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April 24, 2017

COFFEE TIME WITH PHILSTOCKS :


Shakeys Pizza Asia Ventures, Inc.
(PSE: PIZZA)
Discussion agenda

1 Investment Highlights

2 Financial Overview

3 Store Network

4 Business Updates

5 Stock Price Performance

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Brand Legacy of over 40 years

1975 1987 1999 2006 2014 2016 2017

First Acquired Acquired Est.


store Shakeys Shakeys 204
locally trademark trademark stores
for PH for Middle
East, Asia CPG and
The Prieto Established
(ex Japan, Arran (GIC)
family became commissary
Malaysia) acquired
the master
Australia control
franchisor in the
and New
Philippines
Zealand
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Summary of Investment Highlights

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

2 Strong and well established brand

3 Proven and scalable business model

4 Experienced management team

5 Industry leading financial performance

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1 #1 Full Service Pizza Chain and #1 Restaurant Chain
Full-service pizza chain market is dominated by Shakeys

Pizza Chain Chained Full Service Full Service Pizza Chain


Restaurant
Papa
Domino's California John's, Others,
Pizza, Pizza 2.4% 2.6%
Sbarro, 1.3% Kitchen,
Lots' a3.7% Others, 2.7%
Pizza, 8.5%
4.4%
Others,
29.6%

Yellow 27.2% 26.7%


Cab,
7.6% Kenny Pizza Hut,
Rogers, 34.6%
Pizza Hut, Greenwich,
4.8% Pizza Hut,
16.0%
57.7%
23.0% 24.3%
Gerry's Max's,
Grill, 11.8%
5.0%
Pancake
House,
6.0%

Shakeys is the leading A 2015 market study Shakeys dominates the


pizza chain in the showed that close to 50% full service pizza chain
Philippines by value with of the total full service market by value since
27.2% market share, restaurant market by value 2011 until present.
trumping Greenwich and is dominated by pizza
Pizza Hut. players.
Source: Euromonitor
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2 Strong and well established brand
Differentiated menu with iconic and well-loved products

Pizza
World famous thin crust and hand tossed pizzas with
20 different choices

Chicken and Mojos


Signature dish - fried chicken paired with Shakeys
famous mojos

Pasta
Hearty and healthy pasta with a wide range of sauces
and toppings paired with garlic bread
Starters
Ranging from fries, mojos, squid rings, chips and
chicken
Wholesome combos
Combination of different signature products offered by
Shakeys
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2 Strong and well established brand
Beautiful and distinct store environment

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2 Strong and well established brand
Ownership and control of the brand

2016 Philippine Top Brands: Brand


Restaurant ownership
Brand:
Category: means

No royalty payments, leading to shorter


payback period and sustainably higher
margins vs. peers
Revenue from licensing fees and royalties
from franchisees
2
Freedom to execute and react faster to
market changes
Source: Asias Top 1000 Brands Survey
by Campaign Asia, in partnership with Opportunity for expansion into international
Nielsen Company markets

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3 Proven and scalable business model
Multiple sales channels provide convenience and flexibility

Most popular sales channel due to unique family and


Dine-in friends experience
Aim to WOW the guest
Delivery available nationwide
Single delivery hotline number (77-777) for Metro
Delivery
Manila and adjacent areas; can be used nationwide by
2H 2017

Carryout Convenient and fast method of sales

Legacy and free standing stores have function rooms


Functions
for events such as parties and company gatherings
Active online and mobile presence with own website
Online sales and mobile app
http://www.shakeys.com/order-online/
A very popular paid loyalty card
Supercards
PHP 499 annual fee 8
3 Proven and scalable business model
Multiple store formats for market and expansion flexibility

Legacy Free standing Strip mall


Mall stores Others
stores stores stores
Typical store size
400 300 - 350 200 - 250 120 - 250 120 -9 180
(sqm)
3 Proven and scalable business model
Well-established franchise model with industry leading ROI

Strong Almost half of the 71 franchise stores are owned by


franchise franchisees who have been with Shakeys for over 10
retention leads
years
to strong
operators Strong relationship with all our franchise partners

Good mix of Out of 184 stores operating as of year-end 2016, 73 stores


franchise and (40%) are franchised
company- Enjoys economies of scale especially for procurement of
owned stores raw materials

Short payback Simple business model and strong discipline lead to typical
period payback period of 3-4 years

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4 Experienced management team
With a vision to be the LEADING and PREFERRED pizza restaurant

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 Shakeys branch in the Philippines
Key driver of Shakeys 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: 52)
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 (Shakeys Philippines) (Age: 60)


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 Shakeys USA
Leading the development and operations of the Shakeys brands in Asia, Middle East, Australia and New Zealand
Over 25 years of experience leading operations and franchising in top chained restaurants
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5 Industry leading financial performance
Superior profitability and margins versus peers

