NASAIYOANGPANALO

NASAIYOANGPANALO
NASAIYOANGPANALO

NASAIYOANGPANALO
NASAIYOANGPANALO
9M23 RESULTS
& PERFORMANCE
Puregold Price Club, Inc. Presentation

Years of Serbisyong Always Panalo Para Sa Pilipino

 DISCLAIMER
These presentations and/or other documents have been written and presented by Puregold Price Club, Inc. (PGOLD). PGOLD is solely responsible for the accuracy
and completeness of the contents of such presentations and/or other documents. Third parties, other than PGOLD, do not have any responsibility for or control over
the contents of such presentations and/or other documents. No endorsement is intended or implied notwithstanding the distribution of this presentation and/or
other documents during the analysts and investors calls and meetings of PUREGOLD. The materials and information in the presentations and other documents are for
informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment
service or investment advice.

HEAD OFFICE ADDRESS

Puregold Price Club, Inc.
New Tabacalera Building,
900 Romualdez Street,
Paco, Manila, 1007 Philippines

3
Pure Play Philippine Food Retailer

A Proxy for the Philippine Consumption Story

• Robust topline growth from an enterprise with the broadest consumer

segments
• Healthy cash flows and a simple capital structure
• Two marquee brands in Philippine retail: Puregold stores and S&R WHs
• Beneficiary of a nation with a growing middle class and a young population
• Preferred partner of Philippine traditional retail

4
Puregold Enterprise

• Caters to the low income and low-middle income customers

• Lower C, D and E market
• Sari sari store customers/resellers
• Popular local and small sized SKUs
• Robust selling platform for all FMCG cos. doing business in PH

• Membership shopping model

• Catering to the upper income customers
• Class A & B and upper C segment
• Imported and large size SKUs
• Offering the best products in the world – it’s retail therapy!

5
Most Chosen Retailer 2022, Kantar

Puregold recently ranked No. 1 in the Philippines as In addition, Puregold’s impact to consumers was also
Kantar’s Most Chosen Retailer. driven upward by its accessibility. With over 445 stores
nationwide and increasing footprint in the provinces,
In the shopper study, Kantar noted that Puregold Puregold squarely fits the trends noticed by Kantar in that
consistently offers the best prices for grocery goods as Filipinos not only consider goods prices in their retailers,
it cements itself as a trustworthy supplier for Filipinos. but also their proximity and accessibility.
6
Shareholder Distribution

YEAR EPS DIV

2016 2 0.4

2017 1.99 0.4

2018 2.24 0.4

2019 2.37 0.45

2020 2.81 0.5

2021 2.85 0.86*

2022 3.24

5YCAGR 10% 17%

YoY 14% 72%

EPS DIV * In Dec 2022, new dividend policy to declare as dividend at least 30% of income of the previous year
7
Macro Highlights in 2023

SNAPSHOT : PHILIPPINES SNAPSHOT : THE WORLD

• Resilient mid-C, D and E markets • Inflationary pressures linger

• Sustained strength from A, B and upper C markets • Soft commodities & Brent oil prices strengthening
• Employment gains continue • Continued high geopolitical uncertainties
• Lingering inflationary pressures • Slowdown (underway)
• More manageable USD-PHP FX rate • Tightened Conditions
• GDP growth continues • El Nino phenomenon

8
Pillars of Growth 2023

01 02 03 04 05
Store Increase Demand Robust Group
Expansion Shopper Count Creation End-to-End Sustainability
Supply Chain Objectives
• +15% increase • Increase high • Reboot of marketing • “Just in Case” • Improving corporate
pace in Puregold- potential shoppers events vs. “Just in governance
only stores • ECommerce - - TNAP Convention • Mindful Retailing
• more provincial Time’
“Sally”, Aling - HORECA • Strong community
areas (70% of new Puring App & Convention • Improve Fresh involvement
stores) Aggregators - VIPuring • Order
• Initial foray into • Out-of-store • Leverage social fulfillment
Central Visayas chassis (Sari-sari media capabilities
(Cebu) Store drive) • Level-up joint
business &
marketing plans
with suppliers
9
New Independent Directors

Over 40 years of experience in the financial industry.

President and CEO of Development Bank of the Phils. from 2019 to 2023.

Best CEO for 2021 by the Association of Developmental Financial Institutions in

Asia Pacific.

President and CEO of Philippine Import-Export Credit Agency.

President and CEO of the Philippine Guarantee Corporation (PGC), the

country’s principal agency for state guarantee finance.

Chief Operating Officer of Ayala Insurance Group.

Master in Business Administration from the Wharton School of the University

of Pennsylvania, USA.

