ABOUT THE COVER ABOUT THE REPORT

Bounce Back. Bounce Up. 102-50 102-51 102-52 102-53 102-54

The year 2020 will be long remembered as the year
that brought challenges of unforeseen magnitude. This report covers the period from January to
The COVID crisis has clearly dramatically changed December 2020 and has been prepared in accordance
the way we live and the way we do business, and can with the Global Reporting Initiative (GRI) Standards:
now be easily considered as the worst year of the Core option
restaurant industry to-date.

Some good did come out of all of this. We made

further improvements to our delivery business and
fast-tracked the deployment of various format and
channel innovations. Our people were put to the test The report will be distributed primarily in digital
and responded with decisiveness and guest centricity, format. Please visit www.shakeyspizza.ph to
and showcased teamwork. Most importantly, we were download a copy. Limited printed copies will make
able to provide comfort food to our loyal guests who use of recycled paper in line with our ongoing
craved comfort and familiarity during a precarious sustainability initiatives.
time. Our brand’s mission of Wowing our Guests has
become a truly huge competitive edge. This Sustainability and Annual Report is a product of:

As we pass the first anniversary of the COVID

lockdowns that went into effect in mid-March 2020,
we are relieved that we survived, an end to the
pandemic is in sight, and we are preparing to BOUNCE
BACK and BOUNCE UP as fast as possible to benefit
all our stakeholders.
For questions or feedback, please contact PIZZA
Investor Relations at [email protected].
Introduction: Bounce Back & Bounce Up 4

People, Planet, Pizza 40

Governance 70

Other Highlights 98
Introduction:
Bounce Back & Bounce Up
 7 8 9 10
Get to Know 2020 at a 2020 Our Business
Us Glance Milestones Presence

13 16 18 20
Financial Measuring Building a What Keeps
Highlights Our Financial Stronger and Us Going
Performance Better Shakey’s

23 25 28 30
Message from President’s Updates from Beyond the
the Chairman Letter Our General Crisis
Managers

33 36 38
Hear It From Up Close: Gale Up Close: Rodrigo
Our Guests Roque, Head Nanjari, Chief
of R&D Technology Officer
Providing Good Times and Great Memories 102-1 102-7
Get to Know Us

Shakey’s Pizza Asia Ventures, Inc. (PIZZA) is one of maintaining, and franchising the “Shakey’s”, “Peri-
the Philippines’ leading operators of full-service, Peri Charcoal Chicken and Sauce Bar” (“Peri”) and
fast casual restaurants, focused primarily on family “R&B Milk Tea” (“R&B”) brands.
casual dining. We are engaged in operating,

Shakey’s Peri R&B

Shakey’s is the Philippines’ leading full-service pizza With the vision of having a portfolio of WOW brands In 2020, PIZZA entered into a master franchise
chain and is the single-largest brand of full-service casual and the aim to diversify through a handful of industry- agreement to bring R&B milk tea to the Philippines. R&B
dining chain restaurants in the country. It is a strong leading full-service restaurant chains, the Company is one of the leading milk tea and bubble tea players
and well-established brand, thanks to a differentiated acquired Peri in 2019 - an emerging fast-casual in Singapore. It currently has more than 1,000 outlets
menu, iconic and well-loved products, a distinct store and full-service restaurant brand in the Philippines worldwide, spanning across China, US, Singapore,
environment, and highly guest-centric service. that made famous the use of piri-piri in cooking, Cambodia, Vietnam, Malaysia and Indonesia.
incorporating it in its chicken and variety of sauces.
Being the exclusive Shakey’s brand owner in the The Company was awarded the territorial rights to
Philippines, we own and operate company-owned Peri has a strong following and has gained more sell R&B milk tea, bubble tea, and other specialty
stores as well as franchise the brand, enabling us to traction as it appeals to Filipinos’ love for both poultry tea drinks in the country, through stand-alone store
branch out to second- and third-tier cities. and a highly distinctive taste. It has also demonstrated formats and co-branding in select Shakey’s and
consistent profitability which consequently increases Peri outlets. This co-branding strategy allows PIZZA
We likewise own the Shakey’s rights in the Middle the amount of interest for new stores from potential to leverage on its well-established store network
East, Asia (excluding Japan and Malaysia), China, lessors and franchisees. throughout the Philippines, and its strong delivery
Australia, and New Zealand, allowing us to bring presence thanks to an already established in-house
great times and great memories to regions outside delivery infrastructure.
the country.

7
 2020 at a Glance

245 Shakey’s Stores PHP 5.1B in Revenues PHP6.6B In System-wide Sales

9.1M Pizzas Sold 4th Anniversary of Listing on the

Philippine Stock Exchange (PSE)
34 Peri Stores

3.3M kg of Chicken Sold

30% Market Share*
Philippines’ Single-Largest Brand of Chained
276 Total Stores in the Philippines Full-Service Restaurants
3 International Stores

Launch of R&B Milk Tea in the 68% Market Share*

Philippines Leader in Full-Service Pizza
Chain Restaurants

8 * SOURCE: EUROMONITOR, 2020

2020 Milestones

GRADUAL RE-OPENING PARTNERSHIP FOR 31-MINUTE DELIVERY,

256 Shakey’s and Peri HEALTH AND SAFETY “IF IT’S LATE, IT’S FREE”
IMPLEMENTING SAFETY stores re-opened, PIZZA partnered with Shakey’s Philippines
PROTOCOLS representing 91% of RelianceUnited to pilots its 31-MInute PLANT-BASED IS NOW
Select Shakey’s and the Company’s total provide the company Delivery, “If It’s Late, PIZZA launches its
PLASTIC NEUTRALITY Peri outlets remained store network. with a COVID It’s Free” guarantee in first plant-based meat
PIZZA marks first year operational while Infection Control select areas in Metro menu item “The Goood
of being “100 percent implementing safety SHAKEY’S AT 45 Program focused on Manila, to further solidify Burger” across all chains
plastic-neutral” protocols aligned Shakey’s Pizza long-term adoption its already strong equity to signify its move into
following its push in with World Health celebrated its 45th of occupational in delivery amidst the the plant-based format
2019 to be “plastic- Organization (WHO) Anniversary in the safety and health ongoing COVID-19 with the use of the
neutral” by 2020. recommendations. Philippines. measures. Pandemic. ‘unMeat’ brand of CNPF.

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

SUPERCARD+ LAUNCH RESILIENCE AMIDST THE R&B IN THE PHILIPPINES 1ST IN THE PH OFFICIAL R&B MILK TEA
PIZZA launches PANDEMIC PIZZA officially acquires PIZZA acquired plastic LAUNCH
Supercard+ that Company maintains R&B Milk Tea, one of neutrality certification Official launch of R&B Milk
combines benefits from partial operations in Singapore’s largest milk from Plastic Credit Tea in select Shakey’s
Shakey’s and Peri. more than 200 stores tea brands, bringing it Exchange (PCEx) making Philippines and Peri-
(close to 75% of its here into the Philippines it the first company Peri Charcoal Chicken
overall store network) through its master in the Philippines’ and Sauce Bar branches
as restrictions gradually franchise agreement food service industry nationwide.
get lifted. with Singapore-based to pursue verification
Koufu. Group Ltd for a plastic offsetting
initiative.

9
 Our Business Presence 102-6

10
Dine in

33%
33% of system-wide sales 279
of system-wide sales Stores
We aim to provide a unique family and friends Before the COVID-19 pandemic put our expansion our in-store and out-of-store presence. Our new store
experience by always WOWING the guest, not strategy on hold, we had been actively growing our openings in 2020 cater not only to our guests’ dine-in
just with our iconic products but also through our store network. With evolving consumer habits, this preference, but also their increasing need for more
beautiful, distinct, and safe store environment. strategy has adapted to ensure we maximize both convenient and flexible out-of-store options.

Systemwide Store Network

By brand By location By ownership By format

1%

12% 14% 22%

46% 44%
47% 53%

39% 34%
88%

Shakeys Peri NCR Luzon Ex-NCR Company-Owned Franchised Mall Stores Free-Standing
Visayas and International Others Stores
Mindanao

As we continue to grow the Shakey’s About half of our stores are still located As we expand further in provincial Our multiple store formats allow
brand throughout the country, we now in the National Capital Region (NCR). locations, our ownership mix skews for market and expansion flexibility.
also have the Peri brand to leverage on We recognize the opportunities in toward franchised stores as we believe These also provide convenience and
via accelerated expansion. Together, the other parts of Luzon, Visayas, and local operators are able to provide accessibility to our guests.
both brands place PIZZA in a position Mindanao, and continue to pursue better on-the-ground execution in
ready for long-term growth. underpenetrated second-tier cities in those areas. We work closely with
these regions. our franchisees to ensure consistency
throughout our store network.

11
 Delivery & Carry-Out

67%
of system-wide sales Delivery Carry-out

Guests can also enjoy our products via our off- With a quick phone call or click of a button, guests If in a rush, guests who are near our stores can drop by
premise channels. These serve as a steady stream can have our products brought to them through our and grab a bite to-go.
of revenue given the rising need for convenience delivery service. We continue to invest in our digital
especially within Metro Manila and the want for more and IT capabilities to solidify our position in this space.
value offerings and services.

In addition, these allow guests who are more health- Single delivery hotline Official website
and safety-conscious to enjoy Shakey’s or Peri within number #77777
the comforts of their own homes. We have been
investing heavily in these channels and expect them to
be a major growth driver moving forward.

Mobile app Third-party aggregators

Others

SuperCard Classic and Gold

We have expanded the perks and privileges of all
SuperCard owners by including benefits from the Peri
brand through SuperCard Classic and Gold. We are
able to promote our popular paid loyalty card as a
must-have by ensuring we continue to provide value
to our guests.

12
Financial Highlights

For the 12 Months Ended 31 December (In PHP million)

Profit and Loss Statement 2020 2019 %Change

Systemwide Sales
Revenue
6,622
5,297
10,384
8.239
-36%
-36%
64%
EBITDA (Reported) 459 1,971 -77% Sales recovery vs. 2019
EBITDA (Ex-One Offs) 606 1,971 -69%
Net Income (Reported) -254 865 -129%
Net Income (Ex-One Offs) -137 865 -116%
Balance Sheet
Cash 608 508 20% 11%
Recurring EBITDA Margin
Total Assets 12,220 12,333 -1%%
Interest-Bearing Debt 4,839 4,387 10%
Total Liabilities 7,436 7,264 2%
Total Equity 4,784 5,069 -6%

Cash Flow 0.9x

Net Gearing
Operating Cash Flows 328 1,704 -81%
Capital Expenditures 167 417 -60%
Free Cash Flows 161 1,286 -87%
Net Change in Cash 100 74 35%

Ratios
Return on Equity -2.8% 18.0%
Net Gearing Ratio 0.9x 0.8x
Net Interest-Bearing Debt-to EBITDA Ratio 7.0x 2.0x

13
 P&L Highlights
Systemwide Sales Revenues

10,384 8,239
9,361 7,579
7,004
8,346 6,014
7,344 5,297
6,622

2016* 2017 2018 2019 2020** 2016* 2017 2018 2019 2020**

EBITDA EBITDA Margin

2016* 2017 2018 2019 2020**

1,971
1,500
1,407
1,186 19.7% 20.1% 19.8% 23.9% 11.4%
606

2016* 2017 2018 2019 2020** -12.5 pps Change YoY

Net Income Net Income Margin

2016* 2017 2018 2019 2020**

865
762 841
669
11.1% 10.9% 11.1% 10.5% -2.6%

-254
2016* 2017 2018 2019 2020**
-13.1 pps Change YoY

*FY 2016 figures represent pro forma numbers for one-off items. **FY 2020 figures adjusted for COVID-related one-off items
14
Cash Flow Highlights in PHP Mill

Operating Cash Flow Capital Expenditure

934 972 921 1,704 328 434 417 167

418 768

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Free Cash Flow Cash Conversion Cycle

3 1 9

516 204 487 1,287 161 -21

-33

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Other Highlights
Return on Equity Net Gearing Ratio

27% 21% 20% 18%

-3% 1.4x 0.9x 0.8x 0.8x 0.9x

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Net Interest-Bearing Debt-to-EBITDA Ratio Total Assets

3.9x 2.6x 2.3x 2.0x 7.0x 9,384 9,109 9,633 12,333 12,220

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

15
 Measuring Our Financial Performance

Quarterly System-wide Sales Recovery & SSSG Systemwide Sales QoQ Trend in PHP Mill

2,309
1,827
1,372
1,114
+3%
+33%
SSSG

-34% -30% 1Q20 2Q20 3Q20 4Q20

-45% -42% QoQ in 4Q20
COVID restrictions implemented in mid-March

Metro Manila Quarantine Timeline

Recovery Rate

99% 42% 56% 62% 64%

in 1Q20 in 2Q20 in 3Q20 in 4Q20 FY 2020 Oct 1 - Dec 31

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec FY20

Pre-Quarantine

Systemwide sales, the combined sales of both company-owned and franchise 1Q 2Q 3Q 4Q

stores, totaled Php6.6 billion for full-year 2020, equivalent to a 64% recovery Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
relative to the previous year. For most of 2020, the Philippines was under
different phases of lockdowns which, at its peak, forced the temporary closure
of 91% of the Company’s store network at the end of March. Quarantine
ECQ – Enhanced Community Quarantine
measures have since eased with dine-in traffic inching up slowly, alongside MECQ – Modified Enhanced Community Quarantine
robust demand for delivery and carryout throughout the year. GCQ – General Community Quarantine - Dine-in allowed

For the last three months of 2020, sales recovery of 62% is a notable improvement
compared to the third quarter’s 56%. The uptrend was primarily driven by the This expanded sales base, combined with implemented cost efficiency and restructuring
sustained recovery of dine-in traffic, thanks to gradual easing of quarantine measures programs, likewise resulted in improved profitability on a sequential basis.
and renewed consumer confidence especially during the holiday season.
These restructuring initiatives include: (1) the permanent closure of 5 company-owned
and 5 franchised outlets, or a total of 10 stores representing 4% of our total store
network; (2) right-sizing of our organization; (3) as well as other streamlining programs.

16
Reported Sequential Trend Sequential Margins Full-Year Profitability FY20 Margins Reported
EBITDA in PHP Mill in PHP Mill

-147 606
347
224 18.9% 15.2% EBITDA 459 8.7%
6 0.5% EBITDA
-117 -12.7%
-137 -117
1Q20 2Q20 3Q20 4Q20 1Q20 2Q20 3Q20 4Q20 Net Income -254 -4.8%
Net Income
Net Income in PHP Mill

208 14.2%
114 6.2% -43.5% Restructuring Cost Reported
-404 -172 -16.2%
Recurring

1Q20 2Q20 3Q20 4Q20 1Q20 2Q20 3Q20 4Q20

From a full-year perspective, 2020 reported EBITDA totaled Php459 million
while EBITDA margin stood at 8.7%, even with Php147 million in restructuring
costs incurred during the year.

These initiatives, implemented during mid-2020, have permanently enhanced our cost All in all, reported net income for the full-year 2020 stood at negative.
structures as evidenced by our continued recovery in terms of profitability and cash flows
2020 was definitely a one-of-a kind year amidst the COVID-19 pandemic and
the many challenges it brought to the restaurant industry. Nonetheless, we
have made various adjustments to our business - streamlining operations,
managing our costs, and doubling down on delivery and carry-out for all of
our brands. We have managed to pull through to end the year with positive
cash flows, improved cost structures, and greater abilities to take advantage
of higher off-premise demand.

17
 Building A Stronger and Better Shakey’s
Despite the continued challenges in the environment, we remain optimistic about the future and continue to invest in our brands, our people, and our stores.

New Store Openings Health and Safety Protocols

Amidst the uncertainty of 2020, we have put our store Health and safety will remain our critical priority,
network expansion plans on halt as we first tried to especially given the increasing number of COVID
understand the situation and the guests’ evolving cases locally and the re-implementation of stricter
needs. This year, however we are ready and geared quarantine measures throughout Metro Manila and
up to expand again, despite continued challenges nearby provinces.
around COVID-19 and government lockdowns. We
will do this very prudently, adapting to the new Across all Shakey’s and Peri stores, we continue to
requirements of the post COVID world. implement strict sanitation and safety procedures,
which exceed minimum requirements of government
These stores will have smaller store formats and and key health organizations. That our guests know,
reduced investment requirements. This will ensure feel and see that they are safe whenever they are in
payback periods are kept short and return on capital any of our stores, remains paramount.
remains high.

A number of these locations will be co-branded Delivery and Carryout

to maximize the asset base. We will also be rolling The COVID pandemic has forced us to double down
out ghost kitchens or kitchen extensions to further on our delivery and carry out business. Across all
strengthen our delivery business. our brands, we will continue implementing a multi-
platform delivery strategy that will leverage on our
existing in-house capabilities, as well as our growing
partnership with third party aggregators

We are continuing to invest towards making our own

in-house delivery channels – especially digital ones
such as our own app and website - more user friendly
and easier to use.
We are managing the business taking into
We also continue to push our 31-Minute, If It’s Late, consideration guests’ likely need for continued
It’s Free’ guarantee in select areas in Metro Manila – convenient and flexible out-of-store options, as
which have proven to undoubtedly lift sales in the al fresco dining and outdoor seating more widely
areas where we have launched them. available across our network.

Another exciting initiative is our investments in We likewise continue to roll out Park & Order and Park
building up the delivery business of our other, non- & Dine-in, convenient options for guests who would
Shakey’s brands. prefer to remain inside the confines of their vehicles.

18
Product Innovation R&B Milk Tea Peri Healthy Eats Truffle Green Pizza and
While PIZZA continues to uphold its core value of the Good & Baaad Burger
FUN, FAMILY, PIZZA, we always find ways to WOW our
guests year after year with new menu offerings and
convenient sales avenues.

Our strong focus on value-for-money innovations,

supported by both our R&D and marketing teams,
allows us to attract guests, whether old-timers or
newcomers, to try our new products and flavors
along with our classic mainstay menu items.

We will also continue to provide our guests with

value-for-money options, keeping in mind today’s
tougher economic environment. Our brand has
always been known to create WOW-ing experiences
at very affordable prices.

Organization Sustainability
PIZZA is full of passionate and WOWING people who The Company continues to make strides in integrating
love the brand and are dedicated to excellence. sustainability across its value chain after beginning
The Company places importance on the hiring, its ESG (Environmental, Social, Governance) journey
development, and retention of high performers by back in 2018. Last year, we finalized and released
providing a healthy work environment and proper our Company’s sustainability strategy and targets.
compensation, among others. With the Executive These serve as our guide in growing the business in a
and Management teams leading PIZZA and the rest sustainable and responsible manner.
of the organization quickly and successfully executing
its strategies, the Company has been able to achieve
unprecedented business results for over a decade.

Even in this new post-COVID world, our tried and

tested formula of WOW-ING culture and GUEST
CENTRICITY will remain at the core of what we do.

19
 What Keeps Us Going 102-16

20
Purpose Vision

To provide great times and great memories...always! To be the preferred and dominant family casual dining restaurant in
the Philippines, and successful in our chosen overseas markets.

Mission

We are a guest-centric organization. Our solid commitment to our stakeholders to

create superior value results in enduring success.

Our Guests Our Community

We genuinely care for our guests. We We commit to Sustainable Development
seek to know their needs and wants by engaging in social and environmental
and provide them high-quality food causes that will promote Quality of Life
products and services that will exceed as our legacy to future generations.
their expectations, thus providing
them superior value for money. Our Shareholders
We grow the business by increasing
Our Business Partners the size and value of the company and
We are ethical, fair, professional, and by achieving industry-leading returns
collaborative business partners. on investment, while creating long-
term value to all our stakeholders.
Our Employees
We nurture an environment where
people are respected, empowered to
be their best, and rewarded for their
contributions. We create opportunities
for personal and career growth so
they may succeed and gain a sense of
achievement and pride.

21
 Core Values

Guest-Focused 1 Team, 1 Passion

All our actions are centered towards We have shared vision and values,
enhancing the Shakey’s experience thereby seeking the best from each
and value for all our guests. other toward achieving one goal. We
continually communicate and collaborate
Understanding & Respect amidst diverse ideas and opinions.
We have the humility to listen and ask
questions to understand the other Strategic Thinking
person’s views and opinions. We are open, We see the big picture, critically analyze
fair, and without bias in our judgment. key assumptions, and understand the
relationship of its parts. We anticipate
Excellence the long-term impact and strive for
We set high standards of performance responsible and sustainable growth.
by doing things better than before,
better than others, and better than Tenacity
expected. It’s a WOW thing! We are resolute and persistent in the
pursuit of goals. We demonstrate grit
Sense of Ownership and “gigil” and have the urgency to get
We take charge. We are proactive and things done.
have a strong sense of accountability.
Sense of “malasakit” is demonstrated Trustworthiness
through prudent use of resources. We are ethical, honest, and trustworthy,
with unquestioned integrity in words
and actions.

22
Message from the Chairman 102-14 102-32

“When the going gets tough...” launched R&B milk tea from Singapore. This allowed
us to recover some of the lost jobs. In fact, to-date,
To say that 2020 was a tough year for the restaurant we have either outplaced some displaced employees
industry and for Shakey’s would be a huge to franchisees and other companies in the ecosystem
understatement. Many superlatives have been used to or even rehired employees. To date we have either
describe the upheaval brought on by the pandemic. outplaced or rehired over 50 previous employees, with
But among various industries, restaurants are among more in the pipeline for redeployment.
the hardest hit.
If we look at our financial report card, the company
Even with the kind of year we have had, especially sales contracted by 36% and we posted a net loss of
given everything that is going on in the world right PHP 254 million - the worst in our company’s history. I
now, I am profoundly grateful for how the company believe we need to set the numbers aside and applaud
was able to perform. Our tough and resilient team how the men and women of the company performed.
“did get going”. Risking personal health and safety, the team served and
in many cases WOW-ed our guests, management was
Almost overnight, a business with annual systemwide in the offices or in the field turning the business around,
sales of more than PHP10 billion shrank by half. Our franchisees worked hand in hand with company reps,
store-level economics and corporate overhead, as and our commissary team members continued to keep
well as commissary structure, needed to drastically the plant going. The result of all this, is a turn-around of
change to stop the bleeding. Our business model the business in three months’ time.
where dine-in and in-store events accounted for over
60% had to pivot to delivery and off-premise dining.

This necessitated decisive actions on operations and

“
I believe we need to set the numbers aside and
painful decisions on restructuring and cost control. The applaud how the men and women of the company
decisions, especially around loss of livelihood, were performed.
tough and not taken lightly. It required balancing the
interest of all stakeholders and putting the company in a
position where we could ride out the pandemic. In the Some good did come out of all of this. We made further
end, when we did have to cut jobs, I would like to think improvements to our delivery business, rolling out
that we did so in a thoughtful and fair manner, where we our “31 Minutes, if it’s late, it’s free” promise to more
did extra in order to cushion the blow to those affected. and more locations. We fast-tracked the deployment
of delivery-only ghost kitchens and other format and
The drastic restructuring and sacrifices taken eventually channel innovations such as Peri Jr. mini-stores, co-
paid off such that by the fourth quarter, the company branded Shakey’s and Peri-Peri outlets, Park & Order,
was net income positive and covering all our costs. This among others. Management was put to the test and
put us in a position to play offense again: we started responded with decisiveness and guest centricity, and
opening new stores, reinvested in improving guest showcased teamwork. All of these efforts contributed
experience both on- and off-premise, innovated new - to the sequential improvement in our topline recovery.
and in a number of cases - healthier products, and even Most importantly, we were able to provide comfort

23
 food to our loyal guests who craved comfort and Thank you to our franchisee partners for joining
familiarity during a precarious time. hands with us throughout this crisis. Thank you to the
members of our Board of Directors for the support
I am writing this letter just as we pass the first and counsel during the darkest times, and there were
anniversary of the COVID lockdowns that went into many, of the past year. And last but not least, thank
effect last mid-March 2020. The milestone gives me you to our shareholders for your continued trust and
relief that we survived, an end to the pandemic is in support, through thick and thin.
sight, and we are preparing to bounce back.

“
We plan to create new jobs or even re-hire our
former team members who were let go. We plan
to bounce back in 2021 and get back to our pre-
pandemic trajectory by 2022. Christopher T. Po
Chairman of the Board of Directors

This 2021, we plan to open 30 or more stores. As in March 2021

the past, we will look for short payback periods. Most
will be smaller than our pre-pandemic formats to
be fit for an age where off-premise dining behavior,
especially in Tier 1 cities, will be more entrenched.
We plan to continue to invest in our digital project
and leverage our data to get more intimate with our
guests and have more targeted offerings. We plan to
continue launching more better-for-you, better-for-
the planet menu items. We plan to create new jobs or
even re-hire our former team members who were let
go. We plan to bounce back in 2021 and get back to
our pre-pandemic trajectory by 2022.

