SHAKEY’S PIZZA ASIA VENTURES, INC.(PSE: PIZZA)

FIRST QUARTER 2019 RESULTS PRESENTATIONMAY 2019

INVESTMENT HIGHLIGHTS

*Source: Euromonitor, 2018

Summary of 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 Leadership1

2 Brand Strength& Ownership

3 Scalable Business Model

4 Experienced Management

5 Industry-Leading Financials

• 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

3

Q1 2019 FINANCIAL HIGLIGHTS

Financial Results Highlights

1Q19

FY18

+6%

+12%

+3%

+10%

-1%

+4%

+2%

+7%

5

Q1 2019 Summarized P&L

• Higher system-wide sales driven by FRANCHISEE-LED STORE NETWORK EXPANSION

• DAMPENED CONSUMER SENTIMENT, TIMING DIFFERENCE in holiday spend, and COMPETITIVE ENVIRONMENT result in FLATTISH SSSG

• STABLE FINANCING COSTS, HIGHER OTHER INCOME, and PRUDENT TAX MANAGEMENT help Q1 net income grow +3%

In PHP Mill Q1 2018 Q1 2019 Change YoYSystem-wide Sales 2,214 2,337 6%

Total Revenue 1,768 1,839 4%

Cost of Sales (1,259) (1,328) 5%

Gross Profit 509 511 0%

Operating Expenses (230) (236) 3%

EBITDA 344 352 2%

EBIT 278 275 -1%

Income before Tax 241 239 -1%

Net Income 184 188 3%

Earnings per Share 0.12 0.12 3%

MarginsGross Profit 28.8% 27.8% -1.0 pps

EBITDA 19.5% 19.2% -0.3 pps

EBIT 15.7% 14.9% -0.8 pps

Net Income 10.4% 10.2% -0.2 pps

• Margin pressures from lower operating leverage and sales-supporting programs partially offset by SOFTENING CHEESE PRICES and OPERATIONAL COST-SAVING INITIATIVES in-store

6

12%

5%

1% 2% 2%

9%

4% 2% -1% 4% 4%

4% 3% 5% 6%

8% 8% 5%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

SSSG Inflation of Food & Non-Alcoholic Beverages*

SSSG

• Slower sales growth POST-CHRISTMAS HOLIDAYS andtail-end INFLATIONARY PRESSURES

• DIFFERENCE IN TIMING OF HOLIDAYS push seasonal spend to Q2 (vs. Q1 last year)

• SSSG also affected by DIMINISHING SALES IMPACT of annual meal deal promo on its third year

7

Consumer Sentiment Still Sluggish in Q1; Diminished Impact of Annual Meal Deal

* Source: Philippine Statistics Authority

Revenues

• Net addition of 1 STORE IN 1Q19; expect to open 7 more stores in Q2• Still on track to open TOTAL OF 20 NET NEW STORES IN 2019, majority still

outside Metro Manila• STORE EXPANSION STRATEGY STILL INTACT; temporary sales and competitive

pressures to normalize long-term

8

3 3 15 2 1 1

2 3 43

4 3 4 5 15 6 5

84 5 5 6

11Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

Company-Owned Franchised

HISTORICAL NEW STORE OPENINGS (DOMESTIC)

2.0 2.1 2.0 2.3 2.2 2.4 2.2 2.5 2.3

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19In P

HP

Bill

SYSTEM-WIDE SALES

6%YoY Growth in 1Q19

Store Network Expansion Still on Track; 20 New Stores by FY 2019

2019 LOCAL NEW STORE OPENINGS

81H19 New Store

Projection

20Projected

New Stores in FY19

122H19 New Store

Projection

Revenues

• Majority of new store openings outside Metro Manila move sales trend in favor of FRANCHISED STORES, with local operators providing better on-the-ground execution

• SHIFT IN OWNERSHIP BREAKDOWN result in more modest growth in revenues versus system-wide sales

9

1.7 1.7 1.6 2.0 1.8 1.9 1.8 2.0 1.8

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

In P

HP

Bill 4%

YoY Growth in 1Q19

REVENUES

Revenue Mix Skewed by Expansion Strategy in Favor of Franchised Stores

42%Franchised

58%Company-Owned

STORE NETWORK BREAKDOWN BY OWNERSHIP (DOMESTIC)As of 1Q18 As of 1Q19

46%Franchised

54%Company-Owned

+4.0 pps

29.9% 30.3% 27.8%

29.9% 28.8% 28.6% 25.8%

31.4% 27.8%

12% 5%

1% 2% 2% 9%

4% 2% -1%

SSSG Gross Profit Margin

1.7 1.7 1.6 2.0 1.8 1.9 1.8 2.0 1.8

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

Revenues

Gross Profit Margins

10

-100 bpsYoY

• GROSS MARGIN DROP YEAR-ON-YEAR AND SEQUENTIALLY due to:1. Operating leverage impact of flattish SSSG and Q1 sales seasonality2. Sales-supporting initiatives3. Inflationary headwinds on input costs (e.g. packaging)

