pgold: investor presentation materials

8/18/2019 PGOLD: Investor presentation materials

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Sa , Always Panalo!

PUREGOLD PRICE CLUB, INC.Company Presentation

FY 2015 Results and Performance

April 2016


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These presentations and/or other documents have been written and presented byPuregold Price Club, Inc. (PGOLD). PGOLD is solely responsible for the accuracyand completeness of the contents of such presentations and/or other documents.

Third parties, other than PGOLD, do not have any responsibility for or control overthe contents of such presentations and/or other documents. No endorsement isintended or implied notwithstanding the distribution of this presentation and/or otherdocuments during the analysts and investors calls and meetings of PUREGOLD.The materials and information in the presentations and other documents are forinformational purposes only, and are not an offer or solicitation for the purchase or

sale of any securities or financial instruments or to provide any investment serviceor investment advice.

Disclaimer


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Investment Summary

1. Sustained economic growth of the Philippines

2. Exposure to growing & robust consumer sector

3. Visible growth pipeline in the next 5 years

4. Focused core target market per brand5. Expansion of new store formats aimed at the broad-C market

6. Expansion to new geographic locations

7. Management focused on the sustainable and Long-Termgrowth of the company


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Stores roll-out through FY 2015

First storeOpened inMandaluyongCity, MetroManila

ExpansionLaunched loyaltyprogram in 2001;renamed asTindahan ni Aling

Puring in 2004Between 2002 and2006, launched anaverage of 3 newstores every yearand expandedoperations in Northand South Luzon

Brand recognitionReader’s Digest

Asia’s “MostTrusted Brands”

Market leadershipThe 2 nd largesthypermarket andsupermarketretailer in the

Philippines in termsof net sales

Rapid expansion via organicnew Puregold stores roll-outand acquisitions

2011 - Opened 38 newPuregold stores

2012 – Opened 31 newPuregold stores; AcquiredParco supermarkets with 19stores and S&R warehousemembership shopping clubwith 6 stores

Rapid store expansion from 1 to 298 stores in 17 years

First formatintroduction

New formatintroduction

New formatintroduction - 2010

Continuing new stores roll-out via organic geographicexpansion andacquisitionsOpened 40 new Puregold

and 2 new S&R stores in2013

Acquired Company E with15 stores in 2013NE Bodega 9 stores andBudgetlane 8 storesacquisitions in 2015

1 3 16 2030 41

64102

158215

248 298

1998 2001 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


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Sa , Always Panalo!

Update on PGOLD – FY 2015


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FY 2015 Results and Performance

Opened 27 new PGOLD stores; 1 S&R Warehouse; 10 S&R NewYork Style Pizza (QSR) in 2015; acquired 9 Stores NE Bodega, 8Stores Budgetlane Supermarket and closed 5 PGOLD stores

Operating 281 stores in 2015; with consolidated NSA of more than426,000 sqm.; excluding acquisition NE Bodega of around 15,000

sqm and Budgetlane of around 18,000 sqm.Consolidated net sales expanded by 14.7% in 2015; Puregoldstores sales accounted for about 81.7% of consolidated net sales

Gross profit grew by 11.7% in 2015; with gross profit margin

posted 17.0%Operating income increased by 10.4% in 2015; with operatingmargin at 7.4%

Consolidated Net income grew by 10.6% in 2015; consolidated

net profit margin at 5.1% PGOLD only net margin is at 4.6% whileS&R net margin is 10.1%.


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Format Hypermarket, supermarket, extra Membership shopping

Revenue contribution

Gross profit (PHP million) & Margin (%) 12,480 (15.7%) 4,008 (22.5%)

Total traffic (million) 143.6 5.5

Average net ticket (PHP) 543 3,584

Net sales growth (%) 15.3% 6.6%

Traffic growth (%) 7.5% 11.9%Average net ticket growth (%) 5.0% -4.7%

Same Store net sales growth (%)* 3.8% -0.1%

Same Store traffic growth (%)* -1.8% 3.0%

Same Store average net ticket growth (%)* 5.7% -3.0%

Operating Performance – FY 2015

*Same Stores Growth for 2015 are based on stores opened as of end December 2013.


