July 18, 2019

AZRIELI GROUP

Investing in the Data Centers Industry

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Disclaimer

The information included in this presentation is merely a summary. It does not exhaust all the information about the Company and/or Compass Datacenters LLC (“Compass”) and their business, and it is not a substitute for inspection of the Company’s periodic and immediate reports, as filed and to be filed with the Israel Securities Authority via the Magna distribution site. The presentation is not an offer or invitation to purchase securities of the Company and/or of any other corporation, nor is it arecommendation or option or any substitute for the investor’s discretion. In any case of discrepancy or inconsistency between the information in this presentation and the information in the Company’s reports on Magna, the information in the reports shall prevail.

This presentation includes forecasts, objectives, assessments, estimates and other information relating to future matters and/or events whose materialization is uncertain and which lie beyond the Company’s control, and constitute forward-looking information, as defined in the Securities Law, 5728-1968. Such information (which includes, inter alia, forecasts of output, NOI, EBITDA, yields and projected leverage) may not materialize, in whole or in part, or may materialize in a materially different manner than projected. The above information is based solely on the subjective assessment of the company, based on facts and figures regarding the current state of Compass’ business and macroeconomic facts and figures, all as known to Compass at the time of preparation of this presentation. The materialization or non-materialization of the forward-looking information willbe affected, inter alia, by risk factors that characterize Compass’ business, as well as developments in the economic environment, market conditions and external factors that affect its business, including a delay in the completion of sites underconstruction and development, termination of contracts, changes in the competition conditions, a significant recession, change in the financing conditions, and other such events which cannot be assessed in advance and which are beyond Compass’ control. The Company does not undertake to update and/or change any such forecast and/or assessment to reflect events and/or circumstances occurring after the date of this presentation.

This presentation includes information about the Data Centers market and other information that is based on external sources and various studies and surveys, which were not independently checked by the Company. Keep in mind that past results are not necessarily an indication of future performance.

The financial information about the Compass deal takes into account another acquisition of business by Compass, closing of which is expected by the end of July 2019.

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Azrieli Group // Opportunity in the Data Centers industry

The Group made a decision to enter the global Data Centers industry

The board of directors and management of the Group believe that the industry fits the Group’s

investment strategy

One of the world’s fastest growing income-producing property markets

The tenants are among the world’s leading companies

The Group has been thoroughly studying the market for about two years

A decision was made to enter the field according to the outline specified below, consisting

primarily of:

An investment in equity, with an option to increase the holdings, in a platform with

significant future development and enterprise potential

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What is an Azrieli Group growth engine

A field with potential to become a significant operating segment for the Group

Core business activity – income-producing property

A sizeable, significant and growing industry

Attractive yields

An industry that combines enterprise with an advantage for financial strength

The Global Data Centers Market

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Data storage development

The 1990s

Increase in the scope of use of “server-client” IT architecture

in large organizations

The early 2000s

Sharp growth in number of internet users

Now

Projected increase in consumption of online content

0.4

2

4

2000 2010 2018

Internet users worldwide, in billions

96122

151186

228

278

2016 2017 2018 2019 2020 2021

Monthly online information traffic, ExaBytes

(1)

(1) 1 Exabyte = 1 Million TeraByte = 1 Billion GigaByte(2) Source: Clipperton Finance, Cisco

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The global market is estimated to generate annual revenues of approx. $91 billion.

By 2022, the market is expected to grow at an average annual pace of approx. 35%, totaling annual

revenues of approx. $307 billion.

The U.S.A. is positioned as the global market leader: About 60% of the data centers capacity is located

North America, 20% in Asia-Pacific, and 13% in Europe.

The market growth is led by the global cloud companies, and is driven mainly by the growth of the data

industry by both business and private entities.

Global DC market breakdown (% in MW)

(1) Source of data: CMA Strategy Consulting, RBC, Structure Research(2) UK, Germany, France, Ireland, the Netherlands

Data Centers // Opportunity in the Global Market (1)

Industry growth factors

Cloud

AI

IoT (Internet of Things)

Augmented reality

5G networks

Smart transportation

Crypto Currencies

$23 $32 $47

$69

$99

$137

2015A 2016A 2017A 2018E 2019E 2020E

Public Cloud ($bn)

61%

3%

12%

1%

20%

2%United States

Canada

Major Europe

Other Europe

APAC

LATAM

(2 )

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Data Centers // Characteristics

Income-producing real estate, a building housing

computers and servers of companies of various

types

Includes hardware for processing, storage,

switches, etc.

