Shakey’s PizzaAsiaVentures,Inc.(PSE:PIZZA)

FULLYEAR2017RESULTSPRESENTATIONApril10,2018

Manuel del Barrio CFO

Vicente Gregorio CEO

Giovanna Vera IRO

Investment Highlights Summary 3 - 4

P&L Highlights 5 - 10

Balance Sheet & Cash Flow 11 - 13

Presenters & Agenda

Jorge Concepcion GM

Outlook & Guidance 14 2

Summary of Investment Highlights

Market Leadership*

Scalable Business Model

Experienced Management

• Dominates the full service pizza chain market with 63%* market share• 28%* 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 cycle

5

*Source:Euromonitor,20164

6

5%Same Store

Sales Growth

14%Systemwide Sales

Growth

20%EBITDA Margin

19%Recurring EBITDA

Growth

14%Recurring Net

Income Growth

For FY 2017

Basedonrecurringfinancials

17%RevenueGrowth

FY 2017 Summarized P&L

Driven by same-store sales growth of 5% and continued store network expansion (+24 stores)

FY16 includes IPO-related costs and one-off gain from corporate

restructuring

7

Gross profit growth slower due to higher input costs mitigated by

price increases and inventory buying strategies

Impact on interest expense of acquisition leverage drawn on

mid 2016

Operating leverage and synergies support EBITDA margin

expansion

In PHP Mill FY 2016Proforma

FY 2017Reported YoY

Systemwide Sales 7.344 8,342 14%

Total Revenue 6,014 7,004 17%

Cost of Sales (4,165) (4,938) 19%

Gross Profit 1,850 2,066 12%

EBITDA 1,256 1,406 12%

Net Income 785 762 -3%

Recurring Numbers: Adjusted for one-off items

EBITDA 1,186 1,406 19%

Net Income 669 762 14%

Margins

Gross Profit 30.8% 29.5% -1.3 pps

EBITDA Margin 19.7% 20.1% +0.4 pps

Net Income Margin 11.1% 10.9% -0.2 pps

Healthy SSSGs Despite Growing Competition

SystemwideSales

FY 2017

Same Store Sales Growth 5%+24stores

14%

8*Includes carryout, catering, and functions

Systemwide SalesSplitbyChannel

• SSSG at high end of target range due to marketing initiatives, product innovations, improved store look, and incremental price increase

• Predominantly dine-in with a unique family and friends experience, but with a high-potential delivery segment

Well-receivedproductinnovationsandmarketinginitiatives

Dine-in,61%

Delivery & Others*,

39%

NCR47%Luzon,

ex-NCR42%

Visayas7%

Mindanao4%

111 114 117 118 123

73 75 78 82 85184 189 195 200 208

2016 Q12017 Q22017 Q32017 2017

Ahead of FY2017 Store Expansion Plans

Store Network

41% Franchised

59% Company-Owned

Flagship 200th Store

9

• Opened a total of 24 net new stores, exceeding target to open 20 new stores in 2017 as prime locations opened up

• Still concentrated in Metro Manilawhere per capita incomes are higher, but already expanding beyond the usual first-tier cities beginning with Luzon ex-NCR

+12 net new franchised stores

+12 net new company-owned stores

11% 11% 20% 20%

31% 29%

669 762

(400)

600

1,600

FY 2016 FY 2017

-24 bps

1,8502,066

(0)

0

0

1

1

-

1,000

2,000

FY 2016 FY 2017

-126 bps +36

bps

Maintained Industry-Leading Margins

EBITDA Net Income

• Slight contraction in gross profit margin year-on-year due to input cost pressures• Incremental price increases, inventory strategies, operating efficiencies, and

synergies with Century Pacific Group supported EBITDA margins • Slight net margin contraction due to full-year impact of the interest expense for loan

incurred mid-2016

*Basedonrecurringfinancials 10

Gross Profit

InPHP

Millions

12%19%

14%

OPEX as a % of Sales

14% 13%

833 905

(400)

600

1,600

FY 2016 FY 2017

-93 bps

9%

1,1861,406

(0)

0

1

-

1,000

2,000

FY 2016 FY 2017

• Comfortable debt and gearing ratios post partial prepayment

• Company’s only interest-bearing debt is the acquisition leverage used in the change of majority shareholders in 2016

• Decrease in current liabilities due to prepayment of ₱1.0 billion of the acquisition loan

• Maintained above industry ROE despite increase in equity base from corporate restructuring and initial public offering

