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FR FRUI UITAS S HO HOLDIN LDINGS, GS, IN INC. INVESTOR - PowerPoint PPT Presentation

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FR FRUI UITAS S HO HOLDIN LDINGS, GS, IN INC. INVESTOR PRESENTATION JANUARY 2020 AGENDA THE COMPANY Industry Overview Competitive Strengths Key Strategies Financial Highlights Use of Proceeds 2 The LA LARGE GEST ST diversified

  1. FR FRUI UITAS S HO HOLDIN LDINGS, GS, IN INC. INVESTOR PRESENTATION JANUARY 2020

  2. AGENDA THE COMPANY Industry Overview Competitive Strengths Key Strategies Financial Highlights Use of Proceeds 2

  3. The LA LARGE GEST ST diversified kiosk operator in the country High ghly - scala scalable ble business model 1,06 1,068 stores nationwide 25 25 active brands 3

  4. Corporate History 2002 2004-2011 2012 2013 Juice Avenue, Buko ni 7,107 Halo-Halo 1 st Fruitas Store Buko Loco, Fruitas, The Mango Islands was was launched Friends Fries, Farm, Black Pearl and launched Tea-Rex and Fruitas Ice candy were House of launched Desserts were launched 4

  5. Corporate History 1,068 930 819 414 260 2015 2016 2017 2018 2019 5

  6. Corporate Structure 100% 100% 100% Fruitasgroup Incorporated Buko ni Fruitas, Inc. Negril Trading, Inc. 6

  7. Negril Trading, Inc. Fruitasgroup Incorporated Buko ni Fruitas, Inc. 7

  8. Revenue Breakdown: 2018 Franchise fees Rental 2% <1% Juice Avenue Others 3% 13% Friends Fries Fruitas 3% 27% Black Pearl 10% Johnn Lemon Buko Loco/BNF 10% 18% Jamaican Pattie 13% Note: figures as of end 2018 8

  9. Store Breakdown: 2019 Friends Fries Juice Avenue 4% 2% Others 14% Fruitas Black Pearl 27% 13% Johnn Lemon 13% Buko Loco/BNF 12% Jamaican Pattie 15% Note: figures as of end 2019 9

  10. Industry Overview 10

  11. Growth Outlook Based on the latest Family Income and Expenditure Survey (FIES) report (2015), the total earnings of Filipino families reached PHP6 trillion in 2015, which translates to an average income of PHP 267,000 per family. HFCE increased by an average of 8.9% per year at current prices Total Food Spending increased by 6.8% per year from 2009 to 2015 during the past 10 years. Household Final Value Food expenditure: Average spending per family, various years (P) Growth (PHP Bn) Consumption Expenditure Rates (%) AAGR (percent per annum) at Current Prices 14 14,000 Region 2009 2012 2015 2009/ 2012/ 2009/ 2012 2015 2015 12 12,000 NCR 111,696 118,572 126,695 2.01 2.23 2.12 10 10,000 Calabarzon 88,985 98,553 107,160 3.46 2.83 3.15 8 8,000 Central Luzon 82,261 92,308 100,411 3.92 2.84 3.38 Rest of Luzon 64,478 70,147 77,366 2.85 3.32 3.08 6 6,000 4 4,000 Luzon (a) 84,528 92,792 100,496 3.16 2.69 2.93 Visayas 2 2,000 64,144 69,915 80,058 2.91 4.62 3.76 Mindanao 59,855 66,723 72,018 3.69 2.58 3.13 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Philippines 74,798 82,466 89,997 3.31 2.96 3.13 (a) Including NCR Household final consumption expenditure Food and Non-alcoholic beverages Source of basic data: PSA-FIES (various years) 11

