Elbit Imaging Ltd. | Investor Presentation

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Elbit Imaging Ltd. Investor Presentation
November 26-28, 2007
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Disclaimer
THIS PRESENTATION CONTAINS FORWARD-LOOKING
STATEMENTS WITHIN THE MEANING, INTER ALIA, OF
SECTION 27A OF THE SECURITIES ACT OF 1933, AS
AMENDED, AND SECTION 21E OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. FORWARD-LOOKING
STATEMENTS INCLUDE STATEMENTS REGARDING THE
INTENT, BELIEF OR CURRENT EXPECTATIONS OF THE
COMPANY AND ITS MANAGEMENT ABOUT THE COMPANYS
BUSINESS, PERFORMANCE, ACHIEVEMENTS, ITS
RELATIONSHIP WITH ITS EMPLOYEES AND THE CONDITION
OF ITS PROPERTIES. ACTUAL RESULTS MAY DIFFER
MATERIALLY FROM THOSE PROJECTED, EXPRESSED OR
IMPLIED IN THE FORWARD-LOOKING STATEMENTS AS A
RESULT OF VARIOUS FACTORS, INCLUDING, BUT NOT
LIMITED TO THOSE DETAILED IN THE COMPANYS
PERIODIC FILLINGS WITH THE SECURITIES AND
EXCHANGE COMISION. ANY FORWARD-LOOKING STATEMENTS
CONTAINED IN THIS PRESENTATION SPEAK ONLY AS OF
THEIR RESPECTIVE DATES, AND WE CAUTION EXISTING
AND PROSPECTIVE INVESTORS NOT TO PLACE UNDUE
RELIANCE ON SUCH STATEMENTS. SUCH FORWARD-LOOKING
STATEMENTS DO NOT PURPORT TO BE PREDICTIONS OF
FUTURE EVENTS OR CIRCUMSTANCES, AND THEREFORE,
THERE CAN BE NO ASSURANCE THAT ANY
FORWARD-LOOKING STATEMENT CONTAINED HEREIN WILL
PROVE TO BE ACCURATE. WE UNDERTAKE NO OBLIGATION
TO UPDATE OR REVISE ANY FORWARD-LOOKING
STATEMENTS. ALL SUBSEQUENT WRITTEN OR ORAL
FORWARD-LOOKING STATEMENTS ATTRIBUTABLE TO US OR
PERSONS ACTING ON OUR BEHALF ARE EXPRESSLY
QUALIFIED IN THEIR ENTIRETY BY THE CAUTIONARY
STATEMENTS.
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Group Structure
Elbit Imaging Ltd.
68
100
100
Hotels
Medical Device Bio Technology
Shopping and Entertainment Centers CEE
Real Estate India
Managed by
52 28
PLAZA CENTERS NV
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History
Acquisition of Elbit Imaging and reorganization
of business holdings. Initial investment in
InSightec. 1999
Expansion of Real Estate portfolio into the
Indian market. 2006
Acquisition commencement of Bucuresti hotel -
first hotel in Eastern Europe. 2000

Acquisition of Park Plaza Victoria Amsterdam-
corner-stone for our hotel portfolio. 1993
2006 Initial public offering of Plaza Centers
shares on the main board of the LSE.
1996 Construction of the first shopping and
entertainment center, the Duna Plaza in Budapest,
Hungary -indicating penetration into the shopping
and entertainment center operations.
1996-2004 Development and management of a
portfolio of 20 shopping and entertainment
centers.
2004 Sale of 12 shopping and entertainment
centers to Klepierre-expanding strategy to allow
for the sale of constructed shopping centers.
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Market background and performance

• Background
• Dual listing NASDAQ and Tel Aviv Stock Exchange
• Part of TA-Real Estate 15 since 2006
• Daily traded value last 12 months US 5 m (TA)
  US 0.5 m (NASDAQ)
• Dividend policy 50 of annual surpluses capped
  at 50 of cash flow
• Annual stock yield 2005 97 2006 88 2007
  (till 18.Nov) 77.

