2023 06 PClMDNJ1 JFC Annual Report 2022

01 JFC Annual Report 2022
TABLE OF CONTENTS
This report
is interactive
03 CHAIRMAN’S MESSAGE 06 CEO’S MESSAGE 09 DIRECTORS AND CORPORATE OFFICERS
10 FINANCIAL HIGHLIGHTS 11 CORPORATE HIGHLIGHTS
BUSINESSES
13 Jollibee Philippines 26 Yonghe King 40 Burger King Philippines 55 Panda Express

Solidifying Market Leadership Brand Innovation, Upgrade, and Breaking Records: Our Best Year Yet Greater Heights in the Philippines
with a Dominant 2022 Digitalization Drive Momentum to Growth
16 Jollibee International 29 Red Ribbon Philippines 43 Highlands Coffee 58 Yoshinoya

Home of the World-famous Chickenjoy, Strong Products and Brand Power Propel Strongest Brand Equity in Vietnam Powering Up Yoshinoya in the Philippines
Loved by Millions Around the World around the Red Ribbon to All-Time High Sales in 2022
world
18 Greenwich 32 Red Ribbon USA 46 Smashburger 61 Milksha
Achieving Market Leadership in the Positive Same Store Sales Growth Second Year of Positive Sales Growth Introducing the Taste of Milksha to
Pizza Branded Eat-Out Category in 2022 Despite a Challenging US Economy and Share Gains New Markets in 2022
21 Chowking Philippines 34 Hong Zhuang Yuan 49 The Coffee Bean & Tea Leaf
Faster and Stronger in 2022 Positive System-wide Sales Growth Investing in a Strong Core to Build Our
Despite Challenging Landscape Global Growth Momentum
24 Chowking International 39 Mang Inasal 52 Tim Ho Wan China

One of America’s Hot Concepts Driving Stronger Performance vs. Rapid Expansion in Mainland China
Pre-Pandemic Level through Reinvention
64 Jollibee Group Foundation 67 BUSINESS & FUNCTION HEADS 69 FINANCIAL STATEMENTS 195 COMPANY INFORMATION AND
Elevating Work with Partners to STOCKHOLDER SERVICES
Uplift Communities
LEADERSHIP HIGHLIGHTS BUSINESSES FINANCIAL STATEMENTS COMPANY INFORMATION
Chairman’s Message CEO’S Message Directors and Corporate Officers
CHAIRMAN’S MESSAGE
45 YEARS OF
SERVING
DEAR SHAREHOLDERS,
Reflecting through the events of the year 2022, We continued to make robust developments in facilitating the completion of other projects. In a year dominated by macro headwinds,
I am amazed by our organization’s tremendous our global organic growth and completed the The Jollibee Group has 90% participating interest the Jollibee Group stock price outperformed the
efforts to overcome another demanding year. acquisition of a new international brand. Our in Titan, which owns and operates various market. Jollibee Group delivered a 6.3% growth
The Jollibee Group achieved significant financial discipline has allowed us to maintain businesses in the food and beverage segment, while the Philippine Stock Exchange Index declined
milestones, which I attribute to the a financial position that gave us the flexibility for alongside other investments in non-F&B segments. by 7.8%. Our commitment to deliver on strong returns
commendable job of our teams globally. business growth and expansion. Some of its notable brands in the F&B segment is steadfast. We ended 2022 with a net income
With the Jollibee Group growing bigger every aside from Tim Ho Wan are Tiong Bahru Bakery and attributable to equity holders of the Parent Company
year, I am proud of every individual that has 51% of Milkshop Common Man Coffee Roasters, both well-loved of PHP7.6 billion, which translated to earnings per
brands in Singapore. share of PHP6.40, +20.7% higher compared to the
remained committed to our mission of bringing
International Co. Ltd. previous year. We declared cash dividends of
the joy of eating to everyone, and for leading the
organization closer to our vision of becoming a We also completed the transfer of some of our land PHP2.30 per common share, +37.7% higher than the
We achieved the highest number of store openings
top restaurant company. properties to CentralHub Industrial Centers (CH) Inc., cash dividends declared in 2021. In the same year,
in a single year, opening a total of 542 stores
a company in the industrial real estate business. we declared and paid quarterly cash dividends on
around the world. We completed the acquisition of
On behalf of the Board of Directors of the Jollibee In addition to this, we also sold land and building Series A and B preferred shares, totaling PHP32.84
51% of Milkshop International Co. Ltd. in February
Group, I would like to thank and congratulate properties to third parties. This move is part of the and PHP42.40 per share, respectively. The Jollibee
2022; this is the company that owns Milksha, one of
our CEO, the members of the Leadership Team Jollibee Group’s strategy to become asset light, Group continues to remain focused on executing
the popular Taiwanese bubble tea brands with over
and all our employees around the world for their allowing us to focus more on growing our core our strategies and is deeply committed to deliver
250 outlets, prominently located in Taiwan.
remarkable achievements, which I would like to business in food service, restaurant operations, maximum value for our shareholders.
share in this letter. and food processing. Our total gain from these
Increased commitment transactions is PHP4.9 billion. I would like to extend my deepest, sincerest gratitude
In 2022, the Jollibee Group delivered record to Titan Dining LP (Titan) to our other stakeholders that have contributed to our
system-wide sales (PHP297.0 billion, +40.2%), We terminated the operation of Beijing Golden successes this past year.
revenues (PHP212.0 billion, +38%), and operating Through our wholly-owned subsidiary, Jollibee Cup Corporation, which operated a total of seven
income (PHP9.9 billion, +58.4%), which you will Worldwide Pte. Ltd., we have increased our Dunkin’ restaurants in Beijing in 2022. This decision To our investors, franchisees, and business partners
also read in the CEO’s message. All these were commitment to Titan Dining LP (Titan) to SGD315.0 was made for us to be able to focus on building our —your trust, confidence, and support in the Jollibee
achieved despite a less favorable economic million, with the fund size of Titan growing from business in China through our larger, more well- Group are deeply valued as always. Your investments
environment. SGD250.0 million to SGD350 million. The increase known brands—Yonghe King, Hong Zhuang Yuan, are what have allowed us to stay afloat, grow, and
is allotted for store expansion plans and working and Tim Ho Wan.
capital requirements of Tim Ho Wan, as well as