  12. Philippine Expenditure By region, Philippine food expenditure as of 2015 Lemonade NCR: 30% Php 208M Meat Filled Calabarzon: 22% Pastries Central Luzon: 12% Php 345M Fruit Shakes Eating out behavior outpaced total income growth Php 536M by 1.08 to 1.00. Fries Php 672M In 2018, sales of street kiosks/stalls reached P103.0B from 40,371 outlets with the number of Juices and transactions totaling 2.2B Smoothies Php 287M Eating out as percent of food spending rose from 14.2% (P290.7 Billion) in 2009 to 19.5% (P399.2 Billion) in 2015. Food is a major expense item among Filipino households. In 2015, food accounted for close to 1.3B 42% of household spending. Market Size Buko Coolers Php Php 853m 293M 12 *Kiosk Revenue in 2018 based on SEC filing Source: 2019 UA&P CFA report

  13. Top Kiosk Categories MARKET NUMBER OF FRUITAS CATEGORY BRANDS SIZE* STORES MARKET SHARE Fruitas (434.0M), Fruit Magic (17.0M), The Big Chill Fruit shakes Php536.1M Over 506 81% (85.1M) Jamba Juice (201.3M) (c), Juice Avenue (53.9M) and Juices and Php288M 125 Fruitfull (10.6M, FY ended May 2015), Tubo Cane 18% Smoothies Juice (22.3M) (d) Buko-based Buko Loco/Buko ni Fruitas (281.6M), Buko Juan Php293.5M 281 96% Drinks** (11.9M) Coolers Php853.4M 583 Zagu (701.9M) and Black Pearl (151.5M) 18% Johnn Lemon (163.5M), Lemon na Bai (14.3M), Lemonade Php208.0M 213 79% Simply Lemon (30.2M) Meat-filled De Original Jamaican Pattie (207.9M), Yumpanada Php345.1M 176 60% (137.2M) (e) pastries Fries Php672.3M Over 1,482 Potato Corner (632.8M) and Friends Fries (39.5M) 6% TOTAL Php3,196.4M Over 3,366 *Est., 2018 in Php millions **Two dominant brands in the category are owned by FHI 1.3B 42% Market Size Market Share 13 Source: 2019 UA&P CFA report

  14. Competitive Strengths, Key Strategies and Future Plans 14

  15. Strong and Broad brand portfolio Highly Experienced Scalable and Management Team Sustainable business model Competitive Strengths Vast branch Efficient Logistic network Management Proven track record of brand introductions and acquisitions 15

  16. Key Strategies and Future Plans Highly Experienced Management Team Pursue aggressive network expansion to take advantage of Philippine economic expansion as well as rapid urbanization of regions outside Metro Manila Increase same kiosk sales growth Further enhance operations to improve margins and retain competitive product prices Innovate and introduce new concepts to satisfy evolving consumer tastes and preferences Acquire other food service brands and businesses and expand in new formats where our cost-efficient model can be replicated Diversify distribution channels Expand the foodpark business as another growth area for our Company 16

  17. Financial Highlights 17

  18. Financial Highlights Highly Experienced Management Team REVENUES GROSS PROFIT +38% ₱1,579 +30% ₱886 ₱1,153 ₱694 ₱941 ₱549 ₱726 ₱397 ₱500 ₱311 2016 2017 2018 1H18 1H19 2016 2017 2018 1H18 1H19 NET INCOME EBITDA ₱263 ₱173 +58% ₱208 +33% ₱100 ₱82 ₱141 ₱121 ₱52 ₱89 ₱39 2016 2017 2018 1H18 1H19 2016 2017 2018 1H18 1H19 18 Figures In Millions

  19. Financial Highlights Highly Experienced Management Team ASSETS LIABILITIES 1,074,738 904,399 663,333 530,668 729,159 410,231 60,308 253,032 2016 2017 2018 1H2019 2016 2017 2018 1H2019 19

