BUSINESS REVIVAL

How you can plan with confidence for the unknown Business Revival: Overview During the Second World War, General Motors planned carefully for the post war world; Alibaba used to SARs crisis to hasten their push into eCommerce. During COVID Zoom has scaled to meet global demand while Acrteryx is one of many examples of a rapid The COVID-19 pandemic has disrupted pivot – what lessons and techniques can others take from these examples? all aspects of daily life. As most of the world emerges from the first year of the pandemic with uncertainty about the future, many organizations experienced As early as 1942, GM created policy committees Rapidly finished and launched a new e-commerce site, irreversible losses, while others are scenario planning the geopolitical shape of the future; Tosaobao, a go-to-market shift to enable millions of thriving. anticipating increased globalization and a freeing of Chinese consumers to shop online during a widescale trade, they planned for international expansion and mandatory lockdown, creating the behaviors that delivered unprecedented growth. drove future success. Organizations that thrived found ways to Post WWII Post SARs Crisis be agile, and responded in innovative ways to the changed environment.

EY’s Business Revival solution offers a tailored set of methodologies designed to +728% 10 days navigate our emergence from these First time installations from March 2020 to prototype reusable medical gowns Massive scaling. "From the moment we found Zoom, Rapid reapplication of design and manufacturing turbulent times. our main focus has been to provide a cloud video capabilities to respond to the national demand for PPE, communications solution that would make customers producing 500 units of medical gowns and temporarily happy." reorienting towards new revenue streams. Eric Yuan, CEO (August 2017) COVID-19

Page 2 TABLE OF CONTENTS

1. Market context

2. Phase 1: NOW

3. Phase 2: NEXT

4. Phase 3: BEYOND

5. Organizational Transformation

6. Case studies

7. Why EY

8. Key contacts MARKET CONTEXT COVID-19 has brought devastation globally, and significant economic hardship

Significant contraction, though pickup in 2021 projected COVID-19 is significantly affecting populations in Job losses GDP impact GDP outlook their personal, professional, and social habits Sector* (’000s)1 ($) for 2021 Relative to pre- 2020 full year vs. alongside disruptions in industrial production, COVID level 2019 full year demand and supply chain. Entertainment, accommodations and food 118.7↓ $11,606m↓ 7.3%↑ services Transportation and 48.7↓ $9,892m↓ 7.6%↑ Governments around the world have imposed drastic warehousing measures limiting travel, social behavior, organization of work and more. This has changed nearly every aspect of day Retail and wholesale trade 20.1↓ $3,237m↓ 5.8%↑ to day life, and shone an immediate and bright light on the Construction 37↓ $3,084m↓ 5.1%↑ inter-dependencies among global economies. Public administration, care In Canada, the COVID-19 pandemic and the consequent 4.1↓ $7,975m↓ 2.1%↑ services, and education distancing measures and closures, have significantly impacted several sectors in Canada’s six major cities. Utilities 1.8↓ $46m↑ 4.6%↑ The table on the right provides a summary of the impacts Professional, scientific and 43.2↑ $2,984m↓ 3.7%↑ across sectors on Canada’s six major cities*. technical services * Vancouver, Edmonton, Calgary, Toronto, Ottawa, and Montréal TOTAL 187.2↓ 3,8731m↓ 4.7%↑

1 comparison of employment levels between Dec 2020 and Feb 2020

Page 5 Global uncertainty characterized much of the pandemic reaching unprecedented levels in 2020

Uncertainty in the world* Global uncertainty as measured by the World Uncertainty Index remains high. World Uncertainty Index (GDP weighted average) Although uncertainty has come down by about 60% from the peak observed in the first quarter of 2020, it remains close to 50% over its historical average during the 1996–2010 period.

Page 6 * Source: International Monetary Fund, January 2021. While provinces across Canada rolled out plans to manage reopening efforts, some of these measures have had to scale back due to a resurgence of cases across the country.

From December 2020, Ontario announced hard lockdown measures after COVID-19 cases surged. Other provinces, including BC, Alberta and Québec, re-introduced restrictions to control the virus's spread while vaccination efforts get underway

Page 7 * Source: An Update on COVID-19–Related Protocols in Ontario, Québec, and British Columbia (The National Law Review, December 2020). As the economy begins to reopen, consumer confidence shows significant signs of recovery, with high expectations of incremental consumer spending and strong business sentiment as economies recover

The Consumer Confidence Index* is reaching pre-pandemic The Business Outlook Survey indicator** continues to recover, levels at the start of 2021 with optimism and a positive outlook indicating positive business sentiment. Key drivers include on recovery after reaching its lowest point ever in April 2020. employment and investment intentions which experienced the most While the rebound stalled throughout fall 2020 amid the signs of a significant increases since the fall 2020 survey. Continuation of second wave of positive cases, the vaccines' rollout since December government relief programs, strengthening foreign demand, and has sent sentiment levels back up, improving the outlook on most growing confidence as governments distribute vaccines are additional economic indicators, such as job security and personal finances contributing factors. Business sentiment remains negative across outlook. several sectors, especially those in high-contact services.

Business Outlook Survey indicator Business sentiment continued to recover from previous weak levels

Page 8 * Source: Bloomberg (January 2021) ** Source: Bank of Canada (January 2021) While efforts towards rolling out vaccines are underway, the number of cases around the world is still trending upwards, resulting in new restrictions and lockdowns Global cases trend There are at least 75 vaccines in clinical trials in humans, with 21 The pandemic has slowed down in reaching the final stages of testing. At least 90 preclinical vaccines some areas of the world, although are under active investigation. Leading vaccines already approved in continues to expand in others. Some Canada and other countries include those developed by Pfizer- regions showing a decline in cases are BioNTech (Comirnaty or BNT162b2) and Moderna (mRNA-1273). starting to experience a rapid increase, showing signs of a second wave. Coronavirus Vaccine Tracker* Where cases are rising most quickly* PHASE 1 PHASE II PHASE III LIMITED APPROVED ABANDONED Average daily cases per 100,000 people in past week

Fewer or no 42 30 21 6 6 4 4 12 20 28 40 68 cases

Vaccines Vaccines Vaccines in Vaccines Vaccines Vaccines testing in expanded large-scale approved for approved for abandoned safety and safety trials efficacy early or full use after trials dosage tests limited use

Coronavirus Drug and Treatment Tracker*

1 2 3 12 4 3

FDA approved Widely used Promising Tentative of Not promising Pseudoscience evidence mixed or fraud evidence

*Source: The New York Times (last updated: March 11, 2021).

Sources: Local governments; The Center for Systems Science and Engineering at Johns Hopkins Page 9 University; National Health Commission of the People's Republic of China; World Health Organization. Recovery can be enhanced through strategic investments

RECOVERY LEVERS TO GROW Potential recovery trajectory* Decoding changing customer needs As the pandemic curve settles and the economy adapts to the new normal, All Sectors 120 businesses will need to reinvest in gaining insights on how consumers’ buying GDP pre-COVID (Q4 2019 = 100) patterns will change, including factors such as influencing their preferences, anticipating their needs, and changes in purchasing power. Businesses will 110 need to establish trust with customers to rebuild consumer confidence and Restart earn access to their wallets.

