December 2018

RBC SPARQS™ RoC

Global Investment Solutions

FOR THE INFORMATION OF INVESTORS IN OUTSTANDING RBC SPARQS™ RoC SECURITIES ONLY Investment Objective: PORTFOLIO HOLDINGS – DECEMBER 2018 The RBC Stock PARticipating Quantitative model Dividend Sector Symbol Company Weight Rank Securities (SPARQs)™ RoC are designed for investors Yield (%) seeking long term growth of capital by holding a Energy PKI Parkland Fuel Corp. 3.83% 4 3.00 portfolio of large-cap Canadian equities that are TRP TransCanada Corp. 3.67% 5 5.07 selected and transacted based on a proprietary 8- factor quantitative model. HSE Husky Energy Inc. 3.43% 10 3.03 GEI Gibson Energy Inc. 4.16% 16 6.18 Tax Deferred: CNQ Canadian Natural Resources Ltd. 3.70% 18 4.01 No taxable event until maturity or disposition. No tax Materials MX Methanex Corp. 3.15% 26 2.40 as a result of Portfolio changes or rebalancing. NTR Nutrien Ltd. 4.03% 38 3.43

Strategy Inception: WFT West Fraser Timber Co Ltd. 4.23% 42 1.15 August 5, 2011 Industrials TFII TFI International Inc. 3.92% 2 2.17 CP Canadian Pacific Railway Ltd. 3.62% 6 0.93 Holdings: CNR Canadian National Railway Co. 4.18% 40 1.59 25 stocks Consumer Staples ATD.B Alimentation Couche-Tard Inc. 4.82% 8 0.57 Strategy: Financials TD The Toronto-Dominion Bank 4.02% 19 3.64 Quantitative: A rules based, systematic approach to BMO Bank of Montreal 3.92% 24 3.87 investing in large cap, dividend paying stocks. CM Canadian Imperial Bank of Commerce 3.96% 27 4.88

IAG Industrial Alliance Insurance & Financial Services Inc. 4.06% 28 3.42 Asset Class: NA National Bank of Canada 4.09% 30 4.09 Canadian equity SLF Sun Life Financial Inc. 4.07% 35 4.08 Minimum Purchase: BAM.A Brookfield Asset Management Inc. 4.36% 46 1.37 $5,000.00 Telecommunication QBR.B Quebecor Inc. 3.67% 3 0.77 RRSPs, RRIFs, RESPs, RDSPs, DPSPs & TFSAS eligible Services RCI.B Rogers Communications Inc. 4.81% 9 2.71

Utilities ACO.X Atco Ltd./Canada 3.99% 1 3.71 AQN Algonquin Power & Utilities Corp. 4.62% 37 4.96 H Hydro One Ltd. 3.91% 48 4.68 Real Estate CIGI Colliers International Group Inc. 3.78% 43 0.15 The indicated annual dividend yield of the Portfolio as of November 30 2018 was 3.03%.

Portfolio Additions Price Portfolio Deletions Price QBR.B Quebecor Inc. $28.53 KEY Keyera Corp. $28.45 TRP TransCanada Corp. $54.65 TIH Toromont Industries Ltd. $56.96

INDUSTRY ALLOCATION

Energy 18.79% Materials 11.41% Industrials 11.72% Consumer Staples 4.82% Financials 28.48% Telecommunication Services 8.48% Utilities 12.51% Real Estate 3.78%

This fact sheet is qualified in its entirety by a pricing supplement (the “Pricing Supplement”), the base shelf prospectus dated January 30, 2018, January 21, 2016 or December 20, 2013, the program prospectus supplement dated January 30, 2018, January 22, 2016, as supplemented August 31, 2017, or December 23, 2013, as amended and restated on November 2, 2015, and the product prospectus supplement dated January 30, 2018, January 22, 2016, as supplemented August 31, 2017, or December 23, 2013 in respect of Equity, Unit and Debt Linked securities.

March 2015

Global Investment Solutions

RBC SPARQS SECURITY INVESTMENT METHODOLOGY The Portfolio: Review Portfolio on a monthly basis and adjust THE UNIVERSE Dividend yielding large-cap Canadian equities holdings and weights. TAX DEFERRED > Only the largest 100 qualifiers by market cap are eligible to S&P/TSX Composite Member > No taxable event until maturity or be bought, excluding income trusts and the Bank disposition. > The Portfolio is reviewed each month after ranks have been Must Pay a Dividend > No tax on Portfolio changes and Excluding Trusts updated rebalancing. > Stocks are sold if they drop below the 50th position in terms Excluding RY of their rank > Stocks are sold if they are removed from the Index or suspend their dividend > Replacement buys are the best-ranked stocks not already held by the Portfolio Rank stocks based on an equally weighted combination of 8 THE MODEL > At the end of each calendar quarter the Portfolio is factors that fall into 4 distinct investment themes rebalanced to equal weights ATTRACTIVE Low Price to Earnings x 1/8 VALUATIONS Low Price to Book Value x 1/8

SUSTAINABLE High Quarterly Earnings Growth x 1/8 GROWTH High Return On Equity x 1/8

POSITIVE High Earnings Surprise x 1/8 SENTIMENT High Estimate Revisions x 1/8

MARKET High 3-Month Price Change x 1/8 RECOGNITION High 6-Month Price Change x 1/8 = Total

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The S&P/TSX Composite Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and TSX Inc., and has been licensed for use by Royal Bank of Canada. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Royal Bank of Canada. TSX is a trademark of TSX Inc., and has been licensed for use by SPDJI and Royal Bank of Canada. The Debt Securities are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P/TSX Composite Index. Capitalized terms used but not defined herein have the meanings ascribed to such terms in the applicable pricing supplement under which you purchased RBC SPARQS™ RoC Securities. An investment in the Debt Securities involves risks. An investment in the Debt Securities is not the same as a direct investment in the securities that comprise the Portfolio and investors have no rights with respect to the securities in the Portfolio. The Debt Securities are considered to be “specified derivatives” under applicable Canadian securities laws. If you purchase Debt Securities, you will be exposed to fluctuations in interest rates and changes in the value of the Portfolio, among other factors. Price changes may be volatile and an investment in the Debt Securities may be considered to be speculative. Since the Debt Securities are not principal protected and the Principal amount will be at risk, 3941140you could lose substantially all of your investment.

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