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

COMPANY PRESENTATION:

April 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

Brief HistoryShakey’s established operations span more than 40 years…

2

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 branded 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

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

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

Delivery, 27.40%

Others, 18.60%

Dine-in, 54.00%

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

Sales split by channel (FY 2016)

(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

end-20169 63 28 73 11

% to total

system-wide

stores5% 34% 15% 40% 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

FY 2016 Financial Results

3.9%Same Store

Sales Growth

15%Revenue Growth

320bps

Expansion

EBITDA Margin

200bps

Expansion Net

Income Margin

39%Net Income

Growth

₱669Million in Net

Income

*figures based on recurring financials13

Adjusted for One-Offs

EBITDA 864 1,186 37%

Net Income 480 669 39%

EBITDA Margin 16.5% 19.7% +3.2 pps

Net Margin 9.1% 11.1% +2.0 pps

In PHP Mns FY2015

Audited

Financials

FY2016

Consolidated*

Change

YoY

Total Revenue 5,244 6,014 15%

Cost of sales (4,048) (4,165) 3%

Gross Profit 1,196 1,850 55%

EBITDA 864 1,256 45%

Net Income 480 785 64%

Margins

Gross profit 22.8% 30.8% +8.0 pps

EBITDA 16.5% 20.9% +4.4 pps

Net income 9.1% 13.1% +4.0 pps

FY 2016 Financial Performance

Driven by same store

sales growth of 3.9%

and increased

contribution of new

stores

Favourable commodity

prices and purchasing

synergies post

consolidation into the

Century Pacific Group

Adjusted for ₱222.5 Mn

in extra-ordinary

income and ₱106.4 Mn

in tax adjusted

acquisition & IPO

expenses totalling

₱151.9 Mn

*had acquistions of subsidiares actually taken place on January 1 2016

14

Restaurant Net Sales

95%

Franchise & Royalty fees

4%

Commissary1%

Revenue Breakdown

19%

27%

54% Dine-In

Delivery

Others

• Unique family and friends

experience that aims to

“WOW the guest”

• Available nationwide with

single delivery hotline

number for Metro Manila

and adjacent areas

• Active online and mobile

presence with own website

and mobile app

• Carryout and Functions

• Legacy and free standing

stores have function rooms

for parties

Sales and Revenue Breakdown

Systemwide

Sales ₱7.3bn 14% Same Store

Sales Growth 3.9%

• A diversified revenue base owing to (a) ownership of brand

which generates franchise fees and (b) ownership of a

commissary which services third party customers as well

15

6,014

5,244

662

38 69

FY 2015 NetRestaurant

Sales

Royalty &Franchise

Fees

Commissary FY 2016ProForma

15%

Sustained Double Digit Increases

• Predominantly sales from

Company-owned

restaurants in the

Philippines, with emerging

categories – delivery and

commissary – beginning to

contribute

Revenue Bridge

13%

1%1%

In P

hp

Mnl

Segment Growth

Net

Restaurant

Sales

23%

13%

Royalty &

Franchise

Fees

*figures based on recurring financials 16

₱480

₱669

9 110

10

20

30

40

50

-

300

600

900

1,200

1,500

2015 2016*

Gross ProfitNet Income

₱864₱1,186

17 20

0

10

20

30

40

50

60

70

-

500

1,000

1,500

2,000

2,500

3,000

2015 2016*

Gross ProfitEBITDA

₱ Mns %

₱1,196

₱1,850

23

31

0

10

20

30

40

50

60

70

-

500

1,000

1,500

2,000

2,500

3,000

2015 2016*

Gross ProfitGross Income

₱ Mns %

Improved Profitability Metrics

55% 37%

39%

₱

Mns%

• Favourable commodity prices and

lower input costs

• Purchasing synergies with the

Century Pacific Group

• Alignment of depreciation policy with

industry standards

*figures based on recurring financials 17

Balance Sheet Highlights

• Temporary money market funds

invested primarily in short term time

deposits, eventually used to prepay debt

• Increase in PPE due to CAPEX for new

stores

• Acquisition of in-house commissary and

trademark companies that hold the rights

to Shakey’s brand for half the globe

• ₱ 5.0 Bn in acquisition financing as a

result of a change in ownership

• Notice to prepay ₱ 1.0 Bn - the same

subsequently prepaid in January 2017

• Increase in capital stock and paid-in

capital as a result of the corporate

restructuring and subsequent IPO

In PHP Mns 2015 2016

Cash 389 329

AFS investments (current) - 1,125

Total current assets 1,241 2,144

Property, plant, equipment 577 999

AFS investments (noncurrent) 683 -

Intangibles and goodwill - 6,066

Other long-term assets 163 175

TOTAL ASSETS 2,664 9,384

2015 2016

Trade and other payables 908 864

Current portion of loan

payable - 1,048

Total current liabilities 966 1,977

Loan payable (net) - 3,933

Long-term liabilities 120 4,048

TOTAL LIABILITIES 1,086 6,025

TOTAL EQUITY 1,578 3,359

18

34% 27%

2015 2016

Key Balance Sheet Metrics

0.45

1.70

2015 2016

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

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

-1.38

2015 2016

Return on Equity

Current Ratio (x)