Margin Pressure YoY and Sequentially Partly Offset by Softening Cheese Prices

12.9% 12.8% 13.0% 12.8%

OpEx as % of Sales

905 973

230 236

FY17 FY18 1Q18 1Q19

OpEx

11

In PHP Mill

+7%

Softer OpEx Growth Year-on-Year Relative to Increase in Top Line

Quarterly OpEx as % of Sales

• MODEST INCREASE IN OPEX YEAR-ON-YEAR driven by:1. Marketing and other sales-sustaining initiatives2. Overall impact of inflationary pressures3. Partial offset from operational cost-saving programs

+3%

13.0% 12.5% 14.1%

10.7% 12.8%

1Q18 2Q18 3Q18 4Q18 1Q19

-20 bpsYoY

20.1% 19.8%

FY17 FY18

10.9% 11.1%

FY17 FY18

Softer Margins Due to Operating Leverage Impact of Flattish Sales

EBITDA Net Income

19.5% 19.2%

1Q18 1Q19

-30bps

10.4% 10.2%

1Q18 1Q19

+20 bps

• GROSS MARGIN COMPRESSION YEAR-ON-YEAR resulting from operating leverage impact of flattish sales, sales-generating promotional activities, and overall inflationary environment

• NET INCOME MARGIN RELATIVELY UNCHANGED

12

29.5% 28.8%

FY17 FY18

-70bps

28.8% 27.8%

1Q18 1Q19

Gross Profit

-100 bps

-20 bps-30 bps

13

FY 2019 Targets Challenging but Doable; Outlook Maintained

• Low double-digit growth• Sales recovery via superior

execution across all segments• Increasing presence beyond

typical urban areas• 20 net new stores locally• Lower end of 3-5% SSSG

• 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

ANNEX

Balance SheetIn PHP Mill 2018 Q1 2019

Cash 434 347

Receivables 508 588

Other Current Assets 668 629

Total Current Assets 1,610 1,564

Property, Plant, and Equipment 1,712 1,798

Goodwill and Trademarks 6,066 6,066

Other Non-Current Assets 245 260

Total Non-Current Assets 8,023 8,124

TOTAL ASSETS 9,633 9,688

In PHP Mill 2018 Q1 2019

Trade Payable and Others 920 806

Short-Term Debt 48 48

Total Current Liabilities 968 854

Long-Term Debt 3,837 3,837

Other Non-Current Liabilities 259 239

Total Non-Current Liabilities 4,096 4,076

TOTAL LIABILITIES 5,063 4,930

TOTAL EQUITY 4,570 4,758

TOTAL LIABILITIES AND EQUITY 9,633 9,688

• Increase in working capital mainly due HIGHER RECEIVABLES from franchisees

• Elevated PPE to support ORGANIZATIONAL GROWTH andOPERATIONAL CAPABILITIES

• Decreased trade payables versus end 2018 due to PROCESS STREAMLINING

• Long-term loan of PHP3.8 billion all PESO-DENOMINATED WITH FIXED INTEREST RATES

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Ratios

Net Debt-to-Equity (x)

Net Gearing (x)

Interest-BearingDebt-to-EBITDA (x)

Return on Equity

1.01 0.96

2018 Q1 2019

0.76 0.74

2018 Q1 2019

2.59 2.58

2018 Q1 2019

20% 19%

2018 Q1 2019

16

Uses trailing 12-month EBITDA

(Interest-Bearing Liabilities - Cash) / Total Equity

Uses trailing 12-month earnings and average equity

(Total Liabilities - Cash) / Total Equity

• COMFORTABLE GEARING RATIOS

• Company’s only interest-bearing debt is the PESO-DENOMINATED ACQUISITION LOAN USED IN THE CHANGE OF MAJORITY SHAREHOLDERS in 2016

• MAINTAINED ABOVE-INDUSTRY ROE at 19%

Cash FlowIn PHP Mill Q1 2018 Q1 2019

Income before Income Tax 241 239

Depreciation and Amortization 58 68

Interest Expense 45 45

Changes in Working Capital (104) (258)

