represented locally

THE AMERICAS Argentina Bahamas Brazil Canada Chile Colombia Costa Rica

ASIA / PACIFIC

Dom. Rep. El Salvador Ecuador Guatemala Honduras Mexico Nicaragua

Panama Peru Puerto Rico Trinidad Uruguay USA Venezuela

France Georgia Germany Greece Hungary Ireland Italy Kazakhstan Latvia Slovenia Switzerland

Luxemburg Malta Netherlands Norway Poland Portugal Romania Russia Serbia Spain Turkey

Myanmar New Zealand Philippines Singapore South Korea Taiwan Thailand Vietnam

MIDDLE EAST & AFRICA

EUROPE Austria Belgium Bulgaria Croatia Cyprus Czech Rep. Denmark Estonia Finland Slovakia Sweden

Australia China Hong Kong India Indonesia Japan Macao Malaysia

Angola Bahrain Burkina Faso Cameroon Egypt Ghana Guinea Senegal Togo

Israel Ivory Coast Kenya Kuwait Lebanon Malawi Mauritania South Africa Uganda

Morocco Mozambique Niger Nigeria Oman Qatar Saudi Arabia Tanzania Unites Arab Emirates

Commercial Insurance | Group Benefits & Retirement | NAVACORD

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NAVACORD

A Team Aligned For TOLKO

LOCAL TOUCH. NATIONAL STRENGTH. Navacord Broker Partners specialize in helping businesses protect their most valuable assets – from property to people. As an industry disruptor, we combine our strengths to be one of Canada's largest commercial insurance and benefits brokers, with a team of professionals who bring a wealth of expertise and a multidisciplinary approach to finding and optimizing solutions for every business need.

Our DNA consists of the entrepreneurial spirit, creativity and expertise of our high-performance professionals. As partners invested in your success, we outperform by challenging the status quo and getting to know the nuances of your business, your goals, and your people.

COMMERCIAL From forestry to hospitality and beyond, we arm our clients with the niche expertise, resources, and solutions to help their business grow.

PERSONAL Whether it’s the best rates or seamless client-experience, our team focuses on what matters to you most for best-in-class personal insurance.

BENEFITS & RETIREMENT Delivering innovative benefits packages and retirement solutions that protect the health and wealth of your most valuable asset - your people.

OUR COMMITMENT Navacord is committed to proactively supporting your business interests. We invest in the best people in our industry who demonstrate a daily commitment to our clients—helping you achieve your strategic priorities first and foremost.

While we are insurance and risk professionals, our approach is to engage with a business-first perspective so we align our priorities with what matters most to the ongoing success of your business. Each client is unique and our value proposition is uniquely defined to best serve your interests.

Our risk advisory and consultative approach is a 365-day value proposition. Your insurance renewal is merely a point in time, so the way we engage with your business allows us to offer the guidance your organization expects to receive in real time. If appointed as your risk advisor and insurance broker, we will act as a true partner of TOLKO. We believe that our firm’s success is measured by our clients’ successes. Our client-first approach is centered on the principal that your needs always take priority and that we continually exercise loyalty, diligence, and care in all interactions.

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TOLKO INDUSTRIES LTD. | True. Trusted. Tolko.

HIGHLIGHTS OF OUR VALUE PROPOSITION Risk Advisors who are accountable to you and each other Your Navacord team is comprised of senior insurance professionals from key Broker Partners who work together to achieve business solutions that solve your risk challenges. Our risk advisors and specialized resources are vested in the mutual success of our clients. They are partners in our firm and take full accountability in building a mutual partnership with our clientele. All team members have a real-time understanding of what is happening in the insurance and risk advisory marketplace. We collaborate cross functionally and push one another to move quickly when specific challenges arise that require our immediate attention. We consistently act with a sense of urgency, but a duty to care.

Single Points of Contact We will manage your account to the highest of professional standards, always working in a client focused manner. Account Team members are your single points of contact to coordinate all business matters including engagement of any specialized resources we offer on a local or national basis. The Account Executive is proactively involved and ultimately accountable in all aspects of the design, marketing and execution of program integration. In this way, we ensure that your expectations on service delivery are consistently met.

Innovation, Design and Execution of Strategy TOLKO will be a priority for us. Risk management is never static, and as such, you can trust that we will not be complacent and will remain proactively engaged. We engage aggressively in the marketplace and have strong working relationships with partner insurers to push the envelope in terms coverage design and creative thinking to accommodate the evolving needs of your business. Insurance risk transfer is not a one size fits all proposition. Your insurance program is designed and customized to fit the risk profile of your business.

Managing Transition and Change Navacord recognizes that any change needs to be efficiently managed with well-defined strategies to support launching any successful new partnership. We will direct and lead the onboarding process to minimize TOLKO's time and effort to transition knowledge and history. As we work towards the future, we will offer TOLKO a new, refreshed perspective of your insurance program and of the value in your relationship with your risk advisory partners.

Brokerage Remuneration Commensurate with meeting your Expectations We understand overall costs are an important factor in your decision-making process. Navacord’s consolidated balance sheet provides for a service model that is not influenced by competing internal objectives.

Commercial Insurance | Group Benefits & Retirement | NAVACORD

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Account Team Structure We believe in the expertise ingrained in the Navacord team model, wherein all key individuals work as a single unit to break down silos typically found within some of the larger firms. With this collaborative approach, we enable unparalled development and delivery of strategic solutions to benefit our clients. Navacord, prides itself on attracting the best in the business and creating custom in-house client teams that function as an extension of your business to continually deliver results that align with, and help achieve, your corporate goals and objectives.

