PIZZA CORPORATE PRESENTATION AUGUST 2019 Company Overview - - PowerPoint PPT Presentation

PIZZA CORPORATE PRESENTATION

AUGUST 2019

SHAKEY’S PIZZA ASIA VENTURES, INC.

2 SNAPSHOT

• Shakey’s Pizza Asia Ventures, Inc. is the Philippines’ #1 full-service pizza chain with over

60% market share in that category. It is also the single-largest brand of full-service casual dining chain restaurants in the Philippines.*

• A strong and well-established brand thanks to a differentiated menu, iconic and well-loved

products, a distinct store environment, and highly guest-centric service.

• Apart from the Philippines, also owns the Shakey’s trademark in perpetuity for the Middle

East, Asia (excluding Japan and Malaysia), China, Australia, and New Zealand. It does not pay any royalties and is instead able to collect from local and international franchisees.

• The Company listed on the Philippine Stock Exchange in 2016 under the trading symbol
• PIZZA. It currently has a market capitalization of c.USD0.4 billion.
• Store Network: 200+ stores across the Philippines – a mix of company-owned and
• franchised. Different store formats including those located in malls and those that are free-

standing.

• Key Management: Vicente L. Gregorio - President & CEO, Manuel T. del Barrio - Vice

President & CFO, Jorge Q. Concepcion - Shakey’s Philippines General Manager, Alois Brielbeck - In-House Commissary General Manager

*Source: Euromonitor, 2018

Revenues (In USD Mill) 89 100 114 133 144

162

2014 2015 2016* 2017 2018 2019F**

8 9 13 14 16

18

2014 2015 2016* 2017 2018 2019F**

*Based on recurring figures **Consensus of active brokers

Net Income (In USD Mill)

Century Pacific Group 53% GIC Private Equity 18% Public 29% Dine-In 58% Delivery & Others 42% Company- Owned 56% Franchised 44% Metro Manila 43% Luzon (ex-MM) 43% Visayas 10% Mindanao 4%

FULL-YEAR FINANCIALS 2018 SYSTEM-WIDE SALES & STORE NETWORK BREAKDOWN OWNERSHIP STRUCTURE

Company Overview

3 9.0 9.5 10.1 10.8 11.5 12.1 2011 2012 2013 2014 2015 2016

20%

• f a typical middle-income household

budget goes to food consumed

• utside home. This totals more than PHP500 billion

annually, showing a strong propensity to spend.

Source: NSO, Nielsen, Euromonitor, BSP

Furnishings Fashion Food Fun

Restaurants and hotels are growing household consumption sectors The consumer foodservice industry has been growing in recent years

In USD Billions

Full-service pizza chain restaurants show faster growth than the whole full-service restaurant sector

13% vs 6%

CAGR from 2013-2018

The Overall Scenario

Well-positioned to take advantage of the growing foodservice industry 4 F’s in the consumer economy to benefit from strong economic growth

4

Shakey’s has 43 years of strong brand legacy and counting

1954

First Shakey’s Pizza Parlor opened in Sacramento, California

1975

First store in the Philippines

1987

The Prieto family became the master franchisor in the Philippines

1999

Acquired Shakey’s trademark for the Philippines in perpetuity

2003

Positioned as an American fast casual dining restaurant for families

2014

Acquired Shakey’s trademark for Middle East, Asia (ex Japan, Malaysia) including China, Australia, and New Zealand in perpetuity

2016

Century Pacific Group (CPGI) and Arran (GIC) acquired control

2018

228 stores by end 2018

2019

Acquired Peri-Peri Charcoal Chicken and Sauce Bar

INVESTMENT HIGLIGHTS

Industry-Leading Financials Experienced Management

Investment Highlights

• Multiple sales channels and store formats; simple operations
• Low upfront cost and strong cash generation lead to shorter store-level payback

periods compared to the industry

• Extensive track records in food and restaurant operations
• Entry of Century Pacific Group as strong and committed shareholders provides

synergies with other food businesses

• Well-loved brand with more than 40 years of history in the Philippines
• Iconic products served in a distinct store environment
• No royalty payments, plus additional revenues from franchisings
• Superior profitability and margins versus peers
• Gearing levels improve as debt remains stable while EBITDA and equity grow
• Operating cash flows sufficient for CapEx and other investments

