FRUITAS

HOLDINGS, INC.
INVESTOR PRESENTATION

JANUARY 2020
 AGENDA
THE COMPANY
Industr y Over view
Competitive Strengths
Key Strate gies
Financial Highlights
Use of Proceeds

2
 The LARGEST diversified
kiosk operator in the country

Highly-scalable
business model

1,068 stores nationwide

25 active brands
3
Corporate History

2002 2004-2011 2012 2013

1st Fruitas Store Juice Avenue, Buko ni Buko Loco, 7,107 Halo-Halo
was launched Fruitas, The Mango Friends Fries, Islands was
Farm, Black Pearl and Tea-Rex and launched
Fruitas Ice candy were House of
launched Desserts were
launched

4
Corporate History

1,068

930
819

414
260

2015 2016 2017 2018 2019

5
Corporate Structure

100% 100% 100%

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

6
 Negril Trading, Inc.

Fruitasgroup
Incorporated

Buko ni Fruitas, Inc.

7
Revenue Breakdown: 2018

Franchise fees Rental

2% <1%
Juice Avenue Others
3% 13%
Friends Fries
Fruitas
3%
27%

Black Pearl
10%

Johnn Lemon
10% Buko Loco/BNF
Jamaican 18%
Pattie
13%
Note: figures as of end 2018
8
Store Breakdown: 2019

Friends Fries Juice Avenue

4% 2%

Others
14%

Fruitas
Black Pearl 27%
13%

Johnn Lemon
13%
Buko
Loco/BNF
Jamaican Pattie 12%
15%
Note: figures as of end 2019
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Industry Overview

10
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.

Total Food Spending increased by 6.8% per year from 2009 to 2015 HFCE increased by an average of 8.9% per year at current prices
during the past 10 years.

Food expenditure: Average spending per family, various years (P) Growth Household Final Value
(PHP Bn)
Rates (%) Consumption Expenditure
AAGR (percent per annum) 14 at Current Prices 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

Central Luzon 82,261 92,308 100,411 3.92 2.84 3.38 8 8,000

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 64,144 69,915 80,058 2.91 4.62 3.76 2 2,000

Mindanao 59,855 66,723 72,018 3.69 2.58 3.13

0 0
Philippines 74,798 82,466 89,997 3.31 2.96 3.13 2010 2011 2012 2013 2014 2015 2016 2017 2018

(a) Including NCR

Source of basic data: PSA-FIES (various years) Household final consumption expenditure Food and Non-alcoholic beverages
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Philippine Expenditure
By region, Philippine food expenditure as of 2015 Lemonade
NCR: 30% Php 208M
Calabarzon: 22% Meat Filled
Central Luzon: 12% Pastries
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
42% of household spending. 1.3B
Market Size

Coolers Buko
Php 853m Php
293M

*Kiosk Revenue in 2018 based on SEC filing 12

Source: 2019 UA&P CFA report
 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%
pastries (137.2M) (e)
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

Source: 2019 UA&P CFA report 13

Competitive Strengths,
Key Strategies and
Future Plans

14
 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
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

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Financial Highlights

17
Financial Highlights
Highly Experienced Management Team
REVENUES GROSS PROFIT

₱1,579
+30% +38%
₱886
₱1,153
₱941 ₱694
₱726 ₱549
₱500 ₱397
₱311

2016 2017 2018 1H18 1H19 2016 2017 2018 1H18 1H19

NET INCOME EBITDA

₱263
₱173
₱208 +58%
₱100
+33%
₱82 ₱141
₱121
₱52 ₱89
₱39

2016 2017 2018 1H18 1H19

2016 2017 2018 1H18 1H19
Figures In Millions 18
Financial Highlights
Highly Experienced Management Team
ASSETS LIABILITIES

1,074,738

904,399 663,333

530,668
729,159
410,231

253,032 60,308

2016 2017 2018 1H2019 2016 2017 2018 1H2019

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 Key Performance
Highly Indicators Team
Experienced Management

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%

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Use of Experienced
Highly Proceeds 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%

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22
22
Appendix

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Market Leaders
FRUITAS FRESH FROM BABOT’S FARM! JOHNN LEMON
2002 2016

Fresh fruit shakes and juices Pure lemonade and lemonade with fruit
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
Category Challengers

JUICE FRIENDS TEA-REX

AVENUE FRIES MILKTEA
2004 2012 2012

BLACK Fresh fruit SHOU French Fries SABROSO Cold-brew FRUITAS

PEARL juice and HAND- LECHON based milk HOUSE OF
2008 smoothies PULLED Fries 2017 tea and fruit DESSERTS
NOODLES category tea 2012
Flavored Juice and 2016 Lechon and
powder smoothies other pork- Dessert,
Milk tea
drinks category Hand pulled based rice fresh fruit
category
served with noodles; old meals shakes and
tapioca Beijing juices, boba
pearls braised Whole shakes and
beef, rice roasted milk tea
Coolers toppings pork
category and dimsum category Desserts
category

Source: 2019 UA&P CAF The Mango Farm (2006) and 7,107 Halo Halo Islands (2013) are also challengers in the Desserts category 25
Niche Brands
THREE
MUNIFICO FANCIE FRUITAS ICE UVA
FRENCHMEN COFFEE TALK
PIZZERIA 2016 CANDY 2017
CREPERIE 2019
2017 2012
2019