We would like to take this opportunity to again thank

the men and women of PIZZA for the WOW-ING guest
centricity, loyalty and tenacity.

24
The President’s Letter 102-14

Never in my life have I been happier to see a year end. weeks from the start of the lockdown, we were able
The year 2020 will be long remembered as the year to quickly launch our Shakey’s Secure Atmosphere
that brought challenges of unforeseen magnitude. and Food Execution (S.A.F.E.) program. This program
This unprecedented COVID crisis is a bonafide enabled our guests to KNOW, SEE and FEEL safe with
“Black Swan” event for us and has brought about our products and services and gave us the confidence
horrific economic consequences and has exacted to re-open stores. And so, while we were among the
tremendous human toll worldwide. It has clearly first to shut down most of our stores, we were also
dramatically changed the way we live and the way one of the first to re-open most of our stores. It is
we do business, and can now be easily considered as something we can be proud of.
the worst year of our industry to date.

2020 in Review
Ironically, we started the year very strong; the first
“
And so, while we were among the first to shut down
12 weeks of 2020 were one of our best starts for a most of our stores, we were also one of the first to
very long time. By mid-March of last year, our year- re-open most of our stores. It is something we can
to-date results showed double digit same-store be proud of.
sales growth and we exceeded all revenue and profit
targets. This made us confident that we would again
extend our double-digit growth run on sales and Restructuring and Reorganization
profits to 17 consecutive years. That was until the As soon as the massive store closures happened, our
government announced the very tough quarantine sales immediately suffered from a huge drop with
rules on March 16. the second quarter posting the strongest decline in
revenues. And while our reopening rate was fast, the
Prioritizing Safety, Business Continuity & sales averages of all opened stores were nowhere
Guest Service near pre-COVID levels. The sales decrease came so
When the government implemented one of the quickly and with such magnitude, our cost structures
strictest quarantine mid-March last year, we and overhead could not handle it. To navigate and
immediately had to prioritize the safety of employees survive the crisis, our main objective was to ensure
and guests, along with our business continuity. We we conserve cash, thus the need to re-structure
also had to find a way to serve the special needs of and re-organize properly. To help our cash position
our guests during this crisis. However, given the huge we halted our expansion and renovation programs,
uncertainty, safety risks and travel difficulties, we had liquidated excess inventory, and negotiated with our the more difficult and most painful process of right
no choice but to close more than 90% of our stores suppliers and lessors to reduce costs and allow us sizing our workforce. We were a hard-hit company in
within a week after the declaration of ECQ . We had to navigate through the crisis. We also needed to a hard-hit industry and almost all companies in the
to move quickly to develop new safety protocols assist our employees and franchise partners. These Food service, Travel and Hospitality industries had
and processes and to ensure safe operations and cost reduction initiatives helped but unfortunately, to make this move. No less than the Department
that they not just comply but exceed the minimum as the crisis dragged on it became clear they of Labor in many instances acknowledged the need
requirements by the government before we could re- weren’t going to be enough. Thus, as a matter of for severely affected companies to reduce staffing to
open stores. I am proud to say that within just two last recourse, management was forced to adopt ensure they survive.

25
 I would like to assure you the program to reduce consisting of 245 Shakey’s outlets and 34 Peri stores. Guests has become a truly huge competitive edge.
our workforce was done in a manner that was fair I would also be remiss not to share with you the
and beyond what the law required us to do. Full Amidst the challenges induced by the pandemic, we heroics shown by our employees during this crisis.
transparency was adopted and we did all we could ended the year with a net loss of PHP254 million, a We are very fortunate to have people who really
to make our employees understand the true situation. reversal from 2019’s net income of PHP865 million. care for our company and are passionate about
We also worked closely and sought alignment and our brands and what they stand for. They willingly
support with our employees’ union. Furthermore, Strong Brand + Passionate & Capable People = went the extra mile to help the company survive
we invited Department of Labor and Employment Execution Success this crisis. Against the risks and difficulties they
representatives to observe the process and serve as I have always believed success is almost always faced, they continued to do their jobs to the best
witness to our right sizing initiative. I am proud to say guaranteed when you have a STRONG BRAND in the of their abilities. The unique culture, strong sense of
that we did the program with empathy and in a way hands of a STRONG TEAM! In our business, both have mission and shared values we have built over time
that was more than fair to the affected. Management to be present to have a good chance to successfully allowed our people to work as a team dedicated to
was also confident that as soon as we recover from execute business plans. This has proven to be even more delivering results in a very agile way.
the crisis, we will be able to bounce back and have critical when it comes to navigating or surviving a crisis.
the opportunities to recall deserving employees we
had to painfully let go. As of writing, we already see at This Covid-19 crisis has clearly shown how resilient
least 50 people we had to let go having outplacement and strong our brands are. We would not have shown
or rehiring opportunities. Our efforts paid off and we high recovery rates if our products and services
ended the year with a positive cash balance and in a were not relevant to our guests. The strong brand
good position to take advantage of the opportunities equity we have built through the last 45 years has
both during and after the crisis. paid dividends during this crisis when consumers
gravitated to brands they Know, Trust and Love.

“
Our efforts paid off and we ended the year with a
Indeed, food adventurism went down in this crisis as
people wanted to make sure they spend their peso
very wisely and go for brands they know provide
positive cash balance and in a good position to take superior value. Our brand’s mission of Wowing our
advantage of the opportunities both during and
after the crisis.

2020 by the Numbers

We ended 2020 with consolidated system-wide
sales reaching PHP6.6 billion, equivalent to a 64%
recovery of 2019 sales. Revenues were likewise lower
by 36% at PHP5.3 billion.

Our off-premise channels, primarily delivery and carryout,

accounted for 67% of total sales in 2020. Meanwhile,
dine-in sales contributed 33% of overall topline.
Total store count stood at 279 as of end of 2020,

26
Our Advantages Moving Forward • Our multi-channel revenue sources (dine-in, dedicated to PIZZA’s success throughout, even during
As of writing, there are new reports that some cities delivery, carry-out) and multi-channel store network the most challenging moments. Their continued trust
will re-introduce curfew and partial lockdowns due to (malls, free standing, kiosks, ghost kitchens) give us and confidence in the team and their unwavering
a noted surge in COVID cases. While we may have extreme flexibility in facing the different phases of support have been a strong source of motivation. I
survived 2020 and it is clear the crisis is far from this crisis. would also like to thank our business partners and
over, I am confident we are in a very good position suppliers for all the support they gave us during this
to recover this year and bounce back by next year • Our newly acquired Peri-Peri and R&B brands will most difficult time. This will always be remembered.
or latest by 2023. We expect to end 2021 once again provide us great opportunities for expansion and
delivering profits and achieve pre-COVID levels by
end 2022 at the latest. I am confident of this because
of the following key advantages:
growth within Metro Manila as Shakey’s continues
its growth plan in the provinces and select
international markets.
“
In my more than three decades in the Food
service Industry, never has a single crisis had such
• The strong and positive equity of our flagship • Our vaunted product innovation capabilities will a devastating impact and lasting effects on our
brand Shakey’s, coupled with the natural attrition allow us to lead in developing new and healthy business and industry. But alongside this, never have
that will happen as a result of this pandemic will be products for our consumers. We have taken the I been prouder of our company’s ability to meet and
very helpful in our sales recovery campaigns. first-mover advantage in the plant-based meat overcome the toughest of challenges.
alternatives.
• Our early and continued investments in our Digital,
Data Analytics and Delivery platforms as well as our • Once the vaccine becomes widely available, our In behalf of the entire PIZZA family, we thank you, our
early partnerships with Food Aggregators give us previous strength in group dine-in will once again shareholders, for your continued support and trust.
unique advantages and allow us to compete well be a major source of same-store sales growth. The team remains very committed to creating long-
and lead in the off-premise category. term value for the company and we will do our best
• Last but not least, we have a team of dedicated and to ensure that we BOUNCE BACK and BOUNCE UP
• The structural and cost changes we implemented very capable people from the very top down to the as fast as possible to benefit all our stakeholders. I
during the crisis will improve our ability to compete store frontlines and dedicated franchise partners all assure you, as we remain deep inside this crisis the
moving forward and allow us to create more value sharing the same mission, values and commitment team commits to WOW!
for our guests and will continue to provide benefits to move fast and allow our company to bounce back
even after the crisis. and bounce up fast. I am certainly eager for the day when we can all
see each other again, face-to-face. Until that time,
• Our industry-leading margins have been and will BOUNCE BACK and BOUNCE UP fast! please be safe and stay well.
continue to be a major competitive edge as it In my more than three decades in the Food
allows us to provide superior value for our guests. service Industry, never has a single crisis had such
a devastating impact and lasting effects on our
• The core products of all our three brands (Pizza, business and industry. But alongside this, never have
Chicken, Milk Tea) are all delivery and take-out friendly I been prouder of our company’s ability to meet and
and thus very relevant in off-premise consumption. overcome the toughest of challenges.
Vicente L. Gregorio
Our ability to navigate the very tough 2020 would not President and CEO
have been possible without the work and commitment
of our experienced Board of Directors, who remained March 2021

27
 Updates from Our General Managers
Shakey’s Peri

The year 2020 was indeed a year like no other in

the past. Shakey’s started off the first 10 weeks with
double-digit SSSG until the government instituted
a lockdown in mid-March. 95% of our stores had to
close and the Company was obliged to confront the
new reality. New protocols to ensure both staff and
guest safety was the initial and preeminent concern.
Undaunted, the Company immediately embarked on
a course to, not just survive, but thrive in the aftermath
of this black swan event.

By the end of April, more than 90% of our original store

network had reopened to serve guests, whose dining
options were then severely limited. We leveraged our
already established delivery business infrastructure and
many freestanding stores while store expansion plans
were reviewed. We right-sized our stores to cater to
the new normal. We successfully and quickly instituted
service innovations like Curbside Pickup and Park & Jorge Ma. Q . Concepcion Maria Elma C. Santos
Order, while expanding our ghost kitchen coverage. General Manager - Shakey’s General Manager - Peri

Utilizing insights gleaned from research, industry trends,

social media and data science analytics, by mid year, underserved niche of our guests and therefore tapped 2020 will forever go down in the books as the toughest
we launched a new range of healthier product offerings their services to contribute incremental revenue. year to-date for Peri and many others in the industry.
like the Goood & Baaad Burgers and Truffle Green Pizza The year was peppered with the best and worst for
that were all well received by our guests and social Our franchise business partners were not spared the many. Amidst this challenging time, we put our energies
influencers. Shakey’s mounted a series of marketing difficulties we all had to face, so we actively reached towards the mode of survival. Cash generation, people
initiatives catering to new behaviors like simultaneous out to guide, support, and share with them measures management, safety operations, cost control and
delivery for online meeting and party packages, as well to better manage new efficiencies or more favorable wowing service were key priorities we had to juggle
as promotional campaigns like seasonal advanced offer terms in inventory, warehousing, distribution, cash, to enable the brand to remain afloat. We had to close
deals, Home Bonding Offer. and Bring Back the Cheer. finance and lease arrangements. stores for some time due to the lockdowns, but once
we had the opportunity, we pounced on every possible
Recognizing the acceleration of digital transformation, We are pleased with the robust and steady pace way we can to get back on track.
we launched order via chat, upgraded our website of the Shakey’s recovery in the months since the
and are in the process of soon introducing our most lockdown and now face 2021 confident that we will Key to our surviving 2020 was the quick pivot to
advanced version of the Shakey’s app. We defined the bounce back and bounce up, fast! Delivery and Carry Out servicing. We were able
complementary role of food aggregators in meeting an to offer what was relevant to the times in a very

28
 R&B

challenging pandemic scenario. We tried our very 2020 was supposed to be the year R&B Milk Tea
best to continue to WOW our guests. Our original opens its first stand-alone store in the Philippines.
plan to expand rapidly saw us take a very conservative R&B, one of the most well-loved milk tea brands
approach as restrictions hindered us from building in Singapore known for its fresh milk with brown
stores. Yet, we were still able to open stores in areas sugar pearls and refreshing fruit teas, was eyed to
where demand for the brand was high. The belief excite the milk tea market in the Philippines when
that our guests had in us, management’s support and the COVID pandemic hit hard. Instead, the brand
the team’s resilience and teamwork were enough to pivoted its strategy and opened co-branded stores
get us through the year that was. I am in awe of the in select Shakey’s and Peri restaurants.
passion of our dear Peri frontliners, braving each day
to come to work despite the risk of contracting the It opened its first 30 co-branded stores on October 2, 2020,
virus. For that, we are very grateful because they held offering six product variants for dine in, carryout, and delivery.
onto our vision, they held onto the belief that we will The product variants were milk and milk tea with brown
weather this storm together. sugar pearls, milk and milk tea with cheese cream, and milk
and milk tea with cheese brulee. By the end of December
2020 may have slowed us down, but it never 2020, R&B’s co-branded store count reached 122.
hampered our spirits. We anchored on the hope that
brighter days are coming ahead for Team Peri. This Aware that other players are available via food
may be a huge setback on our plans, but we know aggregator delivery, R&B started selling in Shakey’s Gilbert L. Tolentino
we can bounce back, bounce up…fast soon. In 2021, and Peri’s Grab food aggregator platform in January Shakey’s CBU Director and GM - R&B Tea
we will be back and ready because…a new flavor 2021. It also introduced new products such as the
adventure begins! macchiato tea series with cheese cream: black oolong
and peach oolong tea. A month after, R&B launched This 2021, R&B is set to fulfill its original goal of
its Grab Virtual Store in 116 selected locations and its launching its first standalone store with a complete
third macchiato series which is the Strawberry green product line, while increasing its presence in more
tea macchiato. co-branding locations. The brand looks forward
to increasing its market share in the “Better Milk
Tea” category with its premium tea, cheese cream,
and brown sugar pearls while maintaining a very
competitive pricing. An affordable luxury, indeed!

29
 Beyond the Crisis
30
Safety First also made considerable investments in our in-house New Brands
The world as we know it has changed and as the delivery and digital platforms over the last several The newest members of our brand family have also
world remains well within its battle against the years, giving us a much-desired edge in terms of supported our recovery during these challenging
COVID-19 pandemic – many aspects of our future still delivery systems and infrastructure. times. Peri continues to WOW our guests with
remain uncertain. So many things have changed and its trademark flavorful chicken and its string of
continue to change – none of which anyone could Today, we continue to implement contactless delivery adventurous sauces and flavors. We continue to
have adequately prepared for. protocols – which means the whole guest journey – believe the brand has significant potential and we
from delivery to payment – is strictly ‘no touch’. look forward to continuing its growth trajectory
What has not changed however are our commitment to amidst this new environment.
our guests and our constant desire to WOW them. This We have also piloted our “31-Minute Delivery, If It’s
commitment now encompasses their health and safety Late, It’s Free” guarantee in select areas in Metro Last August 2020, we also entered into a master
as well – every time they walk into any of our stores. Manila. We expect this move to further solidify our franchise agreement to bring the R&B milk tea brand,
equity in delivery, especially at a time when off- one of the leading milk tea and bubble tea players in
Since the start of the pandemic, we have implemented premise channels are gaining prominence amidst Singapore, to the Philippines. Through a co-branding
strict sanitation and safety procedures that exceed evolving consumer trends. strategy, we can leverage on our well-established store
minimum requirements of government and key health network and strong delivery presence, as we cater to
organizations. These initiatives translate to additional We also recently rolled out Park & Order and Park the growing milk tea and bubble tea market locally.
costs, but are part and parcel of our commitment to & Dine-in, leveraging on our flexibility and agility in
keep all our stakeholders safe. providing more convenient options to guests, such as
those who would prefer to remain inside the confines
We believe that our guests should KNOW, FEEL and of their vehicles.
SEE that they are safe whenever they are in a Shakey’s
store. This is paramount in building confidence and We will also continue to invest and plow resources
instigating traction in dine-in. into the digital space, focusing on the use of data
analytics, mobile ordering, and web resources – all
We have also rolled out al fresco dining and outdoor necessary in supporting the out of store ecosystem
seating to further spur dine in sales, and we are we are trying to build.
happy to note that we are getting positive qualitative We’ve also launched a new line of Shakey’s “Take and
feedback from our guests about the experience. Bake” brand of frozen, ready-to-heat pizzas, which
leverage the Shakey’s brand, but appeals to a completely
Taking the Shakey’s Experience Out of the Store different set of guests and guest experiences.
Delivery and carry-out will, however, play a critical role
in the Shakey’s of the future. We have always benefited
from a strong in-home and out-of-store presence,
even before COVID, with delivery and carry-out sales
accounting for 37% of total topline as of end 2019.

This is no surprise as our core product pizza is

the quintessential delivery product since it is very
difficult to prepare and cook well at home. We have

31
 Multi-Sales Channel and Multi-Store Format Toolkit Where do we go from here?
Our multi-sales channel and multi-store format Shakey’s Philippines is no stranger to crises, having Even in this new post-COVID world, our tried and
approach will continue to be an integral part of our tool been through numerous ones since 1975. tested formula of WOW-ing culture and guest
kit, giving us the much needed operational flexibility centricity will remain at the core of what we do.
as we navigate through this so-called new normal. Throughout these challenges, and more specifically in the
last 16 years, we have not only survived, but also thrived, Our task now is to fully understand what the guest
This strategy is complemented by our brand’s and there is no reason why we cannot do it again. needs and expectations will be in this ‘new normal’,
industry-leading margins, providing us adequate and then strive – to not only meet them –
buffers and financial legroom amidst the uncertainties And while very different and more serious than but EXCEED them as well.
of today’s environment. anything the Company has previously faced, this new
test will make the Shakey’s team and the Shakey’s
We are also grateful for our millions of loyal and brand only stronger and better than before.
loving guests. Now – more than ever – brand LOVE
and brand TRUST have become key customer
considerations. These uncertain times have led many
back to brands that are more familiar, close to the
heart, and resonate in people’s minds very strongly.
The Shakey’s brand – with more than 45 years in the
Philippines – fits all those criteria and we are thankful
for the continued support of our guests. This multi-
decade, multi-generational relationship with our
guests is one of our best assets and the hardest for
competitors to replicate.

32
Hear It From Our Guests
The world as we know it has changed and as the world remains well within its procedures that exceed minimum requirements of government and key health
battle against the COVID-19 pandemic – many aspects of our future still remain organizations. These initiatives translate to additional costs, but are part and parcel
uncertain. So many things have changed and continue to change – none of which of our commitment to keep all our stakeholders safe.
anyone could have adequately prepared for.
We believe that our guests should KNOW, FEEL and SEE that they are safe
What has not changed however are our commitment to our guests and our whenever they are in a Shakey’s store. This is paramount in building confidence
constant desire to WOW them. This commitment now encompasses their health and instigating traction in dine-in.
and safety as well – every time they walk into any of our stores. We have also rolled out al fresco dining and outdoor seating to further spur dine in
sales, and we are happy to note that we are getting positive qualitative feedback
Since the start of the pandemic, we have implemented strict sanitation and safety from our guests about the experience.

“Inspiring Frontliner” “Hindi Hadlang Ang Pandemya Para Magpasaya Ng Kapwa”

“Hi, I would like to commend Ms. Chris of Shakey’s “A Shakey’s San Jose’s delivery rider sings
Magsaysay branch for giving me a great customer a Happy Birthday to the Guest celebrating a
service, even if most of the people like her are birthday during MECQ . Delivering great times
having hard time going to work due to the and great memories at your doorstep!”
COVID-19 pandemic. She still has the attitude and
professionalism to entertain a customer like me. I
admire her for being such a truly inspiring frontliner.”

“Words of Appreciation”
“I would like to thank the Sta. Cruz, Laguna branch for
all the hard work you put in not only to prepare our
food and get it to me as fast as you can, but also on
putting yourselves at risk despite our situation right
now. Your jobs are highly valued not only this time
of crisis but since then, I appreciate your work. You
are the people who got to us when we need special
celebrations just like today.”

33
 “Salute”
“I salute Shakey’s Ayala Marikina Heights for keeping their spirit
on working and serving the people in the time of pandemic…
They are all approachable and super kind sa guest nila... I can say
that they are all worthy of their title… to be called captains and
managers because they are so professional enough…”

“Safety Protocols Compliant” “Highly Recommended Service”

“I just want to commend your team in V Central “Big credits to Shakey’s SM Trece dahil sa
Molino for their exceptional service... I must say that good delivery na may pa-card pa na sobrang
your staff is really taking the new procedures by na-appreciate ng taong naka-receive. A simple
heart. Randolph, your delivery staff has practiced the thing that makes someone smile.”
Contactless Delivery Policy by wearing a mask and
following the physical distancing rule… I’m really glad
with the service that I got from your team today and
so I wanted to send this commendation. Thanks again
and will be sure to place an order again!”

“Shakey’s San Pedro is 💛”

“Hi Shakeys Team, I wanted to commend Shakey’s
Pacita San Pedro Branch for their excellent service.
We chose the branch as our Wedding reception venue.
We are aware of the GCQ protocol and we are happy
with how the Shakey’s Pacita team, especially Raymond
made sure that we are compliant. Thank you Raymond
and Pacita Team for making our day memorable… We
were able to have fun while ensuring our health safety.
Kudos to Pacita San Pedro Manager, to Sir Raymond,
and to the team!! Thank you and stay safe.”

34
“3 Thumbs Up”

“I’m so happy for the fast service of SM Shakey’s Rosales, especially to

Sir Wyndel Domiguez for the smooth and fun transaction... 3 thumbs up!
He truly cares on what you need even if it is lockdown in that area. He
makes sure to give the best and deliver on time... I am truly thankful he
also granted my wish to buy a surprise cake to my fiance because it is
his birthday... Thank you so much! It is highly recommended to everyone
to try the service of Shakey’s at SM Rosales.”

“Feedback on Delivery”
“I would just like to commend the smooth and fast transaction I had today with
your branch in Halang, Calamba City, as well as the polite and good quality
delivery service provided by Mr. Jomar Lopez... I also would like to praise the great
service you provided and how safely you handled the customers’ demands during
the enhanced community quarantine.”

“Shakey’s Is Family”
“Accept my heartfelt thanks to you and your dedicated workforce. My
family has been celebrating countless birthdays and important gatherings
in your stores in the past 5 years. Aside from the great food, it’s your
people’s friendly and enjoyable service that kept me and my family coming
back. Today we celebrated a rare and special occasion - my wedding
proposal to my girlfriend… Shakey’s is no longer just a favorite place for
celebration for me. It is now my family place.”

35
 UP CLOSE: Gale Roque, Head of Research and Development
With a career in the foodservice industry that spans 20 What are you responsible for in the Company? How do you approach product development and
years, Gale upholds that even the smallest incremental In R&D, we work on new and innovative products. We innovation overall?
change could help channel the market in the right ensure that these products are “wow-ing” so that our For Pizza R&D, we align our innovation with the sources
direction. Whether as a maverick or a game-changer, guests will love them. We also continue to improve of growth as we see them, and it’s really good that our
she pieces together some thoughts on how PIZZA can existing menu items to ensure that quality standards management team is really on top of things. In terms
leverage its strong innovative spirit to continuously are met and that these items meet or exceed our of development we read up and look at the market
offer WOWing products to an evolving market. customers’ expectations. constantly in search of how things are going especially
during this pandemic, so aligning with sources of
We also look into ease of store execution on the growth is really key for us in terms of research allocation.
kitchen side and that food costs are managed well. Also, our development plan is learning-driven. We test
In terms of our sustainability goals, part of food cost assumptions as much as we test prototypes. We also
management is to reduce food waste wherever we assess the risks, especially in execution.
can. My team also works to ensure that the products
are safe for consumption and maintain pure quality Could you talk specifically about your key deliverables
through our quality assuring systems and processes, in 2020 and how did you fare against them?
which include supplier audits and accreditations. During the lockdown, we had to re-prioritize and
Usually, for the stores and the franchisees, we also focus on the essentials. The first essential being a shift
resolve raw material quality concerns. towards the need for virtual auditing of our suppliers,
their facilities, and their systems. We had to quickly
What would you consider to be the create a remote audit process.
most difficult activity?
All activities have their own areas of challenge. But The second was a pivot towards healthier products.
quality assurance is all based on systems, so once We were tasked to develop a flavorful vegetarian
the systems are in place then everything should flow pizza, seeing the trend on health and wellness, and to
more easily and smoothly The interesting thing about develop and launch the first plant-based burger in the
R&D is that the market is very fluid and competitive Philippines by a chain.
so it becomes both challenging and exciting for us.
Every day brings a new challenge and we’re never
really bored in our department. “
The first essential being a shift towards the need for
Please tell us about yourself and your career with PIZZA. virtual auditing of our suppliers, their facilities, and
As a food technologist, I have been a product their systems. We had to quickly create a remote
developer for 20 years now, and have built my audit process.
career mainly in the foodservice industry. I handle
the upkeep and improvement of existing menu, as
well as the development of new and innovative
products. I’ve been with PIZZA for over two and
a half years, leading the Research & Development
and Quality Assurance units.

