Balai Ni Fruitas, Inc. · PSE:BALAI
Balai Ni Fruitas — IPO Roadshow (June 2022)
38 slides from Balai Ni Fruitas's IPO roadshow presentation, June 2022
Slide 1: Company Presentation June 2022
Company Presentation June 2022 1
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute a prospectus or any kind of offering memorandum in whole or in part. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company. There shall be no sale of these securities in any state or j
Slide 3: Disclaimer
DISCLAIMER A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, BUT HAS NOT YET BECOME EFFECTIVE. THESE SECURITIES MAY NOT BE SOLD NOR OFFERS TO BUY THEM BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT IS RENDERED EFFECTIVE. THIS
Slide 4: Agenda
THE COMPANY INDUSTRY OVERVIEW COMPETITIVE STRENGTHS KEY STRATEGIES FINANCIAL HIGHLIGHTS THE OFFER 4
Slide 5: The Company
ne THECOMPANY BAT.AT NI FRUITAS INC.
Slide 6: Emerging food and beverage operator
Emerging food and beverage operator Wholly-owned 77 active stores subsidiary of Fruitas nationwide Holdings, Inc. 3 active and strong Highly Scalable and brands as of Sustainable December 2021 business model 6
Slide 7: Corporate History
CORPORATE HISTORY 2005 2012 2017 2021 Incorporation of Birth of Fruitas House of Buko ni Fruitas Inc. Acquisition of Balai Buko ni Fruitas Inc. Desserts, with its first store at becomes 100% subsidiary Pandesal assets with first Robinsons Magnolia of Fruitas Holdings Inc. Community Store at Kamuning,
Slide 8: Brands & Products
Brands & Products Balai Pandesal serves Buko ni Fruitas serves fresh Fruitas House of Desserts serves freshly-baked goods such coconut-based desserts healthy desserts, fresh fruit as Pandesal, Ensaymada, such as Buko Pandan shake, shakes and juices, boba shakes, Buko Pie, and more. Buko con Yelo des
Slide 9: Number of Stores per Brand
Number of Stores 56 NCR 19 per Brand LUZON As of December 31, 2021 9 2 VISAYAS 31 37 Note: Stores as of December 31, 2021 9
Slide 10: Industry Overview
2 ee INDUSTRY = OVERVIEW BALAI NI FRUITAS INC.
Slide 11: The Philippine Baked Goods Industry
THE PHILIPPINE BAKED GOODS INDUSTRY Pandesal is the most popular ● The Philippine baked goods industry is the bread product in the country. 2nd largest contributor of employment, ● NCR recorded the biggest per with a total of 85,106 workers. capita consumption per ● Of the total 28,003 manufacturing
Slide 12: The Fruit-Based Desserts Segment
THE FRUIT-BASED DESSERTS SEGMENT ● The beverage industry has consistently been dominated by carbonated soft drinks (“CSD”). ● In 2019, CSD sales reached 4.86 billion liters. However, the introduction of the sugar tax in 2018 led to businesses downsizing product content to lessen its impact. ● This e
Slide 13: Major Industry Players
MAJOR INDUSTRY PLAYERS The brand value which BALAI has been able to establish for over 15 years is considered to be an advantage amongst the players in the industry. Market Size Market Size % Share of Number (Revenues*, Industry Brand (Revenues*, in Market Industry of Key Players in PHP PHP Millions
Slide 14: Growth Prospects
GROWTH PROSPECTS BAKED GOODS ● Forecast Growth: estimated 7.7% CAGR (2021-2026) for the Southeast Asia bakery products market (valued at USD 13.47 million) ● Challenger: Balai Pandesal as a “challenger” within the mid-price counter service retail bakery segment ● Product innovation: development of n
Slide 15: Competitive Strengths
a ge <> COMPETITIVE BALAI STRENGTHS NI FRUITAS INC.
Slide 16: Strong Brand Portfolio
STRONG BRAND PORTFOLIO ● The brands have gained a significant following among Filipinos and continue to enjoy strong sales. ● The Company offers fresh baked goods, and fruit-based desserts, among others. ● The Company brings its products to the market using marketing strategies. The team utilizes exte
Slide 17: Multiple Store Formats
MULTIPLE STORE FORMATS Community Store Kiosk Inline 17
Slide 18: Scalable & Sustainable Business Model
SCALABLE & SUSTAINABLE BUSINESS MODEL ● Highly flexible and agile business with small-footprint stores within high foot-traffic locations. ● The Company has multiple key suppliers that it maintains healthy relationships with. ● The key suppliers of the Company help manage its costs and maintain the qua
Slide 19: Proven Track Record on Brand Introduction
PROVEN TRACK RECORD ON BRAND INTRODUCTION ● The Company has a DNA of successful ● The management has a proven track record brand introductions. When introducing on brand introduction and acquisitions. new brands, it considers the following: ○ Synergize with the existing supply chain of the Company ○
Slide 20: Ideally Positioned to Take Advantage of the Philippine Middle Class
IDEALLY POSITIONED TO TAKE ADVANTAGE OF THE PHILIPPINE MIDDLE CLASS ● The Philippines is one of the most attractive foodservice markets, driven by economic growth and increasing urbanization. ● According to the Philippines Dietary Shift Analysis of Fitch Solutions released in May 2021, the average F
Slide 21: Highly Experienced and Nimble Management Team
HIGHLY EXPERIENCED AND NIMBLE MANAGEMENT TEAM Lester C. Yu Ma. Teresa B. Trujillo Roselyn A. Legaspi President and CEO Chief Financial Officer Managing Director and Treasurer Calvin F. Chua William A. Capuno Madelene T. Sayson Chief Financial Adviser Head of Operations Director 21
Slide 22: Key Strategies
04 [eal > => KEY STRATEGIES BALAI NI FRUITAS INC.