expand to new heights in the recent years, ensuring dedication to maintaining the high standards of our deepened commitment to treating the planet On behalf of the Board of Directors, I would
that a future filled with joy is within reach. We look quality, service, and sustainability that our customers responsibly, fostering a positive impact on again like to express my deepest gratitude to the
forward to many more years of partnership together. have come to expect from us. the communities where we are, and giving back to teams and their families, shareholders, bondholders,
those that have supported us. We are proud to be franchisees, and customers that have made the last
To our customers—the Jollibee Group would not be Given all of the challenges that the world has faced leading the way to a brighter, more joyful future in 45 years possible. And to the Board of Directors, I thank
where we are today, celebrating 45 years of service, in the recent years, it is clear that there is much work the industry by ensuring that sustainability is in you for the wisdom and guidance that you continue to
without your patronage. We felt the impact of your that needs to be done to preserve and nurture what everything that we do—from our supply chains to share with us as we face many more challenges and
absence during the height of the pandemic, but have we have. Sustainability and responsible business our operations and beyond. We are creating better, opportunities together.
enjoyed your steady return over the last few years to practices are an integral part of our operations more meaningful value for our customers, employees,
make new memories and eat great-tasting food with at the Jollibee Group. We believe that we can only shareholders, and other partners. Our sustainable
us. You are the reason why we are passionate about do well and continue to achieve great success by practices will lead us to become a stronger, more
what we do, and your support is deeply appreciated. doing good, and that includes being more mindful resilient, more successful business.
You inspire us to aim for even greater heights ahead, of our impact on the world. We aim to build a better
and we look forward to sharing many more delicious future, not just for our company, but for all of our With that, I am confident not only in the Jollibee Group’s DR. TONY TAN CAKTIONG
memories and experiences together. stakeholders, so that we can cultivate a future of ability to be part of the top restaurant companies
joy that everyone can be a part of. That is why, last around the world, but also in its ability to be amongst
year, we launched our first Global Sustainability the most sustainable ones, leaving a positive, lasting
We have already achieved Agenda, which lays out a clear, comprehensive, and impact on our society and the planet. We are not only
beyond what we thought was distinct framework for how we will achieve these creating a better business, but a better world for future
possible since our humble sustainability goals. generations—one where everyone can truly experience
beginnings 45 years ago. the joy of eating great-tasting food.