Transforming operations 100 Businesses will increasingly need to focus on optimizing operations and develop business agility to run lean. This change will be largely driven by

investment in technology to make processes more efficient. Other 90 GDP transformations to consider include adaptable workforce, resilient supply chains, and the development of advanced forecasting systems to match demand and supply to improve adaptability to future shocks. 80

Managing policy developments 70 With several adjustments to existing regulations around public health, businesses will need to continue being flexible in adopting new protocols without impacting productivity. These variations include health and safety 60 policies at the workplace, operating hours and capacity to enforce physical 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 distancing, and a refactored risk and compliance management system.

Rebuild Recovery Lockdown Extension Page 10 Embracing the of uncertainty of the post-pandemic future will require planning for multiple scenarios and recovery paths

Planning for different plausible futures will depend on multiple internal and external factors. Identifying the relevant factors and corresponding indicators to anticipate distinct plausible futures can enable organizations to embrace uncertainty and prepare for the business revival phase. Decision-makers will need to build resilient business models so that their businesses are adaptable to different market scenarios (e.g., a second lockdown).

NOW NEXT BEYOND Safeguard business continuity through Ignite recovery through business adaptation and Deliver long-term value creation by effective crisis response planning stronger enterprise resilience reframing and transforming business

Shock and Continued The ‘New re-start crisis and Normal’ Best slow recovery Base

Worst Economic activity Economic

Respond & continue Adapt operations Increase resilience Reframe Time

Creating CONSUMER HUMAN SOCIETAL FINANCIAL long-term Growing reputation and trust through Creating an inclusive culture of personal Building trust in capital markets and having genuine Leading long-term growth through value demand fulfilment and innovative offerings. development and purpose. social and environmental impact. margin optimization, cost optimization.

Page 11 The path to Business Revival

Organizations that want to plan with confidence for the future will need to follow three key phases. This approach will enable decision-makers to manage risk, prepare for what’s next by building resilient businesses and propel for beyond through effective business revival planning. PHASE MILESTONES OUTCOMES

PLAN 1. Internal and external fact base NOWx Develop future scenarios – Anticipating 2. Relevant indicators dashboard different futures based on relevant • Scenario planning business indicators to plan effectively 3. Plausible scenarios 4. Analysis of potential paths

ADAPT Restart the business – Dealing with 1. Prioritized recovery levers immediate and future risks that 2. Business revival strategy and NEXT • Revival mobilization emerged during the crisis and planning implementation plan for recovery by embracing the recovery 3. Resiliency assessment levers

TRANSFORM 1. Transformation strategic plan Accelerate business growth – Future • Business reinvention and BEYOND backing the aspirational state of the 2. Transformation business case transformation business and transforming it to build 3. Transformation command centre resilient and purposeful organizations

Workforce Transformation and Lifelong Learning

Page 12 PHASE 1: NOW PLAN

• Scenario planning Scenario planning: a tool for embracing uncertainty and navigating strategic risk

What is scenario planning? BENEFITS ✓ Enhanced market and organizational Scenarios are alternative descriptions of the future focused on a specific strategic issue. They learning by identifying key driving empower decision-makers by broadening and deepening thinking about future business settings forces and business levers. that affect an organization’s strategic choices. ✓ Greater insights about different The scenario planning solution is a management tool augmented with EY assets, plausible futures, including key accelerators and insights designed to deliver confidence and velocity in times of indicators to signal which future to uncertainty while improving the quality of strategic decisions. prepare for. ✓ Effective organizational It includes a proven methodology to examine and evaluate possible events that define these preparedness, flexibility and agility by futures and considers various indicators that could influence likely results or outcomes. adapting the business design and value chain to the new environment.

1 2 3 4 5 ✓ Clearer strategic option generation, Model the Analyze potential assessment and risk analysis to inform Define the scenarios and paths and Identify the key Define the critical potential responses. strategic issue or describe the develop response driving forces uncertainties focal question attributes of plans for the ✓ Improved organizational alignment, plausible futures priority scenarios commitment and performance during times of uncertainty.

Page 14 The scenario planning framework provides a methodical approach to scientifically prioritize and focus on the most impactful business scenarios

The first step in the process is to agree on the strategic issue the organization wants to address. The problem or opportunity is presented in the form of a "focal" question. The focal question Strategic enables decision-makers to plan for scenarios relevant to the issue strategic issue at hand or the strategic decision under consideration.

2. Identify driving forces 3. Define critical uncertainties 4. Model scenarios 5. Analyze potential paths

Containment of C-19 Containment of C-19 Containment of C-19 Government regulations A B Access to capital Economic growth

Economic growth Example Economic growth C sales on Severity D Time The second step is to identify the forces The third step is to identify critical The fourth step is about defining the scenario The fifth step involves defining the major driving future change. The scenarios will uncertainties. Our purpose in building framework. Critical uncertainties can be characteristics and building the story for ultimately be stories describing how different scenarios is to explore the boundaries of presented in a continuum of two axes, each scenario, analyzing potential paths and sets of interrelated forces lead to different uncertainty and to identify those forces that forming plausible futures with four different measuring the implications, potential issues future outcomes. are important and uncertain, and thus have a outcomes combining different extreme ends and developing the strategic options to wide range of future outcomes. of each variable. pursue.

Page 15 Collective intelligence: taking an insights-driven approach to plan for future scenarios

What is collective intelligence? BENEFITS ✓ Alignment regarding the Understanding the context of the organization’s interpretation of reopening internal and external environment helps decision- protocols and response plans to makers develop a more competitive and resilient deliver a consistent customer business model. experience and regain consumer confidence. Competitive intelligence is the aggregation of relevant data and insights to define the drivers and ✓ Communication platform to engage peers and industry constraints that inform the design of future scenarios Business model partners and coordinate recovery and key indicators to anticipate these futures. environment efforts. Using the “strengths of the collective” through ✓ Definition of relevant indicators accelerated virtual forums with industry peers, to monitor in anticipation of suppliers and customers, and powered with industry different plausible futures. insights from proprietary and third-party market ✓ Visibility and access to insights data, EY can help organizations develop a business to inform decision-making by model environment. anticipating potential opportunities and threats.

Page 16 Defining the key recovery indicators to anticipate plausible futures can enable organizations to proactively adapt their response plans instead of reacting

As sectors plan for recovery and organizations begin to adopt the health and Collective intelligence enables the collection and analysis of relevant data sets safety guidelines introduced by the provincial governments as part of their from primary and secondary sources to determine relevant recovery operations, the lack of consistency in evidencing how they follow these indicators adopted by government agencies and large organizations to protocols may deter consumers from engaging with brands. Also, with the anticipate plausible scenarios and future trends. These insights include lessons COVID-19 pandemic accelerating our information lifecycle, organizations are learned from other regions that are further along in the recovery process, such overwhelmed with data, which is increasing the risk that outdated or as Asia and Europe, to add context to the current economic and heath climate. incorrect data results in poor decision-making. These market and sector insights can accelerate the revival phase by gaining alignment and applying the lessons learned from peers.