Market Leadership Brand Strength & Ownership Scalable Business Model

• Dominates the full-service pizza chain market with 64%* market share
• 22%* market share in the full-service (pizza and non-pizza) category - #1 in that

space as well

*Source: Euromonitor, 2018

6

7

1

#1 Full-Service Restaurant in the Philippines

The full-service pizza chain market is dominated by Shakey’s. Max's 13.5% Pizza Hut 10.4% Kenny Rogers 5.7% Pancake House 4.1% TGI Fridays 2.4% Others 41.6%

22.3% Latest Euromonitor report states that Shakey’s leads the Philippine chained full- service restaurant industry with 22.3% market share as of 2018.

Pizza Hut 29.9% Papa John's 1.7% Others 4.2%

64.2% 2018 data shows that Shakey’s dominates the full-service pizza chain market by sales since 2011 until present.

FULL-SERVICE CHAIN FULL-SERVICE PIZZA CHAIN

Source: Euromonitor

8

DIFFERENTIATED MENU WITH ICONIC PRODUCTS AND OFFERINGS FOR ALL

Pizza World-famous thin crust and hand-tossed pizzas with many different choices Chicken and Mojos Signature dish - fried chicken paired with Shakey’s famous mojos*

*Thinly-sliced potatoes coated with Shakey’s breading

and fried to a golden brown perfection

Pasta Hearty pasta with a wide range of sauces and toppings paired with garlic bread Starters Ranging from fries, mojos, squid rings, chips, and chicken Soup Home-style soups loaded with flavor and goodness Salad Extensive choice of salad for health-conscious customers Desserts Wide range of after-meal desserts

BUNDLED OFFERINGS CATERING TO FAMILIES AND GROUPS BRING UP AVERAGE CHECKS

2

Strong and Well-Established Brand

Shakey’s offers a differentiated menu with iconic and well-loved products.

9

Though originally from the U.S., PIZZA has owned the Shakey’s brand for the Philippines since 1999.

Source: Asia’s Top 1000 Brands Survey by Campaign Asia, in partnership with Nielsen

BRAND OWNERSHIP

• No royalty payments, leading to

shorter payback period and sustainably higher margins versus peers

• Revenue from licensing fees and

royalties from franchisees

• Freedom to execute and react faster to

market changes

• Opportunity for expansion into

international markets

2018 PHILIPPINE TOP 100 RESTAURANT BRANDS

2

Strong and Well-Established Brand

Shakey’s offers a beautiful and distinct store environment to every customer and has full control and ownership of its brand.

With its over 40 year history in the Philippines, Shakey’s is one of the most recognizable brands in the local food service industry. 3 2 1

10 Dine-In

• Most popular sales channel due to

unique family and friends experience

• Aim to “WOW” the guest

Delivery

• Delivery available nationwide
• Single delivery hotline number

(#77-777) can be used Carryout

• Convenient and fast method of sales

Functions

• Free-standing stores have function

rooms for events such as parties and company gatherings Online Sales

• Active online and mobile presence

with own website and mobile app

• http://www.shakeyspizza.ph

SuperCard

• A very popular paid loyalty card
• PHP499 annual fee

Mall Stores 120 – 250 sqm

50%

Free-Standing Stores 300 – 400 sqm

45%

Others 120 – 180 sqm

5%

3

Proven and Scalable Business Model

Multiple sales channels and store formats provide convenience and accessibility to Shakey’s customers and allow for market and expansion flexibility.