3.9% 15% 669


Same Store Revenue Growth Million in Net
Sales Growth Income

320bps 200bps 39%


Expansion Expansion Net Net Income
EBITDA Margin Income Margin Growth

*figures based on recurring financials as of FY2016

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Financial overview

*figures based on recurring financials as of FY2016


FY 2016 Financial Performance
In PHP Mns FY2015 FY2016 Change
Audited Consolidated* YoY
Driven by same store
Financials sales growth of 3.9%
Total Revenue 5,244 6,014 15%
and increased
contribution of new
Cost of sales (4,048) (4,165) 3% stores
Gross Profit 1,196 1,850 55%

EBITDA 864 1,256 45% Favourable commodity


Net Income 480 785 64% prices and purchasing
Margins
synergies post
consolidation into the
Gross profit 22.8% 30.8% +8.0 pps Century Pacific Group
EBITDA 16.5% 20.9% +4.4 pps

Net income 9.1% 13.1% +4.0 pps Adjusted for 222.5 Mn


in extra-ordinary
Adjusted for One-Offs income and 106.4 Mn
EBITDA 864 1,186 37% in tax adjusted
acquisition & IPO
Net Income 480 669 39%
expenses totalling
EBITDA Margin 16.5% 19.7% +3.2 pps
151.9 Mn
Net Margin 9.1% 11.1% +2.0 pps
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*had acquistions of subsidiares actually taken place on January 1 2016
Improved Profitability Metrics
Gross
GrossIncome
Profit EBITDA
Gross Profit
3,000 70 3,000 70
56% 60 60
2,500 2,500 37%
2,000 1,850 50
2,000
50

40 40
1,500
1,500 1,196 30
1,186 30
1,000 31 1,000 864
20 20
23 500 20
500 10 17 10
Mns %0 - Mns
- %0
2015 2016* 2015 2016*

Net Income
Gross Profit
1,500 50
Favourable commodity prices and 45
lower input costs 1,200 40
35
Purchasing synergies with the 900
40%
30
Century Pacific Group 669 25
Alignment of depreciation policy with 600 480 20
15
industry standards 300 10
9 11 5
- 0
%
Mns 2015 2016*
*figures based on recurring financials as of FY2016 15
Key Balance Sheet Metrics
34% Above industry ROE despite
27% increase in equity base due to
Return on Equity
corporate restructuring and
using average equity
initial public offering
2015 2016
Temporary increase in
1.20 Current Liabilities due to
Current Ratio (x) notice to prepay 1.0 Bn of
1.08 acquisition leverage

2015 2016 Only interest bearing debt is


1.70 acquisition leverage used in
Net Debt to Equity (x)1 the change of majority
0.45 shareholders last year

2015 2016 Assuming 1.0 Bn prepayment


made before end 2016, gearing
Net Gearing (x)2 1.38 ratios come down :
-
Net Debt to Equity = 1.4x
2015 2016
Net Gearing = 1.1x
1Net debt to equity ratio = (total liabilities cash) / total equity
2Net gearing ratio = (interest-bearing liabilities cash) / total equity *figures based on recurring financials as of FY2016 16
Store Network
17 10% 184
New Stores in Increase in Store Network
FY 2016 Store Network as of end 2016

5 20 204
New Stores in Target # of New Target Store
Q1 2017 Stores in 2017 Count end 2017

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Historical Growth in Store Network

10%
184
153 167
133 136 140 73
64 70
55 55 60

89 97 111
78 81 80

2011 2012 2013 2014 2015 2016

Company-owned Franchise

17 new stores in 2016, the most ever opened


in a single year
Franchised
Mostly company-owned stores as pockets Company- 40%
of opportunity remain in Metro Manila/closer owned
proximity areas 60%
Target of 20 new stores in 2017 will increase
network by another 11% 19
Store Portfolio as of FY 2016
National 9
Capital Region Legacy
(NCR) Stores
48%
63
Free-
Luzon, ex-NCR standing
39% stores

29
In-Mall
Visayas
Stores
9%

71
Mindanao Strip Mall
Stores
4%

12
International Delco
0% Stores
20
Flexibility in Formats
Store Breakdown by Format Multiple store formats allow for flexibility in
as of FY 2016 expanding and targeting different markets

55% Mall

Standalone
39%

6% Others SM East Ortigas


December 2016
Standalone stores are
larger and also serve as
billboards for the brand
Other formats include
small size outlets for
newer markets and
delcos for added delivery
capacity Solenad
December 2016
21
Business Updates
Marketing Initiatives

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Stock Price Performance
As of 04/20/2017
Current Price PHP 13.98

Initial Listing Price PHP 11.26

Range since listing date PHP 10.90 14.80


YTD Absolute Performance +21.6%
Relative to Index +10.3%

Stock Price Performance (Bloomberg Ticker: PIZZA PM)

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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 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 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, Shakeys Pizza Asia Ventures Inc. and its subsidiaries.

SHAKEYS PIZZA ASIA VENTURES INC.

+632-839-0156
investorrelations@shakeys.biz
www.shakeyspizza.ph
http://edge.pse.com.ph/companyInformation/form.do?cmpy_id=664

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