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April 2015

SIR Royalty Income Fund

Investor Presentation (TSX: SRV.UN)

1

Caution Concerning Forward-Looking Statements

Statements in this presentation, including the information set forth as to the future financial or operating performance of the

Fund or SIR, that are not current or historical factual statements may constitute “forward-looking” information within the

meaning of securities laws. Such forward-looking statements involve known and unknown risks, uncertainties and other factors

which may cause the actual results, performance or achievements of the Fund, the Trust, the Partnership, SIR, the SIR

Restaurants, or industry results, to be materially different from any future results, performance or achievements expressed or

implied by such forward-looking statements. When used in this presentation, such statements may include, among other

language, such words as “may”, “will”, “should”, “would”, “expect”, “believe”, “plan”, “anticipate”, “intend”, “estimate” and other

similar terminology. These statements reflect Management’s current expectations, estimates and projections regarding future

events and operating performance and speak only as of the date of this presentation. Readers are cautioned that forward-looking

statements are not guarantees of future performance, and should not place undue reliance on them. The Fund and SIR expressly

disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained

herein to reflect any change in expectations, estimates and projections with regard thereto or any changes in events, conditions or

circumstances on which any statement is based, except as expressly required by law.

In formulating the forward-looking statements contained herein, Management has assumed that business conditions affecting

SIR’s restaurants and the Fund will continue substantially in the ordinary course, including without limitation with respect to

general industry conditions, general levels of economic activity (including in downtown Toronto), regulations (including those

regarding employees, food safety, tobacco and alcohol), weather, taxes, foreign exchange rates and interest rates, that there will

be no pandemics or other material outbreaks of disease or safety issues affecting humans or animals or food products, and that

there will be no unplanned material changes in its facilities, equipment, customer and employee relations, or credit

arrangements. These assumptions, although considered reasonable by Management at the time of preparation, may prove to be

incorrect. The Fund includes in publicly available documents filed from time to time with securities commissions and The Toronto

Stock Exchange, a discussion of the risk factors that can cause anticipated outcomes to differ from actual outcomes. For more

information concerning the Fund’s risks and uncertainties, please refer to the March 18, 2015 Annual Information Form which is

available under the Fund’s profile at www.sedar.com.

2

SIR Investment Highlights

• Diversified portfolio of well-known brands

• Experienced management team with strong alignment of interests

• Corporate ownership model increases flexibility

• Consistent track record of investment in new and existing locations

• Proven track record of sustained growth

• Five distribution increases since Fund inception

3

• SIR: ‘Service Inspired Restaurants’

• A leading Canadian operator of casual and fine dining restaurants

• Founded in 1990 by Fowler family

• Employees: ~5,000

• IPO: October 2004 (TSX: SRV.UN)

• Market Cap: ~ $104.2 m

• Recent close: $13.57 (Apr. 7, 2015)

• Units outstanding: 7.6 m (basic) / 10.1 m (FD)

• Annualized distribution per unit: $1.14

• Effective current distribution yield: ~ 8.3%

SIR Corp. SIR Royalty Income Fund

SIR Overview

SRV.UN 5-year unit price performance

4

Experienced Management Team withStrong Alignment of Interests

Peter Fowler

• Director of SIR Corp. since 1992

• Served as CEO since 2004 and the largest shareholder of SIR Corp.

–Helped create SIR Concepts and continues to focus on Concepts

• President of SIR GP Inc. and a trustee of the SIR Royalty Income Fund since 2004

Paul Bognar

• Joined SIR Corp. in 2012 as COO and EVP

• Head of Marketing, Human Resources, Finance, IT and Purchasing Departments

–Previous: President of Simmons Canada; and held various positions within Maytag Canada

Bruce Elliott

• Joined SIR Corp. in January 2011 as COO and EVP, became the President of Jack Astor’s in March 2012, and effective January 2014 is Vice President Business Development.

–Previous: partner at Level 5 Strategic Brand Advisors; President of Labatt Breweries; and senior management positions at Second Cup

Jeff Good

• CFO of SIR Corp. and SIR GP Inc.

• Has worked with SIR Corp. since 2000

• Helped launch SIR as an Income Fund

– 20 + years experience in Finance and Accounting

– Previously worked at Oliver Bonacini in Toronto

Experienced Management Team

Board of Trustees of the Fund:Peter Fowler: CEO and Director of SIR Corp.;

• President of SIR GP Inc.

Kim van Nieuwkoop: General Counsel, SIR Corp.

