Sa

, Always Panalo!

PUREGOLD PRICE CLUB, INC.

Company Presentation

FY 2015 Results and Performance

April 2016

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 responsibility for or control over
the contents of such presentations and/or other documents. No endorsement is
intended or implied notwithstanding the distribution of this presentation and/or other
documents during the analysts and investors calls and meetings of PUREGOLD.
The materials and information in the presentations and other documents are for
informational 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 service
or investment advice.

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 locations
7. Management focused on the sustainable and Long-Term
growth of the company

Stores roll-out through FY 2015

298
215

248

158
102
1

16

20

30

1998

2001

2006

2007

2008

First store
Opened in
Mandaluyong
City, Metro
Manila

First format
introduction

Expansion
Launched loyalty
program in 2001;
renamed as
Tindahan ni Aling
Puring in 2004
Between 2002 and
2006, launched an
average of 3 new
stores every year
and expanded
operations in North
and South Luzon

Brand recognition
Readers Digest
Asias Most
Trusted Brands

New format
introduction

41
2009

64

2010

Market leadership
The 2nd largest
hypermarket and
supermarket
retailer in the
Philippines in terms
of net sales

New format
introduction - 2010

2011

2012

2013

Rapid expansion via organic

new Puregold stores roll-out
and acquisitions
2011 - Opened 38 new
Puregold stores
2012 Opened 31 new
Puregold stores; Acquired
Parco supermarkets with 19
stores and S&R warehouse
membership shopping club
with 6 stores

2014

2015

Continuing new stores rollout via organic geographic

expansion and
acquisitions
Opened 40 new Puregold
and 2 new S&R stores in
2013
Acquired Company E with
15 stores in 2013
NE Bodega 9 stores and
Budgetlane 8 stores
acquisitions in 2015

Rapid store expansion from 1 to 298 stores in 17 years

4

Sa

, Always Panalo!

Update on PGOLD FY 2015

FY 2015 Results and Performance

Opened 27 new PGOLD stores; 1 S&R Warehouse; 10 S&R New
York Style Pizza (QSR) in 2015; acquired 9 Stores NE Bodega, 8
Stores Budgetlane Supermarket and closed 5 PGOLD stores
Operating 281 stores in 2015; with consolidated NSA of more than
426,000 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; Puregold
stores 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 operating
margin 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% while
6
S&R net margin is 10.1%.

Operating Performance FY 2015

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

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%

-1.8%

3.0%

5.7%

-3.0%

Net sales growth (%)

Same Store traffic growth (%)*

Same Store average net ticket growth (%)*

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

Operating Performance FY 2015

Breakdown of Stores (per format)

Group
Hypermarket
Supermarket
Extra
S&R
S&R QSR
TOTAL

2012 2013 2014 2015

87
113
121 134
47
64
83
93
16
28
29
28
6
8
9
10
2
2
6
16
158
215
248 281

Net Selling Area of Stores (in sqm)

306,753
26,413
280,340
2012

426,559

369,708

404,914

37,857

44,046

1,720
50,963

331,851

360,868

373,876

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

Traffic and Ave Ticket Size

Puregold Only
Metro Manila
North Luzon
South Luzon
Visayas
Mindanao
TOTAL

2012 2013 2014 2015

69
88
102 104
37
48
58
64
44
63
67
74
0
1
1
6
0
5
5
7
150
205
233 255

*excludes NE Bodega and Budgetlane stores with a total of 17 stores

and 33,000 sqm NSA

Traffic (in M)
2012
2013
2014
2015

Puregold
93.7
119.5
133.6
143.6

S&R
3.0
3.9
4.9
5.5

Ave Ticket (in Php)

2012
2013
2014
2015

Puregold
548
511
517
543

S&R
3,754
3,798
3,763
3,584

Store Portfolio FY 2015

Key statistics FY 2015
Total no. of
stores

9
No. of
stores per
format

Consolidat
ed net
selling area

Geographic coverage
Caloocan

BULACAN

281
North Luzon
(68 stores)

134 hypermarkets;
93 supermarkets;
28 extras

Valenzuela
Quezon City
Navotas Malabon
Caloocan

Metro Manila
(118 stores)

10 S&Rs & 16
S&R QSR

Marikina

San Juan
Manila
Mandaluyong

South Luzon
(78 stores)

about 426,000
square meters

Visayas

Manila Bay

RIZAL

Pasig
Makati
Pateros

(8 stores)
Pasay

Taguig

Paraaque

Mindanao
(9 stores)
Metro Manila
North Luzon
South Luzon
Visayas
Mindanao

104
64
74
6

5
1
2
1

9
3
2
1

255

10

16

Las Pias
Laguna de Bay
Muntinlupa

CAVITE

LAGUNA
Area with Puregold store coverage

Financial Performance FY 2015

Net sales (in Php billions)

Gross profit & Margin (in PHP billions)

YoY: Up 11.7%

YoY: Up 14.7%

16.49

18

97.17
73.2

84.7

14.8

16

28.0%

12.7

14

23.0%

12

57.5

9.2

10
8

39

6
4

18.0%

5.5
16.1%

17.4%

17.4% 17.0%

13.0%

14.2%

2
0
2011

2012

2013

2014

2015

8.0%
2011

2012

2013
GP

2014

2015

GP Margin

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

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

10

Financial Performance FY 2015

Other Operating Income (in PHP millions)

