Financials Assisted Living Facilities Jay O’Balles Christian Que Fariha Shah Osman Harac

Income Statements Sales and Marketing 0.05% of Sales Gen. and Admin. In line with industry standards Office Manager Others Insurance

Income Statements Sales and Marketing 0.05% of Sales Gen. and Admin. In line with industry standards Office Manager Others Insurance

Income Statements Cost of Sales Magazines Subscriptions Newspaper Subscriptions Registered Nurse (2) Licensed Vocational Nurse (2) Chef (1) and Assistants (2) Van Driver Physical Therapist (1, outsourced) Housekeeping Staff (10) Food and Drinks for Daily Meals $72,000 per month

Revenue Growth $190/resident/day $190/resident/day “Security Fee” paid by each incoming Resident “Security Fee” paid by each incoming Resident $141,000 $141,000 Anticipated growth by 6 residents per month, starting at Month 3 Anticipated growth by 6 residents per month, starting at Month 3 No seasonality No seasonality

Projected Balance Statement Solely debt-funded enterprise Solely debt-funded enterprise $180,000 loan $180,000 loan 95% used within the first two months 95% used within the first two months Security Fee alleviates cash flow in Month 3 Security Fee alleviates cash flow in Month 3 Amortized and paid off within 5 years at 3% interest Amortized and paid off within 5 years at 3% interest

Monthly Cash Flow $180,000 loan used within 2 months $180,000 loan used within 2 months “Security Fee” brings up cash level to $2 million within 3 months “Security Fee” brings up cash level to $2 million within 3 months

Key Ratios

Risks and Mitigation From Emeritus (ESC) 10-K From Emeritus (ESC) 10-K Growth of Industry/Not enough facilities Growth of Industry/Not enough facilities Slow growth in industry due to investment (buy vs lease) Slow growth in industry due to investment (buy vs lease) Solutions Solutions Grow with competition Grow with competition Lease (ALF/SNF/Nursing Homes are in the in the real estate business) Lease (ALF/SNF/Nursing Homes are in the in the real estate business)

Risks and Mitigation From Sunrise ( SRZ) 10-K From Sunrise ( SRZ) 10-K Liquidity Liquidity Exchange Rate Problems Exchange Rate Problems Solutions Solutions N/A to our model N/A to our model From Brookdale ( BKD) 10-K From Brookdale ( BKD) 10-K Mortgage Defaults Mortgage Defaults Customers having problems selling/renting homes Customers having problems selling/renting homes Solutions Solutions Everyone’s a renter Everyone’s a renter

Conclusion Saved money by leasing instead of committing to a mortgage Saved money by leasing instead of committing to a mortgage Cycling expansion and entry when capital expenses are low Cycling expansion and entry when capital expenses are low Careful attention to monthly cash flow Careful attention to monthly cash flow