Shakey’s Pizza Asia Ventures, Inc.(PSE: PIZZA)

COMPANY PRESENTATION :

May 2017

The Prieto

family

became

the master

franchisor

in the

Philippines

Acquired

Shakey’s

trademark

for the

Philippines

in

perpetuity

Established

commissary

Acquired

Shakey’s

trademark

for Middle

East, Asia

(ex Japan,

Malaysia)

including

China ,

Australia

and New

Zealand in

perpetuity

1975 2016 20172006

System-

wide

stores

reached

100

184 system-

wide stores

(end-2016)

Estimated 204

stores by

end-2017

1987

First store

in the

Philippines

1999 2009 2014

Century

Pacific Group

(CPGI) and

Arran (GIC)

acquired

control

2

Shakey’s has 40 and counting years

of brand legacy

Summary of Investment Highlights

Market Leadership*

Scalable Business

Model

Experienced

Management

• Dominates the full service pizza chain market with 58% market share

• 27% market share in the full service (pizza and non-pizza) category -

#1 in that space as well

• Multiple sales channels and store formats; Simple operations

• Low upfront cost and strong cash generation lead to shorter store-

level payback periods compared to 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

Brand Strength &

Ownership

• 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 franchising

1

2

3

4

Industry Leading

Financials

• Superior profitability and margins versus peers

• Gearing levels improved post prepayment of debt c/o IPO proceeds

• Cash generative with a negative cash conversion cycle5

*Euromonitor 20153

Investment Highlights

Pizza Hut, 16.0%

Max's, 11.8%

Pancake House, 6.0%

Gerry's Grill, 5.0%

Kenny Rogers,

4.8%

Others, 29.6%

Pizza Hut, 34.6%

California Pizza

Kitchen, 2.7%

Papa John's, 2.4%

Others, 2.6%

#1 Pizza Chain and #1 Full Service Restaurant in the PH

Shakey’s dominates the

full service pizza chain

market by value since

2011 until present.

1

Full Service Pizza Chain

A 2015 market study

showed that close to 50%

of the total full service

restaurant market by value

is dominated by pizza

players.

Chained Full Service Restaurant

The full service pizza chain market is dominated by Shakey’s.

Source: Euromonitor 2015 Report

Pizza Chain

Greenwich, 24.3%

Pizza Hut,

23.0%

Yellow Cab, 7.6%

Lots' a Pizza, 4.4%

Sbarro, 3.7% Others,

8.5%

Domino's Pizza, 1.3%

27.2%

Shakey’s is the leading

pizza chain in the

Philippines by value with

27.2% market share,

trumping Greenwich and

Pizza Hut.

26.7%57.7%

5

Pizza

World famous thin crust and hand tossed

pizzas with many different choices

Wholesome combos

Combination of different signature

products offered by Shakey’s

Chicken and Mojos

Signature dish - fried chicken paired with

Shakey’s famous mojos(a)

Family meals

Value for money combination of pizza,

chicken, mojos and beverage

Pasta

Hearty pasta with a wide range of sauces

and toppings paired with garlic bread

Desserts

Wide range of after-meal desserts

Starters

Ranging from fries, mojos, squid rings,

chips and chicken

Soup and Salad

Extensive choice of soup and salad for

health-conscious customers

Bundled offerings catering to families and groups

Differentiated menu with iconic products

Strong and well established brand2

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

(a) thinly-sliced potatoes coated with Shakey’s breading and fried to a golden brown perfection6

• No royalty payments, leading to shorter payback period and sustainably higher margins vs peers

• Revenue from licensing fees and royalties from franchisees

• Freedom to execute and react faster to market changes

• Opportunity for expansion into international markets

Strong and well established brand2

Beautiful and distinct store environment is Shakey’s offering to every customer;

Shakey’s has full control and ownership of its brand.