Adjusted share price performance Dec.
2006 through Nov. 2007
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Strategy

• Focus on Real Estate in emerging markets
• Active management of group companies via
  controlling stakes
• Forming strategic partnerships to leverage
  strength, experience and skills
• Penetrating uncharted territories while relying
  on qualified and experienced human capital rather
  than utilize local resources
• Flexible strategy taking into consideration
  market conditions, between the sale of real
  estate or utilization of advantageous operational
  conditions
• Evaluating opportunities to conquer new
  investment venues

ELBIT IMAGING
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Business Overview
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Plaza Centers N.V
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Plaza Centers N.V - Segment Overview
99/111/123

• Over 12-year track record of developing shopping
  entertainment centers in CEE - Plaza Centers
  has been active in the region since 1996 and was
  the first to develop western-style shopping
  centers in Hungary
• Plaza Centers owns 25 development assets as well
  as 3 office buildings. It controls a solid and
  constantly evolving pipeline in both CEE and
  India - the Group has the strong ability to
  identify new growth opportunities, constantly
  targeting attractive returns in fast growing
  emerging markets which is evidenced by recent
  portfolio additions
• Highly skilled management team - extensive local
  and business knowledge with a proven ability to
  source strategic development sites and design
  projects that meet the demands of the local
  market. Many management team members have been
  employed by us for many years

Leading emerging markets developer of shopping
and entertainment centers
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Plaza Centers N.V - Segment Overview
99/111/123

• Extensive network - strong relationships with
  both leading international retailers and property
  investors as demonstrated by the proven ability
  to pre-sell projects (before or during the
  construction) with no less than 80 occupancy
  rates
• Strong brand name - Plaza Centers has become a
  widely recognised brand name for successful
  property development in CEE which is beneficial
  at all stages of project execution (e.g.
  following portfolio sales to Klépierre, Dawnay
  Day and aAim, the purchasers continue to
  franchise the Plaza Centers trade name)
• Successful project development management - all
  projects to date have been finalized on schedule
  and within budget

longstanding CEE track record, expanding
portfolio
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Plaza Centers N.V - Segment Overview
99/111/123
Listed on the Main Board of the London Stock
Exchange since 2006

• Since its foundation, Plaza Centers sold 26
  assets with a gross value of 1.1 b
• On November 1, 2006, Plaza Centers raised US 330
  m through its IPO and began trading on the Main
  Board of the London Stock Exchange (representing
  a value of US 1 b)
• Since IPO Plaza Centers acquired 13 development
  sites and opened 4 fully rented-out shopping and
  entertainment centers
• Plaza Centers currently owns 25 projects under
  development, is negotiating the acquisition of
  seven others and is analyzing development
  possibilities in seven new cities. As at June 30,
  2007, the market value on completion of the
  projects owned as of that date was 2.8 b
• Source King Sturge Valuation

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Portfolio Composition -by Value and Country
Market value on
Market value of the land
Total
(1)
(1)
completion (m)
and project (m)



Value as per King Sturge valuation reports as at
30 June 2007
Value as per King Sturge valuation reports as at
30 June 2007
GLA (m2)

Shopping and entertainment center developments
1 154
534
446 500

Dream Island (value of Plazas 30 stake)
462
81
347 000 (GBA)





Casa Radio (value of Plazas 75 stake)
647
164
360 000 (GBA)



Indian mixed use projects (value of Plazas 50
stake)
207
40
527 000 (GBA)
Other projects and developments(2)
289
87
232 800
Total
2,759
906
1,913,300

• Excludes Iasi, Slatina, Budapest (Uj Udvar),
  Prague (Roztoky) Belgrade and Bucharest (Palazzo
  Ducale) which were not valued since they were
  acquired after 30 June 2007
• Other properties are Arena Plaza Extension,
  Helios, David House and Roztoky

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Under Development Projects By Location
No. of projects

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Arena Plaza - Hungary

• Overview
• Arena Plaza is one of the largest shopping and
  entertainment centers in CEE, with GLA of
  approximately 66,000m²
• The site is prominently located in the heart of
  Budapest on the Kerepesi Street in one of the
  most densely populated residential districts in
  Budapest, adjacent to one of the major roads into
  Budapest and close to the Keleti railway station
  (one of Budapests main international train
  stations with the highest footfall)
• Arena Plaza also includes the first IMAX cinema
  auditorium in Budapest and in Hungary
• Pre-sold to aAIM on 380-400 m
• Tenants international hypermarket operator
  (Tesco) (c. 10,500m2), Cinema City with IMAX 3D
  theatre and 22 other screens, Peek Cloppenburg,
  Zara, Hervis (sporting clothing equipment),
  Electro World, Hennes Mauritz, CA
• Project status recently opened 100 pre-let
• Opening date November 15 ,2007