3

Asset-Light Approach

11

Firmly positioned in the fast casual segment (A, B, and upper C market) that delivers high margins, good volumes, and scale Benefitting from key consumer trends – eating

• ut more and

upgrading from fast food to casual dining Own commissary for proprietary raw materials protects key supply chain and maintains consistency and control over quality Economies of scale and purchasing synergy Long-term leases for store locations at attractive rentals Presence of standalone stores (i.e. those outside malls) lead to low rent-to-sales ratio Business model and strong discipline leads to typical payback period of 3-4 years Low upfront cost and strong cash generation per store

3

Proven and Scalable Business Model

Shakey’s is a well-established brand, while operating on an asset-light model.

1

Brand Positioning

2

Vertical Integration

4

Short Payback Period

12 Vicente Gregorio

President & Chief Executive Officer

• Over 30 years of successful experience in the food business
• Started career in the first ever Shakey’s branch in the Philippines
• Key driver of Shakey’s brand strategy, organization culture, core values, and mission since 2003
• Proven management and leadership track record in foodservice retail set-up, expansion, and turnaround management

Manuel Del Barrio

Vice President & Chief Finance Officer

• Previously Assistant Vice President for

Finance of Century Pacific Food, Inc. (CNPF) and The Pacific Meat Company, Inc.

• Worked in accounting positions at several

leading companies

Jorge Concepcion

Shakey’s Philippines General Manager

• Over 30 years of experience in consumer-

related business

• Significant experience in the U.S.

foodservice industry for about 10 years in numerous managerial positions

Alois Brielbeck

In-House Commissary General Manager

• Over 30 years of experience in the foodservice

business

• Moved to Asia in 1986, taking up positions in

pastry kitchens in Hong Kong and Tokyo

• Moved to the Philippines in 2000 as Chief

Operating Officer for Culinary Systems Specialists Incorporated

• Appointed as Commissary General Manager in

2005

Joseph Remsa

International Development Consultant

• Previously President and CEO of Shakey’s U.S.A.
• Leads the development and operations of the

Shakey’s brands in Asia, Middle East, Australia, and New Zealand

• Over 25 years of experience in leading
• perations and franchising in top-chained

restaurants

4

Experienced Management Team

VISION: to be the PREFERRED and DOMINANT family casual dining restaurant

Strategic Priorities

Establish market leadership and strong brand positioning in the full-service, fast casual, family dining space Grow our store base in both existing and new markets, locally and internationally, through an increasing company-

• wned network and a well-established

franchising model Increase same-store sales growth by developing multiple sales channels and continuously providing innovative products to enhance our iconic base offering

13

Support operational improvements across both store network and corporate support in order to create efficiencies and enhance profitability Continue to develop best-in-class

• rganizational

capabilities

FINANCIAL PERFORMANCE & OUTLOOK

Financial Results Highlights

+2%

SAME-STORE SALES GROWTH

FLAT

2Q 1H

15

+10%

SYSTEM-WIDE SALES GROWTH

+8%

2Q 1H

+11%

EBITDA GROWTH

+7%

2Q 1H

+8%

NET INCOME GROWTH

+5%

2Q 1H

• Increase in system-wide sales

driven by CONTINUED STORE NETWORK EXPANSION

• Gross and operating margin

improvement led by LOWER INPUT COSTS AND ENHANCED OPERATING EFFICIENCES in-store and at corporate level

• SSSG remains flattish in 1H

amidst COMPETITIVE ENVIRONMENT, but back to positive growth in Q2

1H 2019 Summarized P&L

16 In PHP Mill 1H 2018 1H 2019 Change YoY System-wide Sales 4,609 4,964 8% Total Revenue 3,690 3,853 4% Cost of Sales (2,631) (2,743) 4% Gross Profit 1,059 1,110 5% Operating Expenses (470) (484) 3% EBITDA 725 773 7% EBIT 589 626 6% Income before Tax 511 539 5% Net Income 396 418 5% Earnings per Share 0.26 0.27 5% Margins Gross Profit 28.7% 28.8% +0.1 pps EBITDA 19.6% 20.1% +0.5 pps EBIT 16.0% 16.2% +0.2 pps Net Income 10.7% 10.8% +0.1 pps