CINDY’S
HOUSE OF THE PUB LUCKY CHAN HEAT STROKE
CANDY
FRUITAS 2017 2019 GRILL
CLOUD
2017 2019
2017

Source: 2019 UA&P CAF 26

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

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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
Source: 2019 UA&P CFA report.
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Market share in terms of 2018 Revenue filed in SEC
Relative Market Shares in
Top Kiosk Categories
JUICE AND SMOOTHIES COOLERS

70% 82%

18% 18%
8%
4%

Juice Jamba Fruitfull Tubo Can Black Pearl Zagu

Avenue Juice Juice

FRIES
94%

6%

Source: 2019 UA&P CFA report. Friends Fries Potato Corner 29

Market share in terms of 2018 Revenue filed in SEC
Strong and Broad
Brand Portfolio
Leading Kiosk operator in Fruit shakes, Buko Juice, Lemonade and Meat Filled Pastries
segment.

Multiple food and beverage kiosk brands

Competitive Pricing

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Multiple Store Fromats

CART

KIOSK

IN-LINE
FOOD STALLS

31
Scalable and Sustainable
Business Model

Multi-brand kiosk operator leveraging on low

production cost and economies of scale

32
Efficient Logistic
Management
Large in-house logistics and distribution services

40 vehicles for delivery

33
Well-positioned to utilize
Foodparks
Our foodparks are in well-positioned areas- near offices and schools

This is a platform where we incubate and test out viability of new

concepts

Develop new brands and enhance synergy amongst current brands

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Proven Track Record of Brand
Introduction and Acquisition
159 No. of Stores

2016 2017
134 138 2018 2019
131

118 113

70

18
13
4 0 0
*no FHI-owned stalls pre-acquisition

35
Well-positioned to capture
growing middle-class
Eating out spending* across income classes, 2015
In 2015 there were 2.1m families earning (*food regularly consumed outside the home)
Php500k to Php1m a year. On average,
families earning spend Php 42k a year Income Level (PHP) Total Number of Spending
on eating out. Spending families per family
(PHP Bn) (PHP)
Eating out spending is seen to grow All 399.2 22,730,410 17,553
dramatically as families move from lower
Under 40,000 0.7 364,847 1,922
class to middle class which would mean
an additional eating out spending of 40,000 -<60,000 2.5 901,347 2,732
Php16.8B a year. 60,000-<100,000 14.6 3,268,076 4,454
100,000-<250,000 117.5 10,317,925 11,390
Between 2009 and 2015, total food
250,000-<500,000 136.5 5,262,154 26,935
spending grew by 6.8% per annum while
eating out spending expanded at a faster 500,000-<1,000,000 88.9 2,060,072 42,755
rate or 12.6% per annum. Above 1M 38.6 545,989 70,684
Source of basic data: PSA-FIES, 2019 UA&P CFA report
Eating out spending reached Php399B in
2015, about 20% of total food spending.

In 2018, estimated eating out spending at

around Php525B or about 21% of total
food spending
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Source: 2019 UA&P CFA report
Vast branch network

Over 1,060 stores nationwide

218
240
Strong and Competitive Franchising InLuzon
Luzon

479
537
In Metro
Metro
Manila
Manila
202
222
inVisayas
Visayas

50
69
In
Mindanao
Mindanao

37
Store Distribution
METRO 193
MANILA 185
180

66 875
639 745
348

2016 2017 2018 2019

Group Franchised
GROUP FRANCHISED

6%

21%

51%

22%

OUTSIDE NCR Luzon Visayas Mindanao

38
METRO MANILA
Highly Experienced
Management Team
Highly Experienced Management Team

LESTER C. YU CALVIN F. IRENE O. MADELENE T. ROSELYN A.

Director, CHUA CHUA SAYSON LEGASPI
President Director and Director, CFO Chief Managing
and CEO Chief Financial and Treasurer Operating Director -
Adviser Officer VisMin 39
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
2019 Stores per Region 2019 Group-owned 2019 Franchised
stores per Region Stores per Region
1%
6%
7% 8%
21%
24% 47% 26%
51%
65%
22%
22%

NCR Luzon Visayas Mindanao NCR Luzon Visayas Mindanao NCR Luzon Visayas Mindanao

Increase same kiosk sales growth

• Increase transaction counts and average check

• Convert first-time customers to repeat and loyal customers
• Invest in our brands through advertising and marketing initiatives
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Key Strategies and
Future Plans
Highly Experienced Management Team
Further enhance operations to improve margins and retain competitive product prices
GP MARGIN EBITDA MARGIN NI MARGIN
15.0%
56.1% 58.3% 13.2%
54.7% 12.2%
6.4%
5.4% 5.5%

2018 1H2018 1H2019 2018 1H2018 1H2019 2018 1H2018 1H2019

Innovate and introduce new concepts to satisfy evolving consumer tastes and preferences

41
Key Strategies and
Future Plans
Highly Experienced Management Team
Acquire other food service brands and businesses and expand in new formats where our cost-
efficient model can be replicated
159
No. of Stores

2017 2018 2019

138

113

18
13

0
42
Key Strategies and
Future Plans
Highly Experienced Management Team

Expand the Foodpark business as another

Diversify distribution channels
growth area for our Company

43