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Dream Island (Obuda) - Hungary

• Overview
• 320,000 m² plot on the southern end of the Obuda
  Island on the Danube River in central Budapest
• Plaza intends to develop the plot into a 350,000
  m² business and leisure resort including 8 to 10
  4 and 5 star hotels, four apartment hotels, a
  convention center, a large scale American style
  casino, a 3,500 seat opera house, a 1,500 seat
  theatre, a marina (with an anchorage for 300
  vessels), a shopping and entertainment center, a
  Roman cultural museum and parking facilities for
  approximately 5,500 vehicles
• The Group has a 50 shareholding in the SPV that
  has a 60 interest in the consortium. The
  remaining members of the consortium are CP
  Holdings Ltd., a member of the Group of companies
  controlled by Sir Bernard Schreier (approximately
  30 direct interest), MKB Bank (approximately 30
  indirect interest) and a company controlled by
  the managing director of the consortium
  (approximately 10 direct interest)
• The Group will provide project management
  services and retain leading international
  operators for the hotels, the casino, the
  convention hall and the cultural center
• Debt funding for the project will be arranged by
  MKB Bank
• Project status Modified Town Planning Scheme
  (KSZT) received following a referendum amongst
  the residents of the local district. Initial
  excavation works commenced

Obuda, Budapest
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Casa Radio - Romania

• Overview
• Plaza Centers owns 75 of the Company which will
  develop the Casa Radio project in central
  Bucharest (in partnership with the Romanian state
  and another third party)
• Casa Radio is located on the border of Sector 1
  and Sector 6 in the city of Bucharest, which
  comprises a large area of the city center as well
  as a high proportion of residential apartments
• The property comprises a brownfield site covering
  an approximate area of 101,497 m²
• The proposed scheme will comprise refurbishment
  of the existing building as well as the
  development of additional space annexed to the
  building and on adjoining land
• The scheme will include a shopping
  entertainment center of approximately 120,000 m²,
  with a hypermarket of approximately 17,000 m² , a
  hotel of 32,140 m² (320 rooms), an apartment
  hotel of 11,800 m², a convention center of 7,200
  m², 122,400 m² of offices and 35,190 m² of
  residential areas
• Project status Demolition works and initial
  construction commenced, approaching final concept
  design. The center is scheduled to open in
  2011-2012

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Hotels
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Hotels - Segment Overview
99/111/123

• Over 14-year track record of constructing and
  managing hotels in Western European cities - the
  company has been active in the region since 1993
  and in 2000 expanded its activities into Eastern
  Europe
• The companys portfolio consists of 2,348 rooms,
  comprised of seven operational hotels (1,824
  rooms) and two additional hotels currently under
  construction which are expected to accommodate
  524 rooms
• Rating and location - Most hotels have been
  awarded 4 star rating and are located adjacent to
  major transportation facilities

Tapping into the growing affordable luxury
market by offering a high quality products at
attractive prices.
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Hotels - Segment Overview
99/111/123
Tapping into the growing affordable luxury
market by offering a high quality products at
attractive prices.

• Strong brand name - The company has become widely
  recognized in Western Europe with the Park
  Plaza brand name, which holds exclusive
  franchise rights through a territorial license
  agreement with Carlson, a leading US travel and
  hospitality company. In Eastern European cities
  the company intends to collaborate with the
  Radisson brand name
• Successful hotel management - almost all hotels
  demonstrate above average occupancy rate while
  maintaining competitive room market rates
• Active management of group companies via
  controlling stakes - the company holds between
  50 - 100 in each hotel

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Hotels - History

• 1993 Park Plaza Victoria Amsterdam - 1st
  property identified Landmark hotel in
  Amsterdam
• 1995 Park Plaza Utrecht - acquisition of 2nd
  property in the Netherlands
• 1997 Park Plaza Shaw London - 1st hotel in
  London - construction commences
• 1997 Park Plaza Astrid Antwerp - commencement of
  operations
• 1999 The Ballet Academy Building, Budapest-
  acquisition of monumental building with a view
  to convert same into the hotel
• 2000 The Bucuresti hotel - acquisition of 1st
  hotel in Eastern Europe
• 2001-2005 Construction of 3 additional hotels in
  London Park Plaza Victoria London, Park Plaza
  Sherlock Holmes and Park Plaza RiverBank
• 2005 Park Plaza Shaw London - realization and
  sale of hotel
• 2006 Park Plaza Victoria Extension -
  acquisition of a landmark building
• 2007 The Ballet Academy Building,
  Budapest-Realization and sale of building

