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Boston Pizza Royalties Income Fund

February 16, 2017


Investor
BOSTON PIZZA Presentation
ROYALTIES INCOME FUND 1
Forward Looking Information

Certain information in this presentation may constitute forward


looking information" that involves known and unknown risks,
uncertainties and other factors that may cause the actual
results, performance or achievements of the Fund or industry
results, to be materially different from any future results,
performance or achievements expressed or implied by such
forward looking statements.

This presentation should be viewed in conjunction with the


Funds Q4 and annual, 2016 Managements Discussion and
Analysis, a copy of which can be obtained at www.sedar.com.

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Presentation Overview

Boston Pizza International Inc.


Restaurant concept
Growth history
Outlook

Boston Pizza Royalties Income Fund


Top line structure
Financial performance
Distribution history

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Proven restaurant concept with over 50 years of
operating history in Canada
Competitive Advantages:
Family-friendly restaurant and sports bar
targets two distinct customer demographics
Well positioned in mid-scale casual dining
Broad, diversified menu for any dining
occasion
Multiple day parts plus take-out and delivery
National purchasing power to reduce input
costs
Mandatory seven year renovation schedule
Marketing co-op funded by franchisees
Single brand focus
Strong franchisee network

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Canadas #1 Casual Dining Brand
Boston Pizza serves
more customers in
more locations than
any other casual dining
restaurant brand in
Canada

61 3
109
23 19
119 29
11

382 locations as of February 16, 2017.

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Number of Restaurants
over the Past 10 Years

450
NUMBER OF RESTAURANT LOCATIONS

372 383
400 358 366
340 340 343 348
350 323
300
300
250
200
150
100
50
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

*All years as at December 31.

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System-wide Gross Sales
and Franchise Sales
(in millions)
$1,200 Franchise Sales System Wide Sales

$1,060 $1,081

$1,012
$1,000 $975
$943
$905
$848 $853 $838
$831 $824
$800 $788
$755 $762
$737
$707
$659 $661 $668
$604
$600

$400

$200

$0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
*All years as at December 31.

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Annual Same Store Sales Growth

10%

8%

6% 5.7%
4.9%

4% 3.3%

1.5% 1.7% 1.8%


2%
0.7%
0%
-0.3%
-2% -1.3%

-4%
-4.0%
-6%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

*All figures are annual SSSG as at December 31.

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Quarterly Same Store Sales Growth

10%

8%

6%

4%
2.7%
2.1% 2.2% 2.1%
2%
0.6%
0.1%
0%
-0.5%
-2%

-4% -3.1%
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16

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Same Store Sales Growth

SSSG is achieved through:


Increasing Guest Traffic
Marketing programs through national franchisee co-op program
Digital marketing and loyalty initiatives
Take-out and delivery segment growth
Continuous menu innovation
Consistent focus on improving the Guest Experience
Increasing Average Guest Cheque
Boston Pizzas national menu is refreshed annually with new menu items and
local price adjustments
Renovation Program
Franchisees are required to renovate their restaurants every seven years to the
latest design standards, which provides incremental sales growth post-renovation

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Marketing and Promotion

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Digital Marketing and Loyalty

MyBP & Online Ordering:


iPhone app launched in 2014 Android version launched May 2016
Targeted loyalty offers
Increasing functionality
Improving experience and conversion rates
Online ordering growth
Increased average guest check for online orders

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Menu Management

Continuous Menu Innovation:


Annual national menu refresh
Regional pricing adjustments
Keeping up with consumer
trends with added/deleted
items
Executive Chef and BP
culinary team lead the
process of R&D and menu
management

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Continuous Menu Innovation

Pizzaburger
Boston Cream Piescraper
Wing sauces
Cactus Cut Nachos
Salads
Fish Tacos
MVB
Doughcano
Big Dipper sandwich

Boston Pizza, the Boston Pizza roundel and Boston Cream Piescraper are registered trademarks of Boston Pizza Royalties Limited Partnership, used under license. Pizzaburger, Doughcano, MVB and Well Make You A Fan are trademarks of Boston Pizza International
Inc., used under license.

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Restaurant Renovations - Exterior

After

Before

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Restaurant Renovations - Hostess Desk

After

Before

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Restaurant Renovations - Dining Room

After

Before

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Restaurant Renovations Feature Bar

After

Before

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New Restaurant Development

Multi-channel strategy
Leverage prototype models to suit area
Conversions
Non-traditional: hotels and airports
Franchisee development
Real Estate

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Boston Pizza Foundation Future Prospects

Commitment to giving back


in communities where we
operate BP restaurants.
Boston Pizza Foundation
has raised and donated
over $24 million to various
Canadian charities since
1990.
Signature cause of BPF
Future Prospects is role
modeling and mentoring
opportunities for Canadian
youth.

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Awards Received by Boston Pizza

Canadas 50 Best Managed Companies Platinum Club


Deloitte (2004-2016)
Franchisees Choice Designation
Canadian Franchise Association (2011-2016)
Lifetime Achievement Award: Jim Treliving/George Melville
Canadian Franchise Association (2012)
Tops in Hospitality
Foodservice and Hospitality Magazine (2007-2012)
Gold CASSIES Marketing Awards (2011, 2014, 2015)
Award of Honour JDRF (2012)

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Outlook

Continue to strengthen Boston Pizzas


position as Canadas #1 casual dining
brand through positive SSSG and new
store openings
13 new Boston Pizza locations opened
in 2016.
50 restaurant renovations completed
in 2016.