Launched Our First Global
Now, we continue to dream bigger and set our sights Sustainability Agenda I have full confidence in our ability and position to
achieve even greater successes this year. While we
higher. We believe there is always room for growth
As we continue with our rapid global expansion, we acknowledge that many more challenges lie ahead,
and innovation, and so we continue to look for
recognize that our responsibility and impact on the we are ready to take them on, learn from them, and
more opportunities to allow us to expand our reach,
world grows as well. It is our duty to ensure that we emerge stronger just as we have done in the last few
explore new ways to bring value to our shareholders,
are operating in a way that is not only profitable years. We stay true to our focus on growth and success
and bring the joy of eating to more people around
for us and our stakeholders, but also sustainable as we work together towards our shared goals.
the world. Our global ambitions are rooted in our
and socially responsible. Our agenda reflects

CEO’S MESSAGE
NEW
RECORDS
FOR A
BRIGHTER
FUTURE
DEAR SHAREHOLDERS,
We have accomplished another year of solid Notably, the Jollibee Group generated an operating In summary, our 2022 sales growth was driven We achieved this record-high performance
financial performance despite the many challenges profit of PHP9.9 billion amidst high inflation, global by 27.0% same store sales growth, 6.1% from new through the hard work and commitment of the
we have had to overcome over the past few years. supply chain challenges, and overall escalating stores, 2.0% from our acquisition of Milksha, and 5.2% JFC organization and its stakeholders. Our people
costs. This is 58.4% higher than the operating profit foreign currency translation gain. We saw an increase are truly the driving force behind our success and
Our success in 2022 has proven that by in 2021, and 6.5% better than the 2018 pre-pandemic of 58.4% in our operating income and 26.4% in our net accomplishments — we recognize and thank them for
staying true to our mission of serving operating income level of PHP9.3 billion. income attributable to equity holders of the Parent their continued dedication and unwavering support.
great-tasting food and bringing the joy of Company, amounting to PHP9.9 billion and PHP7.6
eating to everyone, a brighter, more joyful Driven by increased mobility, dine-in sales have billion, respectively. Recognized as among the World’s Best Employers
future is ahead of us. shown better numbers than the previous year overall by Forbes and the ASEAN Corporate Governance
—we are delighted to welcome more customers With our strong profit performance, we generated Scorecard (ACGS) Golden Arrow Awards
Let me share some of our key performance highlights back to our stores. And even with this movement, cash from operations of PHP27.0 billion, an increase
from the past year. off-premise channels such as delivery services also of 23.7% compared to what we made in 2021. We We are humbled and grateful to have the Jollibee
continue to show resilience. We expect sustained spent PHP9.7 billion in capital expenditures, mostly for Group named among the World’s Best Employers
Overall sales significantly improved due to the easing growth as we strengthen and improve our digital new stores and the renovation of existing stores. We by Forbes for three consecutive years now. Aligned
of pandemic restrictions in key markets, continued touchpoints for better service, efficiency, and reach to continued to have a solid balance sheet, with total with our vision of being amongst the top restaurant
network expansion, and strong same store sales. make the joy of eating more accessible to everyone, assets of PHP233.4 billion, which increased by 10.7% companies in the world, the Jollibee Group was also
System-wide sales (SWS) in 2022 grew by 40.2%, in the comfort of their homes and workplaces. year-on-year. Our cash level reached PHP28.9 billion, noted as the highest-ranking restaurant company
alongside our revenue for the year at 38.0%, both of representing 12.4% of our total assets. on the list, as well as the highest-ranking Philippine-
which are at the high end of our 35-40% guidance
range for the year.
542 New Stores Despite these positive developments, there is a great
based company. Our business is nothing without our
people, and we continue to capitalize on our collective
Our Highest Number Opened
in a Single Year! deal of uncertainty in the macro climate. We are strengths and provide our employees with strong
Full year SWS in the Philippines grew by 44.6%, confident that the Jollibee Group is resilient and well opportunities for growth and development.
and full year same store sales growth (SSS) grew We also continued our global expansion momentum positioned to drive near-term growth. We have clear
by 40.6%. International SWS grew by 34.0% led by in 2022, with a record number of stores opened in a priorities on profitability while we continue to invest The ASEAN Corporate Governance Scorecard (ACGS)
SuperFoods (+100.2%), EMEA (+42.0%), The Coffee single year. A total of 542 new stores were opened strategically in our business, brands, technology and Golden Arrow Awards have also recognized our
Bean and Tea Leaf (CBTL +33.0%) and North America around the world, and we grew our store network by our people to deliver long-term growth and value for positive performance in corporate governance.
(+29.9%), while China was severely impacted by +9.2% versus 2021, exceeding our guidance range our shareholders. Transparency, accountability towards our
COVID restrictions. for the year. At the end of 2022, the Jollibee Group is shareholders, and our commitment to responsible
operating a total of 6,480 stores worldwide. business practices have always been a top priority
for the Jollibee Group.