>>>
Graduated from De La Salle University with a degree in Industrial Management
MR. EMMANUEL HERBOSA Engineering.
Independent Director

10
New Independent Directors

Over 30 years of experience in the telecommunications and financial

industries.

Over 12 years with Citibank in the Philippines, Singapore, Japan, Hong Kong,
and New York, with stints in financial control, risk management, product
development, treasury audit, corporate audit and market risk review.

Globe Telecom’s Chief Technology and Information Officer (CTIO) from

November 2015 to April 2021, as well as its Chief Strategy Officer (CSO) from
2011 to April 2021.

Independent Director at GT Capital Holdings and a former Independent

Director at Insular Life Assurance Company from May 2018 to March 2022.

Master’s degree in Business Management, With Distinction, from the Asian

Institute of Management.

>>>
Bachelor of Science degree in Physics, Magna Cum Laude, from the University
MR. GIL GENIO of the Philippines.
Independent Director

11
Divimart Acquisition

Opportunity
•Access to 32 locations
instantly
•Fit-outs allow for faster store
opening – i.e. new PG Stores
within 6 months
•Leverage on a partnership to
find & build more locations
for PG Stores
Cost
•One-time acquisition cost Transaction Overview
based on store area •Asset Sale + Sublease
•Sublease agreement co- Agreement
terminus with main contract •Key assets are store locations
of lease or at least 10yrs •No purchase of land, head
•Standard security deposits office, logistics capex nor IP
•Appraised value of equipment rights
applicable •No shares of Divimart
•Conversion to PG Store acquired
inside-out •Inventory (as applicable) and
manpower are absorbed

12
Store Portfolio – 9M 2023

GEOGRAPHIC COVERAGE KEY STATS NEW PG + S&R STORES 2023

TOTAL NUMBER
558 Opened
OF STORES
N.Luzon 145
316 hypermarkets
30 new Puregold Stores
98 supermarkets with (21 Divimart
187 Metro Manila NO. OF STORES
67 extras conversion)
PER FORMAT
24 S&Rs
S.Luzon 53 S&R QSRs
2 S&R Warehouse Clubs and
150
2 S&R QSR.
Visayas 59 PUREGOLD S&R S&R QSR
NET SELLING AREAS (in sqm)
Metro Manila 148 12 27
Luzon 269 8 19
16 Puregold 546,058 sqm
Visayas 50 2 7
Mindanao Mindanao 14 2 - S&R 123,229 sqm
Total 481 24 53
QSR 5,009 sqm
Total 674,296 sqm
13
Operating Performance – 9M 2023

REVENUE
CONTRIBUTION

32%
68%

Puregold S&R

14
9M23 Financial Highlights

CONSO REVENUE GROSS PROFIT EBITDA

MARGIN % MARGIN % NIAT

9M23 Php 139.3bn 18.3% 9.9% Php 6.6 bn

YoY 9.2% -46 bps -87 bps 2.1%

15
Financial Performance – Conso 9M 2023

NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions)

184.3 45 30.0%
168.63 164.12 40 28.0%

139.30 35
33.82 26.0%
127.56 29.16 30.08
30
25.54 24.0%

25 23.97 22.0%

20
18.3% 18.4% 18.8% 18.3% 20.0%

15
17.3% 18.0%

10 16.0%

5 14.0%

0 12.0%

2020 2021 2022 9M 22 9M 23 2020 2021 2022 9M 22 9M 23

Gross Profit GP Margin

3YCAGR 4.5% 9.2% 3YCAGR 7.7% 6.5%

16
Financial Performance – Conso 9M 2023

OTHER OPERATING INCOME (in PHP millions) OPERATING INCOME/EBIT (in PHP Millions)
4,500

14.0%
4,000
20,000 20.0%

3,500
3,155 3,210 3,184 12.0%
18,000 18.0%

14,481
3,000

2,243 2,309 10.0%

16,000
13,358 12,942 16.0%

14,000
2,500
8.0% 10,286 14.0%

2,000
12,000
10,036 12.0%

6.0%
10,000
7.9% 7.9% 7.2%
1,500 8,000 7.9% 8.1% 10.0%

1.9% 2.0% 4.0% 8.0%

1,000
1.7% 1.8% 1.7% 6,000

6.0%
4,000
2.0%
500
2,000 4.0%

- 0.0%
- 2.0%

2020 2021 2022 9M 22 9M 23 2020 2021 2022 9M 22 9M 23

Other Income % of Sales EBIT EBIT Margin

3YCAGR 0.5% 2.9% 3YCAGR 4.1% -2.4%

17
Financial Performance – Conso 9M 2023

EBITDA & MARGIN (in PHP millions) OPERATING EXPENSES (in PHP Millions)
30,000 40.0%

