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Sa , Always Panalo!
PUREGOLD PRICE CLUB, INC.Company Presentation
FY 2015 Results and Performance
April 2016
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These presentations and/or other documents have been written and presented byPuregold Price Club, Inc. (PGOLD). PGOLD is solely responsible for the accuracyand completeness of the contents of such presentations and/or other documents.
Third parties, other than PGOLD, do not have any responsibility for or control overthe contents of such presentations and/or other documents. No endorsement isintended or implied notwithstanding the distribution of this presentation and/or otherdocuments during the analysts and investors calls and meetings of PUREGOLD.The materials and information in the presentations and other documents are forinformational 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 serviceor investment advice.
Disclaimer
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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 brand5. 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-Termgrowth of the company
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Stores roll-out through FY 2015
First storeOpened inMandaluyongCity, MetroManila
ExpansionLaunched loyaltyprogram in 2001;renamed asTindahan ni Aling
Puring in 2004Between 2002 and2006, launched anaverage of 3 newstores every yearand expandedoperations in Northand South Luzon
Brand recognitionReader’s Digest
Asia’s “MostTrusted Brands”
Market leadershipThe 2 nd largesthypermarket andsupermarketretailer in the
Philippines in termsof net sales
Rapid expansion via organicnew Puregold stores roll-outand acquisitions
2011 - Opened 38 newPuregold stores
2012 – Opened 31 newPuregold stores; AcquiredParco supermarkets with 19stores and S&R warehousemembership shopping clubwith 6 stores
Rapid store expansion from 1 to 298 stores in 17 years
First formatintroduction
New formatintroduction
New formatintroduction - 2010
Continuing new stores roll-out via organic geographicexpansion andacquisitionsOpened 40 new Puregold
and 2 new S&R stores in2013
Acquired Company E with15 stores in 2013NE Bodega 9 stores andBudgetlane 8 storesacquisitions in 2015
1 3 16 2030 41
64102
158215
248 298
1998 2001 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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Sa , Always Panalo!
Update on PGOLD – FY 2015
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FY 2015 Results and Performance
Opened 27 new PGOLD stores; 1 S&R Warehouse; 10 S&R NewYork Style Pizza (QSR) in 2015; acquired 9 Stores NE Bodega, 8Stores Budgetlane Supermarket and closed 5 PGOLD stores
Operating 281 stores in 2015; with consolidated NSA of more than426,000 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; Puregoldstores 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 operatingmargin 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% whileS&R net margin is 10.1%.
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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
Net sales growth (%) 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%
Same Store traffic growth (%)* -1.8% 3.0%
Same Store average net ticket growth (%)* 5.7% -3.0%
Operating Performance – FY 2015
*Same Stores Growth for 2015 are based on stores opened as of end December 2013.
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Operating Performance – FY 2015
Breakdown of Stores (per format) Net Selling Area of Stores (in sqm)
Traffic and Ave Ticket Size
306,753 369,708426,559404,914
*excludes NE Bodega and Budgetlane stores with a total of 17 storesand 33,000 sqm NSA
Traffic (in M) Puregold S&R2012 93.7 3.0
2013 119.5 3.92014 133.6 4.92015 143.6 5.5
Ave Ticket (in Php) Puregold S&R2012 548 3,7542013 511 3,798
2014 517 3,7632015 543 3,584
280,340 331,851360,868 373,876
26,41337,857 44,046
50,9631,720
2012 2013 2014 2015Puregold S&R only S&R QSR
Group 2012 2013 2014 2015Hypermarket 87 113 121 134Supermarket 47 64 83 93Extra 16 28 29 28
S&R 6 8 9 10S&R QSR 2 2 6 16TOTAL 158 215 248 281
Puregold Only 2012 2013 2014 2015Metro Manila 69 88 102 104North Luzon 37 48 58 64South Luzon 44 63 67 74Visayas 0 1 1 6Mindanao 0 5 5 7TOTAL 150 205 233 255
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Total no. ofstores 281
No. of
stores performat
134 hypermarkets;93 supermarkets;
28 extras10 S&Rs & 16S&R QSR
Consolidated netselling area
about 426,000square meters
North Luzon(68 stores)
Visayas
(8 stores)South Luzon(78 stores)
Metro Manila(118 stores)
BULACAN
RIZAL
LAGUNA
CAVITE
Manila Bay
Laguna de Bay
Caloocan
Pasig
Marikina
Valenzuela
Caloocan
Malabon
Quezon City
ManilaSan Juan