Given these accolades, we know that our commitment First, we have always served food that people trust. and vulnerability. With this, we continue to target high In working towards our vision and mission, we
also extends beyond our own people. As one of the Safety, quality, nutrition, and transparency are at the employee engagement as we aim for a positive, optimal, must not lose sight of our responsibility and
fastest-growing restaurant companies in the world, forefront of our Food Sustainability Pillar. and joyful experience for everyone in the organization. shared goals towards a better, more joyful future
we hold responsibility towards our society and its We measure this with Gallup’s Q12 Percentile Ranking, for everyone to enjoy.
future generations. We are working towards ensuring Audits and certifications are conducted yearly where we have hit the 70th percentile, which validates
that a joyful, sustainable future is within reach for us, across 100% of sources, stores, commissaries, and our high level of employee engagement. 2023 marks the 45th anniversary of the founding of
our society, and our planet. logistics partners worldwide to ensure that the right Jollibee Foods Corporation. I am deeply grateful to all
systems are in place. A total of 15,014 of Food Service We also recognize that supporting the livelihood of those who joined us on our 45-year journey.
Launching our Global Sustainability Agenda: Cleanliness and Condition Audits were conducted farmers contributes to strengthening the agricultural
across our restaurants globally in the last year. value chain and building more resilient and sustainable To our shareholders, bondholders, business partners,
When you dine at a Jollibee Group restaurant, you communities. Through our Farmer Entrepreneurship franchisees, and customers: We are grateful for your
In 2022, we launched our first Global Sustainability can trust that ingredients are sourced responsibly Program, we aim to continue building an inclusive unwavering support and confidence, especially during
Report to reaffirm our commitment to sustainability. from key suppliers, ensuring that quality standards supply chain that enables even smallholder farmers to the most challenging of times. Your trust in the Jollibee
Our Global Sustainability Agenda: Joy for Tomorrow are met and that your satisfaction is guaranteed. participate in the company’s economic success. In 2022, Group has allowed us to come back stronger than ever.
highlights the deliberate efforts we have made Our global Net Promoter Score of 82 surpassed the 15% of Jollibee Group’s vegetable requirements came
towards pursuing a more sustainable business and industry benchmark of 50, highlighting our customers’ from over 700 smallholder farmers who deliver directly to To our Jollibee Group employees: Your hard work and
is our roadmap for achieving our triple bottom line of satisfaction and loyalty to our brands worldwide. brands. tremendous efforts have led the organization to greater
People, Planet, and Profit. This sets the standard for our heights this year—our successes are your successes.
belief system of doing business ethically and provides Second, our commitment to help make people’s Lastly, we are dedicated to treating the planet We truly value your commitment to service, your
us with a strategic framework for setting responsible lives better is deeply ingrained in our People responsibly. Better packaging and recycling systems, dedication to helping us carry out our mission of
goals, measuring the company’s impact, and holding Sustainability Pillar. Our employees, farmers, food loss and food waste reduction, and solutions bringing great-tasting food and joy to everyone.
ourselves accountable in meeting these metrics. It is and community make up who we are and keep towards energy and water efficiency are measures we
made in accordance with the GRI Standards for the us grounded in our mission towards better, more have taken to ensure that we treat the planet with the To our Jollibee Group Board: My sincere gratitude for
period of January – December 2022. sustainable practices. We, at the Jollibee Group, care that it deserves. Our Supply Chain Sustainability the continued guidance and support.
uphold the values of good governance to show Program in the Philippines has already yielded reductions
This agenda empowers all our units and functions respect for human rights, ensuring that ethical in energy, water, and waste, and we aim to accelerate As we continue to expand our family of brands and
with a unified approach and cadence toward practices are carried out across the organization. our initiatives as we move forward. restaurants around the world, I am positive and excited
generating sustainable long-term value for our for the joy of eating to reach more families and friends,
company and all our stakeholders, through its three When it comes to our team of 19,224 employees, Through the challenges we have faced during the global and to see the Jollibee Group grow even bigger, better,
pillars of Food, People, and Planet. we believe in providing them with training and pandemic in the last few years, we have learned many and more joyful in the next 45 years to come.
development opportunities, with a total of 187,079 lessons, many of which are centered on the need to
Let me discuss some of the key points under training hours completed in the past year. Equality and apply better, more sustainable practices for our planet
each pillar. diversity are top priorities for us, offering opportunities and our society.
to our employees regardless of gender, ethnicity, age,
ERNESTO TANMANTIONG