  20. Key Performance Indicators Highly Experienced Management Team 2016 2017 2018 1H2019 Revenue Growth 61.3% 130.4% 37.0% 29.6% Gross Profit Margin 62.2% 60.2% 56.1% 58.3% Net Income Margin 16.4% 15.0% 6.4% 5.5% EBITDA (₱ thousands) 120,648 262,843 208,213 141,343 EBITDA Margin 24.1% 22.8% 13.2% 15.0% Return on Average Assets 41.3% 35.2% 12.3% 10.5% Return on Average Equity 67.4% 67.6% 29.0% 26.5% Current Ratio 402.9% 109.3% 100.6% 111.5% Debt to Equity Ratio 31.3% 128.6% 142.0% 161.0% 20

  21. Use of Proceeds Highly Experienced Management Team Indicative Usage Amount Percentage Timing (Php Millions) Store Network Expansion and 470 57.3% 2020-2022 Store Improvements Commissary Expansion 40 4.9% 2020 Expansion of Foodpark 25 3.0% 2020-2021 Business Acquisition Opportunities and 135 16.5% 2020-2021 Introduction of New Concepts Debt Repayment 150 18.3% 2019-2020 Estimated Net Proceeds 820 100% 21

  22. 22 22

  23. Appendix 23

  24. Market Leaders JOHNN LEMON FRUITAS FRESH FROM BABOT’S FARM! 2016 2002 Pure lemonade and lemonade with fruit Fresh fruit shakes and juices mixes or tea base Leader in Fruit shake category Leader in Lemonade category BUKO LOCO/BUKO NI FRUITAS DE ORIGINAL JAMAICAN FRESH FROM BABOT’S FARM PATTIE SHOP AND JUICE BAR 2012/2005 1991 Bottled pure coconut juice, flavored Baked Jamaican Patties and juices coconut juice and fruit smoothies Leader in Meat-filled pasties category Desserts (buko and fruit salads served in coconut shell), fresh coconut juice and buko smoothies (combination of buko meat blended with other fruits) Leader in Buko category Source: 2019 UA&P CAF 24

  25. Category Challengers JUICE FRIENDS TEA-REX AVENUE FRIES MILKTEA 2004 2012 2012 BLACK SHOU SABROSO FRUITAS Fresh fruit French Fries Cold-brew HOUSE OF PEARL HAND- LECHON juice and based milk DESSERTS 2008 PULLED 2017 smoothies Fries tea and fruit 2012 NOODLES category tea Flavored 2016 Lechon and Juice and Dessert, powder other pork- smoothies Milk tea fresh fruit drinks Hand pulled based rice category category shakes and served with noodles; old meals juices, boba tapioca Beijing shakes and pearls braised Whole milk tea beef, rice roasted Coolers toppings pork Desserts category and dimsum category category Source: 2019 UA&P CAF 25 The Mango Farm (2006) and 7,107 Halo Halo Islands (2013) are also challengers in the Desserts category

  26. Niche Brands THREE MUNIFICO FANCIE FRUITAS ICE UVA FRENCHMEN COFFEE TALK PIZZERIA 2016 CANDY 2017 CREPERIE 2019 2017 2012 2019 CINDY’S HOUSE OF HEAT STROKE THE PUB LUCKY CHAN CANDY FRUITAS GRILL 2017 2019 CLOUD 2017 2019 2017 Source: 2019 UA&P CAF 26

  27. LE VILLAGE UNO CINQUENTA LIFESTYLE FOOD PARK LIFESTYLE FOOD PARK LIFESTYLE 2017 2016 FOOD PARK 55 CORDILLERA ST., QUEZON CITY 150 MAGINHAWA ST., QUEZON CITY 27

  28. Relative Market Shares in Top Kiosk Categories FRUIT SHAKE LEMONADE 81% 79% 16% 14% 7% 3% Fruitas The Big Chill Fruit Magic Johnn lemon Lemon ni Bai Simply Lemon BUKO JUICE MEAT-FILLED PATTIES 60% 96% 40% 4% Buko Loco/Buko ni Buko Juan De Original Jamaican Yumpanada Fruitas Pattie 28 Source: 2019 UA&P CFA report. Market share in terms of 2018 Revenue filed in SEC

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