High-standard security requirements, very high

redundancy in terms of power, latency, systems,

control and safety

Property location of significant importance,

according to the following parameters:

– Close to communication networks

– Located and power sources

– preferably in cold locations with low power

costs

Main characteristics

Lease is based on power units rather than area

units

Measurement unit: KW

Types of tenants:

– Hyperscale (>5 MW)

– Wholesale (300 KW – 5MW)

– Retail (Multi Tenants) (<300 KW)

Tenants and Leases

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Data Centers // Customer breakdown

Types of customers

Hyperscale -Wholesale Retail

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The U.S. market is shifting to outsourcing solutions Key North American markets in terms of capacity and development

Growth in the number of Hyperscale Data Centers

338 386448

509570

628

27%32%

38%44%

48%53%

2015A 2016A 2017A 2018E 2019E 2020E

# of Hyperscale Data Centres % Share of Data Centre Servers (Installed Base)

Data Centers //

The Changes and Expected Growth in the Market

(1) Source: CMA Strategy Consulting, RBC(2) Source: Industry Research, Cisco Global Cloud Index: Forecast and Methodology, Statista, Gartner, BI Intelligence(3) Source: IDC, Worldwide Datacenter Installation Census and Construction Forecast, 2019–2023, Doc #US43797219 , Apr 2019The analysis includes datacenters only (without server closet and server rooms)

Assists companies in focusing on their core business

Increase in costs and complexity of in-house DC

management increases attractiveness of outsourcing

More companies will “lease” comprehensive IT services

from cloud providers, and transfer the task of building and

maintaining their IT infrastructure to a limited group of

specialist experts.

2019 2022 2019 2022

Critical MW Critical MW 3-YR CAGR MW/YR Rank Rank

Northern VA 1,393 1,946 11.8% 184 1 1

Dallas 693 826 6.0% 44 2 2

Las Vegas & Reno 593 659 3.6% 22 3 4

Chicago 573 714 7.6% 47 4 3

Silicon Valley 519 651 7.8% 44 5 5

New Jersey 516 580 4.0% 21 6 6

Houston 383 424 3.4% 13 7 10

Atlanta 376 460 6.9% 28 8 7

Los Angeles 374 427 4.5% 18 9 9

Seattle 325 363 3.8% 13 10 11

Phoenix 317 441 11.6% 41 11 8

New York 295 320 2.8% 8 12 12

55%

45%

88%

12%

Internal Data Centers Service Providers

2013 2019Internal Data Centers: -10%

CAGR )2013-2023):Service providers: +24%

Main drivers for increasing demand for Outsourced services

1,998 2,109 2,216 2,329 2,475 2,584 2,698

198 234 291 317 352 393 441

476 486

497 516

541 560

580

506 530

571 593

615 637

659

539 590

639 693

741 782

826

420 472

520 573

621 670

714

427 446

469 519

565 609

651

788

949

1,235

1,393

1,572

1,754

1,946

5,353

5,816

6,439

6,933

7,482

7,990

8,514

2016 2017 2018 2019 2020 2021 2022

Uti

lize

d M

W

Northern VA

Silicon Valley

Chicago

Dallas

Las Vegas & Reno

New Jersey

Phoenix

Others

CAGR )2018-2022)

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(1) Source of data: CMA Strategy Consulting

The forecast includes the deployment of Retail Colocation (<300KW) in addition to Hyperscale and Scale

Data Centers // U.S. capacity increase forecast

7.2%

Forecast

(1) Source of data: Wall Street Research, Structure Research, RBC

Total Infrastructure Forecast Mix

Hyperscale cloud providers rely increasingly on third-party wholesale providers to develop their capacity to support growth

8% 6%

9%

77%

Colocation Hyperscale/ Cloud

Managed Infrastructure On-Premise

12%

34%

11%

43%

Colocation Hyperscale/Cloud

Managed Infrastructure On-Premise

2017

2022E

Data Centers // The Global revenues development forecast

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30.846.8

70.2103.9

153.0

224.4

28.9

33.1

38.0

43.9

50.5

58.0

9.8

11.6

14.0

16.9

20.3

24.4

$69.5

$91.5

$122.2

$164.7

$223.8

$306.8

2017 2018E 2019E 2020E 2021E 2022E

Hyperscale Retail Wholesale

($ in Bns)

Outsourced Infrastructure Global Forecast

% Growth 32% 34% 35% 36% 37%

Data Centers // U.S. Market Characteristics

Customers

Duration of contracts

Rent(2)

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Large cloud service providers, communication companies, etc.