YoY: Up 12.6%

4,000

3,500

2,886

3,000

2,563

2,500

1,000
500

2.7%

9,449

6,000
6.0%

3.0% 3.0%

3.0%

2.9%

4,000
4.0%
2.0%
2,000

11.2%

12.3%

2011

2012

12.6%

2012

2013

Other Income

2014

2015

30.0%

15.0%
10.0%
5.0%

0.0% 2011

35.0%

20.0%

12.9% 12.8%

4,355

40.0%

25.0%

7,057

8,000
8.0%

1,667
1,052

YoY: Up 12.7%
12,225
10,845

14,000
14.0%
12,000
12.0%
10,000
10.0%

2,204

2,000

1,500

Operating Expenses (in PHP millions)

0.0%

% of Sales

OPEX

2013

2014

2015

% of Sales

EBITDA & Margin (in Php millions)

YoY: Up 8.8%
8,847
8,133

10,000
8,000

6,877

6,000
4,000
2,000
-

30.0%

4,924
2,817

8.6%

20.0%

9.4%

9.6%

9.1%

7.2%
2011

40.0%

10.0%
0.0%

2012
EBITDA

2013
2014
EBITDA Margin

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

2015

11

Financial Performance FY 2015

Operating Income/EBIT and Margins (in PHP millions)

Net Income & Margins (in PHP millions)

YoY: Up 10.6%

YoY: Up 10.4%

8,000

7,150

7,000

6,478

6,000

5,000

3,849

1,000

2,231

6.7%

25.0%

5,002

3,959
15.0%

2,719

3,000
15.0%

7.5%

7.6%

20.0%

4,520

4,000
20.0%

3,000

2,000

6,000
30.0%

5,000
25.0%

5,454

4,000

35.0%

10.0%

7.4%

2,000
10.0%

1,000
5.0%

5.7%

5.4%

1,545

5.3%

5.1%
5.0%

4.0%

4.7%

0.0%

2011

2012

EBIT

2013

2014

2015

0.0%
2011

EBIT Margin

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

2012

Net Income

2013

2014

2015

NI Margin

12

Financial Performance Puregold Only

Revenues (in PHP Billions)

Gross Profit & Margins (in PHP millions)

YoY: Up 15.3%

51.33

60.99

69.05

79.61

YoY: Up 12.4%
14,000
12,000
10,000
8,000

9,725
7,786

28.0%
23.0%

15.9%

6,000
4,000

11,108 12,480

16.1%

15.7%

15.2%

18.0%
13.0%

2,000
2012

2013

2014

8.0%
2012

2015

EBITDA and Margin (in PHP millions)

2013
GP

3,772
7.3%

4,440

5,230

5,915

YoY: Up 15%
25.0%
4,000
20.0%
3,000
15.0%

7.3%

7.6%

2015

Net Profit & Margins (in PHP millions)

YoY: Up 13.1%

7,000
6,000
5,000
4,000
3,000
2,000
1,000
-

2014
GP Margin

7.4%

2,271

2,864

3,192

3,671

10.0%

2,000
10.0%
1,000
5.0%

4.4%

4.7%

4.6%

4.6%

2014

2015

0.0%
2012

2013

2014

15.0%

2015

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

5.0%
0.0%

2012

2013
NIAT

NIAT Margin

13

Financial Performance S&R Only

Revenues (in PHP Billions)

Gross Profit & Margins (in PHP millions)

YoY: Up 13%

15.77

17.82

YoY: Up 9.7%
5,000

3,652

4,000

12.46

1,453
23.4%

2,000
1,000

50.0%

23.9%

30.0%

23.2%

22.5%

2014

2015

2012

2013

2014

2013

GP

3,000

2,437

2,500

2,904

2,933

2,000

1,500

1,000
500

1,163

18.7%

19.5%

18.4%

GP Margin

Net Profit & Margins (in PHP millions)

YoY: Up 1%

3,500

16.5%

YoY: Up 0.2%
60.0%
50.0%
2,000
40.0%
1,500
30.0%
1,000
20.0%
500
10.0%

1,570

1,803

1,806

2013

2014

2015

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

40.0%

30.0%

748
12.0%

12.6%

20.0%

11.4%

10.1%

0.0% -

2012

10.0%

-10.0%
2012

2015

EBITDA and Margin (in PHP millions)

90.0%

70.0%

2,974

3,000

6.21

4,008

10.0%
0.0%

2012

2013
NIAT

2014
NIAT Margin

2015
14

Financial Performance FY 2015

Working capital days impacted by S&R importations and
Puregold rapid store expansions and acquisitions

2012 2013 2014 2015

9
Trade
Receivables Days

3.5

4.1

5.3

5.7

Inventory Days

41.9 48.2 53.2

54.3

New Puregold Store roll out and for

S&R to mitigate port congestion issues

Trade Payables
Days

37.3 36.9

27.7

Shorter term payments to suppliers to

avail of additional discounts

35

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)

15

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.

16

Guidance for FY 2016

Consolidated net sales targeted to grow by 12 to 15% driven by
the 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

17

Q&A
Thank you!
18