17

SSSG

System-wide Sales

2 1 1 4 4 4 3 4 5 1 1 1 1 1 23 23

4 5 6 6 1 28 29

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1H19

Company-Owned Franchised International Peri

NEW STORE OPENINGS

2.2 2.4 2.2 2.5 2.3

2.6 5.0

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1H19

In PHP Bill

SYSTEM-WIDE SALES

8%

YoY Growth in 1H19

2% 9% 4% 2%

• 1%

2%

0%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1H19

In PHP Bill

System-wide Sales Growth Improves in Q2; New Stores & Peri Consolidation Kick In

+12% QoQ

• Pick up in Q2 system-wide sales

driven by: 1) Continued STORE NETWORK EXPANSION domestically 2) CONSOLIDATION OF PERI starting June 1, opening of 1 international Shakey’s store 3) MILD SSSG RECOVERY to +2% from -1% in Q1

10%

YoY Growth in 2Q19

Delivery Initiatives

18

• Increased online and delivery presence via TIE-UPS WITH THIRD-PARTY

AGGREGATORS and other online apps

• In-house delivery service to remain TOP PRIORITY AND MAIN GROWTH DRIVER for

delivery given loyal guest base and more extensive menu

SSSG Recovers in Q2; Marketing Initiatives Sustained for Delivery and Dine-In

PARTNERSHIPS WITH FOOD AGGREGATORS IN-HOUSE DELIVERY INVESTMENTS

Dine-In Initiatives

19

• Continued in-store marketing for GROUP MEALS AND AFFORDABLE PREMIUM

OFFERINGS

• Additional efforts to attract guests during OTHER DAY PARTS BEYOND DINNER AND

WEEKENDS PREMIUMIZATION AND GROUPS BUILDING OTHER DAY PARTS

SSSG Recovers in Q2; Marketing Initiatives Sustained for Delivery and Dine-In

20

1.8 1.9 1.8 2.1 1.8 2.0

3.9

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1H19

In PHP Bill

4%

YoY Growth in 1H19 REVENUES DOMESTIC STORE NETWORK BREAKDOWN**

By Ownership

as of 2Q19

46%

Franchised

54%

Company-Owned

Revenues

• Store network

expansion strategy remains MAJORITY PROVINCIAL LOCATIONS AND IN FAVOR OF FRANCHISED STORES, with local operators providing better on-the- ground execution

• Ownership mix further

skewed towards franchised as MOST PERI STORES ARE RUN BY FRANCHISEES

• CONTINUED SHIFT IN

OWNERSHIP BREAKDOWN lead to more moderate increase in revenues versus system-wide sales

Revenue Mix Skewed by Expansion Strategy in Favor of Franchised Stores

5%

YoY Growth in 2Q19

By Region

as of 2Q19

46%

NCR

40%

Luzon ex-NCR

10%

Visayas

4%

Mindanao

*Map colors show % population of the country by region. The darker the color, the higher the % population. Source: Philippine Statistics Authority 2015 **This includes both Shakey’s and Peri store networks.

28.8% 28.6% 25.8% 31.4% 27.8%

29.8%

2% 9% 4% 2%

• 1%

2%

SSSG Gross Profit Margin

21

1.8 1.9 1.8 2.1 1.8

2.0

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Revenues

Gross Profit Margins

+120 bps YoY

• GROSS MARGIN IMPROVEMENT YEAR-ON-YEAR AND SEQUENTIALLY due to:
• 1. Favorable input cost (e.g. cheese) and FX trends
• 2. Labor productivity enhancements
• 3. Store operating efficiency gains

Higher Gross Margin Driven by Subdued Input Costs and In-Store Efficiencies

22

12.7%

12.6%

12.5%

12.3%

OpEx as % of Sales

470

484

240

248

1H18 1H19 2Q18 2Q19

Quarterly OpEx as a % of Sales OpEx In PHP Mill

+3% +3%

13.0% 12.5% 14.1% 11.9% 12.8% 12.3%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