Slide 23: Key Strategies Overview
Pursue Aggressive Network Expansion Increase Same Store and E-Commerce Sales Growth Innovate and Introduce New Products Diversify Distribution Channels 23
Slide 24: Pursue Aggressive Network Expansion
PURSUE AGGRESSIVE NETWORK EXPANSION ● As of the end of December 31, 2021, the Company has a total of 77 stores throughout the Philippines. ● The Company believes that there are significant 2 development opportunities in the Philippines, especially in underserved key cities outside NCR. 12 ● As of Dec
Slide 25: Increase Same Store & E-Commerce Sales Growth
INCREASE SAME STORE & E-COMMERCE SALES GROWTH ● Increase transaction count through attracting new customers, converting first-time customers to repeat and loyal customers and improving overall customer experience. ● The Company has a team which actively executes digital marketing initiatives such as
Slide 26: Innovate & Introduce New Products
INNOVATE & INTRODUCE NEW PRODUCTS TO SATISFY EVOLVING CONSUMER TASTES AND PREFERENCES ● The Company through its own Research and Development (R&D) team continuously works on developing new products that are fit for different market segments and consumer lifestyles. ● The Company aims to offer its produ
Slide 27: Diversify Distribution Channels
DIVERSIFY DISTRIBUTION CHANNELS ● The Company continuously analyzes existing and future channels of distribution and adopts measures to increase reach and sales in the markets of interest. ● In 2021, the Company ventured into the “Community Store” concept. ● BALAI products are also available at cert
Slide 28: Financial Highlights
6 ge <> FINANCIAL BALAI HIGHLIGHTS NI FRUITAS INC.
Slide 29: Revenue, Gross Profit, Net Income, EBITDA
REVENUE GROSS PROFIT NET INCOME EBITDA Note: in PHP millions 29
Slide 30: Financial Highlights: Assets and Liabilities
FINANCIAL HIGHLIGHTS ASSETS LIABILITIES Note: in PHP millions 30
Slide 31: Key Performance Indicators
KEY PERFORMANCE INDICATORS For the years ended December 31 2018 2019 2020 2021 Revenue Growth 8.7% 11.0% -52.8% 35.2% Gross Profit Margin 46.7% 48.4% 48.9% 52.2% Net Income Margin 2.1% 3.0% -0.8% 5.7% EBITDA (₱ thousands) 8,683 15,699 6,620 24,502 EBITDA Margin 4.1% 6.7% 6.0% 16.5% Return on Average
Slide 32: The Offer
6 ge THE OFFER BAL AI NI FRUITAS INC.
Slide 33: Offering Summary
OFFERING SUMMARY Issuer Balai Ni Fruitas Inc. Selling Shareholder Fruitas Holdings, Inc. Offer Price Up to ₱[0.75] per Offer Share Up to [375,000,000] Firm Shares and The Offer up to 37,500,000 Option Shares for the Overallotment Option Up to ₱[281.25] million Firm shares and Offer Size up to ₱[309.375]
Slide 34: Use of Proceeds
USE OF PROCEEDS Estimated Amount Usage Percentage (%) Estimated Timing (PHP Millions) Store Network 180.4 81.8% 2022-2024 Expansion Commissary Set Up 20.0 9.1% 2022-2023 Potential 20.0 9.1% 2022-2023 Acquisitions Estimated Net 220.4 100% Proceeds 34
Slide 35: Indicative Timetable of the Offer
INDICATIVE TIMETABLE OF THE OFFER SEC Pre-effective Clearance [May 25, 2022] PSE Notice of Approval [May 27, 2022] Pricing Announcement [June 14, 2022] SEC Permit to Sell [June 14, 2022] Retail Investors’ Briefing [June 17, 2022] Public Offer Period [June 17 - June 23, 2022] Listing and Trading [June 3
Slide 36: Q&A
Q&A 36
Slide 37: Thank You
THANK YOU 37
Slide 38: Company Presentation June 2022
Company Presentation June 2022 38