WILLIAM OSLER CAPITAL 5TH YEAR PORTFOLIO REVIEW

Presented by Managing Partners:L.D. Porayko, MDD. Wingnean, MD

September 2015

Important Disclaimer/Legal Stuff

WILLIAM OSLER CAPITAL AND ITS PORTFOLIO MANAGERS MAY HAVE A LONG OR SHORT POSITION IN ANY OF THE SECURITIES PRESENTED

THESE SECURITIES MAY BE SOLD OR BOUGHT WITHOUT GIVEN NOTICE. PLEASE VERIFY DETAILS AND CONSIDER YOUR INDIVIDUAL FINANCIAL

SITUATION BEFORE MAKING YOUR OWN INVESTMENT DECISIONS.

THERE IS NO GUARANTEE OF ACCURACY OR COMPLETENESS OF THE CONTENT IN ANY MEDIA USED IN THIS PRESENTATION.

WILLIAM OSLER CAPITAL AND ITS MANAGING PARTNERS WILL NOT ACCEPT LIABILITY FOR ANY LOSSES OR DAMAGES, MONETARY OR

OTHERWISE THAT MAY RESULT FROM THE CONTENT OF THIS PRESENTATION.

DISCIPLINEFLEXIBILITY

PATIENCE

Time Arbitrage= our most powerful ally

Mispricing

Quantitative

Owner-Operator Orientation

Alignment of interests

Advantages

Durable Moat

Threats/Opportunities

Potential game-

changers

Strength of Conviction & Edge

The source of patience

MOATS METHODOLOGY

Our Mandate

Positive return in both bear

and bull markets

Invest with a margin of

safety

Primum Non

Nocere

Pay little for

optionality

Alignment of partner interests

3 Value Themes

Compounders

Cigar Butts

Special Situations

Sector Exposure

CRE 23%

Energy 21%

Financial 20%

Other 36%

THE PORTFOLIO:

Cash Management

AUM :

2015: $4.8MM CDN

Cash Position ≈ 23%

(20%US$:80% CDN$)

Net Long Equity + Cash CDN$ Exposure:

≈12% short CDN(14% net long CDN 2014)

Total Current Active Positions = 26

• LT Goal: ≈ 15

Ex Cash Top 5 positions = 33% total

• LT Goal: ≈ 50%

Portfolio Concentration

Long-term Performance

Long-term Performance

WOAPICTSXS&PRussell

Short-term Performance

TSX return

Sans Valeant

TSX returnwith fund return superimposed

Sans Valeant

BYD

IDWM

NOVCFW SHOS

Last year…You did well only if you held US$ stocks

Market Valuations…even the US market looks fairly valued at interest rates of 5%

1/2.5% = P/E of 40x

1/5% = P/E of 20x

What the #$#! are we doing owning O&G?

Mean Regression

Energy Sector Cyclical Downturn

“We do believe that the North American rig count has now reached bottom, but that we will only see a

slow increase in drilling and completion activity in the second half of the year, which will not make any

material dent in the massive overcapacity that has been created...” —Schlumberger 

Energy Sector Downturn

A Variant Perception

“Core believes that worldwide crude oil supply and demand markets are

well on their way to a balance at year-end, 2015…Core sees the V-

shape recovery, led by higher commodity prices and followed by

worldwide drilling activities, starting to increase in early 2016.” —

Core Labs

?OPPORTUNITY

A little nugget of truth about predicting economic outcomes

Attributed to Josh Brown, of the Reformed Broker Blog

“Roses are red,Violets are blue,We have no idea what’s going to happen,And neither do you.”

What we think…

Portfolio Review

Top Five Positions

The top 5: only 1 left from ‘14

Company Allocation Last year’s rank

IDW Media Holdings 13% 11

US Reg Bank Subport 6.5% 15

Special Opp Fund 6% 12

Nat’l Oilwell Varco 4% 1

Leucadia Nat’l 4% 18

IDW Media

Holdings

At the tilting point?

Allocation: 13% Annualized Return: 62%

Aggregator of Media Assets

Has many features we like to see

Oddball conglomerate

Illiquid & obscure

Spin-offTalented owner-operator mgmt

Long runway

Multi-bagger

Initial Capital Divested

Mispriced? Maybe.

EM 2.8x 2010 14x 2015E

ROIC low 30’sEBIT margin doubled

since 2011

adj 2017 EBIDTA to double again to $22MM

TV/Movies/Merchandising• 2017 EV/EBIDTA of 6x???

We’ll see.

Owner-operator orientation?

•HJ and 2 HF’s own 84%

Howard Jonas: Founder/Chair

•Owns 17% of IDWTed Adams: CEO

•Except…IDT debacleShareholder-friendly track

record

Durable Competitive Advantage?