Brand ownership means: 2016 Philippine Top Brands:

Restaurant

Category: Brand:

2

Source: Asia’s Top 1000 Brands Survey by Campaign Asia, in partnership with Nielsen Company 77

Others, 15%

Dine-in, 61%

Delivery, 24%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) for Metro

Manila and adjacent areas; can be used

nationwide by 2H 2017

Carryout

• Convenient and fast method of sales

Functions

• Legacy and 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

Supercards

• A very popular paid loyalty card

• PHP 499 – annual fee

(a) Includes carryout, catering and functions

Supercards benefits include:

• A birthday pizza treat

• Buy 1 Take 1 pizza promotion for delivery

• 10% off on dine-in or carryout purchases

• SuperPoints (1 point for every Php100

spent) for dine-in or carryout purchases

Systemwide sales split by channel

(Q1 2017)

(a)

Proven and scalable business model Strong and well established brand3

Multiple sales channels provide convenience and accessibility to Shakey’s customers.

8

9

Legacy storesFree standing

stores

Strip mall

storesMall stores Others

Typical store

footprint

(sqm)400 300 - 350 200 - 250 120 - 250 120 - 180

# of system-wide

stores as of

Q1 20179 67 29 73 11

% to total

system-wide

stores5% 35% 15% 39% 6%

Proven and scalable business model3

Shakey’s multiple store formats allows for market and expansion flexibility.

9

Proven and scalable business model3

• 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 out more and upgrading from fast food to casual dining

Brand positioning

• Own commissary for proprietary raw materials protects key supply chain and maintains consistency and control over quality

• Economies of scale and purchasing synergy

Vertical integration

• 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

Asset light approach

• Business model and strong discipline leads to typical payback period of 3-4 years

• Low upfront cost and strong cash generation per store

Short payback period

Proven and scalable business model3

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

1010

Vicente L. Gregorio, President & Chief Executive Officer (Age: 51)

• 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, organisation 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 Financial Officer (Age: 53)

• Previously the Assistant Vice-President for Finance of Century Pacific Food Inc. (CNPF) and Pacific Meat, Inc.

• Worked in accounting positions at several leading companies

Jorge Ma. Q. Concepcion, General Manager (Shakey’s Philippines) (Age: 61)

• Over 30 years of experience in consumer related business

• Significant experience in the US foodservice industry for about 10 years in numerous managerial positions

Alois Brielbeck, General Manager (Commissary) (Age: 56)

• 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 Bakemasters General Manager in 2005

Joseph A. Remsa, Consultant – International Development

• Previously the President & CEO of Shakey’s USA

• Leading the development and operations of the Shakey’s brands in Asia, Middle East, Australia and New Zealand

• Over 25 years of experience leading operations and franchising in top chained restaurants

3 Experienced Management Team4

VISION: to be the LEADING and PREFERRED full service pizza chain restaurant

1111

Q1 2017 Financial Results

13

11.6%Same Store

Sales Growth

22%Systemwide Sales

Growth

530bpsExpansion in

Gross Profit Margin

170bpsExpansion in

EBITDA Margin

26%Net Income After

Tax Growth

₱1.7Billion in

Net Revenues

For Q1 2017

Margin expansion from:

- Purchasing synergies

with Century Pacific

Group

- Favorable raw

materials costs due to

Company’s hedging

strategies

- Topline growth

attributed to successful

2017 promotional deal

and new stores

- Increased in-store

head count as well as

average checks

Q1 2017 Financial Performance

14

In Php MillQ1 2016

Unaudited

Q1 2017

Unaudited

Change

YoY

Total Revenue 1,330 1,667 25%

Cost of Sales (1,003) (1,169) 17%

Gross Profit 327 498 52%

Operating Income 163 287 76%

EBITDA 238 327 37%

Net Income Before Tax 178 240 34%

Income Tax (41) (67) 63%

Net Income 138 173 26%

Margins

Gross profit 24.6% 29.9% 530 bps

Operating income 12.3% 17.2% 490 bps

EBITDA 17.9% 19.6% 170 bps

Net income before tax 13.4% 14.4% 100 bps

Effective tax rate 23.0% 27.9% 490 bps

Net income 10.4% 10.4% -

YoY increase in

effective tax rate

primarily due to

skew/timing

61% 61%

26% 24%

13% 15%

Q1 2016 Q1 2017

Q1 2017 Sales and Revenue Breakdown

15

• Consolidated revenues

grew by 25% for Q1

2017.