• 20 bps YoY
• MUTED INCREASE IN OPEX YEAR-ON-YEAR driven by tighter control of corporate-

level operating costs

• Upside from operational cost-saving initiatives PARTIALLY OFFSET BY INVESTMENTS

IN SALES-SUPPORTING PROGRAMS

Cost-Saving Programs Lead to Muted Increase in OpEx

19.8%

20.9%

2Q18 2Q19 23

28.7%

28.8%

1H18 1H19

EBITDA Net Income 28.6%

29.8%

2Q18 2Q19

Gross Profit

+10 bps +120 bps

• Improvement in margins across gross, EBITDA, and net level driven by LOWER INPUT

COSTS AND ENHANCED OPERATING EFFICIENCIES in-store and corporate

• MARGINS REMAIN INDUSTRY-LEADING despite competitive pressures

19.6%

20.1%

1H18 1H19 +50 bps +110 bps

11.0%

11.4%

2Q18 2Q19

10.7%

10.8%

1H18 1H19 +10 bps +40 bps

Industry-Leading Margins Further Improve as Efficiency Measures Bear Fruit

24

• Increased short-term debt due to the

PERI BRIDGE LOAN

• Long-term loan of PHP3.8 billion all

PESO-DENOMINATED WITH FIXED INTEREST RATES

• Increase in working capital mainly due to

HIGHER FRANCHISEE-RELATED RECEIVABLES

• Elevated PPE due to PERI ACQUISITION

AND CAPEX FOR ORGANIZATIONAL GROWTH

In PHP Mill 2018 1H 2019 Cash 434 509 Receivables 508 564 Other Current Assets 668 680 Total Current Assets 1,610 1,753 Property, Plant, and Equipment 1,712 2,054 Goodwill and Trademarks 6,066 6,628 Other Non-Current Assets 245 270 Total Non-Current Assets 8,023 8,952 TOTAL ASSETS 9,633 10,705 In PHP Mill 2018 1H 2019 Trade Payable and Others 920 933 Short-Term Debt 48 848 Total Current Liabilities 968 1,781 Long-Term Debt 3,837 3,812 Other Non-Current Liabilities 259 278 Total Non-Current Liabilities 4,096 4,090 TOTAL LIABILITIES 5,063 5,871 TOTAL EQUITY 4,570 4,834 TOTAL LIABILITIES AND EQUITY 9,633 10,705

Balance Sheet

• COMFORTABLE

GEARING RATIOS despite the rise in interest-bearing debt due to the bridge loan for the Peri acquisition

• MAINTAINED

ABOVE-INDUSTRY ROE at 19%

25

Net Debt-to-Equity (x) Net Gearing (x) Interest-Bearing Debt-to-EBITDA (x) Return on Equity 1.01

1.11

2018 1H 2019

0.76

0.86

2018 1H 2019

2.59

3.02

2018 1H 2019

20%

19%

2018 1H 2019

Ratios

Notes: Net Debt-to-Equity = (Total Liabilities – Cash) / Total Equity Net Gearing = (Interest-Bearing Liabilities – Cash) / Total Equity Interest-Bearing Debt-to-EBITDA uses trailing 12-month EBITDA Return on Equity uses trailing 12-month earnings and average equity

26

• OPERATING CASH FLOWS

SUFFICIENT for regular CapEx

• CapEx primarily for

ACQUISITION OF PERI STORES, IT INVESTMENTS, AND NEW SHAKEY’S OUTLETS

• Increase in working capital

driven by HIGHER RECEIVABLES

• Incorporates already

ACQUISITION OF PERI which closed on June 1, 2019 (acquisition of trademark)