Illustrative COVID-19 recovery indicators

Health measures Government regulations Macroeconomic data Sector data Business trends • Daily increase in new cases • Public health directives • GDP growth rate • Consumer spending • Consumer sentiment and preferences • Population tested • Lockdown status and • Unemployment rate • Total manufacturing and retail estimated end date revenues • Online consumer behavior • Capacity of ICUs and health care • Productivity (avg. weekly system • Relief packages earnings and hours worked) • CPI, IPPI • Commercial traffic • Medical supply and demand ratios • Reopening phases and • Insurance claims • Commuter traffic protocols

Source: EY Research

Page 17 PHASE 2: NEXT ADAPT

• Revival mobilization Revival mobilization: an actionable set of solutions to activate relevant business levers and build resilience while restarting operations under the new normal

BENEFITS What is revival mobilization? ✓ Data-driven by leveraging collective intelligence and Revival mobilization is an approach designed to help decision-makers understand the market scenario analysis. environment, determine the growth levers needed to accelerate recovery and activate a tactical action plan to mobilize the workforce as the business restarts its operations and prepares for the ✓ Results-oriented by focusing on recovery phase. the priority business levers required to restart operations. The methodology includes facilitated sessions to diagnose and prioritize business challenges, ✓ Action-driven and agile with identify and measure associated risks, define the response tactics in an action plan and standing tactical initiatives and testing for up the governance and delivery model to sustain and monitor performance. readiness before restarting to prepare for business recovery. Activities undertaken ✓ Structured approach to creating • Current state diagnosis long-term value by building • Policy impact assessment resilience and flexible business Business models that are effective. Revival • Prioritization of business challenges and opportunities ✓ Improved organizational Plan • Identification of quick wins and “back to business” preparatory tasks alignment, commitment and performance during times of • Executable action plan uncertainty. • Stand-up of an agile operating and governance model

Page 19 Identifying the key business challenges as organizations plan for revival will help focus on the right recovery levers

Focus on the critical business challenges Prioritize relevant recovery levers

Decoding changing consumer needs How will you ensure What will be your business continued demand and that Getting Reimagining strategy to not only restart your existing customer base customers business but navigate and grow resumes consuming your model through potential future services? back disruptions? Transforming business operations

How will you reinvent your Key value chain? How will the Who will be your new Redefining the Value chain role of your partners and Managing risk due to competitors/peers? business competition reinvention collaborators evolve in the policy changes challenges post-pandemic world?

How should you evolve to How will you build the have continued access to Returning to Building organizational resilience to motivated workforce with enterprise disruption brought in by new the evolving skill work policies, regulations and requirements? resilience guidelines for operations?

Page 20 A comprehensive fact base including industry The Business Revival framework analysis, market trends and forecasts, consumer insights, competitive and peer knowledge sharing. Collective intelligence It includes the indicators selected to anticipate Governance plausible scenarios

Role of the BRSC A detailed analysis of impacts from internal and Controls the source of truth Business Scenario planning external factors on key business drivers to model based on the fact base different futures. These plausible scenarios inform developed, including key Revival indicators and scenario Steering potential business decisions included in the prediction models to inform business revival plan critical business decisions. Committee (BRSC) Business Role of the BRTF Composed of a “dream revival plan team” of leaders from across business functions, the BRTF identifies priority Recovery levers opportunities across functions that should be added to the critical path for recovery. Decoding changing Transforming Managing risk due to These opportunities are consumer needs business operations policy changes listed as actions that are included in a rapid execution plan. The requirements to Business • What are the new factors driving • How will business operations need to • What are the relevant policies and mobilize the workforce, Revival Task customer needs and preferences? change to optimize cost in the post- regulations affecting the business? including protocols for • How will changing customer preferences pandemic environment? • How can organizations be made health and safety, are Force defined based on the impact the demand for products and • How will the workforce evolve? adaptive to policy and regulation activities. (BRTF) services? • How can the organization develop a changes? • How should organizations reimagine more resilient value chain? • What new risks threaten business As recovery activities begin, products and services as well as the • How can technology enable growth, and how can organizations the BRTF maintains a log of risks and performance optimal way to deliver them? organizations to become efficient? manage such risks? indicators that they communicate regularly to the BRSC to inform decisions and further actions.

Prioritized opportunities Rapid execution plan Workforce mobilization

Page 21 Page 21 PHASE 3: BEYOND (TRANSFORM)

• Business reinvention activation Business reinvention activation: an end-to-end business transformation program that prepares organizations for the next wave of growth

BENEFITS What is business reinvention activation? ✓ Sustainable creation of long-term value by reimagining the value drivers Business reinvention activation is the initiation of a transformative journey to build long-term that create a dynamic competitive resilience and innovative business models to embrace market changes. Through business advantage. reinvention activation, organizations can manage risk while preparing for an uncertain future. Embarking on this journey starts with the recognition that the old drivers of success no longer ✓ Enterprise-wide focused rather than apply. Instead, reinventing the core is how organizations will create and sustain value. siloed. ✓ Adoption of a transformative Historical value drivers Transformative value drivers mindset and leadership to activate employees and ecosystems of partners that become proponents of Humans the change agenda. Scope @center ✓ Embed innovation and business Core of value agility as part of the business creation foundations. Technology Innovation Scale Efficiency @speed @scale ✓ Future-oriented while grounded in business fundamentals to prepare the business for the next wave of growth. Sustainable competitive advantage Dynamic competitive advantage

Page 23 To prepare for the next wave of growth, decision-makers will need to adopt a transformative mindset and be prepared to change the way they make decisions

Beyond COVID-19, every company The next wave of OECD estimating growth Canada’s GDP to will need to reposition itself for grow 4-5% over the growth and reinvention on the new next 3 years* S-curve. The path to business While numerous companies are reinvention assuming a transformation posture, the vast majority were not ready for the magnitude of what hit them Most with COVID-19. organizations are here The transformation was an agenda item equal to driving predictability in earnings growth; that has all changed. COVID-19 accelerated the The post-war S- shift of ~8b people onto the new curve COVID-19 curve and a multigenerational shift to new ways of living and working.

WWII Global Tech efficiency boom Pandemic Great migration New industrialization and disruptors arrive reset to new s-curve renaissance

Page 24 * OECD - Economic Survey of Canada, March 2021 Business reinvention activation involves cross-functional collaboration enhanced by engagement with ecosystems of partners and investments in an innovation portfolio with 3 phases

All functions must optimize as the core of value creation engine changes while leveraging new ways of collaborating with different ecosystems

MARKETING, SALES AND SERVICE TALENT + + • Generating deep customer insights • Building workforce capabilities with new • Delivering personalization at scale skillsets/mindsets through new channels • Creating human-centered work environments and • Shifting to brand engagement cultures • Becoming increasingly data-driven Humans • Developing adaptive capabilities to change, learn @center and team

OPERATIONS IT Core + of value + • Increasing speed of • Transitioning from back-office to creation service delivery front-office function • Balancing efficiency with flexibility to deliver new • Accelerating use of new technologies Technology Innovation @speed @scale business models • Maintaining cybersecurity standards in an open • Leveraging new service and asset-light models environment • Delivering real-time analytics and intelligent automation

FINANCE RISK + + • Allocating limited capital, reducing costs and growing the • Reshaping regulatory and legal frameworks business • Introducing new risks through innovation • Aligning with shareholders on a near-term/long-term investment • Enabling speed while protecting the core balance • Developing flexibility to quickly launch new business models

Page 25 Balancing transformation investments across innovation horizons

Embracing change will require balancing transformation investments across three innovation horizons

Transformation investments portfolio Innovation horizons

Now 70%: Protecting the value of core markets and operations (e.g., ERP alignment, enterprise cost reduction). Grow New Reinvent markets Next 20%: Taking existing capabilities into new markets (e.g., global expansion); optimizing performance in existing markets with new technology (e.g., RPA).

Current Optimize Beyond 10%: markets Protect Reinventing the industry by creating new markets and new capabilities.

