Puregold Price Club Inc. · PSE:PGOLD

Puregold Price Club — H1 2017 Earnings Presentation

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

1. Slide 1: Puregold Price Club, Inc. 1H 2017 Results and Performance

   PUREGOLD PRICE CLUB, INC. Sa , Always Panalo! Company Presentation 1H 2017 Results and Performance August 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 – 1H 2017

6. Slide 6: 1H 2017 Results and Performance

   1H 2017 Results and Performance  Opened 11 new PGOLD stores; 5 S&R New York Style Pizza (QSR) in 1H 2017;  Operating 345 stores in 1H 2017; with consolidated NSA of more than 496,000 sqm 9  Consolidated net sales expanded by 10.8% in 1H 2017; Puregold stores sales accounted for about 80% of conso

7. Slide 7: Operating Performance

   Operating Performance – 1H 2017 Format Hypermarket, supermarket, extra Membership shopping S&R 9 Revenue contribution Puregold 20.2% 79.8% Gross profit (PHP million) & Margin (%) 6,995 (15.4%) 2,402 (21.8%) Total traffic (million) 80 3.3 Average net ticket (PHP) 558 3,452 Net sales growth (%) 7.9% 2

8. Slide 8: Operating Performance

   Operating Performance – 1H 2017 Breakdown of Stores (per format) Net Selling Area of Stores (in sqm) Group 2013 2014 2015 2016 1H 17 404,914 426,559 486,722 496,400 Hypermarket 113 121 134 147 156 2,715 3,233 1,720 62,037 62,037 Supermarket 64 83 93 100 101 44,046 50,963 Extra 28 29 28 30 31 9 S&R 8

9. Slide 9: Store Portfolio

   Store Portfolio – 1H 2017 Key statistics 1Q 2017 Geographic coverage Total no. of  345 BULACAN Caloocan stores  156 hypermarkets; North Luzon Valenzuela 101 supermarkets; (87 stores) Quezon City 9 31 extras Navotas Malabon No. of stores  12 S&Rs & 28 S&R Caloocan Marikina per format Metro Manila

10. Slide 10: Financial Performance

    Financial Performance – 1H 2017 Net sales (in Php billions) Gross profit & Margin (in PHP billions) 112.59 97.17 20 18.54 30 84.7 18 16.49 28 73.2 16 14.8 26 14 12.7 9.4 56.58 24 51.06 12 22 10 8.29 20 8 6 18 4 17.4% 17.4% 17.0% 16.5% 16.6% 16 2 16.2% 14 0 12 2013 2014 2015 2016 1H 16 1H 17 2013 201

11. Slide 11: Financial Performance

    Financial Performance – 1H 2017 Other Operating Income (in PHP millions) Operating Expenses (in PHP millions) 16,000 40.0% 00 14,000 13,707 35.0% 00 3,266 14.0% 12,225 00 2,886 12,000 12.0% 10,845 30.0% 2,563 1,481 1,594 10,000 10.0% 9,449 7,387 25.0% 00 2,204 8,000 6,497 20.0% 00 8.0% 13.1% 00 6,00

12. Slide 12: Financial Performance

    Financial Performance – 1H 2017 Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions) 000 8,097 35.0% 6,000 5,526 25.0% 000 30.0% 7,150 5,000 5,002 000 6,478 25.0% 4,520 20.0% 000 5,454 4,000 3,959 2,488 000 3,270 3,604 20.0% 2,267 15.0% 000 3,000 15.0% 10.0% 000

13. Slide 13: Financial Performance – Puregold Only

    Financial Performance – Puregold Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 90.94 16,000 25.0% 79.61 13,831 69.05 14,000 12,480 23.0% 60.99 12,000 11,108 9,725 6,995 21.0% 45.54 10,000 6,336 42.19 8,000 19.0% 6,000 16.1% 17.0% 4,000 15.9% 15.7% 15.2% 15.4% 15.1% 2,000 1

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

    Financial Performance – S&R Only Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions) 21.65 5,000 70.0% 17.82 4,008 4,708 15.77 4,000 3,652 60.0% 12.46 2,974 2,402 50.0% 11.03 3,000 1,919 8.87 40.0% 2,000 23.9% 23.2% 22.5% 30.0% 21.7% 21.6% 21.8% 1,000 20.0% - 10.0% 2013 2014 2015 201

15. Slide 15: Financial Performance – Working Capital Days

    Financial Performance – 1H 2017 Working capital days impacted by S&R importations and Puregold rapid store expansions and acquisitions 9 2014 2015 2016 1H 17 Trade Receivables Days 5.3 5.7 6.0 5.4 Inventory Days 53.2 54.3 56.9 64.0 New Puregold Store roll out and new 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 (2 to 3%) and S&R (2 to 3%) – 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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