Medium-sized businesses – banks, airlines, etc.

5-10 years1-3 years

8%-12%10%-20%

Hyperscale: US$ 90-120 kW/Month

Wholesale: US$ 110-140 kW/MonthUS$ 150-250 kW/Month

Hyperscale / WholesaleRetail

(1) Source of data: CMA Strategy Consulting, RBC(2) Gross modified. According to the company’s and CMA’s assessment, the cost of construction of 1MW is in the range of $6-8 million.

Yield-on-cost (2)

The Compass Deal

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Azrieli Group // The Go To Market Approach

Long term (Steady State) leverage of 50%-60%

A reasonably-priced active platform & experienced management (1)

Existing and future operations in the Wholesale/ Hyperscale segment

Developing a significant installed base in a mature market

Land and development pipeline in attractive locations for future growth

Local partner

(1) The importance of relationships and acquaintance with key customers, mainly in the Hyperscale and Wholesale markets

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Azrieli Group // Compass Deal

10 active sites, 3 sites under construction and development

Active mainly in the central-eastern U.S and in Canada in the Montreal region.

The Company’s management is experienced in the development and establishment of data centers and

relationships with strategic customers.

The DCs are located close to power lines and high voltage and fiber line infrastructure.

Description of the Company

Data centers in the U.S.A. and Canada

3 Hyperscale Deployments

8 Stabilized Campuses

Minneapolis(2 Facilities)

Nashville(2 Facilities)

Tulsa(1 Facility)

Dallas(2 Facilities)

Raleigh(1 Facility)

Montreal(2 Facilities)

2 Facilities in Montreal Canada

Phoenix(Campus Build)

Dallas Fort Worth(Campus Build)

Northern Virginia(Campus Build)

The partners

Ontario Teachers’ Pension Plan– Ontario teachers’ pension fund, one of Canada’s largest institutional investors

RedBird Capital Partners - Investments are focused on communications infrastructure, sports & hospitality,

energy, and financial services.

Compass management – decades of experience in the initiation and management of Data Centers.

(1) Option to increase holdings up to 33% according to current value against future investments in development.

Ownership structure

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Azrieli Group // Compass Deal

19.5%

23.7%

2.3%

54.5%

July 2019

Management

33%

Management

(1) (1)

Expected Dec. 2020

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Management

Compass management – decades of experience in the initiation and management of server farms.

Jared DayPresident & CFO

20+ years of experience

Raymond HawkinsCRO

30+ years of experience

Adil AttlassyCTO

30+ years of experience

Nancy NovakSVP construction

30+ years of experience

Chris CrosbyFounder & CEO

25+ years of experience

Proferian

Construction

Executive

ConstructionStrategy & operationsSalesFinanceCEO

Azrieli Group // Compass Deal

$ 38 MillionCurrent(1) NOI Annualized

~30MWCurrentoutput

~7 years Average

lease term

~ 560MWPotential

output in the long term

Current income-producing outputNOI for 100%

Duration of existing contracts

Future development potential

(1) Included signed but not yet closed agreements.

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(1) For Large cloud companies.(2) The time tables, actual size and marketing of the projects are uncertain.

Azrieli Group // Compass Deal

Compass’s facilities

10 Active facilities3 Hyperscale(1) facilities under

development(2)

~30MW ~ 120MW ~ 560MW

$ 201 Millionnet debt

Existing debt in acquired company

40%-50%projects in pipeline

Projected leverage

Current producing output

Additional short-term output pipeline

Total potential output in acquired assets and land

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Summary // Trends in the Data Centers Market

The data revolution has created a reality where Data Storage and Data Processing are growing at increased speed and size

Cloud development causes businesses to opt for intensive hardware outsourcing

Consequently, the Data Centers market is growing at a high pace, and presents an opportunity to develop a new growth engine

The yields in the Data Centers market are considerably higher than other traditional real estate sectors

“Stickiness” – Due to the sensitivity and materiality of the matter, companies tend not to make frequent changes in their server farms and

databases, leading to long-term contracts and little turnover

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Summary // An Opportunity for Azrieli Group

Consistent with the Group’s strategy –real estate development

A new and growing business segment

Income-producing real estate with attractive yields

A growth engine in a significant global market

Significant potential operating segment

Thank you