Independent Trustees:Peter Luit: Managing Director, CXO Advisory Services Inc.; Chairman

of Audit Committee

John McLaughlin: President, Treasury Technologies International;

Chairman of Board of Trustees

William Rogers: President, The Commercial Capital Corporation;

Chairman of Corporate Governance Committee

5

SIR Corporate Ownership Increases Flexibility

Greater control provides the ability to quickly implement operational and growth initiatives in response to customer trends and competitive activity

• Corporate ownership allows SIR to improve overall operations by:

– Implementing best practices across restaurant network

– Coordinating roll-out of new restaurant locations and product offerings

– Leveraging supplier relationships and delivery logistics

• Flexibility to react quickly to changing market dynamics

– Ability to change restaurant design as needed with minimal lead time

– Allows for menu innovation; EG: Jack Astor’s updates its menu at least twice a year

– Unlike franchises, business change can be affected without lengthy approvals/negotiations

• Consistent execution of brand value proposition

– Consistent customer experience at all restaurant locations creates superior brand value

6

Royalty Pool Concept Restaurants

Royalty Pool Signature Restaurants

7

55 Royalty Pooled Restaurants

S O U T H E R N O N TA R I O

30

8

5

1

1

2 1

Alberta

2

Nova Scotia

Quebec

4

Newfoundland

1

8

Royalty Pooled Restaurants

Signature Group

Revenue Contribution (for the year ended December 31, 2014)

75.5%

10.6%

5.3%8.6%

8

9

Pooled Revenue

($000s)

Same Store Sales Growth

# o

f re

sta

ura

nts

Concept Royalty Pooled Restaurants

9

3.2%

3.9%

5.0%

0.6%

1.7%

2010 2011 2012 2013 2014

$1

37

,58

2

$1

47

,00

4

$1

57

,62

9

$1

76

,72

3

$1

94

,72

3

29 30 3134

37

0

5

10

15

20

25

30

35

40

$-

$50,000

$100,000

$150,000

$200,000

$250,000

2010 2011 2012 2013 2014

10

Jack Astor’s Evolution

• Over the past 10 years, SIR has “evolved” nearly every Jack Astor’s in the system

Recent Renovations

• Square One (Mississauga) / Newmarket / Bloor St.

Recent New Restaurant Openings

• Kitchener, ON in Q1 2013

• North York, ON in Q2 2013

• Pickering, ON in Q2 2013

• St. John’s, NL in Q2 2014

• Ottawa, ON in Q1 2015

Consistent Track Record of Investment in New and Existing Locations

10

11

Pooled Revenue

$000s

Same Store Sales

# o

f re

sta

ura

nts

Concept Royalty Pooled Restaurants

11

0.5%0.4%

-1.0%

-3.2%

1.7%

2010 2011 2012 2013 2014

$2

7,8

43

$2

7,9

48

$2

7,6

82

$2

6,7

94

$2

7,2

56

8 8 8 8 8

0

1

2

3

4

5

6

7

8

9

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2010 2011 2012 2013 2014

12

Pooled Revenue

($0

00

s)

Same Store Sales

# o

f re

sta

ura

nts

²

¹ Alice Fazooli’s on Adelaide St. in Toronto was closed during Q1 2012. SIR paid a make-whole payment to the Fund from the date of closure to Dec. 31, 2012 (Class A GP units)

² 2012 SSS excludes the results of Alice Fazooli’s on Adelaide St.

¹

Concept Royalty Pooled Restaurants

12

$1

9,0

39

$1

8,1

80

$1

5,1

59

$1

3,6

10

$1

3,7

73

5 5 5

4 4

0

1

2

3

4

5

6

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

2010 2011 2012 2013 2014

1.3%

-4.5% -3.9%

-9.6%

1.2%

2010 2011 2012 2013 2014

13

Alice Fazooli’s Repositioning

13

• Alice Fazooli’s Square One (Mississauga) converted to Scaddabush in July 2013

• Positive early results: SSSG of 14.4% in Q4 2014, and 21.8% in fiscal 2014

• A new Scaddabush was opened at the Aura Condominium Development in downtown Toronto (Yonge & Gerrard) in February 2014

13

14

Signature Group Royalty Pooled Restaurants

($0

00

s)

Pooled Revenue

Same Store Sales

# o

f re

sta

ura

nts

14

¹

¹ Reds was closed for 32 days for a major renovation and repositioning

5.8%5.7%

-4.4%

14.3%

6.1%

2010 2011 2012 2013 2014

$1

5,1

83

$1

6,0

55

$1

5,3

52

$1

7,5

40

$2

2,1

26

3 3 3 3

4

0

1

2

3

4

$-

$5,000

$10,000

$15,000

$20,000

$25,000

2010 2011 2012 2013 2014

15

• Major renovation and repositioning of Reds completed October 2012 and reopened as Reds Wine Tavern

• Redevelopment of lower level of the Loose Moose into the “Antler Room” completed December 2012

• Major renovation of the Loose Moose completed February 2013

Consistent Track Record of Investment in New and Existing Locations

15

16

New Signature Restaurants

• Reds Midtown Tavern and Duke’s Refresher are two of the three new SIR restaurants at Aura Condominium Development (Yonge & Gerrard)

• Reds Midtown Tavern opened on October 30, 2013

• Duke’s Refresher opened December 4, 2013

Downtown Toronto Expansion

16

17

SIR Royalty Income Fund Structure

NOTE: the above illustration is for descriptive purposes only and is qualified in its entirety by the description in the actual agreements and by the Fund’s prospectus on SEDAR1. As at April 8, 2015, SIR Corp. holds a 24.6% retained interest in SIR Royalty Limited Partnership.