Mandaluyong
Navotas
Makati
Parañaque
Pasay Taguig
Pateros
Las Piñas
Muntinlupa
Key statistics FY 2015 Geographic coverage
Area with Puregold store coverage
Store Portfolio – FY 2015
Mindanao(9 stores)
Metro Manila 104 5 9North Luzon 64 1 3South Luzon 74 2 2Visayas 6 1 1
Mindanao 7 1 1255 10 16
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Notes:June to December 2012 financial results of S&R and Parco consolidated into CY 2012 results of PGOLD
Financial Performance – FY 2015
Net sales (in Php billions) Gross profit & Margin (in PHP billions)
• 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
3957.5
73.284.7
97.17
2011 2012 2013 2014 2015
YoY: Up 14.7% YoY: Up 11.7%
5.59.2
12.714.8
16.49
14.2%16.1%
17.4% 17.4% 17.0%
8.0
13.0
18.0
23.0
28.0
0
2
4
6
810
12
14
16
18
2011 2012 2013 2014 2015
GP GP Margin
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Other Operating Income (in PHP millions) Operating Expenses (in PHP millions)
EBITDA & Margin (in Php millions)
1,052
1,6672,204
2,5632,886
2.7% 2.9% 3.0% 3.0% 3.0%0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
-
500,000
,500
,000
,500
,000
,500
,000
2011 2012 2013 2014 2015
Other Income % of Sales
4,355
7,0579,449
10,84512,225
11.2% 12.3%12.9% 12.8% 12.6%
0.0%
5.0%10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2011 2012 2013 2014 2015
OPEX % of Sales
2,817
4,9246,877
8,1338,847
7.2%8.6% 9.4% 9.6% 9.1%
0.0%
10.0%
20.0%
30.0%
40.0%
-
2,000
4,000
6,000
8,000
10,000
2011 2012 2013 2014 2015EBITDA EBITDA Margin
YoY: Up 12.6% YoY: Up 12.7%
YoY: Up 8.8%
Financial Performance – FY 2015
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Financial Performance – FY 2015
Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions)
2,231
3,849
5,454
6,4787,150
5.7%
6.7%7.5% 7.6% 7.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
-
,000
,000
,000
,000
,000
,000
,000
,000
2011 2012 2013 2014 2015
EBIT EBIT Margin
YoY: Up 10.4% YoY: Up 10.6%
1,545
2,719
3,959 4,520
5,002
4.0% 4.7%
5.4% 5.3% 5.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
-
1,000
2,000
3,000
4,000
5,000
6,000
2011 2012 2013 2014 2015
Net Income NI Margin
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Financial Performance – Puregold Only
Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions)
EBITDA and Margin (in PHP millions) Net Profit & Margins (in PHP millions)
Notes:June to December 2012 financial results of S&R and Parco consolidated into CY 2012 results of PGOLD
51.3360.99
69.05 79.61
2012 2013 2014 2015
3,772 4,4405,230 5,915
7.3% 7.3% 7.6% 7.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
-,000,000,000,000,000,000,000
2012 2013 2014 2015
EBITDA EBITDA Margin
2,2712,864 3,192 3,671
4.4% 4.7% 4.6% 4.6%0.0%
5.0%
10.0%
15.0%
-
1,000
2,000
3,000
4,000
2012 2013 2014 2015
NIAT NIAT Margin
YoY: Up 15.3% YoY: Up 12.4%
YoY: Up 13.1% YoY: Up 15%
7,7869,725
11,108 12,480
15.2%15.9% 16.1% 15.7%
8.0%
13.0%
18.0%
23.0%
28.0%
-
2,000 4,000
6,000
8,000
10,000
12,000
14,000
2012 2013 2014 2015GP GP Margin
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Financial Performance – S&R Only
Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions)
EBITDA and Margin (in PHP millions) Net Profit & Margins (in PHP millions)
Notes:June to December 2012 financial results of S&R was consolidated into CY 2012 results of PGOLD
1,453
2,9743,652 4,008
23.4%23.9%
23.2% 22.5%
-10.0
10.0
30.0
50.0
70.0
90.0
-
1,000
2,000
3,000
4,000
5,000
2012 2013 2014 2015
GP GP Margin
1,163
2,4372,904 2,933
18.7% 19.5% 18.4% 16.5%0.0%
10.0%
20.0%
30.0%
40.0%
50.0%60.0%
-
500,000,500,000,500,000,500
2012 2013 2014 2015
EBITDA EBITDA Margin
6.21
12.4615.77
17.82
2012 2013 2014 2015
YoY: Up 13% YoY: Up 9.7%
YoY: Up 1% YoY: Up 0.2%
748
1,5701,803 1,806
12.0%12.6%
11.4% 10.1%0.0%
10.0
20.0
30.0
40.0
-
500
1,000
1,500
2,000
2012 2013 2014 2015
NIAT NIAT Margin
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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)
Financial Performance – FY 2015
Working capital days impacted by S&R importations and
Puregold rapid store expansions and acquisitions
TradeReceivables Days
Inventory Days
Trade PayablesDays
New Puregold Store roll out and forS&R to mitigate port congestion issues
Shorter term payments to suppliers toavail of additional discounts
2012 2013 2014 2015
3.5 4.1 5.3 5.7
41.9 48.2 53.2 54.3
37.3 36.9 35 27.7
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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.
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Guidance for FY 2016
Consolidated net sales targeted to grow by 12 to 15% driven bythe 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
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Q & A
Thank you!