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Solid Structure

Top-line income fund structure


Royalty and distribution income are based on franchise sales
Investors are not directly exposed to expenses or profitability of
Boston Pizza International or Boston Pizza restaurants

Franchise
Royalty &
Sales of Less Fund Distributions
Distribution expenses
Royalty Pool to Unitholders
Income & taxes
Restaurants

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Q4 and Year Highlights

System-Wide Gross Sales of $270.8 million for the Period and $1.08 billion for the
Year.
Franchise Sales from royalty pool restaurants of $204.1 million for the Period and
$828.6 million for the Year, representing a decrease of 0.6% for the Period and an
increase of 1.8% for the Year, versus the same periods one year ago.
Distributable Cash per Unit decreased 2.6% for the Period and increased 1.8% for the
Year.
Payout Ratio of 101.1% for the Period and 98.9% for the Year. Funds cash balance at
the end of the Year was $3.5 million, an increase of $0.3 million from the prior year.
Same Store Sales Growth of negative 3.1% for the Period and negative 0.3% for the
Year.
Boston Pizza opened 11 net new full service restaurants and completed 50 restaurant
renovations in 2016.
On February 8, 2017, the Trustees declared January 2017 distributions to unitholders
of 11.5 cents per Unit payable on February 28, 2017.

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Quarterly Financial Performance

$ millions except per Unit data, payout ratio, SSSG and restaurants 2016 Q4 2015 Q4

NUMBER OF RESTAURANTS IN ROYALTY POOL1 372 366


FRANCHISE SALES BY ROYALTY POOL RESTAURANTS $204.1 $205.4
ROYALTY INCOME $8.2 $8.2
DISTRIBUTION INCOME $2.6 $2.7
INTEREST INCOME $0.5 $0.5
TOTAL REVENUES $11.3 $11.4
DISTRIBUTABLE CASH2 $6.9 $7.2
DISTRIBUTABLE CASH2 PER UNIT $0.341 $0.350
DISTRIBUTIONS PAID PER UNIT $0.345 $0.325
PAYOUT RATIO 101.1% 92.8%
SAME STORE SALES GROWTH
1The Fund reports changes to the number of Royalty Pool stores each year on January 1 as part of the new store roll-in process -3.1% 2.2%
2 For a reconciliation to the nearest IFRS measure, Cash Flows from Operating Activities, please see the Funds MD&A for Q4/16

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Year Financial Performance

$ millions except per Unit data, payout ratio, SSSG and restaurants 2016 2015

NUMBER OF RESTAURANTS IN ROYALTY POOL1 372 366


FRANCHISE SALES BY ROYALTY POOL RESTAURANTS $828.6 $814.0
ROYALTY INCOME $33.1 $32.6
DISTRIBUTION INCOME $10.7 $8.2
INTEREST INCOME $1.8 $1.8
TOTAL REVENUES $45.6 $42.6
DISTRIBUTABLE CASH2 $28.2 $25.6
DISTRIBUTABLE CASH2 PER UNIT $1.388 $1.364
DISTRIBUTIONS PAID PER UNIT $1.373 $1.274
PAYOUT RATIO 94.0%
98.9%
SAME STORE SALES GROWTH
1The Fund reports changes to the number of Royalty Pool stores each year on January 1 as part of the new store roll-in process -0.3% 1.8%
2 For a reconciliation to the nearest IFRS measure, Cash Flows from Operating Activities, please see the Funds MD&A for Q4/16

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Monthly Distribution History
Including the January 2017 distribution that is payable in
February 2017, the Fund will have paid out 175 consecutive
monthly distributions to Unitholders totaling $250.2 million or
$18.00 per unit since the IPO in 2002.
$0.1200

SIFT
$0.1000 Tax

$0.0800

$0.0600

$0.0400

$0.0200

$0.0000

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Annual Distribution History
As at February 16, 2017 the Fund has increased distributions to
unitholders 18 times since the IPO in 2002.

+1.9% y/y +7.7% y/y


+5.9% y/y
+4.6% y/y
+7.7% y/y +4.3% y/y +0.3% y/y
+6.6% y/y +10.8% y/y
$1.50 +9.2% y/y $1.354 $1.380 $1.380 $1.380 $1.380
SIFT $1.281
+2.0% y/y $1.278 $1.224
Tax $1.220
Distributions / year

$1.187 $1.170
$1.20 $1.114
(1)
$1.020 $1.056 (2)
$1.000

$0.90

$0.60

$0.30

$0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(1) Annualized
(2) $1.056 includes the impact of federal SIFT tax (26%) partially offset by a 9.5% increase in monthly distributions paid to unitholders effective July 2011.

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Unit Price History
Including the $17.88 per Unit in distributions paid as at January 31, 2017, the
Fund has produced a total simple return to investors of 306.8% since inception*.
Federal Recent BPF.UN distribution increases
taxation
change
announcement

Fund becomes
Federal
taxable under
taxation
SIFT legislation
review

Global
Initial Public Financial
Offering Crisis

*Excluding reinvestment of distributions paid. As at January 31, 2017 (BPF.UN closed at $22.80 per unit).

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Capital Markets Profile
As at December 31, 2016
TSX Stock Symbol BPF.UN
Publicly Traded Units 20,286,063
BPIs Unit Equivalents 3,512,361
BPIs % Ownership 14.8%
Unit Price $22.83
Market Capitalization $463.1 million
Total Debt Maturing in 2020 $86.8 million
Debt to EBITDA Ratio 2.0 : 1.0
Distribution Yield 6.0%
Cash Balance $3.5 million
2016 Distribution Return of Capital 23.0%

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Thank you!

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