30,000 40.0%

35.0%
25,000
25,000 22,522 35.0%

19,075
30.0%
20,350
20,000
17,680 17,614 20,000
18,953 17,808 30.0%

25.0%
15,923 25.0%

15,000 13,687 13,736 20.0%

15,000 20.0%

10.5% 10.7% 10.3% 10.7% 15.0% 15.0%

9.9%
10,000 10,000

5,000
10.0%

5,000 11.2% 12.4% 12.2% 12.5% 12.8% 10.0%

5.0% 5.0%

- 0.0% - 0.0%

2020 2021 2022 9M 22 9M 23 2020 2021 2022 9M 22 9M 23

EBITDA EBITDA Margin OPEX % of Sales

3YCAGR 3.9% 0.4% 3YCAGR 9.0% 11.8%

18
Financial Performance – Conso 9M 2023

NET INCOME & MARGIN (in PHP Millions)

15.0%

12,000
13.0%

10,000
9,287
8,067 8,180 11.0%

6,612 9.0%
8,000
6,474
5.0% 5.0%
6,000 4.8% 5.1% 4.7%
7.0%

5.0%

4,000

3.0%

2,000
1.0%

- -1.0%

2020 2021 2022 9M 22 9M 23

Net Income NI Margin

3YCAGR 7.3% 2.1%

19
 Financial Performance – Conso 9M 2023

NET SALES BREAKDOWN QTR NET SALES TREND

in PHP Billions
9.2% 60.0

2023 55.0

95.2 2022 50.0

87.6 8.8%
2021 45.0

2020 40.0
10.1%
40.0 44.1 2019 35.0

30.0
9M 22 9M 23 1Q 2Q 3Q 4Q
>> Record 3Q net sales. Best 9M sales trajectory. High Single-digit 9M sales growth YoY for the group.
>> 9M 23 YoY major contributors are higher traffic in PG store & S&R WHs, with slightly offset by decrease in ticket size in both store formats.
>> Consumption by carded members continue to be good source of growth. Traditional Retail remain strong. End-con showing biggest growth
in transactions.
20
Margin Trends – Conso 9M 2023

20.0%

18.3% 18.4% 18.3% >> Groupwide competitive

18.0%

16.8% 17.3% pricing initiatives for market

share volume growth tempered
GPM 16.0%

by effect of joint business plans

14.0%
with suppliers
EBITDAM
12.0%

10.5% 10.7% 10.3% >> Higher frontloaded OPEX due

9.8% 9.9% to more store expansion and
EBITM
10.0%

7.9% 7.9% increased business activities

7.4% 7.9%
8.0%
7.2%
NM >> Compression from lower GP
6.0%

4.8% 5.0% 5.0% 4.7%

4.4% margin and higher opex/sales
4.0%
tempered by higher interest
2019 2020 2021 2022 9M 23 income and lower effective tax
rate; Compression on GPM and
EBITDAM due to growth initiatives

21
CAPEX Guidance for FY 2023

CAPEX Budget of Php 11.9 billion in 2023

Php 2.3 billion for 30 new Puregold Stores
Php 4.1 billion for 4 S&R WHs and 10 S&R QSRs
Php 3.5 billion for logistics capex
Php 2.0 billion for maintenance capex, solar projects and IT upgrades

22
Updated Management Guidance 2023

Consolidated Revenue Growth

8% to 10% target

Gross Profit Margin

Puregold Stores: 15.5% to 16.5% target
S&R WH: 22% to 22.5% target

23
9M23 RESULTS & PERFORMANCE
Puregold Price Club, Inc. Presentation

Q&A
 Thank you
LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO
O ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO
LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO
O ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO
LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO
O ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO
9M23 RESULTS & PERFORMANCE
Puregold Price Club, Inc. Presentation

ANNEX
Financial Performance 9M23 – PGOLD Only

NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions)