36
I’m pleased to share that we were able to deliver all What do you like most about working in PIZZA?
the essentials and even add more. After coming up PIZZA is a place for both professional and personal
with our plant-based “Goood Burger”, we came up growth. It’s a really great place to be in if you want to
with a “Baaad Burger” as well. We were never really learn. There’s an abundance of growth ideas in PIZZA
known as a sandwich brand, but right now both and all the teams are highly collaborative. There’s
burgers are actually doing well. also the sense of gratification I get, as compared to
other industries, when people enjoy our food. You
What new research & development trends do you see how they share and post about the products, and
see in 2021? even sometimes they get back to you and feedback
For 2021, a lot of the trends would still be about health. personally. So there is that sense of gratification in
The market is really looking into immunity boosting being part of this whole team and process.
ingredients and products. Plant-based products will
continue to gain ground.

Also local sourcing - helping out local businesses who

have suffered from the pandemic will be a continuing
trend in 2021. I think it’s a natural human reaction to
support your local community. Part of that also is that
global supply chains have been greatly affected.

There is also a direction wherein people are looking for

comfort food in new formats. I guess it’s triggered by
the nostalgia of wanting to go back to the good times.
People want to eat something easy, that is time-saving,
but with the feeling that the food is homemade.

What excites you the most in the progress and

development of PIZZA moving forward?
There’s a lot. There’s so much we can do and this is
not just limited to the products we can come up with
but also the services that we offer. We have yet to
fully develop certain channels to reach more people,
and our team is working towards that. Even as a
decades-old brand, there are still countless ways to
reach more people.

37
 UP CLOSE: Rodrigo Nanjari, Chief Technology Officer
Creating a seamless digital experience for Shakey’s working in different countries and deploying offer to the guest that is relevant to them and in a timely
guests can be both intriguing and challenging amid projects - in China, Malaysia, Vietnam, Bangladesh fashion? It’s a lot about personalization.
these evolving times where guests may not necessarily and across the region. That’s how I ended up in the
be in the stores but instead, are ensconced in their Philippines. Before Shakey’s, I worked in FinTech Now what is the ultimate goal? Today, Shakey’s is a
homes and still expecting that WOWing Shakey’s and HR Products. All in all, we’re talking about 15 recognized brand that provides a great guest experience
experience they have all grown to love. Rodrigo years dedicated to IT, mostly projects, products in the stores. It’s a real experience to go to the stores.
Nanjari leads his team as they usher guests into the and team development. I’m really passionate about Of course, the food and the pizza may be a bonus, but
digital landscape. creating high performance teams. it’s the way people feel when they step into our stores
that differentiates the brand from the competition. How
What are you responsible for now in the Company? we take our guests into the digital landscape and still
In Shakey’s I’m responsible for the entire IT provide them with the same experience is the ultimate
infrastructure of all our stores, both business goal for digitalization.
owned and franchised, and our headquarters. I’m
also responsible for the systems. When it comes to How do you prioritize the numerous projects that require
systems you have three categories. The first being IT development?
corporate systems. The next category being in-store The answer is really simple. It is always - guest first.
systems. Finally, one of the most important, the guest Everything related to offering the best experience to
facing systems. These include digital channels such as our guest is, to me, top priority.
mobile, web app - implementing the online ordering
capabilities of the company. What new IT trends do you see in 2021?
Guests will be demanding more efficiency. All these
Another big responsibility is to develop a high digital channels need to have personalization.
performance team. Also, to understand the different
needs of the different departments. That takes up a Second, everything related to the operations. How
big part of my agenda - talking to different business do you automate the routing? How do you select the
owners and business units, trying to understand what best store to serve that order? How will you distribute
ideas they have and what they’ll be doing in the next your riders in a way to minimize the delivery time?
couple of quarters. How can we shorten the production time? How can
we shorten the delivery time so that we can secure
How do you approach digitalization overall? that delivery within 31 minutes?
The approach of digitalization here in Shakey’s is to
identify all those processes that heavily rely on manual
intervention. Digitalization will help expedite all the
Please tell us about yourself and your career. processes to provide all the information all the way. That
I come from Chile in South America. I’ve been in is just one example.
the Philippines for the past 5 years. Before that,
I was working back in my country in different I think the most important or one of the most impacting
industries: Banking, FinTech, Telecom, Utilities and as the brand would be the guest facing systems.
Education. I used to explore different industries They have to be more digital, and it’s beyond having
because that’s my passion. In Asia, I’ve been a website where you can order online. What can you

38
What excites you the most in the progress and
development of PIZZA moving forward?
There are so many things that excite me. To me, the
end goal is to be recognized as the best… I want
to ask someone what is the best app, what is the
best digital experience when it comes to ordering
pizza? I want them to, without hesitating, say our
name. In order to get there, we need to have strong
engineering capabilities, a strong provider network
- mostly, a strong team. That, I would say, is the
most important.

What do you like most about working in PIZZA?

I like to work here because there’s so many different
channels and in the past, I’ve been working in
companies with a single product. You work around
that in so many different ways, with new versions
and stuff but in Shakey’s, there’s so many things
to do, there’s so many areas where I can help and
that keeps me really excited because it challenges
my creativity, challenges the way that I approach
different problems.

Another thing that excites me working in Shakey’s and

why I’m proud-- I’m a father of three. I have my kids,
they live here in the Philippines with my wife, and
me and we have a great fondness for Shakey’s, even
before joining the company. Being able to work for
a company that offers something that you really like
and you really use, it’s my first time. If you asked my
kids, what are the companies or what is your father
working on before Shakey’s? They won’t be able to
tell. But Shakey’s, they know it and I’m proud and as
a father, I’m really proud to be working in something
that is tangible for them, they can talk about it and
share that with their friends. It’s really fun, and I feel
really happy about it.

39
40
People, Planet, Pizza
 42 46 48

Our Creating Value How We

Sustainability Across Our Engage
Focus Business

50 54 60

Our People Planet

Sustainability
Journey

66

Pizza

41
 Our Sustainability Focus 102-29 102-46 102-47

42
In our third year of integrating sustainability into the business, we have boosted appropriate metrics for tracking performance, are guided by our Sustainability
efforts in areas that are important to both stakeholders and the Company, while Framework, which enables us to stay focused on our journey.
fulfilling our commitments to guests and communities. Our initiatives, linked to

People Planet Pizza

Human and social capital remain Our use of resources and its Our products remain at the heart
crucial to our business. We highly consequential impacts are diligently of our operations. Our processes
value our employees, guests, and monitored to enable us to carefully ensure that they are safe and of
the communities that we work with. manage our environmental capital. high quality. At the same time, we
are constantly looking for new
ways to WOW both our guests and
Employees Natural Resource Efficiency our planet through innovation and
• Diversity and Inclusion • Energy Consumption Reduction responsible sourcing.
• Talent Acquisition & Management • Water Consumption Reduction
• Employee Engagement Profit-Purpose Alignment
• Workplace Culture & Environment Environmental Impact Management • Product Development & Innovation
• Greenhouse Gas Emission Reduction • Food Safety & Quality
Guests • Plastic Neutrality
• External Guest Engagement • Landfill Waste Reduction Industry Pioneer
• Healthier Products
Communities Supply Chain Management • Nutritional Transparency
• Job Creation • Supplier Credibility
• Livelihood Support • Local Sourcing

Good Governance
The Company recognizes the importance of good governance to ethics, complies with rules and regulations, and adheres to fair labor
successfully progress in its sustainability journey and create greater value practices as we continue to fulfill our multiple economic, moral, legal, and
for shareholders. Good corporate governance must span across our entire social obligations towards our stakeholders.
value chain to ensure the organization operates along the lines of business

43
 Our Sustainability Focus

People Planet Pizza

Employees Natural Resource Efficiency Profit-Purpose Alignment

Diversity and Inclusion We strive to improve our efficiency in utilizing natural Product Development & Innovation
We are committed to building a diverse and inclusive resources by adopting industry best practices in We continue to provide value to our guests with our
business that places a premium on skills and potential energy and water management. diversified menu, keeping both old and new guests
and does not discriminate based on ethnicity, religion, excited.
or gender. Energy Consumption Reduction
Water Consumption Reduction Food Safety & Quality
Talent Acquisition & Management Product quality that also focuses on guest welfare
We regard our employees as partners in growing the is a business aspect accounted for in all parts of our
business. We invest considerably in promoting their Environmental Impact Management operations.
professional and personal growth. Greenhouse Gas Emission Reduction
We manage our use of natural resources to control our
Employee Engagement impact on the environment, including the resulting Industry Pioneer
We continuously engage with our employees greenhouse gas generated by the energy we utilize. Healthier Products
to ensure they are dedicated to their jobs and As we continue to diversify our offerings, we aim to
committed to the organization. Plastic Neutrality introduce menu items with healthier nutrition profiles.
We are committed to 100% plastic neutrality (third-
Workplace Culture & Environment party verified) for the total business. Nutritional Transparency
Our employees are consistently able to WOW guests We target to disclose nutrition profiles of menu items
as we cultivate an inclusive culture and ensure a safe Landfill Waste Reduction for transparency.
and healthy working environment. We explore ways to minimize our packaging and
waste footprint.

Guests
External Guest Engagement Supply Chain Management
Feedback from our guests, on every aspect of our Supplier Credibility
business, are highly valued and acted upon accordingly. We adhere to standards that ensure our materials are
ethically sourced.

Communities Local Sourcing

Job Creation We aim to source more materials locally via exploring
Our growth around the country generates jobs for contract farming and local processing
local communities.

Livelihood Support
We engage in community development and aim to new burger
create sustainable social impact.

44
Economic Value We Create 103-1 103-2 103-3 201-1

Economic Value Generated

We were able to generate a total of Php 5.3 billion in economic value for 2020, a 36% decrease from last year. This is attributed to the adverse impact of COVID-19 on the
foodservice industry.

Economic Value Retained Payments to Government Payment to Providers of

Capital
Of the PHP5.3 billion Our current tax expense is
economic value that PHP74 million. Total dividends paid and
we generated this year, finance costs amounted
negative 9% is retained by to Php348 million, a
the company. 25% decrease from the
previous year.

-9% 7% 22% 79%

1%
Payments to Employees Payments to Suppliers and
Other Operating Expenses
Employee salaries, wages, and
benefits amounted to PHP1.2 Procurement, production, and
billion in 2020, which is 22% of manufacturing costs covered
our total economic value. This most of our economic value
amount presents a decrease distribution at 79%.
of 9% from 2019 due to the
right-sizing of our workforce.

45
 server serving family?

Creating Value Across Our Business 102-9 102-31

46
We crafted our sustainability strategy anchored on a better understanding of best-suited to tackle which sustainability issue, allowing us to execute our plans
the environmental, social, and economic impacts of the various activities along effectively. We continue to uphold that authentic sustainability represents actions
our value chain. As we consider a broader set of stakeholder concerns, we are where long-term future outcomes are balanced against today’s demands.
guided by our sustainability value chain map in determining which business unit is

Research & Sourcing Store Business Guest

Development Operations Segments Engagement

Formulating and testing Procurement, storage, Preparation of food Offering of products Marketing and feedback
of food products and and distribution of food products and services, and services through mechanisms conducted
non-food materials and non-food materials including the management dine-in, delivery, carry- for guests
and maintenance of store out, functions, and the
logistics and facilities SuperCard

Value Creation & Economic Flows

People Talent Acquisition & Management

Workplace Culture & Environment
Employee Engagement
Diversity & Inclusion
External Guest Engagement
Job Creation
Livelihood Support

Planet Energy Consumption Reduction

Plastic Neutrality
Landfill Waste Reduction
Water Consumption Reduction
Greenhouse Gas Reduction

Pizza Product Development & Innovation

Food Safety & Quality
Healthier Products

Good Governance Business Ethics & Compliance

Labor Practices

47
 How We Engage with Stakeholders 102-21 102-40 102-41 102-42 102-43 102-44

Channels of Engagement Concerns How We Address Them

Employees • Town hall meetings • Company culture • Alignment with Company mission,
• Performance appraisals • Career growth and development vision, and values through our
• Training and development programs • Employee salaries and benefits onboarding process
• Informal training and mentorship • Safe working environment • Training programs
• Email blasts and social media • Equal opportunities • Proper compensation and benefits
• Team building activities • Mentorship programs
• Collective Bargaining Agreement • Labor union and grievance mechanisms

Guests • Store service • Quality of service • Daily QSCH Readiness Checklist

• In-store feedback mechanism • Quality of restaurants and facilities implementation
• Guest feedback channels (Email, • Food quality and safety • Quarterly QSCH audit
SMS, Website, App) • Compliance with nationally or • Monthly QSCH Quick Visit
• Social media channels – Facebook, globally recognized “standards” i.e. • Annual Calibration of QSCH Standards
Twitter, Instagram, Viber ecological balance/sustainability of • Proficiency Test for Managers
life, gender equality, PWD and other • Maintenance of facilities
worthy causes • Training of store personnel
• RM Assembly, Specialists Assembly
to address Guest Related issues,
Best Practices sharing

Community • Consultation sessions prior to store • Quality of service • Partnerships with social enterprises
opening • Hiring opportunities • Annual charity and advocacy events
• Community and advocacy events • Corporate social responsibility

Suppliers • Communication lines (phone, • Issues with bidding and procurement • Regular engagement with suppliers
email, meetings) • Scheduling and logistical concerns • Supplier orientation process on
• Supplier accreditation process • Minimum accreditation requirements Company policies and commitments
• Supplier negotiations and bidding and schedule
• Order placement and PO issuance

48
 Channels of Engagement Concerns How We Address Them

Government • Annual audits, reports, and • Compliance with laws and regulations • Compliance, transparency, and
publications • Opportunities and areas for public timeliness on submission of required
• Press releases and private sector collaboration reports and renewal of permits and
• Completeness and accuracy of reports licenses
• Transparency and accountability • Updating of company policies and
systems based on latest government
regulations, as needed
• Attendance and participation to
government-sponsored learning
sessions and compliance programs

Investors and Shareholders • Investor touch points (meetings, • Business viability and growth • Facilitating effective two-way
conferences, commissary visits, • Financial outlook and disclosures communication between the
email, phone) • Business risks and opportunities Company and financial community
• Press releases • Transparency and accountability
with regard to the Company’s
strategic plans
• Regular engagements through
different touch points with investors
and shareholders

Media • Press briefings and conferences • Proper representation and labeling • Regular consultations
• TV and radio advertisements • Marketing practices • Branding and marketing guidebook

49
 Our Sustainability Journey 102-19 102-20

50
 Where We Were Where We Are Now
2017 2018 2019 2020

Type of Report Annual Report Sustainability and Annual Report

Scope Shakey’s Pizza Asia Ventures, Inc. and wholly-owned subsidiaries

Company Updates • Covered the acquisition of • Improvement of internal • Continued emphasis on • Continued emphasis on
the Company by Century non-financial performance sustainability through the use sustainability through the use
Pacific Group, Inc. (CPGI) monitoring system through of the company’s framework of the Company’s framework
and its successful IPO in late the use of the Global Report- of People, Planet, Pizza of People, Planet, Pizza
2016 ing Initiative (GRI) Standards • Engaged with The • Responsible Business Forum
• Opened its 200th store in • Started reporting based on Purpose Business (TPB) was held in March 2020 to
2017 the key pillars of People, to help develop PIZZA’s gauge the sustainability is-
• Moved into the “Shakey’s Planet, Pizza Sustainability Strategy for sues our employees were
WOW Center” – named af- • Started focusing on ESG 2020 and beyond passionate about
ter the Company’s strong integration throughout the • Establishment of a
guest-centric and WOWING company governance structure for
culture • Integration of the ESG initia- sustainability
tive “Project InSpire’’ across
the entire Company, result-
ing in KPIs that allow the
Company to improve along
social, human capital, and
environmental dimensions

Content Guest Service and Satisfaction: Number of WOWING experiences achieved across all service channels
Reported
Sustainability Value Chain Map

Sustainability Highlight

Stakeholder Engagement

Economic Value Created

51
 Where We Were Where We Are Now

2017 2018 2019 2020

People

Employees • Development Programs and Trainings

• Talent Acquisition and Management
• Workforce Profile
• Promotions and Retentions
• Engagement and Evaluation

Consistent compliance with all local laws and regulations pertaining to compensation, benefits, and labor requirements, as well as by
strictly conforming to all relevant statutes of labor and employment through our code of business conduct and ethics

Guests External Guest Engagement via our store staff, WeCare email, Electronic Guest Comment Card, Shakey’s
delivery hotline, Shakey’s website, Shakey’s mobile application, Facebook, Twitter, and Instagram

Communities • Partnership with Down Syndrome Association of the Philippines, Inc. for the establishment of the Love ‘Em Down program
• Partnership with Friends of Hope for the establishment of the “Hope in a Bottle” program

• Provision of opportunities to Meal packs donated to

students through Special pro- Filipino healthcare workers
gram for Employment of Stu-
dents (SPES)
• Seasonal employment of
people with special condi-
tions or disabilities through
SMILE

Planet

Natural Resource Efficiency Monitoring of:

• Energy Consumption and Intensity
• Water Consumption and Intensity
• Greenhouse Gas Emission and Intensity

Installation of thermal insulation and low-flow handwashing machines in select stores

Environmental Impact • Partnership with World Wide Fund (WWF) for #AyokoNgPlastik campaign
Management • Partnership with Republic Cement and Plastic Credit Exchange Towards Plastic Neutrality
52
 Where We Were Where We Are Now
2017 2018 2019 2020

Supply Chain Management Supplier Accreditation Policy Supplier Code of Conduct & Ethics

Establishment of Supplier Accreditation Policy to ensure that all suppliers and contractors are
qualified to meet their commitments to the Company

Pizza

Business Alignment • Product Innovation, Design, and Lifecycle Management

• Food Safety and Quality:
• Food Safety Journey
• QSCH Audits
• Food Safety Training

Industry Pioneer Launch of Goood Burger -

plant-based burger

Operationalizing Sustainability

The Company’s Board of Directors encompass a number of Board Com- Every quarter, separate Steering Committees for Pizza, Planet, and The Investor Relations Department, however, acts as a secretariat to
mittees that are meant to support the effective performance of the People meet to cover the initiatives and directives for that specific the various sustainability committee meetings and ensures that this
Board’s functions. The Board’s Corporate Governance & Sustainability P. The Core committee members attend all three meetings every governance structure is organized and operating properly.
Committee oversees the implementation of the sustainability frame- quarter, whilst members of the sub-committees attend the steering
work mentioned above and periodically reviews this framework to en- committee meeting for their respective P. Ultimately, the Company’s Board of Directors, through its Corporate
sure that it remains appropriate in light of material changes to the cor- Governance & Sustainability Committee, is accountable for the
poration’s business strategy and its external environment. It is chaired The Board’s Corporate Governance and Sustainability Committee success of sustainability initiatives.
by a Non-Executive Independent Director which allows for an indepen- is updated of management’s progress twice a year in meetings
dent and objective view of what truly matters with regard to sustain- dedicated to sustainability matters. In management, the Board looks to no less than the Executive
ability, separate from management’s potential other business concerns. Chairman to ensure proper execution and implementation of
There is no dedicated Chief Sustainability Officer or Sustainability sustainability initiatives. The Company’s Chairman and its CEO form
To operationalize the Company’s sustainability framework and the Office as the Company believes sustainability is EVERYBODY’s job. It part of the Company’s Core Steering Sustainability Committee. This
guidance of the above mentioned board committee, management believes assigning sustainability to a certain person or department means they attend each quarter at least three steering committees –
has set up a number of Steering Committees composed of senior will not affect the necessary change; for sustainability initiatives to one for each priority pillar (Pizza, Planet, and People). That is a total of
executives (including the Company’s Chairman and CEO) to oversee be truly material and long-lasting, they need to be part and parcel 12 steering committee meetings relating to sustainability.
the various sustainability initiatives and make directional decisions. of the way we do business. As a result, members of management’s
sustainability steering committees are key leaders of the business Members of the sustainability steering committees represent
There is a Core ‘Sustainability Steering Committee’ which who are made part of this initiative so that both business decisions some of the Company’s most senior business leaders including
encompasses all 3 P’s of the Company’s sustainability framework and sustainability decisions are incorporated into one. the Chairman, the CEO, Heads of R&D, Procurement, and all
then three other sub-committees for each of the 3 P’s. Business Unit General Managers. 53
 People Development
54
Employees

Talent Acquisition and Management 102-8 103-1 103-2 103-3 203-2 401-1 404-1 404-2 405-1

Through the years, our Human Resources department has been at the forefront employees begin with an astute understanding of what competencies are vital in
of our people’s personal and professional transformation. Creating, curating, and the seamless delivery of our guest-centric service. In 2020, the following programs
delivering effective learning programs that respond to the training needs of our were facilitated and delivered.

Shakey’s Programs 2020 Graduates Program Description

Management Development Program 50 A semi-decentralized progressive training program designed to develop Manager Trainees’ talent and career; and
focused on handling restaurant operations.

Restaurant Train the Trainer Workshop 63 A program designed to turn our restaurant people into professional trainers at the restaurant operations level, learning to
become credible and effective in teaching company goals, philosophies, means, and standards to employees.

New Store Opening Training 60 A program designed to equip core teams of opening stores with technical requirements in preparation for store operations.

Restaurant Staff Development Program 45 A semi-decentralized learning and development program that trains participants to become Restaurant Specialists
through leadership training, specialist certification, and dual specialization sessions, as well as equips our Restaurant
Specialists with the technical and leadership competencies necessary to prepare them for Shift Management positions.

Operations Training Programs 267 In-house and external training programs that aim to acquire or improve competencies of Store Operations employees that
will enable them to perform their jobs successfully and let them acquire new knowledge or trends that will enable them to
perform their jobs successfully.

Corporate Support Training Programs 175 Workshops that build the competencies of our corporate support office members, reinforcing company goals,
philosophies, means, and standards to the participants.

External training providers offer learning opportunities to employees to enhance skills and knowledge as well as improve attitude
and habits.

8,437 1,247
jobs supported employees in the PIZZA
workforce
This comprises company-owned Due to corporate streamlining initiatives owned stores declined by 29% in and below. 91% of our workforce are
and franchised staff, store riders, undertaken in response to the COVID-19 2020. We retained an almost 1:1 ratio officers, supervisors, and rank-and-file
corporate support employees, and pandemic, the number of our permanent between male and female employees, employees, while the rest are part of
call center agents. and probationary employees from our with 46% being female. We have a pool senior and middle management.
corporate support office and company- of young talents as 35% are aged 30

55
 Talent Acquisition and Management

Peri Programs 2020 Graduates Program Description

Crew Development Program 382 A five-day onboarding program for newly hired employees that covers company orientation and philosophies, product
knowledge, guest service, duties and responsibilities, safety and security guidelines, and cashiering.

Restaurant Staff Development Program 5 A developmental program to equip and enhance the supervisory skills of Team Leaders or Specialists for their next
level of position.

Basic Store Orientation Training Program 72 A training program for newly hired managers designed to develop managerial skills that store leaders need. The first
phase is the Crew Development Program, followed by station training and certification. The second phase includes
management classes and hands-on store training, capped by a certification.

Product Roll-Out Training 45 A training intervention where new or improved products are discussed to participants, covering procedures through
demos, drills, and check techniques.

Corporate Support Training Programs 37 Training programs designed to (1) align employees on the Covid-19 protocols inside the workplace and (2) set a
principle-centered approach to both personal and interpersonal effectiveness for employees.

Continuing hands-on and informal learning opportunities are also given to PIZZA’s employees in their workplaces. These include sit downs and coaching sessions, general
assemblies, team building sessions, People Day feedback conversations, and sales rallies.