Current capabilities New capabilities

Page 26 ORGANIZATIONAL TRANSFORMATION As signs of the pandemic begin to ease and organizations plan to return their people to workplaces, the question arises — what will the future workforce look like?

While the pandemic has impacted humans consistently in key markets, there have been notable differences between employers and employees, and generations in the workforce. As organizations look to reimagine future work experience, they will need to prioritize the changes they envisage by putting employees at the center. Employees and employers are aligned in some areas of the future work experience and have disconnects in other areas. Both are seeking a more digital, safe and flexible model with a mix of “touch” and “tech.”

Employers surveyed 84% of employees are looking for better 79% of employers are looking to believe their business digital tools extensively/moderately change digital is in “extensive workforce tools 60% distress” because of Top 5 concern of all countries and COVID-19 generations is physical health 86% of employers plan to make extensive/moderate changes to workplace #1 ranked L&D focus is employees want safety employers to enhance online/virtual Areas alignment Areas of learning approaches 64% of employers are looking to enhance online/virtual learning approaches Employees agree that the impact of COVID-19 has 54% been “extensive” 38% of employees want updated 77% of employers believe there will be pay/bonus plans for enhanced work extensive/moderate change to efforts workforce cost Employees think their 76% employees would like to continue organization is not yet some form of business travel 74% of employers would make completely ready to extensive or moderate change to adapt to changing business travel, with reductions across 59% customer behavior disconnect of Areas most types of travel and demand post- COVID-19 90% of employers feel they prioritize employees for Page 28 long-term value creation while making decisions, Source: EY Physical return and work reimagined study, 2020. compared to only 69% employees Our research highlights six major “resets” in key areas of the work experience

The global pandemic has reset the workforce and the workplace experience, shifting from “return to office” to “reimagining work.” Companies are reimagining work and establishing a new hybrid approach to working that supports their people today and into the future.

1. Real estate footprint 2. Business travel and mobility Determine need of real estate footprint for 74% Reevaluate mobility strategies and each market and use of space for meetings, assess business travel 74% of employers are planning of employers expect to make interaction, collaboration, ideation and work requirements for client meetings, moderate to extensive either moderate or extensive with customers. Validate location needs, internal trainings, external events changes in real estate changes to business travel and design and expected usage of on-site space. and global assignments. mobility.

3. Learning and culture 6. Flexibility and wellbeing policies How can we set a new hybrid work Develop a learning platform model with greater degrees 75% of remote and flexible work to enhance use of remote 78% empowered by technology? technology and of employers are looking of employers are at moderate to extensive How do we improve the effectiveness of remote planning moderate to changes in learning and employee experience, leaders and managers, and extensive changes to accelerating organizational ability to support customers. skills. remote work strategies agility and reducing costs? with associated policy changes.

5. Remote work enablement and tech 4. Workforce planning and analytics Establish needed home technology, including internet standards, laptops, 79% Establish ways to measure remote headsets and associated software for of employers are looking for productivity, including identifying 49% of employers are looking to change how planning, collaboration, file sharing and better digital tools to enable a processes/tools to ensure they measure productivity at work. video/audio conference and training. mix of onsite and remote engagement and wellbeing. work.

Page 29 Source: EY Physical return and work reimagined study, 2020. Work reimagined: a two-gear approach to transform your workforce to prepare your organization for the next wave of growth

Readiness Physical return Medical surveillance: Workplace Health and safety Phased physical assessment journey identify, trace and health and data and technology return approach to The future of work arrived on the respond safety capabilities build trust back of the COVID-19 pandemic, Gear 1 catapulting work-from-home and Physical return technology journeys years into the (transition) future. Strategy to Wellbeing Physical Data and Transition and transition and Experience and transformation transform capabilities vs. digital technology The disruption dispelled myths Gear 2 roadmap about productivity and collaboration Work centered around being in a physical reimagined office and shined a light on how (transform) quickly we could change when we Reimagination Experience Training, Real estate Data strategy, digital, Realization of design session reimagined upskilling and optimization IT infrastructure and business needed to. journey remote teaming analytics transformation

The opportunity and challenge now is to rethink the workplace and its Navigating physical use by your workforce, and how to return and work enable the new ways of working reimagined requires six key areas of reset Learning and Flexibility and Real estate Remote work with technology that achieves both culture wellbeing policies footprint enablement, tech cost savings and productivity gains. Workforce planning and analytics

Business travel and mobility

Page 30 Organizational transformation is about putting humans at the center, aligning culture and leadership to their purpose, developing skillsets and mindsets and building adaptability through continuous learning

As we move from coping with the pandemic to more thoughtfully reimagining work, we need to consider employees’ changing needs and leading practices to enhance the work experience. This may mean challenging assumptions, such as the office space’s role, and instead consider working productively and developing an engaged workforce anywhere. We have a unique opportunity to address these challenges by thinking about organizational transformation more holistically and to consider how we unleash our people’s potential by placing them at the center.

Humans@Center imperatives Unleash human potential to create sustainable value Organizational transformation focus areas

Futureproof your workforce: What if you could identify the Futureproofing your workforce capabilities you have, the talent you’ll need and how to get there efficiently? Enabling the mobility and liquidity of talent Purposefully build your culture and leadership to sustain new ways of working: What if you could drive behavior Purposefully building your culture and change at scale and at pace to better create and protect leadership to sustain new ways of value through your people? working Manage continuous change and learning to enable the Enabling digital HR to deliver the employee experience: How do you help your people employee experience and unleash succeed in ways that are personalized to them? human potential

Enable digital HR to deliver the employee experience and Managing continuous change and unleash human potential: What if you could transition learning to enable the employee your HR team from an HR function to a human value experience activator?

Page 31 CASE STUDIES Example Case Studies – Coordinating the COVID-19 response and supporting with recovery planning

Municipal Impacts and Fiscal Recovery Delivering government services with a remote/virtual workforce Facilitating the development of an efficient approach to socio- Immediate response to help manage the spread of COVID-19 economic recovery

The immediate need The immediate need • COVID-19 has had a significant impact on Canada's big six cities, and their successful • COVID-19 had an immediate impact on EY government clients, with a need to recovery is key to the national economic recovery. maintain operations and health of staff & citizens. • Cities lack the fiscal and policy tools that other orders of government have, making it • Progressed to virtual and remote ways of working across physical offices and increasingly difficult for them to sustain their financial positions. service delivery centres or locations. • Many agencies did not have the infrastructure or capacity to address the issue Key risks & considerations effectively. • Capacity of cities is being strained due to the need to respond to a myriad of citizen • While not a new concept, the provision of adequate remote access with little time and stakeholder needs, from housing homeless to police enforcement of provincial to prepare was required for continuity of critical services. sanctions, addressing increased mental health needs, and keeping citizens safe and services available. Key risks & considerations • Cities are population hubs where the virus can spread the fastest increasing pressure • Failure of service delivery due to breakdowns in processes and access to to address public health needs. information & systems. • With the right measures in place, further lockdowns are minimized, saving • The shift from “virtual” ways of working may lead to a demotivated workforce, businesses and protecting citizens' health. impacting productivity and decision making. • Network performance changed, affecting the ability to execute processes & deliver The solution customer outcomes. • Economic analysis of the impact of COVID-19 on each City, with a specific focus on • Data privacy and security control not appropriately in place, increasing the risk of those sectors that drive the local economy, and local service delivery. security breaches. • Analysis of the effects of policy decisions on the liquidity and solvency of the City • Insufficient and underutilized remote working devices and tools, limiting the ability across various scenarios of virus spread. to perform critical day to day operations and deliver services. • Materials to support advocacy with other orders of government grounded in economic and fiscal analysis. The solution • A framework that helps clients provide a focused and rapid remote working access solution to help ensure scalability and reliability of ongoing service Page 33 delivery. Example Case Studies – Coordinating the COVID-19 response and supporting with recovery planning

