Cosco Capital, Inc.

1Q 2019 Financial Results

Investor Presentation

1
Disclaimer

These presentations and/or other documents have been written and presented by
COSCO CAPITAL, INC. (COSCO). COSCO is solely responsible for the accuracy and
completeness of the contents of such presentations and/or other documents. Third
parties, other than COSCO, 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 COSCO. 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.

Head Office Address

2nd floor, Tabacalera Building, 900 Romualdez Street, Paco, Manila, 1007
Philippines

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Company Overview

Lucio Co Family Public

73% 27%

51% 100% 100% 100%

Commercial Real
Grocery Retailing Liquor Distribution Specialty Retailing
Estate

• Ellimac Prime Holdings,

Inc.,
• Fertuna Holdings Corp.,
• Patagonia Holdings
Corp.,
• Nation Realty, Inc.
• NE Pacific Shopping
Centers Corporation
• Pure Petroleum Corp.,

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Revenue & Net Income Contribution 1Q 2019

Revenues PATMI

Specialty Real
Retail 2% Estate
23%
Liquor
Distribution Grocery
4% Retailing
Grocery 58% Liquor
Real
Retailing, Distribution
Estate 1%
93% 17%
Specialty
Retail 2%

PHP 37.5 billion *PHP 1.32 billion

*Net Income excludes one-time gain on sale of Liquigaz 4

 1Q 2019 Consolidated Financial Highlights
(In PHP millions)
+1.8% +8.2%
Revenues Gross Profit
40,000
168,388 38.0%
145,750 35,000
28,260
129,186 30,000 33.0%

25,000 21,912 24,322 28.0%

20,000
17.4% 18.5% 23.0%

36,809 37,471
15,000
10,000
17.0% 16.7% 16.8% 6,416 6,940 18.0%

5,000 13.0%

8.0%
2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19
GP GP Margin

EBITDA +7.4% Net Income +436%

12,926 13,876 14,889
,000 30.0%
,000
25.0% 11,000
8,805 10,072 25.0
,000
,000
20.0%
9,000 7,469 7,833 20.0
11.6% 7,000
,000 11.0% 4,341 15.0% 15.0
,000 10.0% 9.5% 8.8% 4,042 5,000
10.0% 1,880 10.0
,000 3,000
,000
5.0% 5.8% 5.4% 5.2% 5.1%
1,000 5.0%
0.0%
-1,000 0.0%
2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19
EBITDA EBITDA Margin
NIAT NIAT Margin 5
 Grocery Retailing: 1Q 2019 Financial Highlights
(In PHP millions) Revenues Gross Profit and Margin
+12.8% +11.2%
30,000 24.0%
140,918 23,840
112,589 124,491
22.0%
19,376 20,655
25,000
20.0%
20,000 18.0%
15,000
17.2% 16.6% 16.9% 17.7% 17.4% 16.0%
14.0%
30,868 34,832 10,000
5,456 6,065 12.0%
5,000
10.0%
8.0%
2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19
GP GP Margin

EBITDA and Margin Net Profit and Margin

+9.4% +11.9%
9,921 10,644 11,273
12,500 20.0%

5,526 5,840 6,520

10,500 7,000 10.0%
15.0% 6,000
8,500 8.0%
5,000
6,500 3,190 3,535 4,000 6.0%

4,500 10.3% 10.1%

10.0%
3,000 4.9% 1,349 1,510
8.8% 8.5% 4.7% 4.6% 4.3%
4.0%
2,500 8.0% 2,000 4.4% 2.0%
5.0% 1,000
500 0.0%
-1,500 0.0% 2016 2017 2018 1Q 18 1Q 19
2016 2017 2018 1Q 18 1Q 19
EBITDA EBITDA Margin NIAT NIAT Margin

*Net Income includes one-time gain on sale of Lawson amounting to Php 362.8 million in 2018 6
Grocery Retailing: Operational Highlights

• Puregold opened 8 new stores in 1Q 2019

• S&R opened 1 new S&R warehouse
• As of FY 2018, the Grocery Retailing segment is operating a
total of 417 stores
• SSSG PGOLD only is at 6.9% while S&R is at 9.4%
• Merger and conversion of NE Bodega and Budgetlane
supermarket stores effective January 1, 2018

PUREGOLD S&R S&R QSR

Metro Manila 125 7 25
Luzon 201 6 9
Visayas 25 2 4
Mindanao 11 2 0
Total 362 17 38

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Liquor Distribution: Products

Brandy Brandy Tequila

Alfonso Fundador Jose Cuervo
Alfonso Light Fundador Light Whiskey
Excelente Bushmills
Whiskey Chivas Regal
Tequila Jim Beam
Patron Glenfiddich Cognac
Martel
Whiskey Vodka
Johnnie Walker Absolut
Jack Daniels
Liqueurs
Jagermeister
Various Wines
Specialty Beverages
Red Bull
Various Wines

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 Liquor Distribution: FY 2018 Financial Highlights
(In PHP millions) Revenues Gross Profit and Margin
+24% 2,500 +28.8% 48.0
8,747 2,000 1,874 43.0
6,663 1,491 38.0
5,904 1,500 1,344 33.0
28.0
1,000
381 491 23.0