29%
Project Nerdy: NEar and ReaDY
Project Nerdy (“Near and Ready”) was to their residence. This increased the Not only will this improve employee
an initiative of the Company allowing percentage of those who travel 30-minutes productivity and satisfaction in the
employees to be closer to their place of work. or less to 56.03%. This in turn decreased the workplace, but it also makes Shakey’s of PIZZA’s workforce
Based on the baseline study conducted last percentage of those who travel 1-hour or more ‘crisis-ready’ amidst the on-going attended formal training
August 2020, only 50.06% travel to work more from 14.76% to 11.25%. implementation of COVID-19 related
for 30 minutes or less. On average, a Store lockdowns and their corresponding impact Each received an average of 34 total
Operations employee travels for 43 minutes, Overall average travel time has now improved on public transportation. training hours in 2020.
with an average distance of 8.14 kilometers to 39 minutes, and the average distance to

29
to commute to work. This has several effects work shortened to 7.14 kilometers.
on their job satisfaction, as time spent in
traffic has been proven to affect negatively Project Near and Ready will continue its
both productivity and overall well-being. efforts to reduce the travel time of Store movements in rank and
Operations Employees. A target has been positions
With the initial rollout of the project last set that 80% of company owned store
February 2021, a total of 108 employees employees must have a travel time of 30 Each received an average of 34 total
were already transferred to a store closer minutes and a travel distance of 7 kilometers. training hours in 2020.

56
Workplace Culture and Environment 103-1 103-2 103-3 102-33 401-2

PIZZA recognizes that a safe workplace is a key

component to developing a positive culture and that
health and safety regulations are paramount to the
We believe that a positive culture in the workplace
attracts talent, drives engagement, impacts satisfaction,
and affects performance. We continue to manifest this
“
We believe that a positive culture in the workplace
well-being of our employees and the company itself. through our consistent compliance with all local laws attracts talent, drives engagement, impacts
We believe that health and safety policies are as and regulations pertaining to compensation, benefits, satisfaction, and affects performance.
important as the other policies of our organization. and labor requirements, as well as by strictly conforming
Hence, we created an Occupational Safety and to all relevant statutes of labor and employment through
Health (OSH) program in 2019 to manage our various our code of business conduct and ethics. deeper sense of trust and accountability across the
workplace safety and health initiatives. This program organization. Moreover, our grievance and conflict
provides us a blueprint as we move toward full Apart from adherence to labor laws, our policies and resolution procedures continue to uphold employee
compliance with the various statutes relating to the practices related to recruiting, selecting, onboarding, rights to equitable opportunities for free expression
OSH Standards by 2021. compensation and benefits, rewards and recognition, and self-agency.
training and development, promotion, performance
Apart from OSH Standards compliance, other initiatives management, wellness, and work-life balance are Apart from ensuring that we provide the right
under the program include employee engagement all designed to best benefit our talents. We provide environment for growth, we have established
and activities that promote safety and health in the leave benefits that are over and beyond national labor initiatives to reward the best of the best. We value
workplace, education and training on safety, first aid, statutes, while regular PIZZA employees, together our high-achievers, and we take the time to honor our
and disaster response. Our employees also undergo with their qualified dependents, are provided with exemplary employees. We have bestowed honors to
Guest Safety training to ensure that we are capable of healthcare benefits. The Company believes that in well-performing stores and staff through our Lunch
assisting our guests in case of emergencies. order to keep our talented professionals happy, it is with the Champions and Cup of Excellence programs,
imperative that we revisit our retention initiatives among others.
Our Organizational Development and Employee continuously by staying current on market standards
Experience team regularly released internal for salary and benefits, as well as best practices in We continuously seek new ways to engage our
communications which focused on Physical, developing an attractive workplace culture and strong employees through activities that bring out a deeper
Emotional/ Mental, Intellectual, Spiritual, employee relations within our organization. sense of oneness, harmony, and community. Our
Environmental, Social, Financial, and Occupational “Kamustahan” program empowers our employees to
Wellness, Health & Safety, Wowing Stories, COVID Our Labor and Employee Relations department has raise issues and concerns, driven with confidence that
Stories, and Corporate Social Responsibility Initiatives. successfully adopted a positive approach to employee PIZZA recognizes the value of open communication
discipline that has, through the years, established a lines to our work family.

172 67.5 / 100 22

Our best store employees are recognized and awarded as the Wow Circle
Mythical Team. For store awards, categories include Company-Owned Store of
the Year, Franchised Store of the Year, Overall Store of the Year, Best in Top Line,
Enthusiasts’ Club Net Promoter Cup of Excellence Best in Bottom Line, Best in Product Quality, Best in Service & Hospitality, Best in
members Score among Winners Cleanliness & Condition, Most Improved Store, Franchisee of the Year, Best in Local
corporate Store Marketing, People Developer, and Supercard Top Seller.
support
employees 57
 Guests

External Guest Engagement

We believe that guest feedback helps shape our enabled us to respond to feedback and attend to interactions that include feedback escalation and
business and that our success depends on the concerns with the utmost expediency. concern resolution.
manner of how we respond to the things that are
truly important to the community. Our sustained Guests are able to course their feedback through Our seamless access to centralized data from our
commitment to developing a guest-centric culture, various channels such as our store staff, WeCare cloud-based customer relationship management
followed by constant gathering, analyzing, and email, Electronic Guest Comment Card, Shakey’s platform has provided us with the flexibility and
sharing of feedback plays a crucial role in PIZZA. delivery hotline, Shakey’s website, Shakey’s mobile freedom to provide immediate actions and resolutions
application, Facebook, Twitter, and Instagram. to various guest concerns.
Through our Guest Engagement department, we
connect and engage with our guests through an Proof that guest feedback matters to us, a dedicated
integrated feedback management system that has group has been assigned to manage online social

197,028
The significant decline versus last year’s 342,299 guest feedback was due to the
shift of majority of our business operations towards off-premise due to the COVID
pandemic. Guest feedback indicates our guests’ trust and confidence in our sense
guest feedback of partnership and commitment to provide better experiences.

86% 25
of feedback received from social media employees dedicated to manage
social media interactions
This includes feedback from Facebook, Twitter, We are continuously improving our guest
Instagram, and Viber, among others. engagement program by ensuring we are able to
accommodate all online feedback as more guests
reach out through social media.

58
Communities 103-1 103-2 103-3 102-12 203-1 413-1

In our pursuit of enduring partnerships with change agents who share our visions of transformation, PIZZA has Shakey’s Pizza to vaccinate all employees for free, donate
sustained various advocacies that resonate with our core values that go beyond our commitment to providing 5,000 doses to government
quality products and services.
Shakey’s Pizza Asia Ventures Inc will implement a free
Love ‘Em Down Project Firebolt COVID-19 vaccination program for all its employees, in
support of the government’s national vaccination plan to
Love ‘Em Down, a program launched in 2018 in Project Firebolt is the Company’s initiative to pilot safely reopen the economy.
partnership with the Down Syndrome Association of its own rider program with variable compensation
the Philippines, Inc. (DSAPI), has deployed participants and performance incentives to help sustain our The Company has contracted 20,000 doses through tripartite
in various Shakey’s stores, with the qualified DSAPI 31-minute delivery time commitment but also provide agreements between the Philippine government, private
member-participants coming from the different employment opportunities to displaced restaurant- sector, and vaccine manufacturers. These shall be administered
communities Shakey’s operates in. The program industry employees. for free to all PIZZA employees nationwide on a purely voluntary
brings to fore the capacities and skills of people with basis, and in full compliance with the Department of Health’s
down syndrome through productive and engaging Through this initiative, additional part-time work has (DOH) guidelines on the vaccination roll out.
interactions with Shakey’s guests and employees. been made available amidst the COVID pandemic and
its challenging effects on food service institutions. The Company’s vaccination plan will prioritize and cover
In celebration of the “National Down Syndrome all employees from all its brands – Shakey’s Pizza, Peri-Peri
Consciousness Month” in February 2021, Shakey’s The utilization of so-called “Firebolt riders” in stores Charcoal Chicken and R&B Milk Tea – as well as its corporate
took part in the activities of DSAPI to continue raising during peak hours and surge periods has also been support and commissary workforce. PIZZA will likewise make
awareness of Down Syndrome (DS). The highlight was more efficient and cost-efficient to the Company. In available vaccine doses for dependents of its employees,
the pizza making activity by the kids, right at their home. stores where this initiative was deployed, we were as well as business partners including franchisees, service
able to cut in half lead times in the sourcing and providers, and contractors.
deploying of riders to meet surges and/or cover for
unexpected absenteeism. In addition, 5,000 doses will be donated to the government
through the DOH and will be deployed following its
Finally, as the majority of the participants of the allocation framework and prioritization plan.
Firebolt program comes from a pool of previous
employees (former Shakey’s riders as well), the quality “Health and safety will always remain our top priority. Our
of service is still guaranteed to WOW! philosophy is that guests must know, feel, and see that they
are safe. A crucial component of that is ensuring that our
employees are safe as well,” said Vicente Gregorio, PIZZA’s
President and Chief Executive Officer.

67
As COVID-19 put a pause to our Love ‘Em Down Gregorio added, “Since the beginning of the pandemic
Program, we hope that we will be able to continue this last year, we have implemented strict sanitation and safety
advocacy once it is declared safe for our participants. procedures that are aligned with World Health Organization
Love ‘Em Down participants recommendations. We likewise rolled out more convenient
As part of Project InSpire and as indicated in our off-premise options to our guests, such as Park & Order and
Corporate Mission, we commit to sustainable Park & Dine-in. We remain fully committed to ensuring the
development by engaging in social and environment safety and well-being of both our guests and employees.”
causes that will promote quality of life as our legacy
to future generations. 59
 Planet
60
 103-1 103-2 103-3 302-1 302-3 302-4

Natural Resource Efficiency 302-5 303-1 305-1 305-2 305-4 305-5

As a company, we have the obligation to run and operate our business responsibly, utilize our resources efficiently, and manage our environmental impacts actively.

22,825,792 19,474 253,474

kilowatt-hours of electricity tonnes of greenhouse gas (GHG) cubic meters of water consumed4
consumed1 emissions2

This is 27% lower than our electricity consumption in Our Scope 13 and Scope 2 emissions account for 17% This is 45% lower than our water consumption in 2020
2019 given the temporary store closures and reduced and 83% of our total GHG emissions respectively, with given the temporary store closures and reduced dine-
operations as a result of the COVID-19 pandemic. our GHG intensity at 0.53 tonnes per square meter. in operations due to the COVID-19 pandemic.

Electricity Consumption & Electricity Intensity Greenhouse Gas Emissions of Company-Owned Stores Water Consumption & Water Intensity of Company-
of Company-Owned Stores Owned Stores
2.85
2.65 46.30
30.27 31.20
1.95 34.14
22.83
25.35 Total water
Total electricity Total GHG consumption
8.68 consumption 0.78 0.73 emissions (in 11.83
7.97 0.53 10.03 (in millions)
5.71 (in millions) ten thousands) 6.39

Electrical GHG Water

2018 2019 2020 intensity 2018 2019 2020 intensity 2018 2019 2020 intensity

Having energy efficient stores has become more and more An equivalent amount of clean drinking water was donated 15
vital to PIZZA as we move along the path to sustainability to the Made Blue Foundation on behalf of the Company. The
by continuously harnessing energy efficient technologies in Made Blue Foundation invests in water projects in countries stores with low-flow hand washing
our stores. As of end 2020, 29 of our stores are fitted with with severe water scarcity. machines
thermal insulation, translating to lower carbon emissions.
Apart from these initiatives, we are also reviewing our store This resulted in total savings of 202 cubic meters of
As part of our efforts to reduce water consumption, we have procedures to determine areas where we would be able water in 2020.
installed automatic low-flow hand washing machines in 15 of to further support our goal in reducing energy and water

29
our stores for guests and employees. These machines release consumption.
the right amount of water for washing hands, ensuring
cleanliness while conserving water. As a result of this
initiative, we saved a total of 202,000 liters of water in 2020. stores with thermal insulation

1
Calculations for electricity consumption were based on monthly store bills. 3
Calculations for liquefied petroleum gas consumption were based on respective store formats, multiplied by the operating days for the year.
2
Calculations were based on IPCC 2006 Guidelines for National monthly store expenses. Stores with incomplete data were assigned Gas and diesel consumption were based on monthly store expenses.
Greenhouse Gas Inventories. the per-restaurant daily average computed from available data for their 4
Calculations for water consumption were based on monthly store bills. 61
 103-1 103-2 103-3 301-1 301-2

Environmental Impact Management 301-3 306-1 306-2 306-3

PIZZA is committed to using materials that reduce our This is aligned with our goal of becoming plastic Looking at the impact of waste apart from plastic, our
environmental impact and ecological footprint. This neutral. Last year, we signed an agreement with Reduce, Reuse, Recycle initiative seeks to lessen our
includes looking at the entire lifecycle of the materials Plastic Credit Exchange (PCEx) for the certification of environmental waste and drive sustainable practices
we use for packaging and other business activities. our plastic neutrality, making us the first food service within our corporate office. We aim to educate and
company in the Philippines to pursue such third party encourage our employees to properly segregate and
In its third year, Project Panda remains as a centerpiece verification for a plastic offsetting initiative. dispose of waste.
among our initiatives toward sustainability. Through
our partnership with World Wide Fund (WWF) for PCEx is a non-profit organization that helps businesses In line with this, five sets of centralized “Stop Before
Nature Philippines, Project Panda went into full gear offset their plastic footprint through its network of You Drop” trash bins have been strategically installed
in 2019 with WWF’s #AyokoNgPlastik campaign and partners that recover, process, and recycle plastic for the implementation of the company-wide proper
sought to significantly reduce single-use plastic items waste. A third party then independently audits and waste management initiative. The bins are labeled to
and packaging from our stores. We began by holding verifies the businesses’ plastic footprints and their indicate the different types of waste and help develop
a session to raise awareness among our employees corresponding offsets, completing the plastic neutral the culture of smart and proper waste disposal among
on the impact of plastic waste on the environment certification process. our employees. Also, by weighing the actual waste we
and what we can do to support the #AyokoNgPlastic produce each day, we are able to efficiently monitor our
campaign. This also aimed to orient employees We celebrated our second year of being 100% “plastic wastages. Ultimately, such data will be used to guide
about our Go Green initiatives that strive to promote neutral” in early 2021, following a push in 2019 to be us in mapping out more waste management initiatives.
sustainable living and environmental consciousness. plastic neutral by 2020.This means the Company is
able to recover an amount of plastic equivalent to We have also established our materials recovery
To further cultivate interest in green initiatives and what it uses. facility within our vicinity. The facility serves as the
emphasize the significance of environmental care, repository of all recyclable materials segregated from
we launched our Journey to Sustainability awareness The plastic neutral certification takes this initiative our waste to be donated to Barangay San Martin
campaign, which strictly prohibited plastic straws to the next level by engaging a third-party audit and de Porres, our partner for a solid waste collection
and cups in the workplace. verification which will follow a set of global standards program where proceeds from the partnership are
for plastic neutrality. utilized to augment funds for the community’s regular
feeding program that benefits some twenty families.

62
In addition, our Zero Waste campaign focuses on Lastly, we are also mindful of the food waste we incur
the reusing, repurposing, or recycling of our used during our food production and preparation processes.
tarpaulins and oversized streamers into functional In partnership with Caritas Manila, we launched our
products. This aims to prevent tarpaulins from Food Excess Program where four pilot stores donated
entering our waste stream and aggravating dumpsite scrap potatoes to the Caritas Damayan Feeding
pollution. For this initiative, we partner with local Program for around two hundred beneficiaries. From
communities or non-government organizations for this, we are forming other partnerships with the aim
livelihood programs that aim to produce sustainable, of curbing food waste through sustainable initiatives
environmentally friendly products from tarpaulins in our communities.
through a social enterprise.
This 2021, we are working on reengineering the existing
Green architecture was also introduced to encourage packaging materials across all our brands. Development
more green spaces in the work vicinity. Aiming to of eco-friendly packaging, particularly for pizza boxes,
improve the quality of our environment and foster chicken boxes, paper cups, and pasta containers, is
good health and well-being, employees reused PET ongoing together with our partner suppliers.
bottles as plant pots and installed vertical life gardens
on empty wall spaces, not only creating a more We are likewise coordinating with our partner
pleasing view but also reaping the health benefits suppliers for the conversion of plastic cups, plastic
that follow. bags, sauce containers, and straws to biodegradable
materials or other sustainable packaging.
We extended the opportunity to improve the
environment by launching the “Opt Out” tick box
in our online delivery platforms to empower guests
through the option of excluding plastic utensils from
their delivery orders. This seemingly simple act is a
powerful reinforcement to our “Love the Planet Like
You Love Our Pizza” campaign.

155,000 2
kilograms of plastic waste generated years plastic neutral

Other non-food waste include delivery packaging such

as pizza and food boxes that are paper- and cardboard-
based items. We are actively monitoring both our food
and non-food waste to reduce our environmental
impact in this area.

63
 Plastic Neutrality 101

What does ‘plastic neutrality’ or ‘being plastic What does PCEx do with the equivalent amount of Since when has Shakey’s Pizza been plastic neutral?
neutral’ mean? recovered post-consumer plastic? Last January 2021 marked PIZZA’s second year of being
A company is plastic neutral when it has a net zero PCEx has built a wide ecosystem of partners that “100 percent plastic-neutral”. This followed a push in
(i.e. neutral) plastic footprint. recover, process, and recycle plastic waste. It 2019 to hit this target by 2020, making it one of the first
continuously seeks out the most environmentally companies in the Philippines to pursue such an initiative.
This is achieved by balancing the amount of plastic it uses sound solutions to plastic waste reduction. It redirects
with an equivalent amount of plastic that is recovered plastic waste to the safest, most environmentally- What sparked the idea?
and prevented from polluting the environment. preferred end destination using only processes that Consumer and retail companies, like PIZZA, face
comply with international industry best practices. significant cost and performance challenges in
How does Shakey’s Pizza achieve its plastic finding more sustainable alternatives to plastic.
neutrality? Of the plastic collected, those that are recyclable will be There are immediately no good options to replace
PIZZA is able to achieve plastic neutrality by purchasing sent to vetted partners and reconverted into new useful plastic packaging outside of the premium market.
plastic credits from the Plastic Credit Exchange (PCEx), products. Whatever cannot be recycled will be used as Nonetheless, reduction of plastic is a key pillar of
in a plastic offset mechanism that resembles and is an alternative fuel to coal in cement co-processing, i.e. the Company’s sustainability strategy and, alongside
inspired by the carbon offset industry. the use of suitable waste materials for the purpose of PCEx, it has found plastic neutrality to be an innovative
energy and resource recovery and resultant reduction solution that provides a solution to the plastic problem
PCEx is the world’s first global, non-profit, fully integrated in the use of non-renewable resources. whilst ensuring our services remain accessible and
plastic offset platform that adopts best practices of affordable to majority of Filipino consumers.
carbon credit, applying it to plastic with transparency Co-processing is recognized by the United
and impact at its core. It delivers to PIZZA a Certificate Nations Environment Programme (UNEP) as the
of Plastic Credit with full audit documentation and environmentally preferred option for managing end-
publishes the offset in its credit registry. of-life plastics.

64
Supply Chain Management 103-1 103-2 103-3 204-1

Our commitment to sustainability includes our benefits), (b) Ethics (business integrity, no gift policy, when necessary. Such stakeholders include our own
partnership with suppliers and contractors. Our fair competition, privacy and intellectual property, employees who are able to elevate supply chain
company’s Supplier Accreditation Policy guarantees conflict of interest), (c) Health, Safety and Quality, (d) concerns through formal channels.
that we are dealing with qualified parties who are not Environment, and (e) Management Systems.
only capable of fulfilling their commitments to us but The role of our Board’s Corporate Governance
are also aligned with our social and environmental The Supplier Code of Conduct covers the systematic Committee was likewise expanded to include ESG
aspirations as a responsible member of the community. assessment of suppliers’ social performance during matters, establishing board- level responsibility for
the procurement process, among others. All legally supply chain management. We will also engage
We also allocate a substantial part of our spending for binding agreements will require compliance with with NGOs, labor groups, or industry peers to be
local suppliers and manufacturers whenever possible. the set social standards. We will internally audit our conversant with social supply chain issues and amend
Through the years, we have continuously partnered business partners accordingly annually thereafter our Code of Conduct and Ethics when necessary, and
with local suppliers for most of our requirements. to monitor their compliance with our supply chain will create formal channels that will enable workers
standards and to address social supply chain issues, throughout our supply chain to elevate concerns.
In early 2021, we formalized and institutionalized if any. We will also engage with non-conforming
Supplier Code of Conduct and Ethics covering actions suppliers to reach compliance as needed.
of all raw material suppliers and service providers. It
covers the following issues: (a) Human Rights (child To keep abreast with changes in supply chain issues,
labor, forced labor and human trafficking, non- we will engage with various stakeholders and
discrimination, harassment, working hours, wages and amend our Supplier Code of Conduct and Ethics

84% 100% 100%

of total procurement of food items is of chicken locally sourced of palm oil suppliers certified by the
spent locally Roundtable on Sustainable Palm Oil
Other locally sourced or processed products include (RSPO)
pizza dough, pasta, beef, and soft drinks.

Potato supplier meets energy

28 175 efficiency guidelines and is energy
star certified
internal store audits mystery guest audits
Beverage suppliers follow
sustainability guidelines on water,
community, and supplier principles
65
 Pizza
66
Profit-Purpose Alignment

Product Development and Innovation

At PIZZA, we are constantly looking for ways to Kitchen Profile Development market introduction. This phase involves supply
come up with offerings that are enticing, accessible, The second phase entails the development of an actual build-up, systems preparations, the completion of
unique, and more importantly, sustainable. Apart kitchen profile based on the product concept brief. product manuals, as well as training and marketing
from being guest-centric with regard to product This includes the testing of store processes to check communication materials.
innovation and design, we are also firm believers for replicability, determination of food and packaging
that bringing sustainability into our new product costs, and suitability of present kitchen equipment and To further reduce food waste while ensuring high food
process can only lead to successful innovations and tools. Our tools, together with our manufacturing and quality, we rationalize the pack size of raw materials
more delighted guests. store processes, are reviewed regularly for fine-tuning and items specifically produced for us. Working with
and improvements to ensure the highest yield possible. our store operations and suppliers, we determine and
Product Concept Development A final prototype, including final materials, are then customize the pack size according to what the stores
During this phase, various new product concepts approved, along with the direction to proceed with the can consume. Moreover, we work with suppliers to
undergo evaluation to identify market potential. commercialization of the new product. ensure our goods are packed in the most suitable and
Consumer insights are gathered which would lead to sustainable materials.
a well-defined concept for a new product or menu Product Feasibility
line. These insights may also guide us towards best- The viability of the product is measured in terms We source for raw materials locally, or at least within
fit innovations for product improvement. A final new of full-scale store operations and the assurance of the region, whenever possible. To achieve this,
product concept or product improvement solution raw material and kitchenware supply. This involves we continuously develop key suppliers in various
is then completed. An overarching discipline at testing the product for operations complexity to provinces and key regions to decentralize and
this phase is the maximization of our existing store ensure production consistency and excellence as decrease freight costs. We believe that with this
equipment and raw materials in pursuit of innovative well as sales channel applicability. Lastly, a forecast is strategy, we are able to support local businesses
ideas. We regularly monitor raw materials that are prepared for financial simulation. while decreasing our carbon footprint, and ultimately,
used for only a single product and try to incorporate we are able to maximize the shelf life of our products.
them during product innovation when suitable. This Product Launching
allows us to optimize our resources and reduce any This ensures readiness to roll out the new product
potential food waste in our system. by initiating system-wide preparation prior to

15 4
new products in 2020 people in Research and Development
doing innovation

67
 Food Safety and Quality 103-1 103-2 103-3 102-11 416-2

Ensuring food safety and quality in all our stores is a Audit on Receiving compliance to our set standards. Stores are assessed
paramount commitment at PIZZA. We consistently To verify that the items we source meet our safety on product freshness, storage, food preparation,
promote proper food safety practices throughout and quality standards, all incoming materials must service and hospitality, cleanliness and conditions of
our production process. Our food safety and quality pass an audit. Product temperature, delivery vehicle stores, and systems compliance.
processes have always been aligned with the highest cleanliness, hygiene, shelf life, and packaging
standards required in the industry. We also continue integrity are areas measured during the audit for The third-party audit, on the other hand, is executed
to remain vigilant in our sourcing of raw materials strict compliance to standards. Stringent receiving by Mystery Guests who appraise our stores on
with the conduct of strict quality assurance. procedures are also carried out for materials service and hospitality, cleanliness and conditions of
delivered to our stores. stores, and food quality.
Product Development
At PIZZA, the product development phase is marked Audit on Dispatching Food Safety Training
with the keen concern for food safety and quality. Standard safety and quality audits are also conducted In the best interest of our guests’ health and safety,
The R&D team continues to actively provide an for dispatching activities to our stores. The inspection it is imperative that PIZZA employees are trained to
updated shelf life guide of materials to ensure safety extends from the delivery vehicles’ compliance to be food service professionals in food handling and
and quality. hygiene and temperature requirements, quality of serving best practices, as well as recognizing and
finished products, and safety up to the packaging preventing food-related health hazards. In line with
Supplier Audit interior before dispatch. this, it is a requirement that all our food handlers
PIZZA procures materials only from approved obtain a certification from ServSafe. This certification
suppliers. The approval process requires a food quality Quality, Service, Cleanliness, Hospitality (QSCH) Audits covers food safety, time and temperature, cleaning
and safety assessment, and an audit by our quality Our QSCH audits ensure that food safety standards and sanitation, cross-contamination and allergens,
assurance officers to ascertain that the supplier’s are maintained across all our stores. Our consistent and personal hygiene.
quality management satisfies our requirements as implementation of quality control measures is
well as a globally-accepted standard set of criteria subjected to both internal and third-party audit.
that covers food safety practices, microbial hazards
assessments, employee and facility sanitation, and Our QSCH internal audit is conducted across all
end product analysis. our stores thrice a year as internal validation of

68
Healthier Products
In 2020, Shakey’s Pizza has made its biggest move yet For Shakey’s, the result is a 100% meat-free patty that
into the meat-free market, making available a plant- still provides that grilled-meat taste.
based burger across all of its outlets in the Philippines.
The Company has always wanted to land on a
‘Goood Burger’ tastes as good as any meat-based winning formula for a plant-based menu item, with
product out there, but is much healthier and friendlier environmental and health consciousness growing
to the environment. within a subsegment of the population. Since then,
it has been working hard - alongside Century Pacific
Shakey’s is the first major restaurant chain in the – to come up with just the right product that meets
Philippines to move into the plant-based format in all its requirements – healthy, tastes good, priced
a big way, making meat-alternative affordable and affordably, and positive for the planet.”
accessible to a broader segment of the population.
Following a series of focus group discussions and
The product’s patty makes use of the local ‘unMeat’ initial feedback from guests, we believe our new
brand, a recent innovation of sister company Century ‘Goood Burger’ with ‘unMeat’ patty is the product
Pacific Food, Inc. - one of the largest branded food we’ve been looking for and may even pleasantly
manufacturers in the Philippines. surprise guests who are less familiar with plant-based
menu items.
“unMeat”, currently sold to institutional customers
only, serves as a healthy meat alternative made Apart from being plant-based, the supply chain for
with non-GMO plant-based ingredients, with no ‘unMeat’ also requires lower consumption of various
cholesterol and trans-fat content, while remaining a natural resources such as water, land, and energy, and
good source of protein and fiber. generates less greenhouse gas emissions compared
to the production process for meat.