• 5 new store openings

in Q1 2017

• Promotional meal

deals increased

restaurant activities96% 95%

4% 4%

1%

Q1 2016 Q1 2017

Revenue Breakdown (as a % of consolidated revenues)

24%

Dine-in

Delivery

Others (a)

22%

Net restaurant

sales

Royalty and

franchise fees

Third-party

commissary sales

23%

11%

43%

Segment Breakdown (as a % of systemwide sales)

• B1T1 pizza for carry-

out transactions

• “2017 meal deal” which

encouraged dining in

groups at an affordable

price

(a) sales generated from carry-out, functions, catering events, etc.

Q1 2017 Profitability

16

327

498

25%

30%

0%

10%

20%

30%

40%

50%

60%

70%

0

200

400

600

800

1000

1200

1400

1600

Q1 2016 Q1 2017

163287

12%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

200

400

600

800

1000

1200

1400

1600

Q1 2016 Q1 2017

52%

Improved profitability due to:

• Purchasing synergies and operating efficiencies with the Century Pacific Group

• Change in depreciation policy to align with industry standards

• Favorable raw material costs due to hedging strategies by the Company

• Price increase to offset increase in commodity prices in latter half of 2017

76%

138 173

10% 10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

200

400

600

800

1000

1200

1400

1600

Q1 2016 Q1 2017

26%

Operating Income

(in Php Mill)

+530

bps

+490

bps

Gross Profit

(in Php Mill)

Net Income

(in Php Mill)

Balance Sheet Highlights

• Cash and Cash Equivalents used for

raw material importations and payment of

business tax

• AFS Investments of P1.0 billion were

redeemed last January 2017 and used as

payment of current portion of loan

payable

• Capital expenditures for construction of

new stores, a new corporate office and

an expanded commissary

• Reduction in trade payables due to

settling of 2016 payables to suppliers

• P1.0 billion loan payment in

January 2017

• P3.9 billion long-term loan balance, and a

net gearing ratio of 1.1x.

17

In PHP Mill YE 2016 Q1 2017

Cash 329 231

AFS investments 1,125 155

Total current assets 2,144 1,059

Property, plant, equipment 999 1,161

Goodwill 1,079 1,079

Trademarks 4,987 4,987

Other long-term assets 175 194

TOTAL ASSETS 9,384 8,480

YE 2016 Q1 2017

Trade and other payables 864 734

Current portion of loan

payable 1,048 49

Total current liabilities 1,977 897

Loan payable (net) 3,933 3,933

Total long-term liabilities 4,048 4,051

TOTAL LIABILITIES 6,025 4,948

TOTAL EQUITY 3,359 3,532

Capital expenditures for

construction of new

stores, a new

corporate office and

an expanded

commissary

Cash Flow Highlights

18

Change in depreciation

policy to align with

industry standards

IPO proceeds

temporarily invested in

money market funds

were used to prepay a

portion of the

outstanding loan

In PHP Mill Q1 2016 Q1 2017

Income before income tax 178 240

Depreciation and amortization 61 45

Interest expense - 43

Changes in working capital (6) (163)

Others (8) (17)

Net operating cash flow 225 148

CAPEX additions (72) (207)

Redemption of AFS investments 683 1,101

Acquisition of AFS investments - (130)

Others 81 (8)

Net investing cash flow 692 756

Payment of loan - (1,000)

Payment of interest - (2)

Payment of dividends (987) -

Net financing cash flow (987) (1,002)

Beginning Cash 389 329

Change in Cash (70) (98)

Ending Cash 319 231

Free Cash Flow 153 (59)

Born from P3.9 billion

acquisition loan

balance

• Maintained above

industry ROE for Q1 2017

despite increase in equity

base due to corporate

restructuring and initial

public offering in Q4 2016

• Decrease in Current

Liabilities due to payment

of ₱ 1.0 billion of

acquisition loan

• Company’s only interest

bearing debt is acquisition

leverage used in the

change of majority

shareholders last year

• Net gearing ratio down to

1.1x in Q1 2017 due to

payment of ₱ 1.0 billion of

acquisition loan.