Net Debt to Equity (x)*

Net Gearing (x)**

• Above industry ROE despite

Increase in equity base due to

corporate restructuring and

initial public offering

• Temporary increase in Current

Liabilities due to notice to

prepay ₱ 1.0 Bn of

acquisition leverage

• Only interest bearing debt is

acquisition leverage used in

the change of majority

shareholders last year

• Assuming ₱ 1.0 Bn prepayment

made before end 2016, gearing

ratios come down :

• Net Debt to Equity = 1.4x

• Net Gearing = 1.1x

using average equity

1.20

1.08

2015 2016

19

Redemption of cash and

investments by

previous owners, prior

to the change in majority

shareholder

Cash Flow Highlights

Corporate restructuring

which involved the

acquisition of the in-

house commissary &

trademark entities

IPO proceeds

temporarily invested in

money market funds,

which were

subsequently used to

prepay a portion of

the outstanding loan

In PHP Mns

FY 2015

Audited

Financials

FY 2016

Consolidated

Reported EBITDA 864 1,199

Write off of advances from

previous owners- (223)

Changes in working capital (225) 114

Net operating cash flow 462 934

Acquisition of subsidiaries - (6,011)

Acquisition of AFS investments (470) (1,125)

CAPEX additions (350) (418)

Disposal of AFS investments 477 681

Net investing cash flow (329) (6,869)

Proceeds from loan - 4,975

Capital stock and APIC - 2,116

Dividends payment (150) (1,102)

Interest payment - (115)

Net financing cash flow (150) 5,874

20

Working Capital

Payables*Accounts Receivables*Inventory*

₱247 ₱248

22 22

-

30

60

90

0

200

400

600

800

1000

1200

1400

2015 2016

days₱ Mns

Cash conversion cycle for the year 2016 was

negative 26 days, a decrease of 6 days compared

to 2015

Decrease in payables days

primarily due to streamlining of

payment processes

₱973₱886

88

78

-

30

60

90

0

200

400

600

800

1000

1200

1400

2015 2016

days₱ Mns

₱472 ₱482

33 30

-

30

60

90

0

200

400

600

800

1000

1200

1400

2015 2016

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

days₱ Mns

21

New stores, 80%

Corporate office, 11%

Others, 9%

CAPEX Update

New Commissary Plant

• A total of ₱ 418 Mn in CAPEX was spent in 2016 for new

store openings, a new corporate support office, a new

commissary with increased capacity, and various IT system

improvements

• Lease of old office and commissary coming to an end and

was not renewed by the lessor

• New commissary will have double the capacity of the old

plant

New Shakey’s Corporate Office

22

Our Store Network

17New Stores in

FY 2016

10%Increase in

Store Network

184Store Network

as of end 2016

5New Stores in

Q1 2017

20Target # of New

Stores in 2017

204Target Store

Count end 2017

24

78 81 80 89 97 111

55 55 6064

7073133 136 140

153167

184

2011 2012 2013 2014 2015 2016

Company-owned Franchise

Historical Growth in Store Network

Franchised40%Company-

owned60%

• 17 new stores in 2016, the most ever opened in a

single year

• Mostly company-owned stores as pockets of

opportunity remain in Metro Manila/closer proximity

areas

• Target of 20 new stores in 2017 will increase network

by another 11%

10%

25

FY 2016 Geographic Breakdown

National Capital

Region (NCR)

48%

Luzon, ex-NCR

39%

Visayas

9%

Mindanao

4%

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%

26

Solenad

December 2016

Flexibility in Formats

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%

39%

55% Mall

Standalone

Others

Store Breakdown by Format

SM East Ortigas

December 2016

27

Select 2016 New Stores

Tuguegarao

August 2016

Sta Cruz

August 2016

Commonwealth

August 2016

SM Lipa

December 2016

28

Stock Price Performance

As of 03/24/2017

Current Price PHP 13.74

Initial Listing Price PHP 11.26

Range since listing date

(12/15/16 – 03/24/17)

PHP 10.90 – 14.80

Current Market

Capitalization

PHP 21.04 Billion

USD 419.6 Million

Shareholding Structure Century Pacific Group, Inc. (CPG): 52.0%

Arran Investments Private, Ltd.