69
70
Governance
 72 78 84

Our Board of Leaders of the Corporate

Directors Organization Governance

71
 Our Board of Directors 102-23 102-27

72
Board of Directors
Christopher T. Po Ricardo Gabriel T. Po

Chairman Vice Chairman

Filipino, 50 Filipino, 53

Date of Appointment Date of Appointment

March 31, 2016 March 31, 2016

Length of Service Length of Service

(as of 31 December 2020) (as of 31 December 2020)
4 years 4 years

Academic/Professional Qualification • Member of the Board of Trustees of Academic/Professional Qualification Present Directorship(s)/Position(s)
• Former Managing Director for Gug- the Ateneo de Manila University as • Graduated Magna Cum Laude from Other Publicly Listed Companies —
genheim Partners, a U.S. financial well as a member of the Board of Asia Boston University with a Bachelor Affiliates
services firm where he was in charge Society Philippines of Science degree in Business • Vice Chairman of Century Pacific
of the firm’s Hong Kong office • President of the CPG-RSPo Foundation Management in 1990 Food, Inc.
• Former Management Consultant at • Completed the Executive Education • Vice Chairman of Arthaland
McKinsey and Company Present Directorship(s)/Position(s) Program (Owner-President Corporation
• Former Head of Corporate Planning Other Publicly Listed Companies — Management Program) at Harvard
for JG Summit Holdings Affiliates Business School in 2000
• Graduated Summa Cum Laude from • Executive Chairman of Century • Former Executive Vice President and
the Wharton School and College Pacific Food, Inc. Chief Operations Officer of CNPF
of Engineering of the University of • Director of Arthaland Corporation from 1990 to 2006
Pennsylvania in 1991 with dual degrees in
Economics (finance concentration) and
Applied Science (system engineering)
• Holds a Master’s Degree in Business
Administration from the Harvard
University Graduate School of
Business Administration

73
 Teodoro Alexander T. Po Leonardo Arthur T. Po

Vice Chairman Director and Treasurer

Filipino, 51 Filipino, 43

Date of Appointment Date of Appointment

March 31, 2016 March 31, 2016

Length of Service Length of Service

(as of 31 December 2020) (as of 31 December 2020)
4 years 4 years

Academic/Professional Qualification Present Directorship(s)/Position(s) Academic/Professional Qualification Present Directorship(s)/Position(s)

• Graduated Summa Cum Laude from Other Publicly Listed Companies — • Graduated Magna Cum Laude from Other Publicly Listed Companies —
Boston University with a Bachelor Affiliates Boston University with a Bachelor Affiliates
of Science degree in Manufacturing • Vice Chairman of Century Pacific of Science degree in Business • Treasurer and Director of Century
Engineering in 1990 Food, Inc. Administration Pacific Food, Inc.
• Completed the Executive Educa- • Has extensive and solid business • Director of Arthaland Corporation
tion Program (Owner-President development experience in
Management Program) at Harvard consumer marketing, finance, and
Business School operations of fast-moving consumer
• President and Chief Executive Officer goods (FMCG), foodservice, quick-
of Century Pacific Food Inc, where serve restaurants, and real estate
he has held various positions since development
1990. Designed, built, and managed
several factories of the Group

74
Vicente L. Gregorio Eileen Grace Z. Araneta
Director, President & Chief Executive Director
Officer Filipino, 60
Filipino, 55
Date of Appointment
Date of Appointment March 5, 2019
March 2013
Length of Service
Length of Service (as of 31 December 2020)
(as of 31 December 2020) 1.9 years
7 years

Academic/Professional Qualification • Holds a Bachelor of Science degree Academic/Professional Qualification • Graduated Magna Cum Laude with
• Has more than 35 years of experience in Electrical Engineering from the • Has over 25 years of experience a Bachelor of Science degree in
in the food business, 25 of which are Central Colleges of the Philippines as a marketing and advertising Business Economics from the the
in top executive positions of major • Earned units from the Business practitioner, having held senior University of the Philippines
food chains Administration Master’s program of positions at Unilever Philippines and
• Led PIZZA since February 2003, over- the Graduate School of Business at J. Walter Thompson
seeing the Company’s achievement Ateneo de Manila University • Occupied a Southeast Asia regional
of consecutive double-digit growth post as Vice President of Brand
for 16 years—a feat before seen in Present Directorship(s)/Position(s) Development for Knorr for Unilever
the food service industry Non-Listed Companies/Organizations: • Former Managing Director for
• Known for his passion for excellence • Member of the board of the Philippine Unilever Foods Philippines handling
and has spoken and shared his WOW Franchise Association, Cavallino, the Knorr, Lady’s Choice, Best Foods,
philosophy to major companies Inc., Don Bosco Technical College, and Lipton brands
and organizations like Coca-Cola, Bosconian International Chamber • Former Marketing Director for the
Nestle, San Miguel Corporation, the of Commerce, and Plan Master personal care division with an
Philippine Franchise Association, Insurance and Financial Services, Inc. extensive portfolio of brands such as
and the Organization Development Sunsilk, Cream Silk, Rexona, Pond’s,
Practitioners Network Dove, Close Up, and Vaseline

75
 Fernan Victor P. Lukban Frances J .Yu

Lead Independent Director Independent Director

Filipino, 60 Filipino, 51

Date of Appointment Date of Appointment

October 14, 2016 August 16, 2018

Length of Service Length of Service

(as of 31 December 2020) (as of 31 December 2020)
4 years 2 years

Academic/Professional Qualification Present Directorship(s)/Position(s) Academic/Professional Qualification a Bachelor of Arts degree in English
• Highly regarded consultant in family Other Publicly Listed Companies – • Former Chief Retail Strategist of Literature
business, strategy, entrepreneurship, Affiliate Companies: Mansmith and Fielders, Inc.
and governance • Independent Director of Century • Former Vice President and Business Present Directorship(s)/Position(s)
• Holds undergraduate degrees in Pacific Food, Inc. Unit Head of Rustan’s Supermarket Other Publicly Listed Companies –
engineering (Industrial Management • Independent Director of Arthaland • Former Vice President and Head of Affiliate Companies:
- Mechanical from De La Salle Corporation Marketing Operations for Rustan’s • Independent Director of Century
University, Manila) Supercenters, Inc. Pacific Food, Inc.
• Holds graduate degrees in Other Non-Listed Companies: • Founder of FJY Consulting, Inc.
economics (MSc in Industrial • Director of Central Azucarera de • Former Vice President and General
Economics from the Center for Tarlac, Inc. (CAT) Manager of a marketing research and
Research & Communication, now consulting firm catering to the top
University of Asia & the Pacific) and in 500 corporations in several sectors
business (MBA from IESE Barcelona, • Former Chairperson for the National
Spain) Retail Conference and Stores Asia
• Consultant, mentor, and guest Expo (NRCE) Programs Committee of
lecturer at University of Asia & the the Philippine Retailers Association
Pacific from 2003 to 2005
• Founding fellow of the Institute of • Graduated Summa Cum Laude from
Corporate Directors Fordham University, New York with
76
 Advisors to the Board

Paulo L. Campos III Ma. Pilar P. Lorenzo Leopoldo H. Prieto, Jr.

Independent Director
Filipino, 37

Date of Appointment
October 14, 2016

Length of Service
(as of 31 December 2020)
4 years

Academic/Professional Qualification • Graduated Magna Cum Laude from Academic/Professional Qualification Academic/Professional Qualification
• Co-founder and Chief Executive Princeton University with a degree • Graduate of Marymount College, • Graduated from Georgetown
Officer of ZALORA Philippines, having from Woodrow Wilson School of New York with a Bachelor of Science University College of Arts and Sciences
founded the company in late 2011 Public and International Affairs degree in Business Administration with a Bachelor of Arts degree in
• Former management consultant major in Finance Economics and International Finance
with The Boston Consulting Group • Served as Vice Chairman of in 1971
in Singapore where he worked with International Family Food Services, • Chairman of IFFSI until the sale to
companies across the region on issues Inc. (IFFSI) - now Shakey’s Pizza Asia Century Pacifc Group
related to business development, Ventures, Inc. (PIZZA) - until the sale • Currently serves as Chairman
organizational development, investor to Century Pacifc Group of Cavallino, Inc. and Tencav
communications and strategy • Currently serves as Chairman of Corporation
• Former Special Assistant to the Panda Development Corporation • Member of the Board of LLP
President of Ayala Land, Inc. (Dunkin’ Donuts franchisee), Director Enterprises, Inc.
• Holds a Master’s degree in Business of Cavallino, Inc. (RACKS) and Tencav
Administration from Harvard Corporation (Tenya)
Business School • Member of The Beacon School’s
Board of Trustees

77
Leaders of the Organization
Vicente L. Gregorio Manuel T. Del Barrio Jorge Ma. Q. Concepcion
President & CEO Chief Finance Officer​, General Manager - Shakey’s
Chief Risk Officer,
Year joined Chief Information Officer Year joined
2003 2014
Year joined
2016

Experience Experience Experience

Has more than 35 years of experience in the food Also serves as the Company’s Compliance Officer. Previously held the position of General Manager in
business, 25 of which are in top executive positions Previously the Assistant VP for Finance of CNPF and Gallo Giro, Red Ribbon Bakeshop, Inc., and Hunts
of major food chains. Under his leadership, the The Pacific Meat Company, Inc. Previously worked as Universal Robina Corporation. Has also held various
Company posted double-digit growth consecutively an Industrial Accounting Manager in TEMIC Telefunken positions in California Manufacturing Company and
for the past 16 years. He earned units from the Business Semiconductors, Inc. and held accounting positions in was a Brand Manager of the Foods Division, Philippine
Administration Master’s program of the Graduate Hooven Philippines and Sanara, Inc. A Certified Public Refining Company of Unilever Philippines. Has a
School of Business at Ateneo de Manila University Accountant and a Certified Management Accountant Master of Science in Engineering and Operations
Research from the University of the Philippines

Maria Elma C. Santos Alois Brielbeck Jose Arnold Alvero

General Manager - Peri Peri General Manager - In-House Franchise & BD Head, VP-
Commissary International​
Year joined
2004 Year joined Year joined
2005 2017

Experience Experience Experience

Previously Shakey’s Guest Engagement Director in Moved to the Philippines in February 2000 as the Chief Has more than 37 years of transnational experience in
2015, and General Manager of Project Pie from 2016 to Operating Officer for Culinary Systems Specialists Hotel Operations, Restaurant General Management,
2017. Mid of 2017, became Shakey’s Delivery Systems Inc., a company involved in the production of bakery Franchising, Business Development, Strategic
Head and headed the HR Division of Shakey’s until products to both local and export markets. Held key Planning, Mergers & Acquisitions, Market Entry Start-
mid-2019. Currently leads the team of Peri-Peri as positions in pastry kitchens in Hong Kong and Tokyo, up, and Team Development​. Held previous positions
the General Manager starting from its acquisition in Japan before moving to the Philippines. Fully-qualified for Shakey’s Philippines such as Business Unit GM for
June 2019. She earned her Master’s degree in Business Baker with a Baker Master Diploma from the Master Franchised Store Operations, Director for Franchise
Administration from the Ateneo-Regis Program School of Lochham in Munich, Germany and Business Development, and Planning and
Business Development Director

79
 Rodrigo Nanjari Gilbert L. Tolentino Kellda Centeno

Chief Technology Officer Shakey’s CBU Director and GM Delivery Business Unit And Digital
For R&B Tea​ Acceleration Director​
Year joined
2020 Year joined Year joined
2006 2019

Experience Experience Experience

Has more than 14 years of experience in various IT Has 33 years of experience in the food industry and Former Chief Operating Officer of Storm
industries such as Banking, Utilities, Telcos, HR has handled different departments like Operations, Technologies. Founder and Managing Director of
and Fintech. Former CTO of Truemoney and Storm Training, Organization Development, Franchising, Adobo Connection, Chopstop, and Sisig Society.
Technologies. He was responsible for assembling Business Development, and Technical Services. Started her career in Unilever and handled two of
and leading a multicultural Product and Engineering Previously the Group Training Manager for Pancake the largest hair brands in the country. She graduated
team deployed in China, Philippines, Vietnam, and House, Dencio’s, and Teriyaki Boy. He has been with from Ateneo de Manila University’s Management
Chile to support the implementation of Fintech PIZZA for 15 years Honors Program with latin honors
services in multiple telecommunication firms in
China and SEA countries

Mary Jennifer S. Tan Severino M. Manotok IV Samuel Basilio D. Baltazar

Group Procurement Director Technical Services Director​ Systems and Project

Management Director​
Year joined Year joined
2016 2016 Year joined
2019

Experience Experience Experience

Leads corporate procurement for Century Pacific Food, A licensed Mechanical Engineer and an accomplished Previously served as General Manager in electronics
Shakey’s Pizza and Pacifica Homes. Has over 20 years senior manager. Previously served as the Maintenance at Megacomm, Inc. and educational publishing at
of extensive experience in end-to-end supply chain Manager under Technical Services and eventually Rex Bookstore, Inc. Has served various positions in
management, including strategic sourcing, procurement, the Logistics Manager under Materials Management Red Ribbon Bakeshop Inc - from Plant Operations
logistics and third party manufacturing management in Department for Shakey’s Philippines starting 2004. He to Restaurant Systems and Quality Management.​
the Philippines and the ASEAN region. Previously held was a Property Administration and Purchasing Head He completed his Masters Degree in Business
procurement leadership positions at Coca-Cola FEMSA, for a multinational bank from 2008 before rejoining Administration from De La Salle University
Avon Products and SCJohnson. Earned MBA units from De the Company in 2016
La Salle University. Holds a bachelor’s degree in Chemical
Engineering from De La Salle University
80
Jennifer V. Lapa Giovanna M. Vera Rolando H. Bonifacio

Executive Development Investor Relations Director Guest Engagement Director

Consultant
Year joined Year joined
Year joined 2016 2003
2013

Experience Experience Experience

Graduated with a bachelor’s degree in Foreign Service from Held leadership roles in major M&A and capital-raising Currently heads the QSCH and WeCare Shared
St. Theresa’s College. Obtained her Cognate in Organization initiatives of the Century Pacific Group. Awarded as Best Services of Shakey’s. Started his career in the food
Development, major in Enterprise Leadership and her PhD IR Officer Small-Mid Cap and Rising Star in Southeast industry as a Shakey’s crew in 1982 and became QSCH
in Organization Development from the National University Asia by IR Magazine in 2019 and Best IR Professional Supervisor in 1988. Assigned as Assistant Operations
of Singapore. Worked as VP for Human Resources for The in the Philippines by Institutional Investor in 2020. Manager of Tia Maria’s Mexican Restaurant from 1991
Expressions Company; Former President of Enthos, Inc. Chartered Financial Analyst. Holds a bachelor’s degree to 1994, a Shakey’s acquisition back then
Former AVP - Organization and Management Development in Management Engineering from Ateneo de Manila
at San Miguel Beer Group. Former VP of HR for the Greater University and holds a Master’s Degree in Business
China business of San Miguel Brewing Group International Administration from Columbia Business School

Maria Florentina Cuevas-Capili Regina R. Asa Gale Roque Kathrina M. David

Franchise Corporate R&D Manager Supply Chain

and Business Marketing Manager
Development Head Manager Year joined
2018 Year joined
Year joined Year joined 2017
2020 2014

Experience Experience Experience Experience

Has over 30 years of experience in the Worked in Operations and Marketing Has 20 years of experience as a Research Supply Chain Manager of Shakey’s Pizza,
mall and restaurant industries. She for Shakey’s Philippines since 2004. Also and Development and Quality Assurance Peri-Peri and R&B Tea, bringing in almost
spearheaded the first international mall served as Special Projects Manager. Out- professional, mostly in the foodservice 14 years of experience in Procurement,
project in District 7 of Ho Chi Minh City in side the organization, she led the Delivery industry from QSR to full-service Audit and Accounting. Prior to this
Vietnam. After working in Vietnam, she Department of Kenny Rogers Roasters restaurant chains. Currently serves as role, she was the Shared Services
worked in Robinsons Land Corporation Philippines.​Returned to Shakey’s as the the R&D Manager for Shakey’s, leading Manager for SPAVI, handling Corporate
and Filinvest Land. Currently handles Shakey’s Channel Marketing Manager in both Research and Development and Procurement and Administrative
local and international business 2014. She played a key role in one of the Quality Assurance units for the brand. Shared Services. She holds a bachelor’s
development for all SPAVI brands. most successful Marketing Promotions and Graduated from the University of the degree in accountancy from Holy Angel
Holds a bachelor’s degree in Hotel New Product launches for Shakey’s as Cor- Philippines-Diliman with a Bachelor of University and is a Certified Purchasing
and Restaurant Administration from porate Marketing Manager. Holds a bache- Science in Food Technology Professional
University of the Philippines lor degree in Business Administration 81
 Catherine Joyce B. Espinoza Atty. Maria Rosario Ybanez Atty. James Earl Chew

Call Center Manager Corporate Secretary Corporate Legal Counsel and

Data Protection Officer
Year joined Year joined
2015 2018 Year joined
2016

Experience Experience Experience

Started her career at Sykes Asia Inc., one of the She concurrently serves as the Legal Counsel and Graduated from Ateneo de Davao University with a
biggest and pioneer call center in the Philippines. Compliance Officer of CNPF. Atty. Ybanez graduated degree in Political Science Major in Political Science
Formerly the Assistant Manager for Delivery Systems with a Bachelor of Arts degree in Legal Management and Government and immediately took Law in Far
and Services of Yellow Cab Pizza Co. and former from the Ateneo de Manila University and obtained Eastern University Institute of Law. His fields of legal
Business Channel - Delivery Officer of Jollibee Foods her J.D. from the Ateneo de Manila School of Law. practice are in labor, corporate, tax, civil and privacy
Corp, managing all of the Jollibee brands before She has been involved in the practice of Civil, Labor, laws where he is invited to speak on these topics in
joining Shakey’s in 2015. Holds a bachelor’s degree in Criminal, Corporate and Intellectual Property laws various public and private forums. He joined Shakey’s
Computer Science since 2001 in 2016 to lead the Employee Relations Department
and in 2017 became the first In-House Legal Counsel
of the company and its subsidiaries

Ma. Veronica P. Mercado Emily Alvarez Celeste Tubu Lixles B. De Mesa

CBU Operations CBU Operations FBU Operations Franchise

Manager Manager Manager Operations
Manager
Year joined Year joined Year joined
2008 1999 1999 Year joined
2013

Experience Experience Experience Experience

Previously worked at Kenny Rogers She has been serving Shakey’s for over 30 She started as a Restaurant Staff in Has several years of experience in
Roaster in 2001 as a Restaurant Manager. years, starting as a Restaurant Staff and Shakey’s and climbed the ladder in different Food Industries. Previously
Joined Shakey’s as a Restaurant rising through the ranks as a Restaurant Store Operations. Promoted as Area worked at the Peacock Rest at Century
Manager, eventually becoming one of Manager. She was given the opportunity Business Manager in 2010, and an Park Hotel. Also worked as Senior Area
the pioneers of the Restaurant General to become an Area Manager, handling Operations Manager of the North Manager for Kenny Rogers, and as a
Management Program. Promoted as Company owned and Franchise stores. Business Unit handling in 2018.​Since General Manager for Dunkin Donuts
an Area Business Manager handling She is now the Operations Manager of 2019, she has been assigned as the (Franchised). Joined Shakey’s in 2013 as
both Company-Owned and Franchise more than 60 Company-Owned stores.​ Operations Manager, handling multi- Area Manager. Holds a bachelor degree
stores. Holds a bachelor’s degree in Holds a bachelor’s degree in Industrial store franchisees​ . Holds a bachelor’s in Hotel & Restaurant Management from
Hotel and Restaurant Management Engineering from Mapua Institute of degree in Foreign Service from Lyceum St Paul College Manila
82 from La Consolacion College Manila Technology of the Philippines
Mary Joy S. De Villa Donato M. Dalisay Ma. Dolores Isip

Marketing Head, Peri Peri and Peri Peri Delivery Head Peri Peri Operations Manager
R&B
Year joined Year joined
Year joined 1999 2000
2020

Experience Experience Experience

Has 19 years of experience in consumer marketing, Has several years of experience in Operations, Quality She started her career at Equitable Bank prior to joining
both local and international. Prior to working in Assurance & Systems, and Delivery. Since 2008, he Shakey’s. In 2000, she joined the company as a Shift
Shakey’s, she held key leadership roles in the Asia has held several positions within the company such as Manager. She climbed the ranks and was promoted to
Pacific Region of TGI Fridays, and the Southeast Asia Operations Manager, Quality Assurance, and Systems Restaurant Manager, and then eventually a Restaurant
region of Outback Steakhouse. She holds a Master Manager where he has led the enhancement of key General Manager. She is currently the Operations
in Business Administration from Ateneo de Manila operational systems design and concepts that aided Manager of Peri-Peri. She holds a bachelor’s degree
University Graduate School of Business, and has Operations in achieving optimum business results.​ in Behavioral Science from University of Santo Tomas
recently completed the Entrepreneurship Essentials
course in Harvard Business School Online.​

Roger S. Briones Jesher H. Vidon Marilyn P. Jaring Darel Pallesco

Learning and Financial Financial Planning Corporate Internal

Development Accounting and Analysis Audit Manager
Manager Manager Manager
Year joined
Year joined Year joined Year joined 2014
1999 2015 2017

Experience Experience Experience Experience

He started his professional career in Prior to joining the Company, he was Her career started in the banking A former internal auditor of SGV & Co.
Shakey’s as a rank and file employee an Auditor at SyCip Gorres, Velayo and industry as a Branch Operations / Ernst & Young Philippines working
then promoted to Restaurant Manager. Co. In Shakey’s, he previously held the Officer. She then served as a Sales on various consulting engagements
He was transferred to the Learning position of General Accounting Manager. Analyst for Red Ribbon Bakeshop and on risk management, internal controls
and Development Department and Concurrently, he serves as Financial as a Business Performance Manger for and governance with clients from
handled important programs such Accounting Manager and Project One Food Group handling the Mister diverse industries. He has worked for
as Restaurant Staff and Management Automation Champion of Finance and Donut brand. Currently, she serves as multinational companies including
Development as an Assistant Training Accounting in the Company. He is also Financial Planning & Analysis Manager PMFTC Inc. and Johnson & Johnson. He is
Manager. Holds a bachelor’s degree a Certified Public Accountant. Holds a for Shakey’s and Peri-Peri. She holds a a Certified Internal Auditor and a Certified
in Sociology from the Polytechnic bachelor’s degree in Accountancy from bachelor’s degree in Economics from Public Accountant. He holds a bachelor’s
University of the Philippines Araullo University- PHINMA Adamson University degree in Accountacy from San Sebastian
College -Recoletos de Cavite 83
 Corporate Governance 102-18 102-19 102-20 102-22 102-24 102-26 102-28

84
The Company recognizes the importance of good governance to successfully ensure the organization operates along the lines of business ethics, complies with
progress in its sustainability journey and create greater value for shareholders. We rules and regulations, and adheres to fair labor practices as we continue to fulfill our
believe that good corporate governance must span across our entire value chain to multiple economic, moral, legal, and social obligations towards our stakeholders.