Key Balance Sheet Metrics

19*uses an annualized equity figure to compute for Q1 2017 ROE

**Net debt to equity ratio = (total liabilities – cash) / total equity

***Net gearing ratio = (interest-bearing liabilities – cash) / total equity

Return on Equity

Current Ratio (x)

Net Debt to Equity (x)**

Net Gearing (x)***

1.70

1.34

2016 Q1 2017

1.381.06

2016 Q1 2017

using average equity

1.08 1.18

2016 Q1 2017

26% 20%

2016 Q1 2017*

Working Capital

Payables*Inventory*Accounts Receivables*

20

₱482 ₱385

30

21

-

30

60

90

-

200

400

600

800

1,000

1,200

1,400

2016 Q1 2017

days₱ Mns

Cash conversion cycle for the first quarter was

negative 20 days, a decrease of 6 days compared

to 2016

Decrease in payables and

receivable days primarily due to

streamlining of payment and

collection processes

₱248 ₱270

22 21

-

30

60

90

-

200

400

600

800

1,000

1,200

1,400

2016 Q1 2017

*average figures were used to compute for the working capital components

days₱ Mns

₱886₱799

78

62

-

30

60

90

-

200

400

600

800

1,000

1,200

1,400

2016 Q1 2017

days₱ Mns

Our Store Network

5New Stores in

Q1 2017

184Store Network

as of end 2016

20Target # of New

Stores in 2017

204Target Store

Count end 2017

22

11%FY 2017 target

growth from FY 2016

1International Store

by Q3 2017

81 80 89 97 111 114

55 6064

7073 75136 140

153167

184 189

2012 2013 2014 2015 2016 Q1 2017

Company-owned Franchise

Historical Growth in Store Network

23

• 5 new stores opened in Q1 of 2017

• Maintain a good mix between company-owned

and franchise stores

• Target of 20 new stores in 2017 will increase

network by another 11%

Franchised40%Company-

owned60%

+2

+3

new stores

opened in

Q1 2017

Geographic Breakdown as of Q1 2017

National Capital

Region (NCR)

46%

Luzon, ex-NCR

41%

Visayas

9%

Mindanao

4%

24

Concentration of stores

still in Metro Manila,

where per capita incomes

are higher

Opportunity to grow

outside the usual urban

centres benefitting from

key consumer trends –

affordable premiumization,

eating out more often,

upgrading from fast food to

fast casual

No international

presence yet despite

ownership of the trademark

for the rest of Asia (ex

Japan, Malaysia), Middle

East, Australia, & OceaniaInternational

0%

Flexibility in Formats

25

Multiple store formats allow for flexibility in

expanding and targeting different markets

• Standalone stores are

larger and also serve as

‘billboards’ for the brand

• Other formats include

small size outlets for

newer markets and

delco’s for added delivery

capacity

6%

40%

54% Mall

Standalone

Others

Store Breakdown by Format

As of Q1 2017

26

Q1 2017 New Stores

Magsaysay

January 2017

UPS

March 2017

Palo, Leyte

March 2017

Caltex SLEX

March 2017

C-3 A. Bonifacio

March 2017

Stock Price Performance

27

Stock Price Performance (Bloomberg Ticker: PIZZA PM)

Source:

Deutsche Bank

2017 Estimates

PIZZA

Phil.

Consumer

Average

PER (x) 28.0 22.9

EV/EBITDA (x) 17.7 13.0

ROE (%) 20.6 15.9

MARKET CAPITALIZATION

$345MnDecember 2016

$424MnMay 2017

PERFORMANCE SINCE IPO

₱11.26IPO Price

+23%Return since IPO

Stock Price Performance

28

As of 05/11/2017

Current Price PHP 13.80

Initial Listing Price PHP 11.26

Range since listing date

(12/15/16 – 05/11/17)PHP 10.90 – 14.80

No. of outstanding shares 1,531,321,053

Shareholding structure

CPGI: 52.0%

Arran (GIC): 18.5%

Prieto Family: 6.5%

Free Float (%) 23.0%

3-month Average TurnoverPHP 41.04 Million

USD .8221 Million

Market CapitalizationPHP 21.13 Billion

USD 423.3 Million

Sell-side Coverage:

As of 05/11/2017

Performance since listing

date

(12/15/16 – 05/11/17)

+23%

Relative to Index

(12/15/16 – 05/11/17)+10%

Annex: Financial Statements

SPAVI and Subsidiaries Financial Statements

Consolidated Unaudited Statements of Comprehensive Income

in PHP Mill Q1 2016 Q1 2017

Net sales 1,281 1,607

Royalty and franchise fees 49 59

Total revenues 1,330 1,667

Cost of sales (1,003) (1,169)

Gross profit 327 498

Operating expenses (164) (211)

Operating income 163 287

EBITDA 238 327

Interest expense - (43)

Other income (expense) - net 15 (4)

Net income before tax 178 240

Provision for income tax (41) (67)

Net income after tax 138 173

Margins

Gross profit 24.6% 29.9%

Operating income 12.3% 17.2%

EBITDA 17.9% 19.6%

Net income 10.4% 10.4%

Effective tax rate 23.0% 27.9%

30

SPAVI and Subsidiaries Financial Statements

Consolidated Unaudited Statements of Financial Position

in PHP Mill YE 2016 Q1 2017

Cash and cash equivalents 329 231

AFS investments 1,125 155

Trade and other receivables 421 349

Inventories 256 283

Prepaid expenses and other current assets 13 41

Total current assets 2,144 1,059

Property and equipment 999 1,161

Goodwill 1,079 1,079

Trademarks 4,987 4,987

Rental and other deposits 105 124

Deferred input value-added tax 40 41

Deferred tax assets - net 30 29

Total non-current assets 7,240 7,421

TOTAL ASSETS 9,384 8,480

in PHP Mill YE 2016 Q1 2017

Accounts payable and other current liabilities 864 734

Loan payable - current portion 1,048 49

Income tax payable 64 115

Total current liabilities 1,977 897

Loans payable (net of current) 3,933 3,933

Accrued pension costs 34 34

Accrued rent 64 65

Dealers' deposits and other noncurrent liabilities 17 19

Total non-current liabilities 4,048 4,051

TOTAL LIABILITIES 6,025 4,948

Capital stock 1,531 1,531

Additional paid in capital 1,354 1,354

Other components of equity (12) (12)

Retained earnings 487 659

Total equity 3,359 3,532

TOTAL LIABILITIES and EQUITY 9,384 8,480

31

SPAVI and Subsidiaries Financial Statements

Consolidated Unaudited Statements of Cash Flows

32

In PHP Mill Q1 2016 Q1 2017

Income before income tax 178 240

Adjustments for:

Depreciation and amortization 61 45

Interest expense - 43

Others 1 (1)

Working capital changes (6) (163)

Income taxes paid (10) (16)

Interest received 1 -

CASH FLOWS FROM OPERATING ACTIVITIES 225 148

Redemption of AFS investments 683 1,101

Acquisition of property and equipment (72) (207)

Acquisition of AFS investments - (130)

Decrease (increase) in rental and other deposits 7 (10)

Increase in dealer's deposits and other noncurrent liabilities - 3

Proceeds from disposals of PPE 6 -

Sale of financial assets at FVPL 36 -

Collection of intercompany loans 32 -

CASH FLOWS FROM INVESTING ACTIVITIES 692 756

Payment of:

Loan - (1,000)

Interest - (2)

Dividend (987) -

CASH FLOWS FROM FINANCING ACTIVITIES (987) (1,002)

NET INCREASE (DECREASE) IN CASH (70) (98)

Cash and cash equivalents, BEGINNING 389 329

Cash and cash equivalents, ENDING 319 231

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 on 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 any additional

information 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.

SHAKEY’S PIZZA ASIA VENTURES INC.

investorrelations@shakeys.biz

www.shakeyspizza.ph

http://edge.pse.com.ph/companyInformation/form.do?cmpy_id=664

+632-839-0156

Taguig City, Philippines

33