Optimizing the recovery levers for a large Canadian retailer Rapid Profit Transformation for a Global Miner Assessing the Finance function to identify high impact opportunities Identifying savings opportunities using a data-driven, evidenced to improve functional cost performance based approach

The immediate need The immediate need • COVID-19 impacted the operations of a large Canadian retailer, resulting in a decline • The client realized moderate, though lower than anticipated, cost savings from its in revenues. As a result, the organization was seeking ways to reduce costs and existing HSE (Health, Safety, Environment) operating model. realize efficiencies. • A review of the FY20 cost-savings pipeline indicated a ~$27m gap to achieve exit • EY was engaged to conduct an assessment of the Finance function against run-rate. comparable organizations and leading practices and identify high impact opportunities to improve functional cost performance. Key risks & considerations • Leadership had limited visibility of associated cost profiles and drivers (e.g., Key risks & considerations compressible versus not compressible costs and associated risk profiles). • Numerous similarities across Finance activities, creating significant organizational, • The cost savings target needs to be identified in a short timeline and involved a geographic consolidation and streamlining opportunities. matrix-like stakeholder structure with competing priorities. • Finance business support significantly underperforms the peer group benchmark • Cost savings opportunities need to be balanced against asset risk profiles to avoid median, and it is considerably top-heavy. increasing risk exposures at specific locations. • Service management gaps and fragmented processes create challenges for the • The 'new normal' needed to consider uncertainties posed by COVID-19. Shared Service organization (e.g., lack of vendor or product master data management, complex chart of accounts, etc.) The solution • Manual and repetitive tasks opportunities increase the operational costs, creating • A top-bottom financial and data analysis was conducted across several product opportunities to rationalize and automate processes. groups spanning multiple geographies. • A One-EY approach was employed to ensure financial opportunities were balanced The solution with HSE considerations. • Benchmarking assessment to evaluate the costs and allocation of resources for the • Developed a hypothesis-driven and evidence-based approach to obtain stakeholder Finance function. validation and buy-in. • Identification and prioritization of opportunities to achieve 25% cost savings and • Data visualization tools were leveraged to engage stakeholders delivering relevant significant FTE reduction and quality service quality improvement within 24 months. and actionable insights. • EY conducted Wavespace design sessions, tapping the OneEY network, to Page 34 obtain rapid consensus and alignment. WHY EY?

• .NEXT approach • Assets, accelerators and insights EY’s .NEXT framework is an accelerator that consists of tools, .NEXT involves a highly methods, and other assets to help Strategy Strategy + Ops immersive and methodical EY teams and clients address critical teaming effort where we work as

business challenges through quick and NEXT Accounting . Insights collaborative co-creating sessions. “two in a box,” emphasizing Partnerships knowledge transfer as we co- Developing your revival plan following a .NEXT create your Business Revival plan approach enables you to turn ambitions into results by:

• Setting clear direction for your business driven by designing people-centric approaches

• Enabling business innovation by collaborating with all your functional partners across the enterprise

• Delivering new products and services enabled by data

• Streamlining your operations at every level, breaking down silos

• Adapting to rapidly changing customer and employee needs

Page 36 Assets, accelerators, and insights: EY offers a range of leading tools to enable organizations to plan effectively for business revival

Delivering on changing Transforming Business Operations Managing risk due to policy changes consumer needs

EY Future Consumer Index: Rapid Profit Transformation COVID-19 Stimulus Response Tool Identify consumers behaviors in Unlock value, simplify the business, Access all the COVID-19 relief the Now and the Next and create a more flexible and cost- provisions globally effective organization

TrueChoice™ EY Benchmarking Tool Enterprise Resilience Tool Real-time Preference Analytics: Identify optimization opportunities Assess your business readiness to

Featured Tools Featured Act on patented 1:1 preference across business processes plan with confidence for recovery insights from employees & customers – in real-time Virtual wavespace Accelerate the exploration of new ideas, decision-making and alignment through engagement with colleagues and EY subject matter resources

Mergers, acquisitions and Market divestitures Major dynamics initiatives

Planning and Communication resource and investor allocation EY Embryonic: Business Model Simulator relations Risk Radar

Research Strategic Governance and Tax development

Capital Physical structure assets Track flow of investments in an Understand how internal and Risk Universe Hazards Rapidly identify and manage risk Operations Market Financial Information Technology (IT) Liquidity Compliance and credit People and human resources Accounting and reporting Supply area across the globe external factors influence business Revenue Sales and leveraging our sector-specific risk chain cycle marketing Code of Regulatory conduct

models and decisions Legal management frameworks Other Tools Other

Page 37 Assets, accelerators, and insights: EY offers a range of leading tools to enable organizations to plan effectively for business revival

Work Reimagined

FoW Framework - a People Agenda – is a Change Insights - is the Mobility Pathway - a technology-enabled, framework that helps cloud-based interactive single technology data-driven framework talent stakeholders to platform that underpins accessible by both client that looks at an identify talent-related EY’s Change Experience HR and assignees, organization’s operating issues. method. providing a consistent, model and operating seamless, end-to-end environment to align experience across their practices for jurisdictions.

success. Other Tools Other

Culture Fitness Leadership & Teaming Strategic Workforce Org and Talent Hub - is Diagnostic - is a digital Assessment - applies Planning - is part of our a proprietary survey that can be our transformative Talent toolkit and is technology platform deployed on any leadership framework, designed to enable that facilitates and platform. It helps via 360 feedback, to macro modelling and accelerates a client’s identify the current determine where each strategic workforce organization and talent culture health and leader stands against 13 planning while assessing planning from design to define how to shift it key capabilities. capacity and capability execution. depending on results. risks.

Page 38 EY Future Consumer Index: identify consumer behaviors in the Now and the Next Decoding changing customer needs

Four key segments have emerged from the crisis which are are The EY Future Consumer Index tracks changing expected to evolve into five in the near term consumer sentiment and behaviors across key global markets and identifies the new customer Key segments NOW Key segments NEXT segments that are emerging. It offers longitudinal indicators and unique perspective on which Back with a bang (16%) Hibernate and spend (24%) Spending much more in all changes are temporary reactions to the COVID-19 Most concerned about the pandemic categories crisis, which point to more fundamental shifts, and what the consumer post-COVID-19 might be like. Cautiously extravagant (22%) Stay calm, carry on (18%) Wiling to pay a premium for certain products Not changing their spending The Index is based on consumer quantitative habits surveys conducted exclusively for EY every three Get to normal (20%) weeks. Jurisdictions included so far: Australia, Spending largely unchanged Brazil, Canada, China, France, Germany, India, Save and stockpile (35%) Japan, New Zealand, US and UK. Not so concerned about the pandemic Stay frugal (27%) Spending slightly less

Cut deep (23%) Hardest hit by the pandemic Keep cutting (14%) Making deep spending cuts.

