Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — 9M 2020 Earnings Presentation
15 slides from Puregold Price Club's earnings presentation, Oct 28, 2020
Slide 1: Puregold Price Club, Inc. Company Presentation transmittal letter
PUREGOLD PRICE CLUB, INC. No. 900 Romualdez St., Paco, Manila October 29, 2020 Securities and Exchange Commission GFF Secretariat Bldg. PICC Complex Roxas Blvd., Pasay City Attention: Vicente Graciano P, Felizmenio, Jr. Director - Market and Securities Regulation Division Philippine Stock Exchange 6
Slide 2: SEC Cover Sheet
' COVER SHEET (Al 1/9/9/8[1]3]7[5[4] SEC Registration Number P/U/RIE/G/O/L/D] [PIRI ICE} |CjL/U/B},| [IINIC}. (Company's Full Name) : s|_ |PJA/CiO] , MAIN] ILIA (Business Address: No. Street City/Towr/Province) | CANDY H. DACANAY-DATUON | | (02) 523-3055 e (Contact Person) (Company Telephone Number)
Slide 3: SEC Form 17-C Current Report
Gi} Nov 9 " SECURITIES AND EXCHANGE COMMISSION 37° SEC FORM 17-C CURRENT REPORT UNDER SECTION 17 OF THE SECURITIES REGULATIONS CODE AND SRC RULE 17.2 (C) THEREUNDER Date of Report October 29, 2020 SEC Identification Number A199813754 BIR Tax Identification Number 201-277-095 Name of Issuer as specif
Slide 4: Puregold presentation disclaimer
uregold ‘ie 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
Slide 5: Always Panalo: Macroeconomic Updates
Always Panato: 360 238 j 2008 2010 2011 2013 2015 2017 -2018 - 2019 Rapid store expansion from 1 to 436 stores in 21 years | Macroeconomic Updates @ « PH GDP Growth Rates 10.0 i $20.0 mn ek _—. ——— * Q3 2020 GDP forecast to decline by 11.1% (HSBC) source: PSA, NEDA, HSBC 4
Slide 6: Shopper Trends and Sari-sari Store Update
Shopper Trends - _ _ é * Decline in Frequency of store visits — Local government restrictions/quarantine Increase in spending per trip is not enough to offset big frequency drop Shorter browsing time per store visit Re-prioritization of spending — Focusing on essential needs — Health (vitamins) — Ho
Slide 7: Puregold Enterprise and 4 Pillars of Growth
Puregold Enterprise _ S&R * Membership shopping model Ss &R * Catering to the upper income customers “, * Class A & B and upper C segment * Imported and large size SKUs Puregold * Caters to the low income and low-middle income customers * Lower C, D and E market * Sari sari store customers/resellers
Slide 8: 4 Pillars of Growth (continued)
_4 Pillars of Growth _ Always Panaio. Years 3. New Channel Development & Digital Marketing Activities — Reactivate coverage of sari-sari stores — Opening up of new accounts — E-commerce investments 4. Margin Improvement - House Brands - Streamlining of current operations thru Digitization - Front ma
Slide 9: 9M 2020 Results and Performance
9M 2020 Results and Performance : 2 Atways Panalo + Years * Consolidated net sales were better than expected; grew by 10.1% in 9M 2020; * Gross profit grew by 7.9% in 9M 2020; with gross profit margin posted 16.4% * Operating income increased by 11.8% in 9M 2020; with operating margin at 7% * Consol
Slide 10: Breakdown of Stores (per format)
Breakdown of Stores (per format) *NE Bodega and Budgetlane Stores are converted ta Puregold Stores in 2018 Groups? > « {, 201s? |,d0r9: |vom'20% 518,862 537,965 565,995 582,889 Hypermarket 208) 230) 234] 1 wage 4,397 Supermarket 104, 403| 102 cute, = ibeeae its Extra 42 47 57 ae S&R 16| 18 20 S&R QS
Slide 11: Financial Performance – 9M 2020
k | 7 Prurecou 20 Always Panalo Years Financial Performance — OM 2020 Net safes {in Php billions) : . Gross profit & Margin {in PHP billions) . 2017 2018 2019 9M 19 9M 20 2018 2019 9M 19 9M 20 mm Gross Profit ——GP Margin & 1 * Continuing strong revenue growth driven by the 380 Puregold Storés and th
Slide 12: Financial Performance – 9M 2020 and Puregold Only
Pruntcoip 20 Always Panato Years Financial Performance — 9M 2020 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins {in PHP millions) °° 2017 2018 2019 9M 19 9M 20 2017 2018 2019 9M19 9M 20 mmmEBIT ——EBIT Margin @MENet Income ——=NI Margin Financial Performance — Puregold Only R
Slide 13: Financial Performance – S&R Only
Sah Financial Performance — S&R Only Gm. 2017 2018 2019 9M 19 9M 20 2017 2018 2019 9M@19 9M. 20 Mam GP ——GP Margin Net Profit & Margins (in PHP millions) =. 2,162 2,399 2017 2018 2019 9M 19 9M 20 2017 2018 2019 9M19 9M 20 MEEBITOA -—— EBITDA Margin mama NIAT ——~NiAT Margin 19 Financial Performance —
Slide 14: Guidance for 2020 and Use of Proceeds
* Consolidated net sales target to grow between 4 to 5% in 2020 — Opening of 25 new Puregold stores — Opening of 2 S&R Warehouse stores * Improve PGOLD gross and net profit margins versus 9M 2020 * Sustain S&R gross profit margins versus 9M 2020 * Pursue acquisitions and expand into new geographic l
Slide 15: CAPEX Budget for 2020 and Q&A
* CAPEX Budget of Php 3.4 billion in 2020 — Php 1 billion for 25 new Puregold Stores — Php 1.6 billion for 2 S&R stores — Php 200 million for 10 S&R QSR — Php 600 million Maintenance Capex G Q&A Thank you! CAPEX Guidance for FY 2020 a... 23