SHAKEY’S PIZZA ASIA VENTURES, INC. PIZZA CORPORATE PRESENTATION MAY 2020
Company Overview SNAPSHOT FULL-YEAR FINANCIALS Shakey’s Pizza Asia Ventures, Inc. is one of the leading operators of fast casual restaurants in • the Philippines, focused on family casual dining. Revenues (In USD Mill) 176 165 152 The Shakey’s brand is the Philippines’ #1 full-service pizza chain with over 65% market share in • 140 120 that category. It is also the single-largest brand of full-service casual dining chain restaurants in the Philippines.* It is a strong and well-established brand thanks to a differentiated menu, iconic and well-loved products, a distinct store environment, and highly guest-centric service. The Peri brand is an emerging fast casual and full-service restaurant chain in the Philippines. Its • mainstay is charcoal-grilled chicken, marinated for 24 hours, served with an assortment of 2016* 2017 2018 2019* 2020F** unique sauces to choose from. Net Income (In USD Mill) Vision: To be the preferred and dominant family casual dining restaurant in the Philippines, • 19 18 and successful in our chosen overseas markets, serving pizza as our core product. 17 15 13 Store Network: 270+ Shakey’s and Peri stores across the Philippines – a mix of company- • owned and franchised. Different store formats including those located in malls and those that are free-standing. Key Management: Vicente L. Gregorio - President & CEO, Manuel T. del Barrio - Vice • 2016* 2017 2018 2019* 2020F** President & CFO, Jorge Q. Concepcion - Shakey’s General Manager, Marielle C. Santos – Peri General Manager, Alois Brielbeck - In-House Commissary General Manager *Based on recurring figures **Consensus of active brokers *Source: Euromonitor, 2019 OWNERSHIP STRUCTURE 2019 SYSTEM-WIDE SALES & STORE NETWORK BREAKDOWN Mindanao Public Company- 4% Visayas 28% Owned 10% Franchised 53% Delivery & Century Metro 47% Others Pacific Manila GIC 45% Group 46% Dine-In Luzon Private 54% 55% (ex-MM) Equity 40% 18% 2
Shakey’s has 45 years of strong brand legacy and counting 2003 1999 2014 Positioned as an American Acquired Shakey’s Acquired Shakey’s fast casual dining trademark for the trademark for Middle East, restaurant for families Philippines in perpetuity Asia (ex Japan, Malaysia) including China, Australia, 1987 and New Zealand in The Prieto family became perpetuity the master franchisor in the Philippines 2016 Century Pacific Group (CPGI) and 1975 Arran (GIC) acquired First store in the control and took the Philippines Company public 1954 2019 First Shakey’s Pizza Acquired Peri-Peri Parlor opened in Charcoal Chicken Sacramento, and Sauce Bar, 276 California stores by end 2019 3
INVESTMENT HIGLIGHTS
Investment Highlights Dominates the full-service pizza chain market with 67%* market share • Market 23%* market share in the full-service (pizza and non-pizza) category - #1 in that • Leadership space as well Well-loved brand with more than 40 years of history in the Philippines • Brand Strength Iconic products served in a distinct store environment • & Ownership No royalty payments, plus additional revenues from franchisings • Multiple sales channels and store formats; simple operations • Scalable Low upfront cost and strong cash generation lead to shorter store-level payback • Business Model periods compared to the industry Extensive track records in food and restaurant operations • Experienced Entry of Century Pacific Group as strong and committed shareholders provides • Management synergies with other food businesses Superior profitability and margins versus peers • Industry-Leading Gearing levels improve as debt remains stable while EBITDA and equity grow • Financials Operating cash flows sufficient for CapEx and other investments • 5 *Source: Euromonitor, 2019
1 #1 Full-Service Restaurant in the Philippines The full-service pizza chain market is dominated by Shakey’s. FULL-SERVICE CHAIN FULL-SERVICE PIZZA CHAIN Others 4.2% Papa John's 1.4% 23.4% Others Pizza Hut 35.4% 27.1% 67.3% Max's 18.0% Classic Savory 3.3% Pancake House Pizza Hut Kenny Rogers 4.4% 9.4% 6.1% 2019 data shows that Shakey’s Latest Euromonitor report states that Shakey’s leads the Philippine chained full- dominates the full-service service restaurant industry with 23.4% pizza chain market by sales market share as of 2019. since 2011 until present. 6 Source: Euromonitor
2 Strong and Well-Established Brand Shakey’s offers a differentiated menu with iconic and well-loved products. DIFFERENTIATED MENU WITH ICONIC PRODUCTS AND OFFERINGS FOR ALL Pizza Soup World-famous thin crust and hand-tossed Home-style soups loaded pizzas with many different choices with flavor and goodness Chicken and Mojos Salad Signature dish - fried chicken paired Extensive choice of salad for with Shakey’s famous mojos * health-conscious customers Pasta Desserts Hearty pasta with a wide range of sauces Wide range of after-meal and toppings paired with garlic bread desserts Starters Ranging from fries, mojos, squid rings, chips, and chicken BUNDLED OFFERINGS CATERING TO FAMILIES AND GROUPS BRING UP AVERAGE CHECKS * Thinly-sliced potatoes coated with Shakey’s breading 7 and fried to a golden brown perfection
2 Strong and Well-Established Brand Shakey’s offers a beautiful and distinct store environment to every customer and has full control and ownership of its brand. Though originally from the U.S., With its over 40 year history in the Philippines, PIZZA has owned the Shakey’s Shakey’s is one of the most recognizable brand for the Philippines since 1999. brands in the local food service industry. BRAND OWNERSHIP 2018 PHILIPPINE TOP 100 RESTAURANT BRANDS 1 3 No royalty payments, leading to 2 • shorter payback period and sustainably higher margins versus peers Revenue from licensing fees and • royalties from franchisees Freedom to execute and react faster to • market changes Opportunity for expansion into • international markets 8 Source: Asia’s Top 1000 Brands Survey by Campaign Asia, in partnership with Nielsen
3 Proven and Scalable Business Model Multiple sales channels and store formats provide convenience and accessibility to Shakey’s customers and allow for market and expansion flexibility. Dine-In Functions • Free-standing stores have function • Most popular sales channel due to rooms for events such as parties and unique family and friends experience company gatherings • Aim to “WOW” the guest Online Sales Delivery • Active online and mobile presence • Delivery available nationwide with own website and mobile app • Single delivery hotline number • http://www.shakeyspizza.ph (#77-777) can be used SuperCard+ Carryout A very popular paid loyalty card • • Convenient and fast method of sales PHP499 annual fee • 55% 41% 4% Mall Stores Free-Standing Stores Others 120 – 250 sqm 300 – 400 sqm 120 – 180 sqm 9
3 Proven and Scalable Business Model Shakey’s is a well-established brand, while operating on an asset-light model. 4 1 2 3 Brand Vertical Asset-Light Short Payback Positioning Integration Approach Period Own commissary Long-term leases Business model and Firmly positioned for proprietary for store locations strong discipline leads in the fast casual raw materials at attractive to typical payback segment (A, B, protects key rentals period of 3-4 years and upper C supply chain and market) that maintains Presence of Low upfront cost and delivers high consistency and standalone stores strong cash generation margins, good control over (i.e. those outside per store volumes, and quality malls) lead to low scale rent-to-sales ratio Economies of scale and Benefitting from purchasing key consumer synergy trends – eating out more and upgrading from fast food to casual dining 10
Recommend
More recommend