The new thought leadership "How COVID-19 could change consumer behavior" on ey.com explores insight and implications from the first data set available on the

Source: EY Future Consumer Index, May 2020. EY Future Consumer Index dashboard. Page 39 TrueChoice Solution*: Act on real-time preference insights from employees & customers Decoding changing customer needs

• Easy-to-use, engaging fully personalized user interface Better user • Fast, only takes 4-8 minutes; works on all devices experience • Track-record of high response & completion rates • Personalized, relevant content yields higher quality data, requires smaller sample sizes • Best practice in B2C, SMB and B2B TrueChoice measures in real- time ‘how’ individuals make TrueChoice interacts with individual customers and decisions, their buyer values, • Actionable insights for product, service and measures the perceived value of every aspect of an willingness-to-pay and experience optimization offer and compares it to associated costs. Thereby purchase likelihood. • Identify client opportunities and expectation gaps enabling clients to understand how to decrease Rich 1:1 • Robust preference profiles can be used in CRM The technology is powered by cost-to-serve while optimizing experience and sales insights drive • Scalable lead generation, higher conversion rates performance. 100s of patented algorithms ROI and revenue (in 5 granted patents) and • Enables continuous measurement and dynamic delivered as Software-as-a- assessment Illustrative Example Willingness-to- Service. pay > cost TrueChoice is fully customized Positive • 100s of actionable metrics including preferences, return based on client requirements. perceived value, expectations, satisfaction, etc. Willingness-to- The technology is recognized Better • Not just PPT, real-time analytics dashboard for true pay < cost as ‘best practice’ in all major technology, capability transfer industries and is used globally. better process • Cost effective - SaaS fee only for ongoing use Negative • Customer insights plus lead generation --- return integrated in sales and communications processes Offer components

Page 40 TrueChoice enables a personalized decision support experience – powered by real-time preference analytics that generate actional insights with a measurable ROI*

Generate actionable insights and real-time feedback through a web-based interaction with customers and employees. The patented analytics engine enables clients to conduct a wealth of analyses to inform decisions and predict their impact.

Preference analysis Perceived value analysis Value gap analysis Sales optimization Measurable ROI

“A fast and easy to use, ► Digital sales funnel and lead generation ✓ Up 3x increase in lead generation game-style interface that ► Preference-based personalization, offers and advice ✓ 25-60% higher conversion rates dynamically personalizes ► Scalable decision support, easy to update and maintain ✓ 15-27% increase in revenue per customer its content, messaging and ► Solution selling (up-, cross-), self-service enablement ✓ Up to 2.5x higher cross-selling ratio value proposition”

Needs-based segmentations Expectation gap analysis Heterogeneity analysis - TrueChoice customer Customer insights Measurable ROI

► Preference-analytics as a service ✓ 2-3x cost savings over conventional research / ► Buyer value analysis and account optimization data purchase ► Cost savings, continuous insights, capability transfer ✓ 89-94% completion rates without incentive ► Enhances 360° view of the customer with preference ✓ Increased targeting precision dimension ✓ Increase revenue per customer Patented Data collection performance Satisfaction analysis Interactive scenario modeling Analytics Value chain alignment Measurable ROI engine ✓ Up to 27% savings in cost to serve with higher ► Service-level alignment and differentiated service levels sales/retention ► Predictive zero-based budgeting ✓ 5-30% increase in customer profitability ► Downstream optimization, voice of channel, B2B2C ✓ 30-40% increase in channel participation ► Actionable CIM – dynamic, integrated feedback ✓ Up to 30% higher sales productivity

Competitive analysis Attitudinal analysis Size-of-the-prize prediction Talent optimization Measurable ROI

► Predictive talent management, ✓ Improved recruiting and placement success ► Cost and performance optimization ✓ $1k-$5k Cost take out p.p. while maintaining ► Sales performance optimization /incentives, personalized performance rewards ✓ Improved employee experience, satisfaction ► Targeted talent acquisition and retention Accessible through all ✓ 15-37% Higher retention ► Diversity improvement digital channels

*Source: TrueChoice, 2020 Page 41 Rapid Profit Transformation: determine current and future profit models Transforming business operations

Rapid Profit Transformation (RPT) helps our clients unlock value, simplify the business, and BENEFITS create a more flexible and cost-effective organization for greater competitive agility. ✓ Evaluates future-back trends to The pandemic has accelerated the need for executive teams and boards to address the duality of growth dilemma: determine current and future profit sustaining and protecting today’s financial performance and navigate today’s turbulent market environment models while simultaneously innovating and growing the business for tomorrow. ✓ Takes an investor approach to quickly As powerful forces reshape business, and market volatility leads to greater uncertainty about the future, and pragmatically identify and organizations in every industry are grappling with these seemingly competing demands. prioritize sources of value In the face of complex challenges, the most successful businesses choose to not only streamline their cost Identifies and streamlines high-value structure and protect their current business, but also prepare for an uncertain, potentially disruptive future. ✓ customer experiences for greater Our RPT solution identifies, prioritizes and implements initiatives addressing a wide range of revenue, costs, efficiencies and effectiveness liquidity and capital opportunities. RPT can enable organizations identify and optimize the priority recovery levers. ✓ Addresses governance and incentives to change the way businesses approach their spend

✓ Delivers sustainable cost and revenue Sustain Duality of Innovate improvements and growth and protect dilemma grow

Page 42 Rapid profit transformation enables organizations to define and optimize the recovery levers while generating sustainable value realization

Rapid Profit Transformation (RPT) Framework

Future-back profit models

Revenue and margin SG&A and Operations CapEx and Cash

Augment revenue streams Enhance operating model Optimize capital portfolio and real estate • New business models • Market and channel • Organization business • Spans and layers • Decision rules footprints• Decision support tools & data • Product and service portfolio performance structure and footprint • Job levels (including • Process and governance performance • Marketing performance and • Capabilities compensation) • Agile innovation spend optimization • Sales productivity Reduce margin and value leakage Increase productivity Realize tax efficiencies • Streamlined product portfolio • Channel mix and profitability • Manage demand drivers • Technology and data • Tax credits, grants and • Mobility • Pricing and revenue • Trade terms and incentives • Process efficiency, architecture incentives • Transfer pricing management automation and controls • Incentives • Value Added Tax • Customer segmentation • Workforce management

Optimize customer experiences Optimize external spend Optimize working capital • Key customer centric • Digital strategies and • Vendor spend and drivers • Cost category management • Trade receivables and • Supplier and customer pre- experiences enablement • Vendor T’s & C’s and • Policies and controls payables payments compliance • Inventory • Trade payables

Sustainable value realization

Page 43 Benchmarking solution: identify optimization opportunities across business processes Transforming business operations

Benchmarking enables informing decisions to optimize business operations by comparing your EY Benchmarking helps enable fact- business processes and performance metrics against industry peers and standards across based decision-making, leveraged in measure types, such as cost-effectiveness, staff productivity, process efficiency and cycle time. key strategic areas, such as: What are the unique advantages of EY’s approach? ✓ Understanding specific performance gaps and improvement opportunities

✓ Comparing key process performance measures against Standard framework Structured methodology relevant peer groups Standardized process frameworks provide clarity and Repeatable methodology to identify improvement alignment, normalizing data for comparison and opportunities based on extensive client experience connection to leading practices. from more than 1,800 benchmarking projects. ✓ Implementing continuous improvement programs and monitoring the transformation journey