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Operating Performance – FY 2015

Breakdown of Stores (per format) Net Selling Area of Stores (in sqm)

Traffic and Ave Ticket Size

306,753 369,708426,559404,914

*excludes NE Bodega and Budgetlane stores with a total of 17 storesand 33,000 sqm NSA

Traffic (in M) Puregold S&R2012 93.7 3.0

2013 119.5 3.92014 133.6 4.92015 143.6 5.5

Ave Ticket (in Php) Puregold S&R2012 548 3,7542013 511 3,798

2014 517 3,7632015 543 3,584

280,340 331,851360,868 373,876

26,41337,857 44,046

50,9631,720

2012 2013 2014 2015Puregold S&R only S&R QSR

Group 2012 2013 2014 2015Hypermarket 87 113 121 134Supermarket 47 64 83 93Extra 16 28 29 28

S&R 6 8 9 10S&R QSR 2 2 6 16TOTAL 158 215 248 281

Puregold Only 2012 2013 2014 2015Metro Manila 69 88 102 104North Luzon 37 48 58 64South Luzon 44 63 67 74Visayas 0 1 1 6Mindanao 0 5 5 7TOTAL 150 205 233 255


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Total no. ofstores 281

No. of

stores performat

134 hypermarkets;93 supermarkets;

28 extras10 S&Rs & 16S&R QSR

Consolidated netselling area

about 426,000square meters

North Luzon(68 stores)

Visayas

(8 stores)South Luzon(78 stores)

Metro Manila(118 stores)

BULACAN

RIZAL

LAGUNA

CAVITE

Manila Bay

Laguna de Bay

Caloocan

Pasig

Marikina

Valenzuela

Caloocan

Malabon

Quezon City

ManilaSan Juan

Mandaluyong

Navotas

Makati

Parañaque

Pasay Taguig

Pateros

Las Piñas

Muntinlupa

Key statistics FY 2015 Geographic coverage

Area with Puregold store coverage

Store Portfolio – FY 2015

Mindanao(9 stores)

Metro Manila 104 5 9North Luzon 64 1 3South Luzon 74 2 2Visayas 6 1 1

Mindanao 7 1 1255 10 16


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Notes:June to December 2012 financial results of S&R and Parco consolidated into CY 2012 results of PGOLD

Financial Performance – FY 2015

Net sales (in Php billions) Gross profit & Margin (in PHP billions)

• Continuing strong revenue growth driven by the 255 Puregold stores and the 10 S&R stores• Increasing scale of operations resulted to continuing support from suppliers in terms of discount and rebates• Re-branded acquisitions supported continuing growth in revenues and sustainability of margins

3957.5

73.284.7

97.17

2011 2012 2013 2014 2015

YoY: Up 14.7% YoY: Up 11.7%

5.59.2

12.714.8

16.49

14.2%16.1%

17.4% 17.4% 17.0%

8.0

13.0

18.0

23.0

28.0

0

2

4

6

810

12

14

16

18

2011 2012 2013 2014 2015

GP GP Margin


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11Notes:June to December 2012 financial results of S&R and Parco consolidated into CY 2012 results of PGOLD

Other Operating Income (in PHP millions) Operating Expenses (in PHP millions)

EBITDA & Margin (in Php millions)

1,052

1,6672,204

2,5632,886

2.7% 2.9% 3.0% 3.0% 3.0%0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-

500,000

,500

,000

,500

,000

,500

,000

2011 2012 2013 2014 2015

Other Income % of Sales

4,355

7,0579,449

10,84512,225

11.2% 12.3%12.9% 12.8% 12.6%

0.0%

5.0%10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2011 2012 2013 2014 2015

OPEX % of Sales

2,817

4,9246,877

8,1338,847

7.2%8.6% 9.4% 9.6% 9.1%

0.0%

10.0%

20.0%

30.0%

40.0%

-

2,000

4,000

6,000

8,000

10,000

2011 2012 2013 2014 2015EBITDA EBITDA Margin

YoY: Up 12.6% YoY: Up 12.7%

YoY: Up 8.8%



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12Notes:June to December 2012 financial results of S&R and Parco consolidated into CY 2012 results of PGOLD


Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions)

