DEL MONTE PHILIPPINES, INC. T CORPORATE PRESENTATION 17 May 2018 - PowerPoint PPT Presentation

DEL MONTE PHILIPPINES, INC. T CORPORATE PRESENTATION 17 May 2018 NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. www.delmontephil.com

Disclaimer This presentation may contain statements regarding the business of Del Monte Philippines, Inc. that are of a forward looking nature and are therefore based on management’s assumptions about future developments. Such forward looking statements are typically identified by words such as ‘believe’, ‘estimate’, ‘intend’, ‘may’, ‘expect’, and ‘project’ and similar expressions as they relate to the Company. Forward looking statements involve certain risks and uncertainties as they relate to future events. Actual results may vary materially from those targeted, expected or projected due to various factors. Representative examples of these factors include (without limitation) general economic and business conditions, change in business strategy or development plans, weather conditions, crop yields, service providers’ performance, production efficiencies, input costs and availability, competition, shifts in customer demands and preferences, market acceptance of new products, industry trends, and changes in government and environmental regulations. The reader is cautioned to not unduly rely on these forward-looking statements. Neither the Company nor its advisers and representatives shall have any liability whatsoever for any loss arising, whether directly or indirectly, from any use or distribution of this presentation or its contents. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for shares in Del Monte Philippines. 2

Contents I. Overview II. Vision and Strategy III. Growth Drivers IV. Awards and Sustainability V. Financial Highlights VI. Investment Merits 3

Overview 4

Del Monte Philippines, Inc. (DMPI) DMPI FY2017 Sales (by product) • DMPI is the 2nd largest subsidiary of Del Monte Pacific Ltd. 13% • Comprises of Philippines sales and exports, with Philippines 34% as the largest market of DMPI accounting for 2/3 of sales 22% P26.7bn • Del Monte is a household name as DMPI has been in 32% operation in the Philippines for over 90 years since 1926 Packaged Fruit and Veg Beverage Culinary Fresh Fruit and Others DMPI FY2017 Sales (by geography) T 33% 34% T P26.7bn 67% 66% Philippines Exports 5

Vertically Integrated Operations with Economies of Scale in Pineapple Fresh Packhouse Cannery Nice Fruit Plantation ~25,000 ha. of Cannery capacity of Nice Fruit patented State-of-the-art plantation in Bukidnon, 700,000 tons; located technology called fresh cold storage Philippines; planting & about one hour from and packing house Nice Frozen Dry plantation; processes harvesting nearly 24 facility fruit within 24 hours hour operation year T T round of harvest assuring freshness 6

Philippine Market  Philippines posted sales of P15.9bn in FY2017  The Company sells through general trade, modern FY2017 Sales Split trade and foodservice. DMPI utilizes non-exclusive (Total Sales P15.9bn) distributors nationwide to cover general trade accounts such as wholesalers, public markets and retail stores Culinary  World’s largest integrated pineapple operation with a (Sauces, Packaged Ketchup, 25,000-hectare pineapple plantation and over Fruit Pasta) 700,000-ton processing capacity . It is proud of its 26% 35% long heritage of 90+ years of pineapple growing and processing Blue Chip Customers T Beverage 39% 7

Philippines Sales Split FY2017: 39% Beverage 35% Culinary (Sauces, Ketchup, Pasta) 26% Packaged Fruit T 8

Philippines Market Share (#1) Market Share (#1) Market Share (#1) Canned Pineapple Canned Mixed Fruit Canned and Tetra RTD Juices Market Share (#1) Market Share (#1) Tomato Sauce Spaghetti Sauce  The Group owns the Del Monte brand in the Philippines for processed products where it enjoys leading market shares for canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup  Modern trade and convenience stores are growing fast: Del Monte is strong in modern trade, generating about 30% of sales  Expanding foodservice sales, accounting for 18% of Philippine sales  E-commerce and digital are growing To drive growth, continue to build new categories, channels and markets to ensure future competitiveness and growth Source for market shares: Nielsen Retail Index as of 3 months to December 2017 9

