Puregold Price Club Inc. · PSE:PGOLD

Puregold Price Club — 9M 2017 Earnings Presentation

18 slides from Puregold Price Club's earnings presentation, November 2017

  1. Slide 1: Company Presentation: 9M 2017 Results and Performance

    PUREGOLD PRICE CLUB, INC. Sa , Always Panalo! Company Presentation 9M 2017 Results and Performance November 2017

  2. Slide 2: Disclaimer

    Disclaimer These presentations and/or other documents have been written and presented by Puregold Price Club, Inc. (PGOLD). PGOLD is solely responsible for the accuracy and completeness of the contents of such presentations and/or other documents. Third parties, other than PGOLD, do not have any res

  3. Slide 3: Investment Summary

    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 brand 5. Expansion of new store formats aimed at the broad-C market 6. Expansion to new geographic locat

  4. Slide 4: Stores roll-out through FY 2016

    Stores roll-out through FY 2016 329 298 248 215 158 102 64 30 41 16 20 1 3 1998 2001 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 First store Expansion Brand recognition Market leadership Rapid expansion via organic Continuing new stores roll-  Opened in  Launched loyalty  Reader’s Dige

  5. Slide 5: Update on PGOLD

    Sa , Always Panalo! Update on PGOLD – 9M 2017

  6. Slide 6: 9M 2017 Results and Performance

    9M 2017 Results and Performance  Opened 17 new PGOLD stores; 1 S&R Warehouse Club, 8 S&R New York Style Pizza (QSR) in 9M 2017; closed 3 PGOLD stores  Operating 352 stores in 9M 2017; with consolidated NSA of more than 502,000 sqm 9  Consolidated net sales expanded by 11.2% in 9M 2017; Puregold s

  7. Slide 7: Operating Performance – 9M 2017

    Operating Performance – 9M 2017 Format Hypermarket, supermarket, extra Membership shopping S&R 9 Revenue contribution Puregold 19.9% 80.1% Gross profit (PHP million) & Margin (%) 10,641 (15.2%) 3,807 (21.8%) Total traffic (million) 122 5.0 Average net ticket (PHP) 562 3,534 Net sales growth (%) 8.4%

  8. Slide 8: Operating Performance – Store breakdown, traffic and ticket size

    Operating Performance – 9M 2017 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) Group 2013 2014 2015 2016 9M 17 404,914 426,559 486,722 502,036 Hypermarket 113 121 134 147 159 2,715 3,534 1,720 62,037 67,455 Supermarket 64 83 93 100 99 44,046 50,963 Extra 28 29 28 30 33 9 S&R 8

  9. Slide 9: Store Portfolio

    Store Portfolio – 9M 2017 Key statistics 1Q 2017 Geographic coverage Total no. of  352 BULACAN Caloocan stores  159 hypermarkets; North Luzon Valenzuela 99 supermarkets; (87 stores) Quezon City 9 33 extras Navotas Malabon No. of stores  13 S&Rs & 31 S&R Caloocan Marikina per format Metro Manila Q

  10. Slide 10: Financial Performance – Net sales and gross profit

    Financial Performance – 9M 2017 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 112.59 20 18.54 30 97.17 18 16.49 28 84.7 87.56 16 14.8 14.45 26 78.74 12.7 12.9 73.2 14 24 12 22 10 20 8 6 18 4 17.4% 17.4% 17.0% 16.5% 16.4% 16 16.5% 14 2 0 12 2013 2014 2015 2016 9M 16 9M 17 2013 2

  11. Slide 11: Financial Performance – Other income, OPEX, EBITDA

    Financial Performance – 9M 2017 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 000 3,266 14.0% 500 16,000 40.0% 12.0% 14,000 13,707 35.0% 000 2,886 2,443 12,225 11,238 30.0% 2,563 2,272 12,000 10.0% 10,845 9,913 500 2,204 10,000 8.0% 9,449 25.0% 000 8,000 20.0% 500 6.0

  12. Slide 12: Financial Performance – EBIT and Net Income

    Financial Performance – 9M 2017 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 9,000 8,097 35.0% 6,000 5,526 25.0% 8,000 7,150 5,654 30.0% 5,000 5,002 7,000 6,478 5,263 4,520 3,899 20.0% 6,000 25.0% 4,000 3,959 3,645 5,454 15.0% 5,000 20.0% 3,000 4,000 15.

  13. Slide 13: Financial Performance – Puregold Only

    Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 16,000 25.0% 90.94 13,831 10,641 79.61 14,000 12,480 9,858 23.0% 70.1 12,000 11,108 69.05 64.67 9,725 21.0% 60.99 10,000 8,000 19.0% 6,000 16.1% 15.7% 17.0% 4,000 15.9% 15.2% 15.2% 15.2% 15.0% 2

  14. Slide 14: Financial Performance – S&R Only

    Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 5,000 4,708 70.0% 21.65 4,500 4,008 4,000 3,652 3,807 60.0% 17.82 17.46 15.77 3,500 2,974 3,046 50.0% 14.07 3,000 12.46 2,500 40.0% 2,000 30.0% 1,500 23.9% 23.2% 22.5% 21.7% 21.7% 21.8% 1,000 20.0% 5

  15. Slide 15: Financial Performance – Working capital days

    Financial Performance – 9M 2017 Working capital days impacted by S&R importations and Puregold rapid store expansions and acquisitions 9 2014 2015 2016 9M 17 Trade Receivables Days 5.3 5.7 6.0 6.0 New Puregold Store roll out and new Inventory Days 53.2 54.3 56.9 64.2 S&R Stores to be opened in 2016

  16. Slide 16: CAPEX Guidance for FY 2017

    CAPEX Guidance for FY 2017  CAPEX Budget of Php 2.5 billion in 2017 – Php 1 billion for 25 new Puregold Stores – Php 1.2 billion for 2 S&R stores 9 – Php 150 million for 10 S&R QSR – Php 150 million for 25 Lawsons Stores  To be funded by internally generated cash and short term untapped bank credi

  17. Slide 17: Guidance for FY 2017

    Guidance for FY 2017  Consolidated net sales targeted to grow by 8 to 10% driven by the following: – Net sales growth from organic Puregold and S&R stores 9 – Positive SSSG for Puregold (3 to 4%) and S&R (3 to 4%) – Opening of 25 new Puregold stores; 2 S&R stores – Full year operations of NE Bodega

  18. Slide 18: Q&A Thank you!

    €-PUREGOLD Q&A Thank you!

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