2,231

3,849

5,454

6,4787,150

5.7%

6.7%7.5% 7.6% 7.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

-

,000

,000

,000

,000

,000

,000

,000

,000

2011 2012 2013 2014 2015

EBIT EBIT Margin

YoY: Up 10.4% YoY: Up 10.6%

1,545

2,719

3,959 4,520

5,002

4.0% 4.7%

5.4% 5.3% 5.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

2011 2012 2013 2014 2015

Net Income NI Margin


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Financial Performance – Puregold Only

Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions)

EBITDA and Margin (in PHP millions) Net Profit & Margins (in PHP millions)

Notes:June to December 2012 financial results of S&R and Parco consolidated into CY 2012 results of PGOLD

51.3360.99

69.05 79.61

2012 2013 2014 2015

3,772 4,4405,230 5,915

7.3% 7.3% 7.6% 7.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-,000,000,000,000,000,000,000

2012 2013 2014 2015

EBITDA EBITDA Margin

2,2712,864 3,192 3,671

4.4% 4.7% 4.6% 4.6%0.0%

5.0%

10.0%

15.0%

-

1,000

2,000

3,000

4,000

2012 2013 2014 2015

NIAT NIAT Margin

YoY: Up 15.3% YoY: Up 12.4%

YoY: Up 13.1% YoY: Up 15%

7,7869,725

11,108 12,480

15.2%15.9% 16.1% 15.7%

8.0%

13.0%

18.0%

23.0%

28.0%

-

2,000 4,000

6,000

8,000

10,000

12,000

14,000

2012 2013 2014 2015GP GP Margin


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Financial Performance – S&R Only

Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions)

EBITDA and Margin (in PHP millions) Net Profit & Margins (in PHP millions)

Notes:June to December 2012 financial results of S&R was consolidated into CY 2012 results of PGOLD

1,453

2,9743,652 4,008

23.4%23.9%

23.2% 22.5%

-10.0

10.0

30.0

50.0

70.0

90.0

-

1,000

2,000

3,000

4,000

5,000

2012 2013 2014 2015

GP GP Margin

1,163

2,4372,904 2,933

18.7% 19.5% 18.4% 16.5%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%60.0%

-

500,000,500,000,500,000,500

2012 2013 2014 2015

EBITDA EBITDA Margin

6.21

12.4615.77

17.82

2012 2013 2014 2015

YoY: Up 13% YoY: Up 9.7%

YoY: Up 1% YoY: Up 0.2%

748

1,5701,803 1,806

12.0%12.6%

11.4% 10.1%0.0%

10.0

20.0

30.0

40.0

-

500

1,000

1,500

2,000

2012 2013 2014 2015

NIAT NIAT Margin


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Notes:1.Average of inventory at the beginning and end of the period / cost of sales x 363 (for full year))2.Average of trade receivables at the beginning and end of the period / net sales x 363 (for full year)3.Average of trade payable at the beginning and end of the period / cost of sales x 363 (for full year)


Working capital days impacted by S&R importations and

Puregold rapid store expansions and acquisitions

TradeReceivables Days

Inventory Days

Trade PayablesDays

New Puregold Store roll out and forS&R to mitigate port congestion issues

Shorter term payments to suppliers toavail of additional discounts

2012 2013 2014 2015

3.5 4.1 5.3 5.7

41.9 48.2 53.2 54.3

37.3 36.9 35 27.7


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CAPEX Guidance for FY 2016

CAPEX Budget of Php 2.6 billion in 2016

– Php 1 billion for 25 new Puregold Stores

– Php 1 billion for 2 S&R stores

– Php 150 million for 10 S&R QSR

– Php 450 million for 75 Lawsons Stores

To be funded by internally generated cash and short term

untapped bank credit lines if necessary.


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Guidance for FY 2016

Consolidated net sales targeted to grow by 12 to 15% driven bythe following:

– Net sales growth from organic Puregold and S&R stores

– Positive SSSG for Puregold (3%) and S&R (4 to 5%)

– Opening of 25 new Puregold stores; 2 S&R stores

– Full year operations of NE Bodega & Budgetlane Supermarket

Lower PGOLD inventory days between 45 to 50 days

Sustain PGOLD consolidated gross and net profit margins

Pursue acquisitions and expand into new geographic locations


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Q & A

Thank you!

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