In PHP Mill 1H 2018 1H 2019 Income before Income Tax 511 539 Depreciation and Amortization 123 140 Interest Expense 91 95 Changes in Working Capital (272) (284) Others (109) (88) Net Operating Cash Flow 344 402 Capital Expenditures (216) (486) Acquisition of Trademark (562) Others (16) 8 Net Investing Cash Flow (232) (1,040) Proceeds from (Payment of) Loan (25) 775 Payment of Interest (95) (62) Net Financing Cash Flow (120) 713 Effect of Exchange Rate Changes 2 1 Beginning Cash 245 434 Change in Cash (6) 75 Ending Cash 239 509 Free Cash Flow 128 (84)

Cash Flow

27

• Higher receivables driven by FRANCHISEE-LED STORE

NETWORK EXPANSION

• Normalizing inventory with DEPLETION OF ADVANCED

PURCHASE OF CHEESE from end-2018

• Increase in cash

conversion cycle relative to end 2018 to +4 DAYS

597

583

40

39

• 10

20 30 40 50 60 70 80 90

• 200

400 600 800 1,000 1,200

FY18 1H19 Days ₱ Mns

920

933

62

62

• 10

20 30 40 50 60 70 80 90

• 200

400 600 800 1,000 1,200

FY18 1H19 Days ₱ Mns

508

564

24

27

• 10

20 30 40 50 60 70 80 90

• 200

400 600 800 1,000 1,200

FY18 1H19 Days ₱ Mns

185

214

2

4

• 10

20 30 40 50 60 70 80 90

• 200

400 600 800 1,000 1,200

FY18 1H19 Days ₱ Mns

Working Capital Receivables Inventory Payables

Cash Conversion Cycle

28

2019 Guidance and Outlook

FY SSSG Likely to Miss 3-5% Target, But Double-Digit Earnings Growth Still Achievable

• Sales recovery via superior

execution across all segments

• Increasing presence beyond

typical urban areas

• Total 20 net new Shakey’s

stores locally

• Inclusion of Peri sales
• SSSG likely to fall below
• riginal 3-5% target
• Low double-digit growth
• Subdued inflationary trend

to be felt in succeeding quarters

• Stable cheese prices
• Steady peso relative to dollar
• Continued initiatives on

efficiency and cost control

STOCK & INVESTOR RELATIONS HIGHLIGHTS

30

MARKET CAPITALIZATION

$0.3B

December 2016

$0.4B

August 2019

PERFORMANCE SINCE IPO

₱11.26

IPO Price

+19%

13 August 2019

PIZZA

Philippine Consumer Average PER

23.3x

27.5x EV / EBITDA

10.6x

12.1x ROE

18.4%

13.3% Operating Margin*

15.9%

10.2% Net Income Margin*

11.1%

7.1%

Source: BPI Securities 2019 Estimates as of 1 August 2019 *Bloomberg, trailing 12 months

STOCK PRICE PERFORMANCE

(BLOOMBERG TICKER: PIZZA PM)

6.00 10.00 14.00 18.00 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 PHP/SHARE

PHP13.38

as of 9 August 2019

Stock Highlights

31

DIVIDEND HISTORY

*Listing Date: 15 December 2016 **As of 1 August 2019 *Of previous year’s recurring net income

0.10 0.10 0.10 23% 20% 18%

0% 15% 30% 0.00 0.15 0.30 2017 2018 2019 Regular Cash Payout Ratio* Declaration Date Record Date Payment Date 2017 May 8 June 6 June 30 2018 August 16 September 14 October 10 2019 June 20 July 19 August 14

Philippines’ Best Small Cap Company Finance Asia 2018

Investor Relations Highlights

Current Price PHP13.38 Range since Listing Date* PHP9.80 - 17.48

• No. of Outstanding Shares

1,531,321,053 Shareholding Structure CPGI: 52.9% Arran (GIC): 18.5% Free Float 28.6% (includes Prieto family’s 3.8%) 3-Month Average Turnover PHP11.0 million USD0.2 million Market Capitalization PHP20.5 billion USD0.4 billion YTD Absolute Performance +17.5% YTD Relative to Index +9.0% YTD Relative to Sector +8.4% 3-Month Absolute Performance +7.5% 3-Month Relative to Index +5.7% 3-Month Relative to Sector +7.7%