30,000
160
24.0%

124.03
140
124.3 25,000

120 115.14 20,178

22.0%

95.24 20,000 18,528 18,476 15,666

100
87.56 14,487
20.0%

80 15,000

16.2% 16.5% 16.4%

18.0%

60
16.0%
14.9%
10,000
16.0%
40

5,000 14.0%
20

0
- 12.0%

2020 2021 2022 9M 22 9M 23 2020 2021 2022 9M 22 9M 23

GP GP Margin

3YCAGR 0.1% 8.8% 3YCAGR 4.4% 8.1%

27
 Financial Performance 9M23 – PGOLD Only

EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions)
15,000 20.0%

18.0%
13,000

16.0% 8,000 15.0%

11,000
9,930 9,471 10,152 7,781
7,457 14.0% 7,000 13.0%

9,000
12.0% 6,000 5,557 11.0%

4,542 3,705
7,000

8.0% 8.2% 8.2% 8.5% 8.2% 10.0%

5,000
4,130 9.0%

5,000
8.0%
4,000
3,063 7.0%

6.0%
3,000
3.7% 3.6% 4.5% 3.9% 5.0%

3,000
4.0%
2,000
3.5% 3.0%

1,000 1.0%
1,000
2.0%
- -1.0%

(1,000) 0.0%
2020 2021 2022 9M 22 9M 23
2020 2021 2022 9M 22 9M 23
EBITDA EBITDA Margin NIAT NIAT Margin

3YCAGR 1.1% 4.3% 3YCAGR 10.6% 21%

28
Financial Performance 9M23 – S&R Only

NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions)
80

70

60
60.00 20,000 70.0%

18,000

49.04 60.0%

50
44.61 44.06
16,000
13,642
40.01 14,000
11,607 50.0%
40 12,000 10,628 9,869
30
10,000 9,478 40.0%

8,000

20 6,000
23.8% 23.7% 22.7% 23.7% 22.4% 30.0%

4,000
20.0%
10
2,000

- 10.0%
0

2020 2021 2022 9M 22 9M 23 2020 2021 2022 9M 22 9M 23

GP GP Margin

3YCAGR 16.0% 10.1% 3YCAGR 13.3% 4.1%

29
Financial Performance 9M23 – S&R Only

EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions)

12,000 50.0% 7,000 30.0%

45.0%
6,000
10,000
8,923 40.0%
4,968
25.0%

7,750 8,209 35.0%

5,000
4,492
8,000
4,000 20.0%

6,230 5,969
30.0%
4,000
3,411
6,000

17.4%
25.0%
2,898 15.0%

4,000
16.6% 14.9% 15.6% 13.5% 20.0%
3,000

9.0% 9.2% 8.3% 8.5% 10.0%

15.0%

10.0%
2,000 6.6%
2,000 5.0%
1,000
5.0%

- 0.0% - 0.0%

2020 2021 2022 9M 22 9M 23 2020 2021 2022 9M 22 9M 23

EBITDA EBITDA Margin NIAT NIAT Margin

3YCAGR 7.3% -4.2% 3YCAGR 11.4% -15.0%

30
Financial Performance – 9M 2023

SEP 2023 SEP 2022 DEC 2022

Trade Receivables Days 3.2 2.2 3.6

Inventory Days 69 69 60.0

Trade Payables Days 30 20.1 30.9

Cash Conversion Cycle 42.1 51.1 32.8

Notes:
1.Average of inventory at the beginning and end of the period / cost of sales x 363 (for full year))
2.Average of trade receivables at the beginning and end of the period / net sales x 363 (for full year)
3.Average of trade payable at the beginning and end of the period / cost of sales x 363 (for full year)

31
Shopper Trends 2023

Timely and complete fulfillment

More “in-person”

Emphasis on value

Preference for impactful

promotions

Strength of
traditional channels

32
In-store Brand Refresh

Modern & dynamic

Visuals

Communicate value for money by

Strengthening local appeal highlighting partner brands,
categories, promos

33
Sustainability Highlights 2022

ECONOMIC CONTRIBUTION

PHP 202.1M invested

PHP 4.98B taxes paid to PHP 3.14B employee
to community including
the government wages and benefits
LCCK

12,038 total no. of direct

employees 0 incidents of corruption

34
Sustainability Highlights 2022

ENVIRONMENT PERFORMANCE

101M reduction of plastic bags used in

3% Clean electricity used Puregold stores compared to 2018
Rooftop Solar Power in 22
63% of Puregold stores use paper bags
S&R Warehouse Clubs, 1 S&R
and promote monthly upsizing to
Distribution Center, and 2
reduce single-use
Puregold Stores
Gearing towards 100% LED main 4771MT Solid waste
lighting diverted from disposal

29% Scope 1 and 2 GHG Emissions Rain water catchment and

Reduction Gray water venture
35
Sustainability Highlights 2022

SOCIAL RESPONSIBILITY

866 scholars
0 legal actions or
56% female employees graduated, 107 passed
employee grievance on
in the workforce licensure exam, 312
forced and child labor
current no. of scholars

760,000+ Puregold Sari-

1.43M Puregold
Sari Store members
Mobile app
(Support local
downloads
economy)

36
Sustainability Highlights 2022

37