SIR Royalty Limited Partnership(1)

SIR Royalty Income Fund

Fund Unitholders

Restaurant Operations

Interest Income from SIR Loan

6% Royalty on Pooled Revenue

Distribution Income

Monthly Distributions

18

Fund Unit Offerings

Transaction Mechanics:

• The Fund issues units in exchange for Class A GP units held by SIR

• SIR sells Fund units via TSX for gross proceeds

• The Fund converts Class A GP units into Class A LP units, which are entitled to a pro rata share of residual LP income

Net proceeds used to partially fund renovations to existing restaurants and construction / development costs of new restaurants

PeriodNumber of Units Issued in Exchange for Class A GP units

Gross Proceeds

Q1 2013 895,000 $11.0 million

Q1 2014 500,000 $7.0 million

Q4 2014 350,000 $4.4 million

19

Q4 2014 Same Store Sales Growth

(3 months ended December 31, 2014)

Overall SSSG

3.5% 2.2% 3.0% 7.1% 3.6%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

20

Historical Pooled Revenue Growth

Pooled Revenue (in $ millions)

Number of Royalty Pooled Restaurants

Restaurants in Royalty PoolPooled Revenue

NOTE: On January 1, 2015 two additional restaurants were added to the Royalty Pool

$199.6 $209.2 $215.8 $234.7 $257.9

45 46 4749

53

0

10

20

30

40

50

60

0

50

100

150

200

250

300

2010 2011 2012 2013 2014

21

2014 Financial Review

Restaurants in Royalty Pool

$234.7 $257.9

49

53

$0.0

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

2013 2014

Pooled Revenue ($ millions) Cash Distributions ($ millions)

$7.3 $8.2$7.6 $8.3

104.9% 100.5%

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

2013 2014

Distributable Cash Cash Distributed Payout Ratio

22

Historical Same Store Sales Growth

2.8% 2.8% 2.8%

0.4%

2.0%

2010 2011 2012 2013 2014

23

7.3

9

7.3

9

5.5

1

5.6

2

7.6

2 8.2

8

7.1

4

7.3

8

5.5

1

5.9

1

7.2

7 8.2

4

103.6%100.1% 99.9%

95.1%

104.9%100.5%

0

1

2

3

4

5

6

7

8

9

10

2009 2010 2011 2012 2013 2014

Distributions Distributable Cash Payout Ratio

Historical Cash Distributions & Payout Ratio

SIFT Tax¹

1. The reduction in distributions beginning in 2011 was equal to the estimated SIFT tax payable on the Fund’s 2011 income.2. The special year end distribution of $0.05/unit to unitholders of record as of December 31, 2012 is not included in the chart above.3. Cash distributed to unitholders in 2013 includes the special year-end distribution of $0.05 per unit that was declared in December 2012 and paid on

January 11, 2013. The Fund also increased monthly distributions to $0.095 / unit effective for the June 2013 distribution. The payout ratio was significantly affected by these items.

(in $ millions)

2 3

The Fund’s payout ratio is intended to average 100% per annum over the long term. The Fund’s payout ratio from inception in 2004 through to YE 2014 is 99.4%.

24

Attractive and Stable Yield with History of Increases

2004 to

May 2006

$0.095$0.088

$0.115

$0.083

$0.110$0.105

$0.100

June 2006 to

May 2007

June 2007 to

May 2008

June 2008 to

Jan. 2011

SIFT Tax

Feb. 2011 to

May 2012

June 2012to

May 2013

June 2013to

Present

• Current monthly distribution of $0.095 / unit, current yield ~ 8.3%

• Five distribution increases since IPO in 2004

25

Outlook

• Recent opening of new Jack Astor’s in Ottawa, ON (Q1 2015)

• Royalty pool additions of Scaddabush (Toronto) and Jack Astor’s (St. John’s) in Q1

2015

• Continued focus on Alice Fazooli’s / Scaddabush repositioning driving strong SSSG

• Commitments to lease three properties: two new Jack Astor’s restaurants and one new

Scaddabush restaurant, expected to open in fiscal 2015 and fiscal 2016

• Continued investment in existing restaurants to drive SSSG