Others (16) 7

Net Operating Cash Flow 224 101

Capital Expenditures (146) (155)

Others (19) (24)

Net Investing Cash Flow (165) (179)

Payment of Interest (9) (9)

Net Financing Cash Flow (9) (9)

Effect of Exchange Rate Changes 1 0

Beginning Cash 245 434

Change in Cash 51 (87)

Ending Cash 296 347

Free Cash Flow 78 (54)

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• Higher depreciation due to STORE NETWORK and HEAD OFFICE AND COMMISSARY EXPANSION

• Increase in working capital driven by HIGHER RECEIVABLES and STREAMLINING OF TRADE PAYABLES

• CapEx primarily for NEW STORE OPENINGS and IT INVESTMENTS

• OPERATING CASH FLOWS SUFFICIENT for CapEx and other investments

Cash Conversion Cycle

597 537

40 36

-

10

20

30

40

50

60

70

80

90

-

200

400

600

800

1,000

1,200

FY18 1Q19 days₱

Mns

920 806

62 54

-

10

20

30

40

50

60

70

80

90

-

200

400

600

800

1,000

1,200

FY18 1Q19 days₱

Mns

508 588

24 28

-

10

20

30

40

50

60

70

80

90

-

200

400

600

800

1,000

1,200

FY18 1Q19 days₱

Mns

185 319

2 10

-

10

20

30

40

50

60

70

80

90

-

200

400

600

800

1,000

1,200

FY18 1Q19 days₱

Mns

Working Capital Receivables Inventory Payables

18

• Increase in cash conversion cycle relative to end 2018 to +10 DAYS

• Elevated receivables driven by increase in dues from franchisees following MORE FRANCHISED STORE OPENINGS

• Shortened payable days versus end 2018 due to PROCESS STREAMLINING

19

Improving Delivery Availability via Third-Party Apps

• 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

20

WOW Brands: Envisioning a Diversified, Multi-Brand Platform

• Announced acquisition of Peri-Peri Charcoal Chicken (“Peri”) last April 2019

• Peri is an emerging fast casual and full-service restaurant brand in the Philippines, demonstrating consistent profitability, brand strength, and robust growth in both system-wide sales and store count

• Peri acquisition on track towards TRANSACTION CLOSE ON JUNE 1

21

First GRI-Compliant Sustainability Report Out by June 2019

GUEST SERVICE & SATISFACTION

PEOPLE PLANET PIZZA• Talent Acquisition

& Management• Workplace Culture

& Environment• External Guest

Engagement• Impact to

Communities

• Energy Efficiency

• Packaging & Waste

• Food Safety & Quality

• Responsible Sourcing

• Long-term financial goals now coupled with ENTERPRISE-WIDE INITIATIVE TO MONITOR AND MEASURE ENVIRONMENT-AL, SOCIAL, AND GOVERNANCE METRICS

2017 Glossy Annual Report

PIZZA’s 2017 Glossy Annual Report can be found on the Company’scorporate website.

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Investors > Investor Presentations

https://spavi-noo-prod.s3.ap-southeast-1.amazonaws.com/s3fs-public/documents/investor_presentations/FINAL_ONLINE_PIZZA_2017_Glossy_Annual_Report.pdf

Our 2018 Glossy AnnualReport will be availableby June 20, 2019.

Investor Conferences Earnings Release

dbAccessPhilippines Corporate Day (London)

2

AUG MacquarieASEAN Conference (Singapore)

26

SEP

*Schedule updated as of 14 May 2019

Annual Stockholders’ Meeting

20JUN

2Q19Earnings Release

7AUG

3Q19Earnings Release

12NOV

2019 Calendar of IR Activities

SHAKEY’S PIZZA ASIA VENTURES, INC.

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The statements contained in this document speak only as of the date which they are made, and the Company expresslydisclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statementscontained herein to reflect any change in events, conditions or circumstances on which any such statements are based. Bypreparing this presentation, none of the Company, its management, and their respective advisers undertakes anyobligation to provide the recipient with access to any additional information or to update this presentation or to correctany inaccuracies in any such information which may become apparent.

This presentation contains statements, including forward-looking statements, based on the currently held beliefs andassumptions 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 maycause the actual results, financial condition, performance, or achievements of the Company or industry results, to differmaterially from the results, financial condition, performance or achievements expressed or implied by such forward-lookingstatements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to placeundue 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

+632 742 5397

investorrelations@shakeys.biz

www.shakeyspizza.ph

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