Asia and the Middle East – S&W brand S&W Asia and Middle East FY2017 Sales Split  DMPL acquired S&W International from Del Monte Corporation in November 2007  A heritage brand which originated in the US in 1896  Exceptional quality premium canned fruit and vegetable products Packaged Fruit  S&W entered the fresh pineapple business under 41% Fresh Fruit the S&W brand and is now ranked Top 3 in China, 59% South Korea, Japan and Singapore  DMPI sales to S&W Asia and Middle East of P2.7bn in FY2017 (S&W fresh P1.6bn and S&W packaged P1.1bn) Market Region Share T China Within South Korea Top 3 Japan Singapore Source: Management Estimates 10

T Wide Distribution Reach and Diversified Portfolio of Customers Asian customers DISTRIBUTION REACH USA Philippines Canada Cambodia Mexico Myanmar (E-Mart Co Ltd) Central Pacific America Islands Venezuela Australia China Israel Japan UAE South Korea Iran Hong Kong Saudi Arabia Taiwan Qatar Mongolia Pakistan T Singapore Turkey Malaysia Cyprus Thailand France Indonesia Spain 11

T S&W Products – Asia and Middle East Sales Split FY2017: 59% Fresh Pineapple 41% Packaged Fruit T 12

S&W Asia and the Middle East  Consumers moving towards less processed and more natural food: S&W expanding sales of S&W Sweet 16 fresh pineapple  E-commerce and digital are growing with North Asia having the largest share of E-commerce pie: S&W is actively exploring this channel To drive growth, realise S&W’s full potential in fresh pineapple and other products, channels, and build S&W’s brand equity in key markets 13

Exports – Del Monte companies and Private label customers  DMPI also exports to Asia, Europe and America to Del Monte companies and private labels EMEA  This amounted to P5.7bn in FY2017, up 1% Asia T USA 14

Vision and Strategy 15

Vision and Strategy T T T 16 t

Strategy  Continue to strengthen consumer loyalty in the core Philippines business through investment in brand equity and marketing  Invest in R&D for product innovation, targeting in particular health-focused categories  New packaging formats to attract new target markets  Continue to expand channel coverage both in the Philippines and internationally  Expand in the international market  Maintain a culture of operational and T commercial excellence, and sustainability 17

Growth Drivers 18

Growth Drivers T A. New products B. S&W fresh fruit expansion C. Foodservice expansion D. E-commerce opportunities E. Improve margins through cost optimisation programs T 19

New Products T T 20

New Usage T Level-up even simple Encourage new twists recipes with Del Monte on classic tomato Empower working moms recipes to go beyond fried dishes T 21

Expand Distribution T New market: Turkey E-commerce: Foodservice: Tie-ups Amazon Japan, and menu creation Singapore and JD.com China Digital campaigns T 22

Awards and Sustainability 23

Awards  DMPI’ s CEO, Mr. Joselito D. Campos, Jr., bagged the Entrepreneur of the Year Award in the Asia Pacific Entrepreneurship Awards in Singapore  Del Monte Kitchenomics, the biggest culinary club in the Philippines, has won numerous awards: • PANAta (Philippine Association of National Advertisers) Marketing Effectiveness Award • Spark Awards for Media Excellence: Gold for Best App and Best Use of Branded Content • Anak TV Seal, a national award on TV programs which are child-sensitive and family-friendly  Tomato Sauce’s Come Home Campaign won the Tambuli Award  Bagged 7- 11 Philippines’ Best Supplier of the Year Award, Most Innovative Supplier and Best in Account T Management  Bagged Robinsons’ Gold Apple Award (Food Division) in the Philippines 24

Awards - Sustainability  Bagged the Employer of the Year Award 3x from the Personnel Management Association of the Philippines  Hall of Fame Award and SSS Kabalikat ng Bayan Top Employer of the Year Award from the Social Security System in the Philippines  Gawad Kaligtasan at Kalusugan (the National Award for Excellence in the Practice of Occupational Health and Safety) awarded to our Cannery by the Department of Labor and Employment  Won the Don Emilio Abello Energy Conservation Award from the Department of Energy  Champion of Biodiversity and Watershed Conservation from the Enterprise Works Worldwide Philippines  Best Industry Partner in Northern Mindanao from the Technical Education T and Skills Development Authority  Bagged the Salamat Po (Thank You) Award for sustainable livelihood programs from the Department of Social Welfare and Development 25