Proprietary data and sector advisors Global, collaborative network Integration with multiple data sources provide EY’s collaborative environment and global cross- relevant peer comparisons based on sector, service line network supports the development of geography and revenue, coupled with sector and customized solutions to meet your specific needs, functional insights. situation and culture. Page 44 EY Benchmarking provides access to a proven methodology and data from multiple sources that can be filtered for relevant peer comparisons

Approach Diverse data sources Areas/countries Revenue ranges 1. Initiate APQC Covers 2,000+ process metrics across functions: • Review initial requested data and benchmarks Supply Chain, Customer Service, Finance, HR, IT, 37% <$100m 10% and Sales & Marketing EMEIA • Project scoping $100m -… 20% Computer Economics 14% • Process mapping to taxonomy for "apples to apples comparison" Focuses on IT spending and staffing 49% Asia- Pacific $500m - $1b 17% 83% 7% benchmarks Americas 6% CapIQ $1b - $5b 31% High-quality financial intelligence and publicly 2. Collect 2% 2% available financials $5b - $10b 9% • Collect data with customized data collection templates Tricumen 750,000+ $10b - $15b 4% Core set of financial metrics across most of our global Data points • Perform logical validation of collected data Wealth and Asset Management priority clients $15b - $20b 2% 29,000+ >$20b *Data is refreshed monthly with 3rd party providers and global submissions from EY engagements 7% Business entities 3. Analyse Sector-specific EY Proprietary – Retail specific operational metrics and others • Perform statistical validation and gap analysis Functions and metrics Process measures Multiple sectors • Assess qualitative and quantitative information to develop key findings

Finance • Cost effectiveness • Aerospace and • Diversified • Mining and metals • Real estate defense industrial products 4. Deliver HR • Oil and gas • Retail and • Staff productivity • Automotive • Government and wholesale • Power and utilities public sector IT • Process efficiency • Banking & capital • Technology • Discuss findings and review improvement opportunities to be • Professional firms markets • Insurance Supply Chain and services • Telecommunication summarized in a report • Cycle time • Chemicals • Life sciences s Customer… • Provider care • Consumer products • Media and • Transportation Sales &… entertainment • And more 5. Sustain 0 200 400 600 • Identify opportunities for continuous improvement and realizing Standardized process frameworks provide multi-level detail around processes and activities benefits

Operating processes Management and support processes

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Develop vision Develop and Market and sell Deliver products Manage Develop and Manage Manage financial Acquire, Manage Manage external Develop and and strategy manage products products and and services customer service manage human information resources construct and enterprise risk, relationships manage business and services services capital technology manage assets compliance and capabilities resiliency Page 45 EY Benchmarking Predictive Engine adopts predictive analytics capabilities to optimize the cost and FTE levels needed to meet adjusted revenue targets due to the pandemic

Country specific Company specific Macroeconomic Data Process Benchmarking Data Client Data

• GDP growth (annual %) • Finance function cost % of • Revenue forecasts EY proprietary External Client specific revenue* database database • Gross savings (% of GDP) • Process performance • Finance function FTEs per $1B indicators • Current account balance (% of revenue* GDP) • (Sector specific Past Time Series • Trade (% of GDP) benchmarks) Benchmarking data Revised Revenue • Real interest rate (%) Past Time Series forecast • Inflation, consumer prices Macroeconomic data (post COVID) (annual %) EY Benchmarking Predictive Engine EY Benchmarking Predictive Engine Revised Macroeconomic Process KPI values data (post COVID) Predictive Model (Output)

Client X’s Current Metric Recommended Metric Targets Cost and FTE suggested targets for various business processes Values (post COVID)

Business Function Coverage Finance Function Cost FINANCE HR (as a % of revenue) 142% 95%

► Finance function cost % of revenue ► HR function cost % of revenue Finance Function FTEs 114 81 ► Finance function FTEs per $1,000 revenue ► HR function FTEs per $1,000 revenue (per $1B of revenue) Finance Function Overall Cost $25.6M $17.1M SUPPLY CHAIN IT

► Supply chain function cost % of revenue ► IT function cost % of revenue Finance Function Overall FTEs 205 146

► Supply chain function FTEs per $1,000 ► IT function FTEs per $1,000 revenue revenue * For Illustration Only Page 46 COVID-19 Stimulus Response Tool: access all the COVID-19 relief provisions globally Managing risk due to policy changes

EY’s customizable tool helps you review and evaluate measures, assign responsibilities and track execution. The dashboard provides an overview of the measures introduced around the Top three areas of focus world covering the following information by jurisdiction: ✓ Canada Emergency Wage Subsidy (CEWS): • Eligibility (businesses, individuals) Assisting organizations in evaluating if they qualify for the 75% wage subsidy (with a 100% • Type of relief available (tax credits, tax deferment, etc.) add-on refund of certain payroll contributions to eligible employers), assessing the potential • Tax type (personal, corporate, indirect, etc.) benefit, and assisting organizations in applying for the CEWS. • Status of applying for the relief ✓ Canada Emergency Business Account (CEBA): • Contacts/department dealing with relief in your Assisting businesses via CEWS Calculator Tool organization and EY teams in evaluating if they qualify for the interest- The dashboard also contains detailed information on the free loan for small businesses, assessing the measures implemented by governments on a per-jurisdiction potential benefit, and assisting organizations in basis. applying for the program.

Executive dashboard ✓ Business Credit Availability Program (BCAP): Assisting organizations in evaluating if they • View by estimated value of reliefs or number of incentives qualify for BCAP, assessing the potential theoretically available. benefit, and assisting organizations in applying for the program. • Tracks progress and responsibility in your organization for applying for relief.

Page 47 Gather the relevant insights required to assess the government responses to COVID-19 across different jurisdictions and track them in a single platform

Approach

• Cancellation of events and gatherings 1. Scan • Closure of schools and workplaces Public health • Access to the EY Global COVID-19 Stimulus Response Tool • Restriction of internal and international movement measures to • Additional inputs from jurisdiction subject matter professionals in your • Public information campaigns flatten the curve key markets • Emergency investment in the health system and vaccines • Information flow coordinated by a single in-jurisdiction COVID-19 lead focused on your organization

Monetary policy • Interest rate cuts 2. Local evaluation to address • Quantitative easing • Lending restrictions eased • Pre-qualified weekly list of possible opportunities for assessment provided by immediate • Mortgage relief the in-jurisdiction COVID-19 team. Supported by a weekly call to discuss: solvency threats • Eligibility criteria • Downside risks • Estimated value • Interaction with transfer • Payroll tax/social security waiver or deferral • Cost to secure pricing • Indirect tax waiver or deferral • Other consequences Fiscal measures • Corporate income tax deferral to maintain and • More generous loss offset rules stimulate the • Waiver or deferral of fixed asset taxes (e.g., business 3. Global evaluation economy property rates) • Priority sector-focused reliefs and concessions • Weekly updates on opportunities across all your key markets. • Protective measures – e.g., raising withholding taxes Supported by a weekly call to discuss: • Technology to support greater • Interactions with/changes to speed/cost efficiency transfer pricing policies Observations • Global approach to criteria • Broadening the geographic • Complexity: High degree of variability in jurisdiction-specific actions across the globe being applied locally scope of key opportunities • Speed of change: Real-time policy making with key details (e.g., eligibility criteria) emerging • Prioritization after the fact and/or changing with time • Opinion: Laws with limited anti-abuse measures and/or potential for interaction with business 4. Act and support model and/or transfer pricing policies • In-jurisdiction execution support from relevant local subject matter professionals Page 48 COVID-19 Enterprise Resiliency Framework: assess your business readiness to plan with confidence for recovery by exploring nine key domains

