Sa , Always Panalo!PUREGOLD PRICE CLUB, INC.

Company Presentation

1Q 2016 Results and Performance

July 2016

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Disclaimer

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Investment Summary

1. Sustained economic growth of the Philippines

2. Exposure to growing & robust consumer sector

3. Visible growth pipeline in the next 5 years

4. Focused core target market per brand

5. Expansion of new store formats aimed at the broad-C market

6. Expansion to new geographic locations

7. Management focused on the sustainable and Long-Term

growth of the company

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Stores roll-out through FY 2015

First store

Opened in

Mandaluyong

City, Metro

Manila

Expansion

Launched loyalty

program in 2001;

renamed as

Tindahan ni Aling

Puring in 2004

Between 2002 and

2006, launched an

average of 3 new

stores every year

and expanded

operations in North

and South Luzon

Brand recognition

Reader’s Digest

Asia’s “Most

Trusted Brands”

Market leadership

The 2nd largest

hypermarket and

supermarket

retailer in the

Philippines in terms

of net sales

Rapid expansion via organic

new Puregold stores roll-out

and acquisitions

2011 - Opened 38 new

Puregold stores

2012 – Opened 31 new

Puregold stores; Acquired

Parco supermarkets with 19

stores and S&R warehouse

membership shopping club

with 6 stores

Rapid store expansion from 1 to 298 stores in 17 years

First format

introduction

New format

introduction

New format

introduction - 2010

Continuing new stores roll-

out via organic geographic

expansion and

acquisitions

Opened 40 new Puregold

and 2 new S&R stores in

2013

Acquired Company E with

15 stores in 2013

NE Bodega 9 stores and

Budgetlane 8 stores

acquisitions in 2015

1 3 16 20 30 4164

102

158

215248

298

1998 2001 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sa , Always Panalo!

Update on PGOLD – 1Q 2016

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1Q 2016 Results and Performance

Opened 5 new PGOLD stores; 1 S&R New York Style Pizza

(QSR) in 1Q 2016; closed 1 PGOLD store

Operating 286 stores in 1Q 2016; with consolidated NSA of more

than 430,000 sqm.; excluding acquisition NE Bodega of around

15,000 sqm and Budgetlane of around 18,000 sqm.

Consolidated net sales expanded by 19.7% in 1Q 2016; Puregold

stores sales accounted for about 82.4% of consolidated net sales

Gross profit grew by 12.6% in 1Q 2016; with gross profit margin

posted 16.6%

Operating income increased by 12.9% in 1Q 2016; with operating

margin at 6.7%

Consolidated Net income grew by 9.5% in 1Q 2016; consolidated

net profit margin at 4.7% PGOLD only net margin is at 3.8% while

S&R net margin is 8.7%.

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Format Hypermarket, supermarket, extra Membership shopping

Revenue contribution

Gross profit (PHP million) & Margin (%) 3,156 (15.5%) 963 (22.1%)

Total traffic (million) 36.0 1.4

Average net ticket (PHP) 542 3,368

Net sales growth (%) 19.4% 13.1%

Traffic growth (%) 8.1% 12.7%

Average net ticket growth (%) 5.6% 0.4%

Same Store net sales growth (%)* 7.3% 4.8%

Same Store traffic growth (%)* 0.9% 3.4%

Same Store average net ticket growth (%)* 6.3% 1.4%

Operating Performance – 1Q 2016

*Same Stores Growth for 2016 are based on stores opened as of end December 2014.