Patents

Geography

Threats/Opportunities

THREATS OPPORTUNITIES

Minimal tangible assets

3 large competitors

Capital Markets

Rapid Growth phase

Streaming content

M&A

Stock currency

Strength of Conviction

10x upside

Downside

considerable:

valuation and fickle

capital markets

Free call

option on futur

e grow

th

#2 Thrift/Regional Bank Basket

Consolidation trend

Discounts to book; yet overcapitalized & profitable

Activists at work

Thrift ownership/economic distortion

Allocation 6.5%Annualized Return:

43%

Regional Bank Sub-PortfolioName Ticker Market Price

# Shares owned Market Value Allocation Return (-div)

Pathfinder Bancorp PBHC $10.94 2,717 $29,724 0.5% 20.0%Investors Bancorp ISBC $12.21 2,500 $30,525 0.5% 22.0%

Oconee Fed Fin Crp OFED $18.44 1,751 $32,288 0.5% 0.0%

Westfield Financial WFD $7.47 3,000 $22,410 0.4% 3.7%

Sunnyside Bancorp SNNY $10.20 1,000 $10,200 0.2% 3.0%

Riverview Bancorp RVSB $4.45 7,000 $31,150 0.5% 13.0%

First Internet Bancorp INBK $33.11 2,500 $82,775 1.3% 106.0%

Total Value SubPort $239,072 USD

US:CDN Forex 1.31

Total Value SubPort $313,185 CDN

Total Value Port $4,855,082 CDN

Allocation Subport 6.45%

Subport return 44.17%

Not including Dividends or Forex benefit

Subport return 51.80%Including forex

benefit

Threats

Hyper-inflation

Rapid interest rate rise

Market valuation

Geopolitical/macro-economic

Even brisk IR rises can be ok

And even moderate inflation is ok

#3 Special Opportunities Fund

Master

Arbitrager

of CEF in-

efficiencies

Discount to

its own NAV

(13%)

Mid-teens CAGR track

record

Insider

buying

Int’l expan-sion?

Allocation: 4.5% Total Return: -2%

#4 NOV: Baby in the bathwater?

Allocation 3.3%Total Return -38%

Mispriced?

Tailwinds for the outfitters…

…but headwinds for the prospectors

It’s a supply problem; demand is increasing by 1,400,000 BOE/day!

Also…depletion curves….

NOV: OOO?

Exemplary capital

allocation record

Conservative balance

sheet

NOV: Advantages

EOS and Network effect

90% rigs have NOV kit

60% market share

Sticky contracts

NOV: Threats & Opportunities

Acquisitive

business plan

Mis-execution of

M&A

Take-

under

Emerging markets

Up and

coming

competition

NOV: Conviction

Secular multi-decade tailwind

What’s our Edge? Patience

LUK: Complex Conglomerate… in transition

= $32/share—60% above market!

Allocation: 3.5% Total Return: -11%

#5 Leucadia National

Honourable Mentions

#6 BYD-UN #7 PSD #8 BPY-UN #11 RHDGF

Contemplating some mistakes

Charlie Munger said:•“I know I’ll perform better if I rub my nose in my mistakes. This is a wonderful trick to learn.”

Over-estimating economic moats•Particularly competitive threats… business is really, really hard!

Corporate culture really

matters

Opportunities in the unloved

O&G value ‘basket’

Emerging

market

franchises

Asset managers

REITS

Fund Strategy

Who are we & why do we do this?

Lorne Porayko, MD, CIM

David Wingnean, MD, MBA

Who are we & why do we do this?

Perceived need

Innate curiosity

Career Longevity

Temperament

Love it!!!

Why use us vs. others?

Skin in the game

Choice vs. $ imperative

Know our client base

Discipline, high RQ and

life experience

What do we get out of it?

OPM Discipline

✔

Securities Council

Requirement ✔

Positive Impact

✔

Eventual Roll Out of

Professional Fund

$10MM AUM minimum

30-S

ep-0

7

10-Ja

n-08

21-A

pr-0

8

01-A

ug-0

8

11-N

ov-0

8

21-F

eb-0

9

03-Ju

n-09

13-S

ep-0

9

24-D

ec-0

9

05-A

pr-1

0

16-Ju

l-10

26-O

ct-1

0

05-F

eb-1

1

18-M

ay-1

1

28-A

ug-1

1

$0.00

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

AUM $10MM

?2017-2020

Thank You For Your Trust &

Support

Feedback:

lorne.porayko@williamoslercapital.com

david.wingnean@williamoslercapital.com

www.williamoslercapital.com