(7) The floating dividend rate for the Class 1 Series 4 preferred shares equals the three-month Government of Canada Treasury bill yield plus 1.41%. (8) MFC redeemed in full the Class 1 Series 7 and Class 1 Series 23 preferred shares at par, on March 19, 2022, which is the earliest redemption date. (9) MFC did not exercise its right to redeem all or any of the outstanding Class 1 Series 9 preferred shares on September 19, 2022, which is the earliest redemption date. The dividend rate was reset as specified in footnote 5 above to an annual fixed rate of 5.978%, for a five-year period commencing on September 20, 2022. (10) Non-payment of distributions or principal on any LRCN series notes when due will result in a recourse event. The recourse of each noteholder will be limited to their proportionate amount of the Limited Resource Trust’s assets which comprise of Class 1 Series 27 preferred shares for LRCN Series 1 notes, Class 1 Series 28 preferred shares for LRCN Series 2 notes, and Class 1 Series 29 preferred shares for LRCN Series 3 notes. All claims of the holders of LRCN series notes against MFC will be extinguished upon receipt of the corresponding trust assets. The Class 1 Series 27, Class 1 Series 28, and Class 1 Series 29 preferred shares are eliminated on consolidation while being held in the Limited Recourse Trust. (11) The LRCN Series 1 distribute at a fixed rate of 3.375% payable semi-annually, until June 18, 2026; on June 19, 2026 and every five years thereafter until June 19, 2076, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.839%. The LRCN Series 2 distribute at a fixed rate of 4.10% payable semi-annually, until March 18, 2027; on March 19, 2027 and every five years thereafter until March 19, 2077, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.704%. The LRCN Series 3 distribute at a fixed rate of 7.117% payable semi-annually, until June 18, 2027; on June 19, 2027 and every five years thereafter until June 19, 2077, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 3.95%. (b) Commonshares The following table presents changes in common shares issued and outstanding. 2022 2021 Number of Number of shares shares For the years ended December 31, (in millions) Amount (in millions) Amount Balance, January 1 1,943 $ 23,093 1,940 $ 23,042 Repurchased for cancellation (79) (938) – – Issued on exercise of stock options and deferred share units 123 3 51 Total 1,865 $ 22,178 1,943 $ 23,093 Normal Course Issuer Bid On February 1, 2022, the Company announced that the Toronto Stock Exchange (“TSX”) approved a normal course issuer bid (“NCIB”) permitting the purchase for cancellation of up to 97 million common shares. Under this NCIB which commenced on February 3, 2022, and expired on February 2, 2023, MFC purchased for cancellation 85.8 million of its common shares at an average price of $23.99 per share for a total cost of $2,060, which represent 4.4% of its issued and outstanding common shares. During the year ended December 31, 2022, the Company purchased and subsequently cancelled 78.9 million shares for $1,884. Of this, $938 was recorded in common shares and $946 was recorded in retained earnings in the Consolidated Statements of Changes in Equity. On February 15, 2023, the Company announced, subject to the approval of the TSX, its intention to launch an NCIB permitting the purchase for cancellation of up to 55.7 million common shares, representing approximately 3% of its issued and outstanding common shares. Purchases under the NCIB may commence after the TSX has accepted the notice of intention and continue for up to one year, or such earlier date as the Company completes its purchases. (c) Earningspershare The following table presents basic and diluted earnings per common share of the Company. For the years ended December 31, 2022 2021 Basic earnings per common share $ 3.68 $ 3.55 Diluted earnings per common share 3.68 3.54 The following is a reconciliation of the number of shares in the calculation of basic and diluted earnings per share. For the years ended December 31, 2022 2021 Weighted average number of common shares (in millions) 1,910 1,942 (1) Dilutive stock-based awards (in millions) 3 4 Weighted average number of diluted common shares (in millions) 1,913 1,946 (1) The dilutive effect of stock-based awards was calculated using the treasury stock method. This method calculates the number of incremental shares by assuming the outstanding stock-based awards are (i) exercised and (ii) then reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price of MFC common shares for the year. Excluded from the calculation was a weighted average of 9 million (2021 – nil million) anti-dilutive stock-based awards. 196 | 2022AnnualReport | NotestoConsolidatedFinancialStatements