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Hotels Portfolio
Including 66 apartment hotel suits.
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Expected opening date -2008 Expected opening
date - 2010.
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Real Estate India
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India - Segment Overview

• Duplicating know-how - Duplicating know-how and
  expertise (engineering, marketing, managerial)
  from CEE to India
• Strategic local partnerships - cooperation with
  solid strategic partners, being key players in
  the local real-estate business, to leverage
  development possibilities by collaboration
  therewith
• Strong financial stability - utilizing the
  company's high liquidity and financial resources
  and cooperating with financially stable partners
• Highly skilled management team - Relocating key
  personal to India

We believe the wealth of experience and
expertise which we have accumulated in other
countries enables us to excel in India
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India - Segment Overview

• Pre sale financing - Initiating Mega residential
  projects while emphasizing unit pre sale as
  financing mechanism
• Shopping and entertainment centers business plan
  -development and construction by Plaza Centers of
  20-30 projects using ongoing and strong
  connections with international tenants and
  end-customers
• Penetrating into additional real estate venues
  including offices, hotels, infrastructures and
  others
• strategic tie up for development of Pan-India
  world class standard hospital chain

We believe the wealth of experience and
expertise which we have accumulated in other
countries enables us to excel in India
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India - Cochin

• Overview
• Location Island of Cochin ,Kerala, India
• High-end residential apartment buildings, office
  space, shopping entertainment center, hotel
  complex and a marina
• Our share 50
• Total build up area of approximately 800,000 m²
• Total project cost US 404 m (100 share)

Cochin
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India - Bangalore

• Overview
• Location Bangalore, Karnataka, India
• High class residential neighborhood with
  amenities such as a golf course, club houses,
  swimming pools, tennis courts, office complexes
  serviced apartments facilities, luxury 5 star
  hotel, a hospital and a major retail facility
• Our share 50
• Total build up area exceeds 2 m m²
• Anticipated future revenues US 4 b (100
  share)
• Expected total cost US 1.9 b (100 share).

Bangalore
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Medical Device Bio Technology
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InSightec - Segment Overview
Our vision is to replace invasive procedures and
provide therapeutic alternatives to millions of
patients with serious diseases around the globe.

• Founded in 1999
• Fully diluted holding of 52.
• Our investment partners are
• GE Equity (20)
• MTA (8)
• Employs 150 workers (directly) and 50 contract
  workers
• US 100 million have been invested in RD to
  date
• All investment amount has been recorded as RD
  expense in the PL during the years
• ExAblate 2000 is a system that combines Magnetic
  Resonance Imaging and Focused Ultrasound to
  non-invasively treat tumors inside the
  body without the need for incisions (in use in 55
  medical centers)
• FDA highlighted the system as one of the 14
  medically significant products it approved during
  2005 
• InSightec is testing possible application of its
  ExAblate 2000 to treat other forms of tumors
  including cancer of the breast, bones, liver and
  brain tumors

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Significant developments in the last 12 months
PLAZA CENTERS
SHOPPING ENTERTAINMENT CENTERS
HOTELS
HOTELS
INDIA
REAL ESTATE INDIA
INSIGHTEC
BIO TECHNOLOGY
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Targets for 2007-2010

• Complete business plan of 60-70 shopping and
  entertainment centers in CEE
• Annual target of 6-8 new development projects
• Target returns of no less than 40-60 on
  invested equity
• Construction and Development of Plaza Centers
  mega-projects (Dream Island, Casa Radio)

PLAZA CENTERS
SHOPPING ENTERTAINMENT CENTERS

• Expansion of our hotel portfolio by combining
  same into our mixed-used portfolio (in India and
  CEE)
• I.P.O of, or alternative transaction in the hotel
  segment

HOTELS
HOTELS

• Construction of 2m-3m m² of residential
  properties
• Development of 20 commercial centers (through
  Plaza Centers)
• Developing a division of hotels, offices other
  real estate operation

INDIA
REAL ESTATE INDIA

• Completion of 4-5 cancer applications for FDA
  approval
• I.P.O of InSightec in the NASDAQ

INSIGHTEC
BIO TECHNOLOGY
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Thank You