Xceed Company Profile

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Xceed Company Profile
Helping Canadians Make It Home
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Forward-Looking And Other Statements

• This presentation may contain forward-looking
  statements which reflect managements
  expectations regarding Xceed Mortgage
  Corporations future growth, performance (both
  operational and financial), and business
  prospects and opportunities. Past results do not
  constitute a guarantee of future performance. A
  number of factors could cause actual results,
  performance, or achievements to differ materially
  from the results expressed or implied in these
  materials. Business prospects and opportunities
  considered are based on approximation and
  extrapolation of past market indicators. These
  factors should be considered carefully and
  prospective investors should not place undue
  reliance on any forward-looking statements.

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Corporate Overview

• Established in Canada in 1997 as a subsidiary of
  IMC Mortgage Corporation.
• Current investor group purchased 90 of common
  stock from BMO in April 2002 and recapitalized
  firm with 22.2MM.
• IPO of June 2004 raised additional 24.34MM.

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Value Proposition

• Focused Origination
• Established mortgage broker relationships
• Financial Institution channel
• Direct business
• Risk-Reward Management
• Credit risk
• Market risk
• Business Model
• Access to Canada Mortgage Bond Program
  and securitization funding
• Entrepreneurial culture
• Structured management processes
• Technology

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Executive Team

• Ivan Wahl Chairman, CEO Director
• 30 years of experience in the Canadian mortgage
  finance industry.
• Played a leading role in the development of the
  mortgage-backed securitization industry in
  Canada.
• Founded FirstLine Trust Company in 1985, grew and
  sold the business to CIBC in 1995.
• Vice-Chairman and Director of CIBC Mortgages Inc.
  from 1995 to 2001.
• Recipient of the Ernst Young Financial Services
  Entrepreneur of the Year award for 2005.
• Michael Jones President COO
• Previously Vice President, Commercial Mortgages
  for CIBC Mortgages Inc. where he also oversaw the
  CIBC Access Program.
• Joined FirstLine Trust in 1992.
• John Ayanoglou CFO Corporate Secretary
• Previously the Chief Financial Officer of
  publicly-listed Cartier Partners Financial Group.
• Practiced within Financial Services Group of
  PricewaterhouseCoopers LLP from 1996 to 2000.
• Karen Martin VP, Securitization and Capital
  Markets
• Previously the Treasurer of Amicus Holdings
  (division of CIBC), Director of Balance Sheet
  Management, and General Manager of Securitization
  for CIBC.
• Manager, Financial Analysis and Manager,
  Financial Reporting for FirstLine Trust Co. from
  1988 to 1996.

Inclusive of Akemis Holdings Corp, with which
Ivan Wahl and his family are involved.
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Financial Performance
Pro forma 2007(1)
2007
2001
CAGR(1)
55,947M
Revenue
1,558M
81.6
55,947M
2,685MM
AUM
132MM
2,685MM
65.2
Net Income(2)
(1,127M)
(4,543M)
18,572M
52.0
ROAE (2)
(34.8)
16.2
16.2
(4.1)

• The pro forma 2007 net income, ROAE and CAGR
  figures have been computed after removing the
  negative one-time after-tax effects of
  infrastructure write-offs and financial
  instruments valuation adjustment.
• The CAGR figure for Net Income and percentage
  presented for the average ROAE are calculated
  from fiscal year 2002 as net income was negative
  in 2001.

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Revenue Growth
CAGR 81.6
Under Previous Management
Under Current Management
Xceeds fiscal year end is October 31.
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Total Assets Under Administration Growth
2,685
CAGR 65.2
Under Previous Management after 5 years
Under Current Management
Xceeds fiscal year end is October 31.
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Increasing Profitability
Net Income Growth
CAGR 52.0
18,572
Pro forma
Under Previous Management
Actual
Under Current Management
Xceeds fiscal year end is October 31. The
2007 net income figure has been computed after
removing the negative one-time after-tax effects
of infrastructure write-offs and financial
instruments valuation adjustment.
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Cash Flows from Operations
CAGR 87.8
Under Previous Management
Under Current Management
Xceeds fiscal year end is October 31.
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Cash from the Securitized Portfolio
CAGR 76.5
Under Previous Management
Under Current Management
Xceeds fiscal year end is October 31.
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Effective Use of Capital
Return on Equity
Average 20.7
16.2
Under Previous Management
Pro forma
Actual
Under Current Management
Xceeds fiscal year end is October 31. The
2007 net income figure has been computed after
removing the negative one-time after-tax effects
of infrastructure write-offs and financial
instruments valuation adjustment.
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Non-Traditional Market Growth Potential

• Potential size of Canadian non-traditional market
  is estimated at 10 of the total residential
  mortgage financing market (approximately 700
  billion)
• Total outstandings of the non-conforming market
  in Canada are approximately 12 billion
• Over 55 billion in untapped potential!!
• This represents 300,000 families living in
  apartments who may meet our underwriting
  requirements and would love to own their own
  homes.

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Market Position
Traditional Lenders (Big 6 Banks)
XCEED
First National / GE Money / Wells Fargo
A B C
Borrower Credit Rating
Home Capital / Equitable Trust
25 50 75 100
Mortgage Loan to Value (LTV) Ratio
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Fundamentals

• Opportunity for product innovation beyond vanilla
  offerings.
• Low variable cost business model provides
  significant operating leverage electronic
  approval / funding system, with locations in
  Toronto and Montreal.
• Efficient methods of raising capital provide
  opportunity for high ROE
• Effective improvements in funding ratios to
  leverage increased volumes.

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Funding Methodology

• 350 million warehouse facility
• Securitization of mortgages thru non-recourse
  sales
• Trust senior notes funded with AAA/or R-1 (High)
  rated floating rate notes
• Trust credit enhancement provided by third party
  investors and Xceed
• New term structure established in 2006
• Two transactions, valued at a combined 1.1
  billion, have provided non-recourse funding in
  the term markets
• Rated AAA by Standard Poors and DBRS
• Access to Canada Mortgage Bond Program

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Solid Risk Control

• Interest Risk immunization thru swaps and other
  hedging mechanisms.
• Credit Risk control thru frequent asset quality
  and compliance reviews by Standard Poors, DBRS
  and Trusts securitization agents
• First charge, residential mortgages only,
  regionally diversified, in pre-approved locales
• Historical average mortgage size is 176,000 with
  an original LTV of 83
• On a market value basis, current credit risk
  exposure is 73 LTV

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Diversification
As at October 31, 2007
7.73
19.25
1.84
0.44
1.54
27.62
0.24
37.23
1.72
2.39
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Summary

• Limited competition.
• Nascent, rapidly growing niche.
• Strong experienced management.
• Capital markets proprietary funding models.
• Performance based culture.
• Focused multi-channel origination.
• Disciplined underwriting.
• Disciplined default management.
• Risk adjusted pricing model.
• Flexible, scalable technology with comprehensive
  relevant reporting capability.

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Questions
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