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Operating Performance – 1Q 2016

Breakdown of Stores (per format) Net Selling Area of Stores (in sqm)

Traffic and Ave Ticket Size

430,174426,559

*excludes NE Bodega and Budgetlane stores with a total of 17 stores

and 33,000 sqm NSA

Group 2013 2014 2015 1Q 16Hypermarket 113 121 134 138

Supermarket 64 83 93 92Extra 28 29 28 29

S&R 8 9 10 10S&R QSR 2 6 16 17TOTAL 215 248 281 286

Puregold Only 2013 2014 2015 1Q 16

Metro Manila 88 102 104 105North Luzon 48 58 64 65

South Luzon 63 67 74 76

Visayas 1 1 6 6

Mindanao 5 5 7 7TOTAL 205 233 255 259

Traffic (in M) Puregold S&R2013 119.5 3.9

2014 133.6 4.9 2015 134.3 5.5 1Q 16 36 1.4

Ave Ticket (in Php) Puregold S&R2013 511 3,798

2014 517 3,763 2015 543 3,584 1Q 16 542 3,368

331,851 360,868 373,876 377,318

37,857 44,046 50,963 50,963

1,720 1,893

2013 2014 2015 1Q 16Puregold S&R only S&R QSR

369,708 404,914

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Total no. of

stores 286

No. of

stores per

format

138 hypermarkets;

92 supermarkets;

29 extras

10 S&Rs & 17

S&R QSR

Consolidat

ed net

selling area

about 430,000

square meters

North Luzon

(69 stores)

Visayas

(8 stores)

South Luzon

(80 stores)

Metro Manila

(120 stores)

BULACAN

RIZAL

LAGUNA

CAVITE

Manila Bay

Laguna de Bay

Caloocan

Pasig

Marikina

Valenzuela

Caloocan

Malabon

Quezon City

ManilaSan Juan

Mandaluyong

Navotas

Makati

Parañaque

Pasay Taguig

Pateros

Las Piñas

Muntinlupa

Key statistics 1Q 2016 Geographic coverage

Area with Puregold store coverage

Store Portfolio – 1Q 2016

Mindanao

(9 stores)

Metro Manila 105 5 10

North Luzon 65 1 3

South Luzon 76 2 2

Visayas 6 1 1

Mindanao 7 1 1

259 10 17*excludes NE Bodega and Budgetlane stores with a total of 17 stores and 33,000 sqm NSA

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Financial Performance – 1Q 2016

Net sales (in Php billions) Gross profit & Margin (in PHP billions)

• Continuing strong revenue growth driven by the 255 Puregold stores and the 10 S&R stores

• Increasing scale of operations resulted to continuing support from suppliers in terms of discount and rebates

• Re-branded acquisitions supported continuing growth in revenues and sustainability of margins

73.284.7

97.17

20.69 24.76

2013 2014 2015 1Q 15 1Q 16

12.714.8

16.49

3.66 4.12

17.4% 17.4% 17.0% 17.7% 16.6%

8.0%

13.0%

18.0%

23.0%

28.0%

0

2

4

6

8

10

12

14

16

18

2013 2014 2015 1Q 15 1Q 16

GP GP Margin

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Other Operating Income (in PHP millions) Operating Expenses (in PHP millions)

EBITDA & Margin (in Php millions)

Financial Performance – 1Q 2016

9,449 10,845

12,225

2,829 3,166

12.9% 12.8% 12.6% 13.7% 12.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2013 2014 2015 1Q 15 1Q 16

OPEX % of Sales

6,877 8,133 8,847

1,881 2,096 9.4% 9.6% 9.1%

9.1% 8.5%

0.0%

10.0%

20.0%

30.0%

40.0%

-

2,000

4,000

6,000

8,000

10,000

12,000

2013 2014 2015 1Q 15 1Q 16EBITDA EBITDA Margin

2,204 2,563

2,886

647 713

3.0% 3.0% 3.0% 3.1% 2.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013 2014 2015 1Q 15 1Q 16

Other Income % of Sales

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Financial Performance – 1Q 2016

Operating Income/EBIT and Margins (in PHP millions) Net Income & Margins (in PHP millions)

5,454

6,478 7,150

1,476 1,667

7.5%

7.6%7.4%

7.1% 6.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2013 2014 2015 1Q 15 1Q 16

EBIT EBIT Margin

3,959 4,520

5,002

1,054 1,154

5.4% 5.3% 5.1% 5.1% 4.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

2013 2014 2015 1Q 15 1Q 16

Net Income NI Margin

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Financial Performance – Puregold Only

Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions)

EBITDA and Margin (in PHP millions) Net Profit & Margins (in PHP millions)

60.9969.05 79.61

17.08 20.41

2013 2014 2015 1Q 15 1Q 16

4,440 5,230 5,915

1,261 1,460

7.3% 7.6% 7.4%7.4% 7.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

-

2,000

4,000

6,000

8,000

2013 2014 2015 1Q 15 1Q 16

EBITDA EBITDA Margin

2,864 3,192 3,671

679 777

4.7% 4.6% 4.6% 4.0% 3.8%0.0%

5.0%

10.0%

15.0%

-

1,000

2,000

3,000

4,000

2013 2014 2015 1Q 15 1Q 16

NIAT NIAT Margin

9,725 11,108 12,480

2,817 3,156

15.9%16.1% 15.7%

16.5% 15.5%

8.0%

13.0%

18.0%

23.0%

28.0%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2013 2014 2015 1Q 15 1Q 16

GP GP Margin

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Financial Performance – S&R Only

Revenues (in PHP Billions) Gross Profit & Margins (in PHP millions)

EBITDA and Margin (in PHP millions) Net Profit & Margins (in PHP millions)

12.46

15.7717.82

3.6 4.35

2013 2014 2015 1Q 15 1Q 16

2,974 3,652

4,008

841 963 23.9%23.2% 22.5% 23.3% 22.1%

-10.0%

10.0%

30.0%

50.0%

70.0%

90.0%

-

1,000

2,000

3,000

4,000

5,000

2013 2014 2015 1Q 15 1Q 16

GP GP Margin

2,437 2,904 2,933

619 636 19.5% 18.4% 16.5% 17.2% 14.6%

0.0%

20.0%

40.0%

60.0%

-

1,000

2,000

3,000

4,000

2013 2014 2015 1Q 15 1Q 16

EBITDA EBITDA Margin

1,570 1,803 1,806

375 378 12.6% 11.4%10.1% 10.4% 8.7%

0.0%

10.0%

20.0%

30.0%

40.0%

-

500

1,000

1,500

2,000

2013 2014 2015 1Q 15 1Q 16

NIAT NIAT Margin

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Notes:

1.Average of inventory at the beginning and end of the period / cost of sales x 363 (for full year))

2.Average of trade receivables at the beginning and end of the period / net sales x 363 (for full year)

3.Average of trade payable at the beginning and end of the period / cost of sales x 363 (for full year)

Financial Performance – 1Q 2016

Working capital days impacted by S&R importations and

Puregold rapid store expansions and acquisitions

Trade

Receivables Days

Inventory Days

Trade Payables

Days

New Puregold Store roll out and new

S&R Stores to be opened in 2016

Shorter term payments to suppliers to

avail of continued discounts

2013 2014 2015 1Q 15 1Q 16

4.1 5.3 5.7 4.9 5.7

48.2 53.2 54.3 59.8 57.2

36.9 35 27.7 29.1 16.5

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CAPEX Guidance for FY 2016

CAPEX Budget of Php 2.6 billion in 2016

– Php 1 billion for 25 new Puregold Stores

– Php 1 billion for 2 S&R stores

– Php 150 million for 10 S&R QSR

– Php 450 million for 75 Lawsons Stores

To be funded by internally generated cash and short term

untapped bank credit lines if necessary.

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Guidance for FY 2016

Consolidated net sales targeted to grow by 12 to 15% driven by

the following:

– Net sales growth from organic Puregold and S&R stores

– Positive SSSG for Puregold (3%) and S&R (4 to 5%)

– Opening of 25 new Puregold stores; 2 S&R stores

– Full year operations of NE Bodega & Budgetlane Supermarket

Lower PGOLD inventory days between 45 to 50 days

Sustain PGOLD consolidated gross and net profit margins

Pursue acquisitions and expand into new geographic locations

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Q & A

Thank you!