Shareholders

Elect/Dismiss Ratify/Dismiss

Board of Directors

Corporate Governance and Board Risk Oversight Related Party Audit

Sustainability Committee Committee Transactions Committee Committee

Assist Appoint Report

Elect, Determine Independent
Renumeration Parameters, Review Report Auditor
Supervise and Review
Corporate
Secretary

Executive Committee and Management Committee

Audit
Internal
Appoint Audit Audit
Elect, Determine
Report Renumeration Parameters,
Ensure Compliance
Supervise and Review
Compliance Officer

Management Teams and Rest of Organization

85
 Shareholders Board of Directors

Shareholders are encouraged to actively participate by exercising their rights. The Board of Directors (the Board) is to act in the best interest of the
Such rights include the following, among others: Company and all its shareholders. The following are some of the roles and
responsibilities of the Board.
1. Participating and voting during stockholders’ meetings
2. Exercising the appraisal right on instances stated in Section 81 of the To the Company
Corporation Code 1. Approve the selection and assess the performance of Senior Management
3. Voting and being voted as director or officer of the Company and other control functions
4. Inspecting records of all the Company’s business transactions and minutes 2. Ensure an effective performance management framework is in place
of any meeting to certify Management and personnel performance are on par with set
5. Receiving dividends declared by the Board of Directors standards
6. Sharing in the distribution of the Company’s remaining assets after its 3. Supervise the proper implementation of and compliance to the Code of
dissolution and liquidation Business Conduct and Ethics, including standards for professional and
ethical behavior for internal and external dealings
Shareholder rights can be found in the Company’s Manual on Corporate 4. Attend and actively participate in all meetings of the Board and its
Governance which is available on the PIZZA website. respective committees
5. Oversee the development of and approve business objectives and
strategies and monitor their implementation
6. Assure the Company has an appropriate internal control system, including
a mechanism for managing potential conflicts of interest of the Board,
Management, and shareholders
7. Make certain there is a sound enterprise risk management framework for
key business risks

To Shareholders
1. Encourage active shareholder participation and minimize costs and
administrative impediments to said participation
2. Be transparent about and fairly promote shareholder rights, and provide
processes and procedures for them to follow
3. Attend and actively participate in all shareholders’ meetings
4. Have a formal and transparent board nomination and election policy
5. Establish corporate disclosure policies and procedures to ensure the
comprehensive, accurate, reliable, and timely report of relevant and
material information, including non-financial information

Further details may be found in the Board Charter available on the

Company website.

86
Composition of the Board of Directors
The Board of Directors is to have a collective working Additionally, at least three or one-third of the Board, A lead independent director is designated should the
expertise that is relevant to the Company’s industry whichever is higher, must be independent directors. Chairman of the Board not be independent and is
or sector. authorized to lead the Board in cases where management
This ensures that no director or group of directors has clear conflicts of interest.
Majority of the Board should consist of non-executive can dominate the decision making process,
directors in order to secure objective, independent protecting the Company’s interest over the interest The diversity of our Board of Directors is vital as we
judgment on corporate affairs and to substantiate of individual shareholders. aim to create a diverse and inclusive organization. The
proper checks and balances. Company’s Board Diversity Policy can be found in its
Board Charter.
Current Composition

9 33% Board Meeting Attendance

Board members Independent C - CHAIRMAN VC - VICE CHAIRMAN M - MEMBER

Details Membership and Attendance

52 2 Board Seats
Directors Independent Directors Average age Held in Publicly Stockholder & Board
EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Listed Companies Meeting Annual Regular* Special*
on Average Stockholder
Qualifications No. of Meetings 1 4 14
Christopher T. Po C C C
The Board ensures that it has an appropriate 2. Practical understanding of the business of
Chairman 1/1 4/4 14/14
mix of competence and expertise. Its members the Company
Teodoro Alexander T. Po — M VC
should also remain qualified for their positions 3. Good standing in the relevant industry,
Vice Chairman 1/1 4/4 14/14
individually and collectively in order to fulfill its business, or professional organization
Ricardo Gabriel T. Po — VC VC
roles and responsibilities and respond to the 4. Relevant previous business experience
Vice Chairman 1/1 4/4 14/14
needs of the organization based on the evolving
Vicente L. Gregorio — M M
business environment and strategic direction. In addition to the above, non-executive
President 1/1 4/4 14/14
directors can only concurrently serve as
Leonardo Arthur T. Po — M M
Some of the qualifications of directors include directors in a maximum of five publicly listed
Treasurer 1/1 4/4 14/14
the following: companies to ensure he or she can allot
Eileen Grace Z. Araneta — M M
1. College education or equivalent academic sufficient time for company matters.
Director 1/1 4/4 14/14
degree
Fernan Victor P. Lukban — M M
Independent Director 1/1 4/4 14/14
Training Succession Plan
Paulo L. Campos III — M M
Independent Director 1/1 4/4 14/14
The Company has set guidelines and The Board ensures that an effective succession
Frances J. Yu — M M
procedures concerning the orientation planning program for directors and key officers
Independent Director 1/1 4/4 14/14
program for first-time directors. is in place. This is to help secure the continuous
growth of the Company. * IN 2020 AND DURING THE INCUMBENCY OF THE DIRECTOR
Its directors attended corporate governance
seminars conducted by the Institute of
Corporate Directors (ICD) in August 2020. 87
 Committees of the Board of Directors

The Board Committees are to support the effective performance of the Board’s
functions. Their purpose, memberships, structures, and responsibilities are further
discussed in the Committee Charters available on the Company website.

Audit Committee
The Audit Committee is tasked to oversee Senior Management in maintaining an has 10 years of experience in auditing, compliance, and risk management roles in
effective internal control framework which is able to provide assurance in areas various companies prior to joining PIZZA in 2014.
including reporting, monitoring compliance with laws, regulations, and internal
policies, and the efficiency and effectiveness of operations. Internal Audit is to render an annual report on its responsibilities, activities, and
performance relative to the audit plans and strategies approved by the Audit Committee.
It ensures that both internal and independent auditors are to have unrestricted
access to all records, properties, and personnel to enable them to perform their It is also to provide a statement declaring whether it is compliant with the
audit functions independently from one another. International Standards for the Professional Practice of Internal Auditing.

It is composed of at least three non-executive directors, the majority of whom, Internal Audit assists the Audit Committee to ensure
including the Chairman (who should neither be Chairman of the Board nor of any
other committee), should be independent. All must be experienced in the areas of 1. Reliability and integrity of financial and operating information
accounting, auditing, and finance. 2. Compliance with policies, plans, procedures, laws, and regulations
3. Safeguard of assets
The Audit Committee meets with the Board at least every quarter without the presence 4. Resources are economically and efficiently used
of the Chief Executive Officer or any other member of the management team. 5. Results of operations and programs are consistent with established objectives,
goals, and plans
Internal Audit
The Audit Committee has an independent Internal Audit function that provides objective External Audit
assurance and consulting services, monitoring and guiding the implementation of The Audit Committee has a robust process for approving and recommending the
company policies and bringing a systematic approach to evaluating and improving the appointment, reappointment, removal, and fees of the independent auditor. It
effectiveness of the Company’s governance, risk management, and control functions. should be alerted for any situation that may potentially rise due to conflicts of
interest which could impair the independent auditor’s objectivity.
The Committee oversees Internal Audit, recommending the approval of the Internal
Audit Charter which contains the function’s responsibilities and plans. SyCip Gorres Velayo & Co. was re-appointed as the Company’s independent
auditor for 2020 during the Annual Stockholders’ Meeting last July 15, 2020, with
It ensures the independence of the Internal Auditor and reviews and monitors Maria Pilar B. Hernandez as the engagement partner. It is to assess the Company’s
Management’s responsiveness to Internal Audit. audited financial statements and provide its judgment on the compliance of said
statements with the Philippine Financial Reporting Standards.
Additionally, the Audit Committee periodically meets with the Chief Audit
Executive, whose appointment is recommended by the Committee. In 2020, SyCip Gorres Velayo & Co. was paid PHP3.11 million for their audit services.
SyCip Gorres Velayo & Co. is a member firm of Ernst & Young.
Darel G. Pallesco was re-appointed as the Company’s Chief Audit Executive and
88
Board Risk Corporate Governance and Related Party
Oversight Committee Sustainability Committee Transactions Committee

The Board Risk Oversight Committee is to oversee The Corporate Governance and Sustainability Committee The Related Party Transactions Committee is tasked
the Company’s enterprise risk management system is responsible for ensuring the Company’s compliance to review all material related party transactions of the
to ensure its functionality and effectiveness. Its with corporate governance principles and practices. It Company. It also informs regulating and supervising
responsibility is to supervise Management’s activities periodically reviews the Company’s corporate governance authorities relating to the Company’s related party
in managing credit, market liquidity, and operational, framework to ensure it remains appropriate given material transaction exposures and ensures appropriate
legal, and other risk exposures. changes in the corporation’s size, complexity, strategy, disclosures are accomplished.
and business and regulatory environments.
It comprises at least three members, of whom majority The Committee is composed of at least three
are independent, including the Chairman (who The Committee’s responsibilities will be expanded to non-executive directors, two of whom should be
should neither be Chairman of the Board nor of any include sustainability matters which involve environmental, independent, including the Chairman.
other committee). At least one member should be social, and sustainability governance concerns.
knowledgeable in risk and risk management.
The Committee is also to function as a Nomination
The Committee should always have clear and Remuneration Committee, determining the
communication with the Chief Risk Officer. Manuel T. nomination and election process and establishing a
Del Barrio, the Company’s Chief Finance Officer, was formal and transparent procedure in developing a
re-appointed as the Chief Risk Officer on July 15, 2020. policy for determining remuneration. It comprises at
least three members.

Committee Meeting Attendance C - CHAIRMAN M - MEMBER

Details Membership and Attendance
Board Committee
Meeting Audit Committee Corp Gov and Sustainability Board Risk Oversight Committee Related Party Transactions
Committee Committee
No. of Meetings 4 2 1 2
Ricardo Gabriel T. Po M — M M
Vice Chairman 4/4 1/1 2/2
Fernan Victor P. Lukban C M M M
Independent Director 4/4 2/2 1/1 2/2
Paulo L. Campos III M — C C
Independent Director 4/4 1/1 1/1
Frances J. Yu — M C —
Independent Director 2/2 1/1

89
 Corporate Secretary Compliance Officer

The Corporate Secretary is to keep abreast of relevant laws, regulations, The Compliance Officer is responsible for determining and measuring the
governance issuances, industry developments, and operations of the Company Company’s adherence with its Manual on Corporate Governance, relevant laws,
and advise the Board on all relevant issues as they arise. the Code of Corporate Governance for publicly listed companies, SEC rules and
regulations, and all governance issuances of regulatory agencies.
Atty. Maria Rosario L. Ybañez was re-appointed as the Company’s Corporate
Secretary on July 15, 2020, and has been involved in the practice of corporate, Manuel T. Del Barrio, the Company’s Chief Finance Officer, was re-appointed as
civil, criminal, labor, and intellectual property law since 2001. She attended her the Compliance Officer on July 15, 2020. He attended his training on corporate
training on corporate governance conducted by the ICD in August 2020. governance conducted by the ICD in August 2020.

Executive Team Rest of the Organization

The Executive Team, along with the rest of the Management team, answers to the Board The rest of the organization completes the Company and supports its strategies
of Directors and is responsible for the operations and performance of the Company. in order to achieve its ever-growing targets. With competent professionals who
It concretizes the Company’s objectives and targets by executing its strategies and embody the core values, PIZZA is able to fulfill its purpose of providing great times
attaining set targets. The Team is spearheaded by the Chief Executive Officer. and great memories...always! As such, attracting, developing, and retaining talent
across the organization is of key importance.
The positions of Chief Executive Officer and Chairman of the Board are held by
separate individuals. Their roles in the organization are distinguished below: PIZZA sets high standards for itself with its WOW philosophy and performance
goal of being better than before, better than others, and better than expected. It
Chief Executive Officer is an organization with a culture anchored on guest centricity, understanding and
1. Supervise, monitor, and control operational activities and performance respect, excellence, sense of ownership, trustworthiness, strategic thinking, and
2. Oversee operational alignment and operating structures tenacity. As such, PIZZA sees the importance of investing in its people.
3. Determine the Company’s strategic direction and implement its short- and
long-term strategic plans PIZZA continuously strives to boost the entrepreneurial spirit of its people through
4. Oversee operations and all day-to-day management decisions of the Company its Think Guest Program. Its rewards philosophy is to “Pay for Performance” and
5. Manage the Company’s resources prudently ensure that high performers are recognized and differentiated from the rest. The
6. Serve as the link between internal and external stakeholders and provide Company wants its expansion program to spur the career growth of its people,
stockholders with a balanced and comprehensible assessment of the Company’s making sure it retains those who share the same passion for excellence and
performance, position, and prospects demonstrate grit in order to sustain PIZZA’s edge in the industry.

Chairman of the Board The Company’s policies also promote compliance with government regulations on
1. Maintain qualitative and timely lines of communication and information between health and safety, while employee welfare policies are designed to help employees
the Board and Management achieve work-life balance. It also believes in providing opportunities to people
2. Preside Board meetings and ensure its focus on strategic matters such as the with disabilities and working hand-in-hand with local communities through special
Company’s overall risk appetite, key governance concerns, and contentious recruitment projects.
issues that will significantly affect operations
3. Focus on long-term goals and important strategic moves
4. Evaluate performance of high-level executives
90
Report of the Audit Committee to the Report of the Corporate Governance Report of the Board Risk Oversight Report of the Related Party
Board of Directors and Sustainability Committee to the Committee to the Board of Directors Transactions Committee to the Board
For the year ended 31 December 2020 Board of Directors For the year ended 31 December 2020 of Directors
For the year ended 31 December 2020 For the year ended 31 December 2020
The Audit Committee is tasked to The Board Risk Oversight Committee
oversee Senior Management in The Corporate Governance and is tasked to oversee the Company’s The Related Party Transactions
maintaining an effective internal control Sustainability Committee is tasked enterprise risk management system Committee is tasked to review all
framework. The Audit Committee held with ensuring that good corporate to ensure its functionality and material related party transactions of
meetings every quarter last year and governance principles and practices effectiveness. The Committee discussed the Company. The Committee discussed
discussed the following: are complied with and observed by the following: the following:
the company. In line with this mandate,
1. Results of the Internal Audit; the Committee met twice and 1. COVID-19 risk assessment and 1. Amounts covering related party
Discussions with external auditor accomplished the following in 2020: mitigation measures transactions of the Company with
SGV for 2019 Audit 2. Issues in supply chain,right-sizing, affiliates in the Century Pacific
2. 2nd Quarter accomplishments 1. Moving from Corporate Social and risks relating to health and Group of Companies
3. Post-COVID 19 Restructuring Responsibility to sustainability safety in stores and in the office.
4. Internal Audit Results summary as of purpose-driven journey. Assign
July 31, 2020 the Subcommittee to focus on
5. Right-sizing Initiatives the ESG issues and on expanding
6. Preparation for 2020 Audit the Corporate Governance
7. Wrap-Up 2020: Internal Audit Subcommittee’s scope beyond the
Results governance but to environmental
and social as well.
2. Discussed the Company’s
Sustainability Framework to
be focused on (1) People,
for Employees, Guests and
Communities; (2) Planet, for Natural
Resource Efficiency, Environmental
Impact Management and Supply
Chain Management; (3) Pizza, for
best-in-class products and Industry
pioneer; and (4) Good governance.
3. Approval of Amended Corporate
Governance and Sustainability
Charter

91
 Code of Business Conduct and Ethics 103-1 103-2 103-3 102-17 102-25 205-1 205-2 206-1

The Company’s policies on the following business conduct and

ethics affecting the directors, senior management, and employees
are discussed below:

Conflict of interest prohibited from disclosing or using to their own custodians of all company funds, assets, and
All employees, irrespective of rank, should always act advantage any non-public information. information. As such, all are required to protect and
in the best interest of the Company. All conflict of preserve company assets.
interest shall be avoided and prohibited. In the event Conduct of business and fair dealings
that such will occur, disclosure must be made to the Business is dictated by free competition - no
immediate supervisor or human resources head. monopoly and no price manipulation. Price is dictated Employment and labor laws and policies
by supply and demand. Employees are required to The Company complies with all existing employment
Receipt of gifts from third parties comply with fair trade practices. and labor laws and policies.
All employees are prohibited from accepting gifts
based on the no gift policy of the Company. Compliance with laws and regulations Whistle-blower
All employees, in the conduct of business, are obliged The Company has a whistle-blower policy that
Respect for trade secrets and use of non-public to comply with all relevant laws and regulations. provides an avenue for employees to report
information misconduct of fellow employees, including their
All employees are required to sign and adhere to Use of company funds, assets, and information superiors, while protecting the employee’s identity
a confidentiality agreement. All employees are All employees are required to act as responsible and welfare.

92
Insider trading Conflict resolution after which the Compliance Officer will promptly
The Company’s insider trading policy states that all The Company provides a work environment that is disclose according to relevant rules and regulations
managers and up are strictly prohibited from buying conducive to friendly resolution of disagreement. the buy or sell details to the Philippine Stock Exchange
or selling PIZZA shares for five trading days prior to Superiors should promote amicable settlement of and Securities and Exchange Commission.
the release of and up to three trading days after the conflicts.
disclosure of reports containing material information.
Notices of said trading blackouts are issued to Reporting of personal transactions
covered persons by email. All controlling shareholders, directors, and
executive officers must report any of their dealings
Disciplinary action in the Company’s shares as well as changes in their
Disciplinary actions are meted only after due process. beneficial shareholdings in the Company to the
The Company has a Code of Conduct that serves as a Compliance Officer.
guide for the employees’ behavior.
Said persons are required to report these transactions
within three business days from the transaction date,

93
 Risk Management 102-15 102-30 205-1

Risks in same-store sales growth

We operate in highly The Philippine food service industry in general is highly competitive respect to, among other things, location, managing and meeting
competitive markets. with relatively low barriers to entry. As such, many well-established human resource requirements, taste, price, raw materials, food
food service businesses compete directly and indirectly with us. quality and presentation, service, brand awareness and loyalty, and
We compete with national, regional, and locally owned full-service the ambience and condition of each store.
and casual dining stores that offer dine-in, carry-out, delivery, and
catering services. These segments are highly competitive with

Damage to our Any incident that erodes consumer affinity for our brands could findings concerning our stores, or stores operated by other food
reputation and the significantly reduce their value and damage our business. We may service providers or others across the food industry supply chain.
Shakey’s and Peri be adversely affected by news reports or other negative publicity Finally, there has been a marked increase in the use of social media
brands, and negative regardless of their accuracy regarding food quality issues, public platforms and similar devices, making the availability of information
publicity to our stores, health concerns, illness, safety, injury, customer complaints or virtually immediate as is its impact.
could negatively litigation, health inspection scores, integrity of ours or our suppliers’
impact our business. food processing, employee relationships or government or industry

Our growth is dependent, in part, upon our ability to maintain and

enhance the value of our brand, consumers’ connection to our brand,
and positive relationships with our franchisees. We believe we have
built our reputation on the high quality of our food, service, and staff
as well as on our culture and the ambience in our stores thanks to
tried and tested operational systems that cover all aspects of food
safety and quality as well as guest service and hospitality.

We must protect, invest, and grow the value of our brand to

continue building barriers to entry in this highly competitive
industry. Successfully competing in our markets depends on our
ability to maintain low-cost operations, allowing us to provide value-
for-money options to our guests and further enhance their loyalty
via promotions, meal bundles, and loyalty programs, among others.

94
Risks in increasing store network

Our growth is highly One of the key means of achieving our growth strategy will be In addition, one of our biggest challenges is locating and securing
dependent on our through opening new stores, both company-owned and franchised, an adequate supply of suitable store sites in our target markets.
ability to open new maintaining our existing network of stores (including successfully Competition for those sites is intense among other store and retail
stores, maintain our relocating these stores when necessary), and operating those stores operators, and there is no guarantee that enough suitable sites will be
existing store network, profitably. We may not be able to open stores as quickly as planned. In available in desirable areas or on terms that are acceptable to us to
and select strategically the past, we have experienced delays in opening some stores due to achieve our growth plan.
located sites for our construction delays and delays in obtaining local permits which could
store branches. happen again in future store openings. Delays or failure in opening
stores could materially and adversely affect our growth strategy and
our business, financial condition, and results of operations.

Opening new stores in Opening a new store in or near markets in which we already have
existing markets may stores could adversely affect sales at these existing stores. Existing
negatively affect sales stores could also make it more difficult to build our guest base for a
at our existing stores. new store in the same market. Sales cannibalization between stores,
which could affect our sales growth as we continue to expand our
operations, could adversely affect our business, financial condition,
and results of operations.

Our ability to open new stores and maintain our existing store other calamities. In these cases, we manage the overall system
network also depends on using our brand strength and proven growth rate by ensuring we have a number of back-up sites and
track record to negotiate new leases or renew existing leases sufficient funds from operations to finance any incremental costs.
at acceptable or favorable terms. We also ensure that we have
identified, hired, and trained qualified employees for each site from Our primary business strategy does not entail opening new stores
the development of the store to construction and to the eventual that we believe may materially affect the sales at our existing stores,
opening and operational execution. a large portion of our stores is still concentrated in the greater Metro
Manila area. There are still many opportunities to expand beyond
In particularly competitive markets, managing construction and the usual first-tier cities. Moreover, we may selectively open new
development costs of stores is key. There are instances where stores in or around areas of existing stores operating at or near
unavoidable delays and overruns will occur due to delays by capacity to effectively serve our guests and create a better dining
landlords in delivering leased premises to us, unforeseen engineering and delivery experience. This, in the long run, is beneficial to the
or environmental problems, trouble securing required government brands and results in continued increase in sales.
approvals and licenses, inclement weather, natural disasters, and

95
 Risks in maintaining profitability

Changes in food and Our food distributors and suppliers may be affected by higher costs and react to changing food costs through our purchasing practices
supply costs and to produce and transport commodities used in our stores, higher and menu price adjustments in the future. As a result, any increase
availability could minimum wage and benefit costs, and other expenses that they pass in the prices charged by suppliers would increase the food costs for
adversely affect our through to their customers which could result in higher costs for our company-owned stores and for our franchise owners and could
results of operations. goods and services supplied to us. We may not be able to anticipate adversely impact profitability.

We rely on key We rely on key suppliers for certain raw materials. Any material
suppliers for certain interruptions in our supply chain, including failure or delays in delivery,
raw materials and such as a material interruption of ingredient supply due to the failure
the failure of those of third-party distributors or suppliers or interruptions in service by
suppliers to adhere common carriers that ship goods within our distribution channels,
to and perform may result in significant cost increases and reduce store sales.
contractual obligations
may adversely affect
our business.

