Capital Market Presentation March 31, 2016 www.skylineinvestments.com
Cautionary Statement Forward-looking information in this presentation is based on current estimates and This presentation has been prepared by Skyline International assumptions made by the Company's management, including, without limitation, a Development Corporation Ltd. (the "Company") as a general presentation about reasonably stable North American economy, the strength of the U.S. lodging the Company. industry, and the competitive ability of the Company. Although the forward-looking This presentation is not intended to replace the need to information contained in this presentation is based on what management believes to review the formal reports published by the Company to the public, on the stock be reasonable assumptions, the Company cannot assure investors that actual results exchange, including, in the Prospectus dated November 11, 2013 and the shelf will be consistent with such information. Forward-looking information involves risks prospectus dated February 23, 2015 before making a decision regarding an and uncertainties, including factors that are not within the Company’s control, each investment in securities of the Company. In the event of a conflict between this of which, or a combination of them, may materially affect the Company's operating presentation and the contents of the reports of the Company as required by results and cause the actual results to substantially differ from the forward-looking law, the provisions of the said reports shall prevail. Additional information about information. the Company is available on SEDAR at www.sedar.com. All forward-looking information set forth herein reflects the The information included in this presentation does not Company’s expectations as at the date of this presentation and is subject to change constitute any advice, recommendation, opinion or suggestion about the after such date. Except for the obligation to disclose information as required by the feasibility of an investment and does not replace an independent examination securities laws applicable to the Company, the Company has no obligation and does and independent advice in light of the specific data of each investor. not undertake to update or revise any information contained in this presentation, This presentation does not constitute or embody any offer or whether as a result of new information, future events or for other reasons. For invitation to purchase securities of the Company and does not constitute or is a greater certainty, the Company's strategy and plans contained in this presentation as part of an invitation to receive such offers. This presentation is for information of the date of publication may change depending on the resolutions of the Board of purposes only and shall not be construed as a prospectus, an offering Directors of the Company, as may be held from time to time. memorandum, an advertisement, an offer, an invitation or a solicitation to enter into a transaction with the Company. Except for Company-owned trademarks, the trademarks This presentation may include forward-looking information mentioned in this presentation are the property of their owners and are solely used within the meaning of applicable Canadian and Israeli securities legislation, in this presentation in order to understand the context. Use of the trademarks including forecasts, evaluations, estimates and other information regarding should not be interpreted as an approval or corroboration in relation to the future events and issues. In some cases, forward-looking information can be Company's programs, the Company's services or the Company’s securities. identified by using terms such as "expects", "thinks", "believes", "may", "estimates", "expects", "intends", "continues", "could", "plans", "predicts" and NOI (EBITDA) is a non-GAAP defined as Profit from Operations before Depreciation similar terms and phrases. 2 www.skylineinvestments.com
Corporate Overview Skyline was established and started its activities in the Canadian real estate market in 1998. Skyline’s Business activities are concentrated on cash-flow assets including: � Asset Management and operation of hotels and resorts in Canada and the US (primarily in Ontario and Ohio) � Asset management and operation of commercial income producing real estate in Canada � Development of adjacent residential real estate projects at the hotel and resort properties As of March 31, 2016 Mishorim Development is the As from March of 2014 the Company’s shares are Skyline’s total assets was controlling shareholder of the traded on the Tel Aviv Stock Exchange (SKLN.TA) $374 million CAD Company, holding about 50% and reporting issuer in Ontario, Canada As of March 31,2016 the As of March 31, 2016 the The annual stabilized NOI is estimated at approx. Company has land Company’s shareholders’ $31* million CAD reserves of approx. 5,200 equity is $159 million (42% of The Company’s development activities supplement residential units for future the total assets) the Hotels and Resorts recurring cash-flow. In the development last 5 years Skyline sold 211 residential units for approx. $55 million CAD * As per third party independent appraisals 3 www.skylineinvestments.com
Development of Equity (attributed to the shareholders, in millions of CAD) 180.0 159 160.0 159 150 140.0 In the last 15 years 129 Before IPO 115 shareholders’ equity 120.0 103 i n c r e a s e d 100.0 � � 80.0 72 250 * times! 70 66 60.0 48 40.0 33 24 18 20.0 11 8 3 0.6 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 * During last 15 years, the company raised approximately $70 mil CAD in private placements and IPO on Israeli stock exchange 4 www.skylineinvestments.com
Ownership Structure Gil Public Blutrich** Israeli Land Development Corp. 70.31% 29.69% Skyline Canada-Israel Ltd. 0.87% 26.87% 2.61% 3.50% 66.15% ** The controlling shareholder in the Company and in Mishorim Development Ltd, through a holding company Blutrich Holdings Inc. 5 www.skylineinvestments.com
Senior Management Team Gil Blutrich Chairman and President Chris Lund Founded Mishorim in 1990 and Skyline in 1998. President Senior VP Hotels and Resorts and Main Business Development Officer Chris Lund has an extensive experience in managing hotels. Serving as the CEO of the Deerhurst Resort for Blake Lyon more than 4 years. Prior to joining the company served as CEO regional vice president of the Delta hotels. Blake Lyon has an extensive experience in hotel and resort asset management in Canada and Internationally. With his Paul Mondell Chartered Professional Accountant designation, Mr. Lyon was formerly with Brookfield Asset Management as its VP VP Development Finance and CFO. In the last 6 years, served as VP Business Development in Vadim Shub two leading companies (Brookvalley Development and CFO Management, and Walton Development Over 20 years of experience in managing funds for public companies. CPA in Canada, Israel and the US 6 www.skylineinvestments.com
Business Strategy The Company focuses on the The Company refrains from assuming purchase of income-producing high debt leverage In order to preserve hospitality and resort real estate in high financial and business flexibility. Canada and the US The Company create value in land The Company focuses or acquiring development by increasing properties at significant discount to development rights through regulatory replacement cost approvals The Company sells some of its land The Company focuses on improving parcels to local builders to accelerate the operations of its income its cash turn around and for risk producing assets through operational management efficiencies, synergies, and marketing Upon joint acquisition of properties, the Company becomes asset manager for its partners 7 www.skylineinvestments.com
M aterial Events during the Latest Two Years May.2016 Oct.2015 Sep.2015 As of today, the Company A change of Zoning-by-law for The Company sold its delivered 46 condo units of agricultural land at Deerhurst interest in the King Edward the 56 sold at the Copeland for 640 units and 4,500 sqm of Hotel, located in House project located in retail space downtown Toronto for a Horseshoe Resort. total consideration of $5.2M CAD, representing a property value of $103M Oct.2015 March.2016 July.2015 May.2015 The Cosmopolitan hotel sale Skyline obtained a The Renaissance Hotel Skyline accepted an offer to for $13M CAD was closed. financing of $29M US (Libor acquisition was closed sell 65 lots for $8M CAD The book value of the hotel + 2.5-2.75%) for the with a 50% Partner. located at the Blue was $9M CAD. The Company acquisition and renovation The 491 rooms hotel Mountain Resort recognized a capital gain of of the Renaissance hotel in is located in $3.2M CAD. downtown Cleveland. downtown Cleveland, Ohio, US. 8 www.skylineinvestments.com
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