Improving Leverage Ratios

*Net debt to equity ratio = (total liabilities – cash) / total equity**Net gearing ratio = (interest-bearing liabilities – cash) / total equity***Uses trailing 12-month earnings and average equity

Return on Equity***

Current Ratio (x)

Net Debt to Equity (x)*

Net Gearing (x)**

1.701.23

2016 2017

1.390.93

2016 2017

1.08 1.13

2016 2017

20% 21%

2016 2017

11

Negative WC & Strong Cash Generation

Payables*Inventory*Accounts Receivables*

Cash conversion cycle for FY 2017 was negative 17 days; maintained negative working capital

Higher inventory days in anticipation of stronger demand at

the start of 2018

*Period-end figures were used to compute for the working capital components

421

586

26 31

-

10

20

30

40

50

60

70

80

90

-

200

400

600

800

1,000

1,200

2016 2017 days₱Mns

256 362

22 27

-

10

20

30

40

50

60

70

80

90

-

200

400

600

800

1,000

1,200

2016 2017days₱

Mns

864 1,005

76 74

-

10

20

30

40

50

60

70

80

90

-

200

400

600

800

1,000

1,200

2016 2017days₱

Mns

12

2018 Initiatives & Outlook

2018 Initiatives:• Pursue value-enhancing promotions,

product innovations• Elevate guests’ dine-in experience via

improving store look and atmosphere• Activate delivery segment

2018 Guidance & Outlook:• Target of low double digit top line

growth driven by SSSG of 3 to 5% and an additional 20 new stores

• Aim to maintain margins though short term cost pressures persist

ACTIVATING DELIVERYDINE IN

2018 Meal DealLouisiana Shrimp Pizza

ENHANCED STORE ATMOSPHERE

13

Balance Sheet Highlights

• Comfortable cash level as of end 2017 despite contraction year-on-year due to elevated CAPEX

• AFS Investments of P1 billion were redeemed last January 2017 and used as payment for current portion of loan payable

• Acquisition leverage post a P1.0 billion loan payment in January 2017

• P3.9 billion remaining loan balance, and an interest coverage ratio of 6.8x.

15

In PHP Mill YE 2016 YE 2017

Cash 329 245

AFS Investments 1,125 0

Other current assets 690 1,010

Total current assets 2,144 1,255

Property, plant and equipment 999 1,538

Goodwill & Trademarks 6,066 6,066

Other noncurrent assets 175 250

Total noncurrent assets 7,240 7,854

TOTAL ASSETS 9,384 9,109

YE 2016 YE 2017

Trade payable and others 929 1,065

Short-term debt 1,048 48

Total current liabilities 1,977 1,113

Long-term debt 3,933 3,885

Other noncurrent liabilities 115 137

Total noncurrent liabilities 4,048 4,022

TOTAL LIABILITIES 6,025 5,135

TOTAL EQUITY 3,359 3,974

TOTAL LIABS & EQUITY 9,384 9,109

Capital expenditures for building of new

stores, an upsized commissary, and a

new corporate office

Cash Flow Highlights

Increased depreciation from store network

expansion, renovations and new commissary

IPO proceeds temporarily invested in money market funds used to prepay loan

Interest from P3.9 billion acquisition loan

balance

16

In PHP Mill YE 2016 YE 2017Income before income tax 936 1,022

Depreciation and amortization 138 208

Interest expense 128 177

Changes in working capital 114 (173)Others (382) (257)Net operating cash flow 934 977 CAPEX (418) (767)Redemption of AFS investments 681 1,126 Restructuring Outflow (7,135) 0 Others 3 (36)Net investing cash flow (6,869) 323 Proceeds from / (payment of) loan 4,975 (1,050)Payment of interest (115) (181)Payment of dividends and others (987) (153)Net financing cash flow 5,874 (1,384)Beginning Cash 389 329 Change in Cash (60) (84)Ending Cash 329 245 Free Cash Flow 516 210

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 orundertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditionsor circumstances on which any such statements are based. By preparing this presentation, none of the Company, its management, and their respectiveadvisers undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or to correct anyinaccuracies 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 ofthe Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements in particular involve known and unknownrisks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of the Company or industryresults, 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-lookingstatements.

Any reference herein to "the Company" shall mean, collectively, Shakey’s Pizza Asia Ventures Inc. and its subsidiaries.

SHAKEY’S PIZZA ASIA VENTURES INC.

Paranaque City, Philippines

+632-839-0156

investorrelations@shakeys.biz

www.shakeyspizza.ph

http://edge.pse.com.ph/companyInformation/form.do?cmpy_id=66417