Our profitability and operating margins are dependent, in part, on our In addition, we may choose to pass along commodity price increases
ability to anticipate and react to changes in food and beverage costs, to our guests as long as we continue to provide them value for their
particularly the costs of key ingredients such as cheese, chicken, and money and a high-level dining experience relative to peers at the
potatoes. We religiously monitor prices as well as the supply and same price point.
demand situation of the raw material to ensure we are adequately
covered at reasonable prices. We also maintain a network of alternative
distributors or suppliers who can provide contingent supply on a timely
basis. Moreover, we work closely with key third-party service providers to
monitor their adherence to and performance of contractual obligations.

96
Risks in franchising

Our results of Franchisees are independent contractors and are not our employees,
operations and growth and we do not exercise control over their day-to-day operations.
strategy depend, in A portion of our revenues comes from royalties and sales of raw
part, on the success materials and supplies and equipment to our franchisees which we
of our franchisees, expect to continue in the future. Accordingly, we are reliant on the
and we are subject to performance of our franchise owners in successfully opening and
various additional risks operating their stores and paying royalties to us on a timely basis.
associated with our
franchise owners.

If we fail to identify, The opening of additional franchised stores depends, in part, upon slower than anticipated which could materially adversely affect our
recruit, and contract the availability of prospective franchise owners who meet our ability to increase our revenues, our business, financial condition,
with a sufficient criteria. We may not be able to identify, recruit, or contract with and results of operations.
number of qualified suitable franchise owners in our target markets on a timely basis
franchise owners, our or at all. In addition, our franchise owners may not have access to
ability to open new the financial or management resources that they need to open the
franchised stores and stores contemplated by their agreements with us; or they may elect
increase our revenues to cease store development for other reasons. If we are unable to
could be materially recruit suitable franchise owners or if franchise owners are unable
adversely affected. or unwilling to open new stores as planned, our growth may be

We provide training and support to franchisees and oversee the In selecting our franchisees, we ensure that they have the business
quality of franchised store operations through a network of area acumen and financial resources necessary to successfully operate
business managers whose performance metrics are also tied to the franchises in their franchise areas in a manner consistent with
performance of franchisees within their scope. our standards and requirements and that they will hire and train
qualified managers and other store personnel. Our franchise
The strength of our brand and the industry-leading economics of agreement also adequately covers situations wherein franchisees
our stores afford us a wide array of interested franchisees. Moreover, do not meet our standards and requirements and any other
many of our franchise owners operate more than one store; so our disputes when they may arise.
growth strategy includes tapping the significant number of existing
franchise owners who are interested in increasing their own network.

97
98
Other Highlights
 100 104 106

Investor Stock Management’s

Relations Highlights Discussion and
Analysis

107 109 114

Statement of Independent Financial

Management’s Auditor’s Statements
Responsibility Report
for Consoli-
dated Financial
Statements

120 129

GRI Content Contact

Index Information

99
 Subsection title

Investor Relations
100
Last March 2020, the spread of COVID-19 forced the importantly, our team ensured that the Chairman and
Philippine government to place various areas in the CEO increased their engagement with investors and
country under lockdown, forcing various businesses analysts during this crucial time for our company.
to shut down. As the largest casual dining brand in
the Philippines, our company was severely affected, One of the worst-hit businesses in this pandemic is
following the temporary closure of our stores (91% at the restaurant industry. As much uncertainty looms
its peak) and suspension of dine-in services. with regard to the future of our industry, our IR team
understands that in these trying times, the main priority
What makes this crisis a challenge is not knowing of the company is to become more transparent.
when things will go back to normal. In our company’s
forty-five years of existence, this pandemic is truly In IR, we also involve ourselves in the day-to-day
one of, if not the most disruptive event in the industry. operations of the business. From attending daily crisis
meetings to giving insights during key decision-making
At this critical juncture, our job in IR is to ensure sessions, the team believes that this level of involvement
constant and timely communication with our benefits both the company and its investors. Moreover,
stockholders. As such, the team kept investors our participation not only signifies that the interests
informed by providing sufficient information despite and concerns of stockholders are always taken into
the uncertainty, so that they can also make informed consideration whenever management makes important
decisions in this “new normal.” decisions, but also ensures that we are able to provide
investors the best service in this very challenging time.
Our IR team recognized that it is during these uncertain
and challenging times that we need to be more visible In recognition of our efforts, we were nominated in
and transparent when engaging with our investors. the IR Magazine South East Asia Awards for Best in
Crisis Management. As a leader in our industry, our
At the onset of quarantine measures, we immediately company believes that it should continue to be at the
updated our investors of how this has affected our forefront of upholding the best practices and best
operations and our planned action steps. During values of prioritizing the safety and welfare of our
investor calls, we allotted a significant amount of time stakeholders. As these efforts continue to materialize,
discussing updates and entertaining investor queries our IR team will continue to exert our best efforts in
to better understand their concerns. protecting the interests of our stockholders.

Moreover, we continuously updated them about critical

developments and highlighted our long-term priorities
and competitive strengths as we look beyond the crisis.
Investor Relations Team
We ensured that investor communications – websites, Giovanna Vera
presentation decks, annual reports, one-on-one and Jaclyn Jimenez
group virtual meetings and email correspondence Dappy Tecson
– are consistent in providing a clear picture of Myrose Victor
our current state of operations and strategy. Most [email protected]

101
 How We Engage

Glossy Annual Report Corporate Website

(shakeyspizza.ph)

Conference Calls on Quarterly Financial Results

April 6: Full Year 2019 Earnings Call
Investor Conferences Attended June 1: First Quarter 2020 Earnings Call
August 12: Second Quarter 2020 Earnings Call
2 in-person 6 virtual November 11: Third Quarter 2020 Earnings Call

Attainment of Sell-Side Coverage from Brokerages

Non-Deal Roadshows 10 Press Releases
to Key Financial Market Institution Analyst Latest call
Centers
BPI Colleen Gatchalian HOLD
CLSA Joyce Ramos BUY
COL Financial John Luciano HOLD
Credit Suisse Hazel Tanedo OUTPERFORM
Regis Carissa Mangubat- BUY
Reyes

Traditional and Social Selected Manufacturing Welcoming Annual General Meeting

Media Coverage Site Visits

102
Investor Relations Calendar

• 1Q20 Earnings
Release
• Credit Suisse • Macquarie Asia • Annual
ASEAN Consumer Virtual Stockholders’ • 3Q20 Earnings
Conference Conference Meeting Release

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

• J.P. Morgan • CLSA Virtual • Nomura • 2Q20 Earnings • Jefferies &

Philippine Corporate Investment Release Regis Partners
Conference Access Event Forum Asia • Nomura Virtual Philippines
• FY19 Earnings (Virtual) Philippines Corporate
Release Corporate Day Access Days
• Regis Virtual 2020
Corporate
Access Event

103
 Stock Highlights 102-5 102-45

-22.2% -31.6%
Stock Exchange
Shakey’s Pizza Asia Ventures, Inc. held its Initial Public Offering (IPO) on December
15, 2016, and is listed on the Philippine Stock Exchange (PSE) with “PIZZA” as its
ticker symbol. The stock has a minimum board lot of 100 shares and no foreign Year-on-Year Return Increase Since IPO
ownership limit

Stock performance
Dividend history
Stock price
0.25 25%
23%
15 PHP 13.46
20% PHP 11.90
PHP 11.50
0.20 18%
20% PHP 11.26
PHP 9.90
10
PHP 7.70
0.15 15%

5
0.10 10%
0.10 0.10 0.10

0.05 5% 0
IPO End End End End End
2% 2016 2017 2018 2019 2020
0 0.01 0%
2017 2018 2019 2020
Market capitalization
Regular cash Payout Ratio*
*Of previous year’s net income 25
PHP 20.6B
Before going public, PIZZA paid out quarterly cash dividends to its shareholders
20 PHP 17.6B PHP 18.2B
preceding the above dividends. Quarterly and special cash dividend declarations PHP 17.2B
of PHP150.4 million and PHP986.9 million were approved by its Board of Directors PHP 15.2B
on December 31, 2015, and June 30, 2016, respectively. 15
PHP 11.8B

10

0
IPO End End End End End
2016 2017 2018 2019 2020

104
Shareholders

21% 55%
Others Century Pacific Group, Inc

1%
Schroders PLC

1%
Norges Bank

4%
Prieto Family

18%
GIC Private Equity

Source: Bloomberg, April 2021

Annual Stockholders’ Meeting Information Disclosures

We hold our Annual Stockholders’ Meeting every June 20th. In compliance, all information required by the Philippine Securities and Exchange
Commission and the PSE are filed, disclosed, and promptly made public via the
Company’s corporate website and its official PSE online portal page as follows:
Share Capital www.shakeyspizza.ph
As of end 2020, PIZZA’s authorized capital was PHP2 billion consisting of 2 billion edge.pse.com.ph/companyInformation/form.do?cmpy_id=664
common shares with a PHP1.00 par value. There were 1,531,321,053 listed, issued,
and outstanding shares as of the same period.

Based on the closing price of PHP7.70 per share, the market capitalization of the
Company’s common shares as of end-2020 was PHP11,791,172,108.

105
 Management’s Discussion and Analysis
Consolidated Statements of Financial Position Capital stock and Additional paid-in capital
PIZZA had consolidated total assets of Php12.22 billion as of December 31, 2020, For the twelve months ending December 31, 2020, there are no changes in the
a decrease versus total assets of Php12.33 billion as of end-2019. This is primarily Company’s total capital stock which stood at Php1.53 billion and additional paid-in
attributable to the decline in the company’s working capital due to the impact of capital of Php1.35 billion.
the pandemic.
Consolidated Statements of Comprehensive Income
Cash and cash equivalents PIZZA saw its full-year 2020 bottomline hit negative Php254 million, driven primarily
As of end 2020, cash and cash equivalents totaled Php608 million. Cash includes by the impact of the COVID-19 pandemic on the restaurant industry. This compares
cash on hand and in banks while cash equivalents are short-term, highly liquid with 2019’s reported net income of Php865 million.
investments that are easily convertible to cash.
System-wide sales reached Php6.6 billion, equivalent to 64% recovery of 2019
Trade and other receivables sales. For most of 2020, the Philippines was under different phases of lockdowns
Trade and other receivables was at Php561 million as of year-end 2020 compared to which, at its peak, forced the temporary closure of 91% of the Company’s store
Php709 million in 2019, a decrease of 21% due to lower third party trade receivables. network at the end of March. Quarantine measures have however since eased with
store traffic inching up slowly during the second half of 2020.
Inventories
As of December 31, 2020, inventories remained steady at Php445 million from Revenues and System-wide Sales
Php477 million in 2019. System-wide sales, which comprises sales from both company-owned and
franchise stores, declined by 36% from Php10.38 billion to Php6.62 billion as of end
Property, plant, and equipment 2020. On a same-store sales basis, excluding the impact of closed stores, sales
Consolidated net property, plant, and equipment stood at Php1.42 billion as of were down 30% year-on-year.
year-end 2020. Capital expenditures for the year reached Php252 million, which
were invested in the building of new stores and improvements in the corporate Consolidated net revenues, composed of sales from company-owned stores,
office and commissary. franchise and royalty fees from franchisees, and revenues from wholly-owned
subsidiaries, reached Php5.3 billion, dropping by 36% from reported revenues of
Intangible assets Php8.2 billion for the twelve months ending December 31, 2019.
Intangible assets remained steady at Php7.05 billion from Php6.98 billion in 2019.
Cost of Sales
Accounts payable and other current liabilities For the year ending 2020, consolidated cost of sales declined by 25% from Php5.8
Accounts payable and other current liabilities decreased by 17% for the full-year billion in 2019 to Php4.4 billion.
2020 to Php801 million from Php962 million during the previous year.
Consolidated cost of sales is mainly composed of raw material and packaging
Loans payable costs, direct labor costs, and store-related costs including rent, utilities, etc.
As of December 31, 2020, the Company’s total interest-bearing debt stood at
Php4.84 billion. Short-term loans amounting to Php1.05 billion was used to support Gross Profit
the Company’s operations amidst the COVID-19 pandemic. Consolidated gross profit amounted to Php933 million for the full year 2020,
representing a 61% decline from Php2.41 billion in the previous year. This yielded a
Total long-term loans payable stood at Php3.79 billion, which was primarily used prior gross profit margin of 18%, a significant decrease versus the previous year’s 29%.
to the Company’s IPO in 2016 for the acquisition of the in-house commissary, as well
as the trademark companies holding the rights and trademarks of the Shakey’s brand.

106
General and Administrative Expenses All in all, net cash generated for the year totaled Php100 million, leading to cash
For the twelve months ending December 31, 2020, consolidated general and and cash equivalents balance of Php608 million at year-end 2020.
administrative expenses totaled Php973 million, representing a cost-to-sales ratio
of 18%. This is higher than 13% during the same period in 2019.

Operating Income
Consolidated operating income turned negative at Php40 million loss in 2020, a
reversal from Php1.36 billion in 2019. This was primarily driven by significantly lower
sales due to the COVID-19 pandemic.

Net Interest Expense

Interest expense of Php333 million was recorded for the twelve months ending
December 31, 2020. This amount pertains to interest on the Php3.79 billion
remaining of the acquisition loan used to acquire the wholly-owned subsidiaries,
as well as the Php1.1 billion loan incurred to support the Company’s operations at
the height of the pandemic.

Other Income
Consolidated other income totaled Php2 million as of year-end 2020, a decline
from the previous year’s Php59 million. This is composed mainly of income from
rent concession, other income from franchisees, service income and loss from
store retirement.

Net Income
For the year ending 2020, consolidated net income after tax reached negative
Php254 million. This is a reversal from 2019’s recorded net income after tax of
Php865 million.

Consolidated Statements of Cash Flows

Consolidated net cash provided by operating activities amounted to Php328
million for the full-year 2020, 81% lower versus the previous year’s Php1.70 billion.
The decrease is primarily attributable to the deterioration in overall profitability
due to the COVID-19 pandemic.

Consolidated net cash used in investing activities was Php238 million. This is mainly
attributable to capital expenditures for new store openings and other corporate
investments.

Consolidated net cash provided by financial activities was Php9.6 million in 2020,
with loan availments utilized for interest payments and dividends.

107
 Statement of Management’s Responsibility for Consolidated Financial Statements
The management of Shakey’s Pizza Asia Ventures, Inc. and Subsidiaries (the Group) is responsible for the preparation and fair presentation of the consolidated financial
statements including the schedules attached therein as at December 31, 2020 and 2019, and each of the three years in the period ended December 31, 2020, in
accordance with the Philippine Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing as
applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Company’s financial reporting process.

The Board of Directors reviews and approves the consolidated financial statements including the schedules attached therein and submits the same to the stockholders
or members.

Sycip Gorres Velayo & Co., the independent auditor appointed by the stockholders, has audited the consolidated financial statements of the Group in accordance with
Philippine Standards of Auditing and its report to the stockholders or members, has expressed its opinion on the fairness of presentation upon completion of such audit.

Christopher T. Po Vicente L. Gregorio Manuel T. Del Barrio

Chairman President and CEO Chief Financial Officer

108
Independent Auditor’s Report

SyCip Gorres Velayo & Co. Tel: (632) 891 0307 BOA/PRC Reg. No. 0001,
6760 Ayala Avenue Fax: (632) 819 0872 October 4, 2018, valid until August 24, 2021
1226 Makati City ey.com/ph SEC Accreditation No. 0012-FR-5 (Group A),
Philippines November 6, 2018, valid until November 5, 2021

The Stockholders and the Board of Directors

Shakey’s Pizza Asia Ventures Inc.
15Km East Service Road corner Marian Road 2
Barangay San Martin de Porres, Parañaque City 1700

Opinion
We have audited the consolidated financial statements of Shakey’s Pizza Asia Ventures Inc. and its subsidiaries (the Group), which comprise the consolidated statements
of financial position as at December 31, 2020 and 2019, and the consolidated statements of comprehensive income, consolidated statements of changes in equity and
consolidated statements of cash flows for each of the three years in the period ended December 31, 2020, and notes to the consolidated financial statements, including
a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December
31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for each of the three years in the period ended December 31, 2020 in
accordance with Philippine Financial Reporting Standards (PFRSs).

Basis for Opinion

We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics for
Professional Accountants in the Philippines (Code of Ethics) together with the ethical requirements that are relevant to our audit of the consolidated financial statements
in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current
period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report, including in
relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of
the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our
audit opinion on the accompanying consolidated financial statements.

109
 Impairment Assessment of Goodwill and Trademarks
Under Philippine Accounting Standards 36, Impairment of Assets, the Group is required to annually test the amount of goodwill and trademarks with indefinite life for
impairment. As at December 31, 2020, the Group’s goodwill, mainly arising from its acquisition of the dough manufacturing and Peri-Peri businesses, amounting to
1,264.1 million and trademarks with indefinite life amounting to 5,549.3 million, are considered significant to the consolidated financial statements since these account
for 56% of the Group’s total assets. In addition, management’s assessment requires significant judgment and is based on assumptions, specifically forecasted long-term
revenue growth rate, operating expenses, gross margin and discount rate. These assumptions are also subject to higher level of estimation uncertainty due to the current
economic conditions which have been impacted by the coronavirus pandemic.

The Group’s disclosures about goodwill and trademarks with indefinite life are included in Notes 6 and 14 to the consolidated financial statements.

Audit response
We obtained an understanding of the Group’s impairment assessment process and related controls. We involved our internal specialist in evaluating the methodologies
and the assumptions used. These assumptions included forecasted long-term revenue growth rate, operating expenses, gross margin and discount rate. We compared
the key assumptions used, such as forecasted long-term revenue growth rate, operating expenses and gross margin against the historical performance of the cash
generating units and other relevant external data, taking into consideration the impact associated with the coronavirus pandemic. We tested the parameters used in the
determination of the discount rate against market data. We also reviewed the Group’s disclosures about these assumptions to which the outcome of the impairment test
is most sensitive, specifically those that have the most significant effect in the determination of the recoverable amount of goodwill and trademarks with indefinite life.

Finalization of Purchase Price Allocation of Peri-Peri Business

In June 2019, the Group acquired the Peri-Peri business for a total consideration of 774.5 million. The Group accounted for this acquisition as a business combination
and the purchase price allocation (PPA) was determined on a provisional basis. As required by PFRS 3, Business Combinations, the Group shall recognize adjustments to
the provisional amounts recognized as if the accounting for the business combination had been completed as of acquisition date. The final amount of goodwill arising
from the acquisition amounted to 185.5 million. This transaction is a key audit matter as the amounts involved are material to the consolidated financial statements. The
transaction also involves significant judgments and estimates such as the identification and determination of the fair values of the assets and liabilities acquired and
the allocation of the purchase price to these assets and liabilities. Management judgment was required to determine that the acquisition has met the requirements of a
business and management estimation was applied in the determination of the fair values of assets and liabilities acquired.

The Group disclosed the details of the acquisition of the business in Note 6 to the consolidated financial statements.

110
Audit response
We obtained and reviewed the related documents, including any arrangements entered into in connection with the transaction. We reviewed management’s analysis and
assessment of the transaction. We reviewed the final purchase price allocation prepared by the Group. We also involved our internal specialists in reviewing the valuation
methodology and key inputs, such as revenue growth and discount rates related to the valuation of the trademark. We compared the revenue growth to the historical
performance of the Peri-Peri business and industry data. We tested the parameters used in the determination of the discount rate against market data. We also reviewed
the disclosures in the notes to the consolidated financial statements.

Other Information
Management is responsible for the other information. The other information comprises the information included in the SEC Form 17-A for the year ended December 31,
2020, but does not include the consolidated financial statements and our auditor’s report thereon, which we obtained prior to date of this auditor’s report, and the SEC
Form 20 IS (Definitive Information Statement) and Annual Report for the year ended December 31, 2020, which are expected to be made available to us after that date.

Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audits of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audits,
or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with PFRSs, and for such internal control as
management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or
has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

111
 Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with PSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with PSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.

112
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate
with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated
financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Maria Pilar B. Hernandez.

SYCIP GORRES VELAYO & CO.

Maria Pilar B. Hernandez

Partner
CPA Certificate No. 105007
SEC Accreditation No. 1558-AR-1 (Group A),
February 26, 2019, valid until February 25, 2022
Tax Identification No. 214-318-972
BIR Accreditation No. 08-001998-116-2019,
January 28, 2019, valid until January 27, 2022
PTR No. 8534306, January 4, 2021, Makati City

April 30, 2021

113
 Financial Statements
SHAKEY’S PIZZA ASIA VENTURES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

December 31
2020 2019
ASSETS
Current Assets
Cash (Notes 8 and 31) ₧607,674,132 ₧507,701,190
Trade and other receivables (Notes 9, 18 and 31) 561,004,570 709,483,495
Financial assets at fair value through profit or loss (Notes 12,
31 and 32) 120,000,000 120,000,000
Inventories (Note 10) 444,941,572 477,127,376
Prepaid expenses and other current assets (Note 11) 132,042,576 123,970,333
Total Current Assets 1,865,662,850 1,938,282,394
Noncurrent Assets
Property and equipment (Note 13) 1,419,634,223 1,615,292,163
Intangible assets (Notes 6 and 14) 7,051,509,002 6,976,828,720
Right-of-use assets (Note 15) 1,311,464,060 1,413,623,270
Deferred input value-added tax 48,423,974 67,963,872
Deferred tax assets - net (Note 30) 350,172,528 154,972,558
Rental deposits (Notes 16, 31 and 32) 173,125,540 165,662,780
Total Noncurrent Assets 10,354,329,327 10,394,343,363
TOTAL ASSETS 12,219,992,177 12,332,625,757

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 LIABILITIES AND EQUITY
Current Liabilities
Short-term loans payable (Notes 19 and 31) ₧1,050,000,000 ₧550,000,000
Accounts payable and other current liabilities (Notes 17, 18 and 31) 801,171,873 964,311,116
Current portion of:
Lease liabilities (Note 15) 211,544,249 224,333,251
Long-term loans payable (Notes 20 and 31) 48,099,942 48,120,934
Contract liabilities (Note 22) 16,020,186 18,517,499
Income tax payable 3,156,468 82,626,816
Total Current Liabilities 2,129,992,718 1,887,909,616
Noncurrent Liabilities
Noncurrent current portion of:
Lease liabilities (Note 15) 1,319,058,770 1,374,293,912
Long-term loans payable (Notes 20 and 31) 3,740,497,427 3,788,597,369
Contract liabilities (Note 22) 73,600,393 90,652,460
Accrued pension costs (Note 27) 131,238,332 78,310,299
Dealers’ deposits and other noncurrent liabilities (Note 32) 41,240,550 44,355,755
Total Noncurrent Liabilities 5,305,635,472 5,376,209,795
Total Liabilities 7,435,628,190 7,264,119,411
Equity
Capital stock (Note 21) 1,531,321,053 1,531,321,053
Additional paid-in capital (Note 21) 1,353,554,797 1,353,554,797
Retained earnings (Note 21) 1,964,168,269 2,233,070,767
Other components of equity (Note 27) (64,680,132) (49,440,271)
Total Equity 4,784,363,987 5,068,506,346
TOTAL LIABILITIES AND EQUITY ₧12,219,992,177 ₧12,332,625,757

The complete set of the consolidated financial statements, including the notes, are covered by the independent auditor’s report and are made available to all shareholders through the
definitive information statement for the annual stockholders’ meeting on July 15, 2021. The consolidated financial statements should be read in conjunction with the notes. A copy of the full
set of consolidated financial statements may be downloaded through the Company’s website (www.shakeyspizza.ph)

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 SHAKEY’S PIZZA ASIA VENTURES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 31