(Arran)/GIC Private Equity: 18.5%

Prieto family: 6.5%

Number of

Issued Common Shares

1,531,321,053

Number of

Listed Common Shares

1,531,321,053

Free Float (%) 23.0%

Absolute Performance

(12/15/16 – 03/24/17)

+22.0%

Relative to Index

(12/15/16 – 03/24/17)

+11%

Average Value Turnover

(12/23/16 – 03/24/17)

PHP 52.64 Million

USD 1.050 Million

Stock Price Performance (Bloomberg Ticker: PIZZA PM)

29

Annex: Financial Statements

SPAVI and Subsidiaries FY 2016 Financial Results

Statements of Comprehensive Income

in PHP mns FY2015 Audited

Standalone

FY2016 Audited

Consolidated*

Net sales 5,076 5,738

Royalty and franchise fees 168 207

Third-party/commissary sales - 69

Total revenues 5,244 6,014

Cost of sales (4,048) (4,165)

Gross profit 1,196 1,850

Operating expenses (583) (985)

Operating income 613 865

EBITDA 864 1,256

EBITDA adjusted for one-off items - 1,186

Net income before tax 659 974

Provision for income tax (179) (189)

Net income after tax 480 785

Net income adjusted for one-off items - 669

Margins

Gross profit 22.8% 30.8%

Operating income 11.7% 14.4%

EBITDA 16.5% 20.9%

Adjusted EBITDA - 19.7%

Net income 9.2% 13.1%

Adjusted Net income - 11.1%

Effective tax rate 27.2% 19.4%

*had the acquisitions taken place on January 1, 201631

SPAVI and Subsidiaries FY 2016 Financial Results

Statements of Financial Position

in PHP mns FY2015 Audited

Standalone

FY2016 Audited

Consolidated

Cash and cash equivalents 389 329

Financial assets at FVPL 36 -

AFS investments - 1,125

Trade and other receivables 543 421

Current portion of loan to a related party 24 -

Inventories 239 256

Prepaid expenses and other current assets 11 13

Total current assets 1,241 2,144

Loan to related parties (net of current) 8

AFS investments 683 -

Property and equipment 577 999

Goodwill - 1,079

Trademarks - 4,987

Deferred tax assets 34 30

Deferred input value-added tax 32 40

Rental and other noncurrent assets 90 105

Total non-current assets 1,423 7,240

TOTAL ASSETS 2,664 9,384

in PHP mns FY2015 Audited

Standalone

FY2016 Audited

Consolidated

Accounts payable and other current liabilities 908 864

Loan payable - current portion - 1,048

Income tax payable 58 64

Total current liabilities 966 1,977

Loans payable (net of current) - 3,933

Accrued pension costs 37 34

Accrued rent 42 64

Dealers' deposits and other noncurrent liabilities 41 17

Total non-current liabilities 120 4,048

TOTAL LIABILITIES 1,086 6,025

Capital stock 769 1,531

Additional paid in capital - 1,354

Other components of equity (20) (13)

Retained earnings 829 487

Total equity 1,578 3,359

TOTAL LIABILITIES and EQUITY 2,664 9,384

32

SPAVI and Subsidiaries FY 2016 Financial Results

Statements of Cash Flows

33

in PHP mns FY2015 Audited

Standalone

FY2016 Audited

Consolidated

Income before income tax 659 936

Adjustments for:

Gain in reversal of advances - (223)

Depreciation and amortization 210 137

Interest expense - 128

Others (14) 16

Working capital changes (225) 114

Income taxes paid (172) (178)

Interest received 4 3

CASH FLOWS FROM OPERATING ACTIVITIES 462 934

Acquisition of subsidiaries - (6,011)

Acquisition of AFS investments - current (470) (1,125)

CAPEX (350) (418)

Acquisition of financial assets at FVPL (7) -

Disposal of AFS investments - noncurrent 477 681

Sale of financial assets at FVPL - 36 Increase (decrease) in dealer's deposits and

other noncurrent liabilities 9 (26)

Increase in deferred input VAT (6) (8)

increase in rental and other deposits (12) (6)

proceeds from disposal of PPE 3 5

Dividends received 1 -

Collection of intercompany loans 24 -

CASH FLOWS FROM INVESTING ACTIVITIES (329) (6,869)

in PHP mns FY2015 Audited

Standalone

FY2016 Audited

Consolidated

Proceeds from the availment of loan - 4,975 Issuance of capital stock and additional paid-in

capital - 2,116

Loan repayment -

Dividends payment (150) (1,102)

Interest payment - (115)

CASH FLOWS FROM FINANCING ACTIVITIES (150) 5,874

Effect of exchange rate changes -

NET INCREASE (DECREASE) IN CASH (17) (60)

Cash and cash equivalents, BEGINNING 406 389

Cash and cash equivalents, ENDING 389 329

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

34