SHAREHOLDERS

Source: Bloomberg, August 2019

Foreign Ownership Limit: 100% Free Float Level: 29%

GIC Private Equity 18% Prieto Family 4% Norges Bank 3% Matthews International Capital Management 1% Others 20% Century Pacific Group,

• Inc. (CPGI) 53%
• wholly owned by

the Philippines’ Po family

• majority

shareholder of CNPF PM and ALCO PM

32

SELL-SIDE COVERAGE

Institution Analyst Latest Call AB Capital Sec Edgar Lay HOLD BDO Nomura Angelo Torres BUY BPI Jefferies Javier Consunji BUY CLSA Joyce Ramos BUY COL Financial Andy Dela Cruz HOLD Credit Suisse Hazel Tanedo OUTPERFORM Macquarie Karisa Magpayo OUTPERFORM Regina Capital Paola Lopez BUY Regis Carissa Mangubat BUY Unicapital Sec Wendy Estacio HOLD

Investor Relations Highlights

33

PIZZA’s 2018 Glossy Annual Report can be found on the Company’s corporate website. Investors > Investor Presentations

https://tinyurl.com/PIZZA-Annual-Report-2018

MESSAGE FROM THE PRESIDENT

• 2018. What everyone thought would be

a relatively easy, smooth-sailing year turned out to be a very challenging one for the food service industry as well as for our company. I am proud to tell you that our company was still able to finish 2018 on a positive note and continued to deliver industry- leading growth that was the envy of

• thers. The year proved that when the

going gets tough, the tough (Team Shakey’s) get going!

Investor Relations Highlights

34

Investor Conferences Earnings Release

Macquarie ASEAN Conference August 27, Singapore 3Q19 Earnings Release November 12

*Schedule updated as of 17 August 2019

Investor Relations Highlights

SUSTAINABILITY HIGLIGHTS

36

First GRI-Compliant Sustainability Report

Sustainability Framework

PLANET

• Talent acquisition

& management

• Workplace culture

& environment

• External guest

engagement

• Impact to

communities

• Natural resource

efficiency

• Packaging & waste
• Food safety &

quality

• Responsible

sourcing

• Long-term financial goals now coupled with

ENTERPRISE-WIDE INITIATIVE TO MONITOR AND MEASURE ENVIRONMENTAL, SOCIAL, AND GOVERNANCE METRICS Available for download here:

https://tinyurl.com/PIZZA-Annual-Report-2018

PEOPLE PIZZA

37

First GRI-Compliant Sustainability Report

2018 Sustainability Highlights

PEOPLE PLANET PIZZA

9,149

jobs supported

43.6

average training hours per employee

1:1

ratio between male and female employees

8.3/10

satisfaction

• f store

employees

4%

reduction in electricity intensity

1%

reduction in water intensity

74%

Of total spending is

• n local suppliers

100%

RSPO-certified palm oil Supplier accreditation process in place

SHAKEY’S PIZZA ASIA VENTURES, INC.

This document is highly confidential and being given solely for your information and for your use and may not be, or any portion thereof, shared, copied, reproduced or redistributed to any other person in any manner. The statements contained in this document speak only as of the date which they are made, and the Company expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances

• n which any such statements are based. By preparing this presentation, none of the Company, its

management, and their respective advisers undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or to correct any inaccuracies in any such information which may become apparent. This presentation contains statements, including forward-looking statements, based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements in particular involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking

• statements. Given these risks, uncertainties and other factors, recipients of this

document are cautioned not to place undue reliance on these forward-looking statements. Any reference herein to "the Company" shall mean, collectively, Shakey’s Pizza Asia Ventures, Inc. and its subsidiaries. Paranaque City, Philippines investorrelations@shakeys.biz +632 742 5397 www.shakeyspizza.ph http://edge.pse.com.ph