2020 2019 2018
REVENUE FROM CONTRACTS WITH CUSTOMERS (Notes 18 and 22) ₧5,296,771,546 ₧8,239,093,787 ₧7,578,718,618
COST OF SALES (Notes 18 and 23) (4,364,157,309) (5,827,018,168) (5,399,319,411)
GROSS INCOME 932,614,237 2,412,075,619 2,179,399,207
GENERAL AND ADMINISTRATIVE EXPENSES (Note 24) (972,712,600) (1,051,602,075) (973,225,277)
INTEREST EXPENSE (Note 28) (333,303,573) (311,472,803) (188,515,123)
OTHER INCOME - Net (Note 29) 4,890,761 59,306,933 64,578,557
INCOME (LOSS) BEFORE INCOME TAX (368,511,175) 1,108,307,674 1,082,237,364
PROVISION FOR (BENEFIT FROM) INCOME TAX (Note 30)
Current 73,691,665 267,337,508 257,160,480
Deferred (188,613,552) (24,266,101) (15,838,544)
(114,921,887) 243,071,407 241,321,936
NET INCOME (LOSS) (253,589,288) 865,236,267 840,915,428
OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss) not to be reclassified to profit or loss in subsequent periods (net of tax) -
Actuarial gain (loss) on defined benefit obligation (Note 27) (21,826,279) (94,811,325) 32,982,022
Tax effect (Note 27) 6,586,418 28,443,398 (9,894,607)
(15,239,861) (66,367,927) 23,087,415
TOTAL COMPREHENSIVE INCOME (LOSS) (268,829,149) 798,868,340 864,002,843
Basic/Diluted Earnings (Loss) Per Share (Note 35) ₧(0.17) ₧0.57 ₧0.55

The complete set of the consolidated financial statements, including the notes, are covered by the independent auditor’s report and are made available to all shareholders through the
definitive information statement for the annual stockholders’ meeting on July 15, 2021. The consolidated financial statements should be read in conjunction with the notes. A copy of the full
set of consolidated financial statements may be downloaded through the Company’s website (www.shakeyspizza.ph)

116
SHAKEY’S PIZZA ASIA VENTURES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018

Cumulative
Actuarial
Additional Retained Gain (Loss) -
Capital Stock Paid-in Capital Earnings Net of Tax Total
Balances at January 1, 2020 ₧1,531,321,053 ₧1,353,554,797 ₧2,233,070,767 ₧(49,440,271) ₧5,068,506,346
Total comprehensive loss – – (253,589,288) (15,239,861) (268,829,149)
Cash dividends (Note 21) – – (15,313,210) – (15,313,210)
Balances at December 31, 2020 1,531,321,053 1,353,554,797 1,964,168,269 (64,680,132) 4,784,363,987
Balances at January 1, 2019, as previously reported 1,531,321,053 1,353,554,797 1,668,017,627 16,927,656 4,569,821,133
Effect of adoption of PFRS 16 – – (147,051,022) – (147,051,022)
Balances at January 1, 2019, as restated 1,531,321,053 1,353,554,797 1,520,966,605 16,927,656 4,422,770,111
Total comprehensive income (loss) – – 865,236,267 (66,367,927) 798,868,340
Cash dividends (Note 21) – – (153,132,105) – (153,132,105)
Balances at December 31, 2019 1,531,321,053 1,353,554,797 2,233,070,767 (49,440,271) 5,068,506,346
Balances at January 1, 2018 1,531,321,053 1,353,554,797 980,234,304 (6,159,759) 3,858,950,395
Total comprehensive income – – 840,915,428 23,087,415 864,002,843
Cash dividends (Note 21) – – (153,132,105) – (153,132,105)
Balances at December 31, 2018 1,531,321,053 1,353,554,797 1,668,017,627 16,927,656 4,569,821,133

The complete set of the consolidated financial statements, including the notes, are covered by the independent auditor’s report and are made available to all shareholders through the
definitive information statement for the annual stockholders’ meeting on July 15, 2021. The consolidated financial statements should be read in conjunction with the notes. A copy of the full
set of consolidated financial statements may be downloaded through the Company’s website (www.shakeyspizza.ph)

117
 SHAKEY’S PIZZA ASIA VENTURES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31

2020 2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss) before income tax ₧(368,511,175) ₧1,108,307,674 ₧1,082,237,364
Adjustments for:
Depreciation and amortization (Note 26) 497,433,459 554,013,596 230,752,920
Interest expense (Note 28) 333,303,573 311,472,803 188,515,123
Provision for legal and other contingencies (Note 29) 34,779,970 – 2,253,030
Movements in:
Accrued pension costs 31,101,754 (2,834,838) (5,819,145)
Accrued rent – – 25,671,725
Loss (gain) on:
Disposal of property and equipment (Note 29) 18,749,687 1,883,436 118,201
Pre-terminations of leases
(Notes 15, 20 and 29) (14,584,239) – –
Disposal of inventory (5,498,534) – –
Accretion income (Notes 16 and 29) (4,243,006) (3,990,747) (3,981,670)
Interest income (Notes 8 and 29) (2,886,826) (2,345,458) (1,706,189)
Unrealized foreign exchange gain (loss) (Note 29) 332,437 (1,963,181) (1,256,949)
Fair value gain on financial assets at fair value through profit or loss (FVPL) (Note 29) (589,306) (1,016,240) –
Income before working capital changes 519,387,794 1,963,527,045 1,516,784,410
Decrease (increase) in:
Trade and other receivables 148,478,925 (349,939,376) 78,002,176
Inventories 37,684,338 124,018,343 (234,939,140)
Prepaid expenses and other current assets 14,740,059 95,883,964 (8,063,520)
Increase (decrease) in
Accounts payable and other current liabilities (195,597,433) 162,622,351 (208,035,606)
Contract liabilities (Note 36) (23,430,428) (9,656,214) (7,036,891)
Cash generated from operations 501,263,255 1,986,456,113 1,136,711,429
Income taxes paid (including creditable withholding taxes) (175,974,315) (285,269,628) (217,143,095)
Interest received 2,886,826 2,345,458 1,706,189
Net cash provided by operating activities 328,175,766 1,703,531,943 921,274,523

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 CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of:
Property and equipment (Notes 6 and 13) ₧(167,168,602) ₧(417,493,846) ₧(434,122,382)
Financial assets at FVPL (Note 12) (120,000,000) (270,139,412) –
Software (Note 14) (85,158,730) (178,159,719) –
Franchise right (Note 14) (4,964,977) – –
Peri-Peri business (Note 6) – (774,521,166) –
Proceeds from:
Redemption of financial assets at FVPL 120,589,306 151,155,652 –
Disposal of property and equipment 10,455,402 56,159,830 29,737,309
Decrease (increase) in:
Deferred input value-added tax 19,539,898 (4,512,041) 32,214,343
Rental and other deposits (Note 36) (5,432,721) (44,662,438) (8,757,317)
Increase (decrease) in dealers’ deposits and other noncurrent liabilities (Note 35) (5,368,235) (16,769,843) 32,256,215
Net cash used in investing activities (237,508,659) (1,498,942,983) (348,671,832)
CASH FLOWS FROM FINANCING ACTIVITIES (Note 36)
Proceeds from short-term loans (Note 19) 1,500,000,000 800,000,000 –
Payments of:
Lease liabilities (Note 15) (203,225,951) (278,999,874) –
Short-term loans (Note 19) (1,000,000,000) (250,000,000) (50,109,891)
Interest (221,822,567) (200,496,593) (182,073,515)
Dividends (Note 21) (15,313,210) (153,132,105) (153,132,105)
Long-term loans (50,000,000) (50,000,000) –
Net cash provided by (used in) financing activities 9,638,272 (132,628,572) (385,315,511)
EFFECT OF EXCHANGE RATE CHANGES ON CASH (332,437) 1,963,181 1,496,101
NET INCREASE IN CASH 99,972,942 73,923,569 188,783,281
CASH AT BEGINNING OF YEAR (Note 8) 507,701,190 433,777,621 244,994,340
CASH AT END OF YEAR (Note 8) ₧607,674,132 ₧507,701,190 ₧433,777,621

The complete set of the consolidated financial statements, including the notes, are covered by the independent auditor’s report and are made available to all shareholders through the
definitive information statement for the annual stockholders’ meeting on July 15, 2021. The consolidated financial statements should be read in conjunction with the notes. A copy of the full
set of consolidated financial statements may be downloaded through the Company’s website (www.shakeyspizza.ph)

119
 GRI Content Index 102-55

General Disclosures Omissions

GRI Standard Disclosure Page Number or URL Part Omitted Reason

GRI: 101 Foundation 2016

General Disclosures

GRI 102: General Disclosures 2016 Organizational Profile

102-1 Name of the Organization Get to Know Us, Page 7

102-2 Activities, Brands, Products, and Services Our Business Presence, Page 10

102-3 Location of Headquarters Contact Information, Page 130

102-4 Location of Operations https://www.shakeyspizza.ph/store-locator

102-5 Ownership and Legal Form Stock Highlights, Page 104–105

102-6 Markets Served Our Business Presence, Page 10

102-7 Scale of the Organization Providing Good Times and Great Memories, Page 7

102-8 Information on Employees and Other Workers Talent Acquisition and Management, Page 56

102-9 Supply Chain Creating Value Across Our Business, Page 46

102-10 Significant Changes to the Organization and Its There are no significant changes to the organization or
Supply Chain its supply chain.
102-11 Precautionary Principle or Approach Food Safety and Quality, Page 68

102-12 External Initiatives Communities, Page 59

Strategy

102-14 Statement from Senior Decision-Maker Message from the Chairman, Page 23
The President’s Letter, Page 25
102-15 Key Impacts, Risks, and Opportunities Risk Risk Management, Page 94-96
Management.
Ethics and Integrity

102-16 Values, principles, standards, and norms of What Keeps Us Going, Page 20–22
behavior
102-17 Mechanisms for advice and concerns about Code of Business Conduct and Ethics, Page 92-93
Ethics
Governance

102-18 Governance structure Corporate Governance, Page 84-91

102-19 Delegating authority Our Sustainability Journey, Page 50-53
Corporate Governance, Page 84-91

120
102-20 Executive-level responsibility for economic, Our Sustainability Journey, Page 50-53
environmental, and social topics Corporate Governance, Page 84-91
102-21 Consulting stakeholders on economic, How We Engage with Stakeholders, Page 48-49
environmental, and social topics
102-22 Composition of the highest governance body Corporate Governance, Page 84-91
and its committees
102-23 Chair of the highest governance body Our Board of Directors, Page 72-77

102-24 Nominating and selecting the highest Corporate Governance, Page 84-91
governance body
102-25 Conflicts of interest Code of Business Conduct and Ethics, Page 92-93

102-26 Role of highest governance body in setting Corporate Governance, Page 84-91
purpose, values, and strategy
102-27 Collective knowledge of highest governance Our Board of Directors, Page 72-77
body
102-28 Evaluating the highest governance body’s Corporate Governance, Page 84-91
performance
102-29 Identifying and managing economic, Our Sustainability Focus, Page 42-44
environmental, and social impacts
102-30 Effectiveness of risk management processes Risk Management, Page 94-97

102-31 Review of economic, environmental, and social Creating Value Across Our Business, Page 46
topics
102-32 Highest governance body’s role in sustainability Message from the Chairman, Page 23
reporting
102-33 Communicating Critical Concerns Workplace Culture and Environment, Page 57

102-35 Remuneration Policies Remuneration Process:

The Company reviews the compensation paid to its
executives and officers on a yearly basis. The levels of
remuneration of the corporation should be sufficient to
be able to attract and retain the services of qualified
and competent executives and officers. A portion of the
remuneration of executive directors may be structured
or be based on corporate and individual performance.

Remuneration Policy and Structure for Executive and

Non-Executive Directors:
The Company’s By-Laws provide that directors shall
receive reasonable per diems for their attendance
during each Board meeting. Any compensation other
than per diems may be allowed subject to the approval
of stockholders representing at least a majority of the
outstanding capital stock.

121
 Remuneration Scheme:
The Company’s By-Laws provide that directors shall
receive reasonable per diems for their attendance
during each Board meeting. Any compensation
other than per diems may be allowed subject to
the approval of stockholders representing at least
a majority of the outstanding capital stock. The
Company’s annual reports as well as information and
proxy statements include disclosures of all fixed and
variable compensation that may be paid, directly or
indirectly, to its directors and top four management
officers during the preceding fiscal year, which may be
subject to objection or ratification of the stockholders.
There were no issues on the compensation of directors
and officers that were brought up in the last annual
stockholders’ meeting
Stakeholder Engagement

102-40 List of Stakeholder Groups How We Engage with Stakeholders, Page 48-49

102-41 Collective Bargaining Agreements How We Engage with Stakeholders, Page 48-49

102-42 Identifying and Selecting Stakeholders How We Engage with Stakeholders, Page 48-49

102-43 Approach to Stakeholder Engagement How We Engage with Stakeholders, Page 48-49

102-44 Key Topics and Concerns Raised How We Engage with Stakeholders, Page 48-49

Reporting Practice

102-45 Entities Included in the Consolidated Financial Stock Highlights, Page 104-105
Statements
102-46 Defining Report Content and Topic Boundaries Our Sustainability Focus, Page 42-44

102-47 List of Material Topics Our Sustainability Focus, Page 42-44

102-48 Restatements of Information There are no restatements of information.

102-49 Changes in Reporting There are no significant changes in reporting.

102-50 Reporting Period About the Report, Page 2

102-51 Date of Most Recent Report About the Report, Page 2

102-52 Reporting Cycle About the Report, Page 2

102-53 Contact Point for Questions Regarding the About the Report, Page 2
Report
102-54 Claims of Reporting in Accordance with the GRI About the Report, Page 2
Standards
102-55 GRI Content Index GRI Content Index, Page 120-127

102-56 External Assurance No external assurance was conducted.

122
Material Topics Omissions

GRI Standard Disclosure Page Number or URL Part Omitted Reason

GRI 200 Economic Standard Series

Economic Performance

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary The Economic Value We Create, Page 45
2016
103-2 The Management Approach and Its Components The Economic Value We Create, Page 45

103-3 Evaluation of the Management Approach The Economic Value We Create, Page 45

GRI 201: Economic Performance 201-1 Direct Economic Value Generated and Distributed The Economic Value We Create, Page 45
2016
Indirect Economic Impacts

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary Talent Acquisition and Management, Page 56
2016 Communities, Page 59
103-2 The Management Approach and Its Components Talent Acquisition and Management, Page 56
Communities, Page 59
103-3 Evaluation of the Management Approach Talent Acquisition and Management, Page 56
Communities, Page 59
GRI 203: Indirect Economic 203-1 Infrastructure Investments and Services Communities, Page 59
Impacts 2016 Supported
203-2 Significant Indirect Economic Impacts Talent Acquisition and Management, Page 56

Procurement Practices

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary Supply Chain Management, Page 65
2016
103-2 The Management Approach and Its Components Supply Chain Management, Page 65

103-3 Evaluation of the Management Approach Supply Chain Management, Page 65

GRI 204: Procurement Practices 204-1 Proportion of Spending on Local Suppliers Supply Chain Management, Page 65
2016
Anti-Corruption

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary Code of Business Conduct and Ethics, Page 92-93
2016
103-2 The Management Approach and Its Components Code of Business Conduct and Ethics, Page 92-93

103-3 Evaluation of the Management Approach Code of Business Conduct and Ethics, Page 92-93

205-1 Operations Assessed for Risks Related to Code of Business Conduct and Ethics, Page 92-93
Corruption

123
 GRI 205: AntiCorruption 2016 205-1 Risk Management, Page 94-97

205-2 Communication and Training About Code of Business Conduct and Ethics, Page 92-93
AntiCorruption Policies and Procedures
205-3 Confirmed Incidents of Corruption and Actions There are no confirmed incidents of corruption.
Taken
Anti-Competitive Behavior

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary Code of Business Conduct and Ethics, Page 92-93
2016
103-2 The Management Approach and Its Components Code of Business Conduct and Ethics, Page 92-93

103-3 Evaluation of the Management Approach Code of Business Conduct and Ethics, Page 92-93

GRI 206: Anti-Competitive Behavior 206-1 Legal Actions for Anti-Competitive Behavior, Anti- Code of Business Conduct and Ethics, Page 92-93
2016 Trust, and Monopoly Practices
GRI 300 Economic Standard Series

Materials

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary Environmental Impact Management, Page 62-64
2016
103-2 The Management Approach and Its Components Environmental Impact Management, Page 62-64

103-3 Evaluation of the Management Approach Environmental Impact Management, Page 62-64

GRI 301: Materials 2016 301-1 Materials Used by Weight or Volume Environmental Impact Management, Page 62-64

301-2 Recycled Input Materials Used Environmental Impact Management, Page 62-64

301-3 Reclaimed Products and Their Packaging Materials Environmental Impact Management, Page 62-64

Energy

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary Natural Resource Efficiency, Page 61
2016
103-2 The Management Approach and Its Components Natural Resource Efficiency, Page 61

103-3 Evaluation of the Management Approach Natural Resource Efficiency, Page 61

GRI 302: Energy 2016 302-1 Energy Consumption within the Organization Natural Resource Efficiency, Page 61

302-3 Energy Intensity Natural Resource Efficiency, Page 61

302-4 Reduction of Energy Consumption Natural Resource Efficiency, Page 61

302-5 Reductions in Energy Requirements of Products Natural Resource Efficiency, Page 61

and Services
Water

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary Natural Resource Efficiency, Page 61
2016

124
 103-2 The Management Approach and Its Components Natural Resource Efficiency, Page 61

103-3 Evaluation of the Management Approach Natural Resource Efficiency, Page 61

GRI 303: Water 2016 303-5 Water Consumption Natural Resource Efficiency, Page 61

Emissions

GRI 103: Management Approach 2016 103-1 Explanation of the Material Topic and Its Boundary Natural Resource Efficiency, Page 61

103-2 The Management Approach and Its Components Natural Resource Efficiency, Page 61

103-3 Evaluation of the Management Approach Natural Resource Efficiency, Page 61

GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG Emissions Natural Resource Efficiency, Page 61

305-2 Indirect (Scope 2) GHG Emissions Natural Resource Efficiency, Page 61

305-4 GHG Emissions Intensity Natural Resource Efficiency, Page 61

305-5 Reduction of GHG Emissions Natural Resource Efficiency, Page 61

GRI 306: Waste 2020 306-1 Waste generation and significant waste-related Environmental Impact Management, Page 62-64
impacts
306-2 Management of significant waste-related impacts Environmental Impact Management, Page 62-64

306-3 Waste generated Environmental Impact Management, Page 62-64

Supplier Environmental Assessment

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary Supply Chain Management, Page 65
2016
103-2 The Management Approach and Its Components Supply Chain Management, Page 65

103-3 Evaluation of the Management Approach Supply Chain Management, Page 65

307-1 Non-Compliance with Environmental Laws There are no incidents of non-compliance with
and Regulations environmental laws and regulations.
GRI 400 Social Standards Series
Employment

GRI 103: Management 103-1 Explanation of the Material Topic and Its Boundary Talent Acquisition and Management, Page 56
Approach 2016 Workplace Culture and Environment, Page 57
103-2 The Management Approach and Its Components Talent Acquisition and Management, Page 56
Workplace Culture and Environment, Page 57
103-3 Evaluation of the Management Approach Talent Acquisition and Management, Page 56
Workplace Culture and Environment, Page 57
GRI 401: Employment 2016 401-1 New Employee Hires and Employee Turnover Talent Acquisition and Management, Page 56
Workplace Culture and Environment, Page 57
401-2 Benefits Provided to Full-Time Employees that Are Workplace Culture and Environment, Page 57
Not Provided to Temporary or Part-Time Employees

125
 Occupational Health and Safety

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary Workplace Culture and Environment, Page 57
2016
103-2 The Management Approach and Its Components Workplace Culture and Environment, Page 57

103-3 Evaluation of the Management Approach Workplace Culture and Environment, Page 57

Training and Education

GRI 103: Management Approach 2016 103-1 Explanation of the Material Topic and Its Boundary Talent Acquisition and Management, Page 56

103-2 The Management Approach and Its Components Talent Acquisition and Management, Page 56

103-3 Evaluation of the Management Approach Talent Acquisition and Management, Page 56

GRI 404: Training and Education 2016 404-1 Average Hours of Training Per Year Per Employee Talent Acquisition and Management, Page 56

404-2 Programs for Upgrading Employee Skills and Talent Acquisition and Management, Page 56
Transition Assistance Programs
Diversity and Equal Opportunity

GRI 103: Management Approach 2016 103-1 Explanation of the Material Topic and Its Boundary Talent Acquisition and Management, Page 56

103-2 The Management Approach and Its Components Talent Acquisition and Management, Page 56

103-3 Evaluation of the Management Approach Talent Acquisition and Management, Page 56

GRI 405: Diversity and Equal 405-1 Diversity of Governance Bodies and Employees Talent Acquisition and Management, Page 56
Opportunity 2016
Non-Discrimination

GRI 103: Management Approach 2016 103-1 Explanation of the Material Topic and Its Boundary Talent Acquisition and Management, Page 56

103-2 The Management Approach and Its Components Talent Acquisition and Management, Page 56

Evaluation of the Management Approach Talent Acquisition and Management, Page 56

GRI 406: Non-Discrimination 2016 406-1 Incidents of Discrimination and Corrective Actions There are no incidents of discrimination
Taken
Freedom of Association and Collective Bargaining

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary https://www.shakeyspizza.ph/investors/corporate-
2016 information
103-2 The Management Approach and Its Components https://www.shakeyspizza.ph/investors/corporate-
information
103-3 Evaluation of the Management Approach https://www.shakeyspizza.ph/investors/corporate-
information

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GRI 407: Freedom of Association 407-1 Operations and Suppliers in Which the Right to https://www.shakeyspizza.ph/investors/corporate-
and Collective Bargaining 2016 Freedom of Association and Collective Bargaining May information
Be at Risk
Local Communities

GRI 103: Management Approach 2016 103-1 Explanation of the Material Topic and Its Boundary Communities, Page 59

103-2 The Management Approach and Its Components Communities, Page 59

103-3 Evaluation of the Management Approach Communities, Page 59

GRI 413: Local Communities 2016 413-1 Operations with Local Community Engagement, Communities, Page 59
Impact Assessments, and Development Programs
Supplier Social Assessment

GRI 103: Management Approach 2016 103-1 Explanation of the Material Topic and Its Boundary Supply Chain Management, Page 65

103-2 The Management Approach and Its Components Supply Chain Management, Page 65

103-3 Evaluation of the Management Approach Supply Chain Management, Page 65

Customer Health and Safety

GRI 103: Management Approach 2016 103-1 Explanation of the Material Topic and Its Boundary Food Safety and Quality, Page 68

103-2 The Management Approach and Its Components Food Safety and Quality, Page 68

103-3 Evaluation of the Management Approach Food Safety and Quality, Page 68

GRI 416: Customer Health and 416-1 Assessment of the Health and Safety Impacts of Food Safety and Quality, Page 68
Safety 2016 Product and Service Categories
416-2 Incidents of Non-Compliance Concerning the There are no incidents of non-compliance concerning
Health and Safety Impacts of Products and Services the health and safety of our products and services.
Customer Privacy

GRI 103: Management Approach 103-1 Explanation of the Material Topic and Its Boundary https://www.shakeyspizza.ph/privacy-policy
2016
103-2 The Management Approach and Its Components https://www.shakeyspizza.ph/privacy-policy

103-3 Evaluation of the Management Approach https://www.shakeyspizza.ph/privacy-policy

GRI 418: Customer Privacy 2016 418-1 Substantiated Complaints Concerning Breaches https://www.shakeyspizza.ph/privacy-policy
of Customer Privacy and Losses of Customer Data

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 Contact Information 102-3

Shakey’s Wow Center (Corporate Office) Commissary Stock Transfer Agent

15KM East Service Road corner Marian Road 2 32A Arturo Drive Banco de Oro Unibank, Inc. - Trust Banking Group
Barangay San Martin de Porres Bagumbayan Securities Services and Corporate Agencies
Parañaque City Taguig City Department
Philippines 1700 Philippines 1630 BDO Corporate Center
Tel.No.: + (632) 8742 5397 Tel: + (632) 8838 2128 15F South Tower
www.shakeyspizza.ph 7899 Makati Avenue
Makati City
Philippines
Tel: + (632) 8878 4963
[email protected]

Stay Up to Date

Shakey’s Philippines shakeysph @phshakeys www.shakeyspizza.ph

Peri Peri Charcoal Chicken & Sauce Bar pericharcoalph
R&B Tea Philippines rbteaph

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 SHAKEY’S PIZZA ASIA VENTURES, INC.
A Subsidiary of Century Pacific Group, Inc.

Sustainability and Annual Report 2020

Shakey’s WOW Center, 15KM East Service Road

corner Marian Road 2, Barangay San Martin de Porres,
Parañaque City, Philippines 1700
Tel: + (632) 8742 5397
www.shakeyspizza.ph

Shakey’s Pizza Asia Ventures, Inc. is committed

to sustainable and responsible environmental
practices. This 2020 glossy sustainability and
annual report is printed using 100% recycled eco-
friendly paper. A digital copy can be downloaded at
www.shakeyspizza.ph.

This Sustainability and Annual Report is a product of

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