1,712 2,123 22.8% 22.4% 21.4% 22.3% 23.1% 18.0

500
13.0
8.0%

2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19

GP GP Margin

EBITDA and Margin Net Profit and Margin

1,500 40.0%950 30
1,300
+30.3% 35.0%850 739 +28.3%
25
1,100 1,006 1,012 30.0%
750
581 628
898 650 20
900 25.0%550
700 20.0%450
179 230 15
500 253 330 15.0%350
17.0% 15.5% 250 10.5% 10.8% 10
300 13.5% 14.8% 10.0% 9.8% 9.4% 8.4%
11.6% 150 5.0
100 5.0% 50
-100 0.0% -50 0.0
2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19
EBITDA EBITDA Margin NIAT NIAT Margin

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Liquor Distribution: Total Volume Sales
• 36% growth in total volume of cases sold in 1Q 2019
• Growth driven by the continued strong sales of Alfonso Light and Alfonso Brandy .
CATEGORY 1Q 18 Mix % 1Q 19 Mix % Inc/Dec Growth
Brandy 348,258 65% 490,627 68% 142,369 41%
Other Spirits 83,373 16% 125,275 17% 41,902 50%
Wines 51,742 10% 53,857 7% 2,115 4%
Specialty beverages 48,524 9% 52,571 7% 4,047 8%
GRAND TOTAL 531,897 100% 722,330 100% 190,433 36%

2,169,058 2,870,612 531,897 722,330

32% 36%
199,534 262,089 48,524 52,571
263,627 207,508 51,742 53,857
472,098 83,373 125,275
325,180

1,380,717 1,928,918 348,258 490,627

Y2017 Y2018 Q12018 Q12019

Brandy Other spirits Wines Specialty beverages
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Office Warehouse: 1Q 2019 Financial Highlights
(In PHP millions) Revenues Gross Profit and Margin
+24.5% +28.3%
800 80.0

2,089 700
567
70.0
1,825 600
482 60.0
1,535 500 417 50.0
400
27.1% 123 157 40.0
300 27.2% 26.4% 24.6% 25.3% 30.0
499 621 200 20.0
100 10.0
0.0%

2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19

GP GP Margin

EBITDA and Margin Net Profit and Margin

+78.6% +211.5%
230 30.0% 88 10

25.0%
78
66
180 68 57 59 8.0

108 120 124 20.0% 58

130 48 29 6.0
38 69 15.0% 38 3.7% 9 4.7%
80 11.1% 3.2% 3.1% 4.0
7.7% 10.0% 28
7.1% 6.6% 5.9% 18 1.9% 2.0
30 5.0% 8
-20 0.0% -2 0.0
2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19
EBITDA EBITDA Margin NIAT NIAT Margin
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Office Warehouse: Operational Highlights

OFFICE WAREHOUSE, INC.

• Strong growth driven by store expansion and enhanced product offerings
• Strong SSSG of 18% in 1Q 2019

2016 2017 2018 1Q 19

No. Stores 71 82 88 88
Net selling area 14,014 sqm 15,945 sqm 16,738 sqm 16,738 sqm

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 Real Estate: Q12019 Financial Highlights
(In PHP millions) Revenues Gross Profit and Margin
+5.4%
1,600 +7.5% 8
1,404 1,350
1,400 1,228 7
2,326 2,197 2,429 1,200
7
1,000
800 364 392 6
600 60.4% 59.9% 61.1%
6
608 641 400 55.9% 55.6%
5
200
5
2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19
GP GP Margin

EBITDA and Margin Net Profit and Margin

+8.1% 1,700 +10.5%
1,599 1,394 1,324 1,450 200.0%
1,500
140
1,399 180.0% 120
1,199
1,300
160.0% 1,023 972 1,073
1,100 100
140.0%
999
120.0% 900 80.
799 385 416 313
599
100.0% 700 284 60.
63.3% 500
59.9% 60.3% 59.7% 64.9% 80.0%
46.7% 48.9% 40.
399 60.0% 300
44.0% 44.2% 44.2%
199 40.0% 100 20.
-1 20.0% -100 0.0
2016 2017 2018 1Q 18 1Q 19 2016 2017 2018 1Q 18 1Q 19
EBITDA EBITDA Margin NIAT NIAT Margin
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Real Estate Group: Operational Highlights
• Total of 53 commercial properties with 98% average occupancy rate
• Pure Petroleum operating at 100% capacity in 2018 and 2017 (9 storage tanks with 88.5M
liters capacity)

Category Q12019 FY2018 GLA/Lot Area in sq.m.

Land under lease 10 10 158,123

Commercial Buildings 33 32 265,663

Under Development 2 3 8,502

Future Development 8 8 85,486

Total 53 53 517,774

• 1 new community malls opened in Q1 2019 located in Maria Aurora, Aurora.

• On-going development of 2 new community malls, Las Pinas estimated to operate by Q1
2021, Bayawan Negros Oriental will operate by 4Q 2019.

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CAPEX Guidance for FY 2019

• CAPEX Budget of Php 5.8 billion in 2019

- Php 5.2 billion for Puregold Group
- Php 500 million for Real Estate Group
- Php 75 million for Office Warehouse

• To be funded by internally generated cash and short term

untapped bank credit lines if necessary

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Thank you.
www.coscocapital.com