PROPOSED TOLKO ACCOUNT TEAM - A COMPREHENSIVE IN-HOUSE APPROACH

DARRYN KNIBBS

President & CEO, Hoffmann Kool Insurance

President & CEO, Jones DesLauriers

MARIO ZGANJER

ANGELA IANNETTA

Partner, Account Executive, Jones DesLauriers

Partner & Director, Analytics and Alternative Risk Solutions, Jones DesLauriers

ZORA KRALJ

ALISON SOUSA

Account Executive, Jones DesLauriers

JOHN COCHRANE

President, Benefits Consulting Jones DesLauriers

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ERIC OSBORNE

TOLKO INDUSTRIES LTD. | True. Trusted. Tolko.

Account Manager, Jones DesLauriers

PATRICK HOOEY

Partner, Group Benefits Consultant, Jones DesLauriers

ALIGNED TO DELIVER The Account Team proposed for Tolko offers a crossfunctional mix of industry and product specialization.

NAVACORD SPECIALTY

SCOTT STUDLEY

DANIELLE GORST

JOHN MCLAREN

SHAWN BOWER

Partner, Retirement Consultant, Jones DesLauriers

Partner, Retirement Consultant, Jones DesLauriers

National Practice Leader, Financial Lines Navacord

Manager, Risk Services Lloyd Sadd Insurance Brokers

CLAIMS ADVOCACY

TARIQ NOORHASSAN Partner, Claims Manager, Jones DesLauriers

SPENCER SHUSTERMAN Claims Manager, Jones DesLauriers

Commercial Insurance | Group Benefits & Retirement | NAVACORD

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SERVICES Offering & Differentiation

Service Offering INTRODUCTION OF SERVICES We believe that insurance should always be evaluated based not only on the adequacy of coverage, but also with an objective view of whether it is a financially efficient solution. Navacord is committed to assessing and addressing the following questions related to TOLKO's business: 1. Do you have the right insurance program for the business and risk profile?

2. Have you considered insurance, as a form of capital? Does it provide value, and can it be measured?

3. How are you managing volatility? How does this volatility measure against TOLKO's overall risk tolerance?

4. Can Navacord utilize the captive to fund exposures, or use it as a way to access reinsurance for TOLKO? 5. Are alternative structures and lines of coverage offered to minimize the total cost of risk while ensuring protection against any inherent volatility that may exist?

WHAT WE OFFER Using our deep understanding of the lumber sector across North America and our in-house risk services team, we will work together to gain a thorough understanding of your business, along with the unique characteristics and challenges common to the industry.

Our scale is global; because of that, we will leverage existing relationships with insurers and markets to build out a risk management program that meets your needs both for today and as you continue to grow in the future. Having full access to these markets is essential as there are limited insurers who are willing to put up capacity in these sectors, fortunately, we have access to them all. This allows us to provide TOLKO with the best possible solution.

Exclusive Insurance Program Designed Specifically for Wood Products & Mills Property Insurance

Stock Throughput

Business Interruption

General Liability

Equipment Breakdown

Umbrella Liability

Crime Insurance

Rip & Tear Coverage

Inland Marine/Ocean Cargo

Pollution Liability & First Party Clean Up

Automobile Fleet

Professional Liability (Ontario Bill 124 Compliant)

Course of Construction

Manufacturers Errors & Omissions Liability

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TOLKO INDUSTRIES LTD. | True. Trusted. Tolko.

Transactional Liability Directors & Officers Liability Employment Practices Liability Cyber Bonding

ALIGNED TO DELIVER with a dedicated in-house captive specialist

ANALYTICS & ALTERNATIVE RISK FINANCING Navacord’s Analytics and Alternative Risk Financing Helping clients develop economic value for their insurance program is what we do. Our team is not only responsible for the actuarial modelling of the underlying risk, which is used to assess various retention and limit options, but uses the results of the actuarial analysis to determine if there are alternative solutions and/or structures that will optimize the return on insurance investment against the risk of losses retained. This team consists of individuals that have helped clients set up the following alternative risk structures, from feasibility to implementation and continued ongoing consulting / optimization engagements: 1. Single Parent Captives 2. Group Captives 3. Reciprocals 4. Group Pools 5. Large Fronted / Self-insured Retention Programs 6. Cell Structures (rent-a-captive type structures)

ONGOING WORK Given that Tolko Industries currently has a captive, the team will support Tolko Industries with any ongoing insurance optimization studies (this will include risks currently insured in the captive as well as risks that are placed in the traditional market), collateral studies, funding/valuation studies or any other consulting / risk quantification studies that are necessary in order to ensure that Tolko’s program continues to be efficient, year after year.

RISK SERVICES

CLAIMS ADVOCACY

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Risk services solutions customized for the wood products industry

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Claims advocacy with proven track record of results

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Fire prevention and dust control experts with years of experience working for you

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Dedicated, in-house Claims Advocates

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Risk assessments and recommendations that deliver return on investment and protect your business

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Proactive assistance with claims handling to ensure fair settlements from insurers

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Facilitation of communication & timely information with respect to the status of your claim

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Safety protocol review and recommendations

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Business interruption consultations

Commercial Insurance | Group Benefits & Retirement | NAVACORD

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WANT TO KNOW MORE ?

Just ask.

We'll answer.

CONTACT Darryn Knibbs President & CEO

Hoffmann Kool Insurance | Navacord darryn@hoffmannkool.com

Jones DesLauriers Insurance Management Inc. & Hoffmann Kool Insurance are Navacord Broker Partners Navacord | Head Office 145 Adelaide Street West, Suite 300 Toronto M5H 4E5