• Promoting employee safety and wellbeing • Supply chain resilience • Public health information • Third-party service Supply chain Enterprise resiliency Employee (CDC, WHO) providers and global health and • Support for impacted • Sustainability trade As governments cautiously ease lockdown wellbeing employees • Business interruption measures and prepare to reopen the economy, • Employee • Supply chain claims Insurance there are numerous factors that decision-makers Talent and relations • Legal and contract and legal • Talent initiatives must consider across different business domains. disputes workforce disputes • Business traveler Our framework identifies nine areas businesses • Event cancellation can address to build a structured and comprehensive approach to crisis management • Safety-based • Infrastructure Technology Resilient customer experience and business resilience. framework and enterprise Customer • Direct to consumer + • Cyber resilience information and brand eRetail • Digital customer The assessment tool offers a simple way to • Packaging + delivery channels Disruption security measure business readiness and benchmark innovation against industry peers to enable decision-makers • Geopolitical • Liquidity/cashflow/credit with the prioritization of actions. It also highlights • Country risk /capital Government • Regulatory changes Financial and • Regulatory/disclosures elements that might otherwise be overlooked. and public investor • Investor trust • Leadership and public policy Additionally, it can be leveraged as a solid policy engagement • Tax strategies and tax foundation on which organizations can revisit their • Sustainability Risk accounting corporate strategy and design a more resilient • Enterprise risk planning • Risk identification enterprise. • Scenario planning • Continuity and recovery • Response and monitoring

Page 49 COVID-19 Enterprise Resiliency Framework: the approach is designed to help you navigate through the NOW, NEXT & BEYOND

Creating CONSUMER HUMAN SOCIETAL FINANCIAL long-term value Growing reputation and trust through Creating an inclusive culture of personal Building trust in capital markets and having Leading long-term growth through demand fulfilment and innovative offerings. development and purpose. genuine social and environmental impact. margin optimization, cost optimization. NOW NEXT BEYOND Safeguard business continuity through effective crisis Ignite recovery through business adaptation and stronger Deliver long-term value creation by reframing response planning enterprise resilience and transforming business

The “New normal” Continued crisis and slow recovery

Increase resilience Reframe Adapt operations • Achieve lower and more agile cost Shock and re-start • Seize new growth opportunities • Fix supply chain base • Redefine purpose • Re-start production • Increase workforce flexibility • Reimagine relationships • Ensure customer access • Optimize supply chain – mitigate geo- Respond and continue risk, create buffers, enhance agility • Transform virtual working, heightened response • Reduce cost to public health • Protect workforce and people • Maximize digital customer access • Streamline structures, • Reinvent business solutions • Secure financial stability portfolio, footprint • Enhance digitization, automation, • Explore different GTM channels • Continue operations back-up with cyber security • Full digital enterprise

Financial and Risk Government and investor public policy Technology and Customer and information brand security

Talent and Insurance and workforce legal disputes Page 50 Employee health and Enterprise Resilience Framework Supply chain and wellbeing global trade Enterprise Resilience Tool offers a map for navigating uncertainty and complexity, not only to assist with business continuity now but also to reframe the enterprise’s future.

The EY Enterprise Resilience Tool is a self- BENEFITS assessment questionnaire that enables clients, ✓ An easy, pragmatic way to at a glance, to identify gaps and priorities as understand the resilience of the they navigate the COVID-19 pandemic. enterprise. ✓ Clearly prioritized actions, providing The tool offers an automatic scoring mechanism to structure in the midst of chaos. generate an organization’s Enterprise Resilience score relative to other peers in the same region, sector or ✓ Identify gaps and areas of focus, organizational size. prompting clients to consider elements which might otherwise get The results can inform the preparation of an overlooked. actionable plan with tactical steps needed to develop a custom resilience roadmap. ✓ Designed to be continually referred to as part of ongoing leadership crisis The tool can is useful as part of the revival meetings. mobilization for ‘Next’ as it directs focus on where to adapt operations, increase resilience and reframe the ✓ It can be used as a solid foundation future. upon which the corporate strategy can be shifted or rebuilt. Conducting the assessment can be done virtually through a stakeholder interview, or it can be completed as a self-assessment, independently, where EY can socialize the results and benchmarks.

Page 51 Virtual Wavespace: accelerate the exploration of new ideas, decision-making and alignment through engagement with colleagues and EY subject matter resources

Following our proven "Scan | Focus | Act" methodology, we have developed a rapid sprint-like BENEFITS 2- to 3-hour session to help our clients think through opportunities to unlock new value. ✓ Sessions are delivered 100% virtually – How might we…. accommodating participation from wherever individuals may be working. • Pre-session • Session SCAN FOCUS ACT Identify growth ✓ Virtual wavespace sessions are organized work Understand the art of Drive action-oriented debrief opportunities via the possible outcomes around one or more 2- to 3-hour sprints methodical approach • Interviews • Review rather than full-day workshops. or surveys outputs ✓ In some cases, we may want to “right-size” • Pre-reads • Discuss next the number of participants boost output.

3 weeks prep weeks 3 steps (with – • Virtual select ✓ Pre-session meetings will be leading

2 2 SET THE DISCOVER INTROSPECT IDEATE PRIORITIZE COMMIT

setup STAGE participants) output final for weeks 2 practice to: –

1 1 ✓ Develop rapport with participants (collecting their points of view, establishing a baseline comfort level). 30 minutes 30 minutes 90 minutes 30–90 minutes ✓ De-risk technology set up issues. Ideal group size: 6–15 client participants + 4-5 EY facilitators Core wavespace session ✓ Formalized post-session debriefs will Additional stages become key to confirming next actions. Tools and enablers Plenary/breakouts Whiteboarding Feedback/polling Teams is a chat-based collaboration Mural enables innovative teams to Mentimeter is a cloud-based solution tool that provides global, remote and think and collaborate visually to solve that allows you to engage and dispersed teams with the ability to important problems. You can create interact with your target audience in work together and share information diagrams and facilitate more real time. This polling tool lets you set via a common space. impactful meetings and workshops. the questions and your target audience can give their input.

Page 52 KEY CONTACTS Our team

Mark Glenn Lance Parkinson Mortlock MacDonald BUSINESS TRANSFORMATION TRANSFORMATION STRATEGY SOLUTION LEADER [email protected] [email protected] [email protected]

Anthony Brian Gordon Rjeily Campbell Sandford DIGITAL INNOVATION & TRANSFORMATION EXECUTION ORGANIZATIONAL EXPERIENCE ECOSYSTEM [email protected] TRANSFORMATION [email protected] [email protected]

Carlos Mauricio Sasi Leal Zelaya Akkiraju SOLUTION ARCHITECT ECONOMICS & MODELLING CLIENT TECHNOLOGIES [email protected] [email protected] [email protected]

Page 54 EY | Building a better working world

EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

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This publication contains information in summary form, current as of the date of publication, and is intended for general guidance only. It should not be regarded as comprehensive or a substitute for professional advice. Before taking any particular course of action, contact Ernst & Young or another professional advisor to discuss these matters in the context of your particular circumstances. We accept no responsibility for any loss or damage occasioned by your reliance on information contained in this publication. ey.com/ca