DIRECTORS &
CORPORATE OFFICERS*
DIRECTORS Dr. Tony Tan Caktiong Ernesto Tanmantiong William Tan Untiong Ang Cho Sit Antonio Chua Poe Eng
Executive Chairman Director / President and CEO Director / Corporate Secretary Director Director
Founder and Chief Taste Officer
Artemio Panganiban Cesar Purisima Kevin Goh Ee Rong Chong

Director Lead Independent Director Independent Director Independent Director
CORPORATE Tony Tan Caktiong Ernesto Tanmantiong William Tan Untiong

Executive Chairman President and CEO Corporate Secretary
OFFICERS Founder and Chief Taste Officer
Atty. Valerie Amante Don Alexander Lim Richard Chong Woo Shin
Compliance Officer and Treasurer Chief Financial Officer
Assistant Corporate Secretary
*As of December 31, 2022

Financial Highlights Corporate Highlights
FINANCIAL FINANCIAL SUMMARY

YEAR ENDED DEC. 31 CHANGE
HIGHLIGHTS 2022
(AUDITED)
2021
(AUDITED) AMOUNT % CHANGE
System-wide sales amounted to

SYSTEM-WIDE RETAIL SALES 296,822 211,719 85,103 40.2%
PHP296.8 BILLION
Highest system-wide sales,
surpassing pre-pandemic level
REVENUES 211,902 153,576 58,326 38.0%
JFC Operating Income amounted to

OPERATING INCOME 9,941 6,275 3,666 58.4%
PHP9.9 BILLION
Record-high operating income
EBITDA 31,214 23,606 7,608 32.2%
Net Income Attributable to Equity Holders of

the Parent Company amounted to NET INCOME ATTRIBUTABLE TO EQUITY 7,559 5,982 1,577 26.4%
PHP7.6 BILLION HOLDERS OF THE PARENT COMPANY
EARNINGS PER SHARE - BASIC 6.400 5.302 1.098 20.7%

2022 EBITDA:
PHP31.2 BILLION EARNINGS PER SHARE - DILUTED

FROM PHP23.6 BILLION IN 2021 6.382 5.293 1.089 20.6%
EBITDA (Earnings before interest expense, taxes, depreciation
and amortization, an approximation of cash flow from operations)
Note: (1) Amount in Million Pesos except for Per Share Data
(2) System-wide Sales is a management account, not part of the Audited Financial Statements
2022 NOTABLE ACCOMPLISHMENTS
Milksha Acquisition 542 New Stores

Completed 51% acquisition of The highest number of stores
Milksha International Co. Ltd., in a single year in JFC’s history.
owner of popular Taiwanese
bubble tea brand Milksha.
Declaration of Cash Dividends Titan Dining Expansion

PHP2.30 per Common Share; Increased commitment to Titan
37.7% higher compared with 2021 Dining LP to SGD315.0 million, with
PHP32.84 and PHP42.40 per Series A the fund size of Titan growing from
and B Preferred Share, respectively. SGD250.0M to SGD350.0M.
Land Conveyance Stock Price Growth

Completion of the transfer of some The JFC stock price outperformed the
land properties to CentralHub market, delivering 6.3% growth.
Industrial Centers with the objective
of becoming asset light.

SUSTAINABILITY AGENDA
To learn more about Joy for Tomorrow, visit www.jollibeegroup.com/sustainability
FOOD PEOPLE PLANET

We serve food people trust. We help make people's lives better. We treat the planet responsibly.
17 19,224 187,079 38%

Brands Employees Total Training Hours Cumulative Reduction in Food Loss and
Waste in our Manufacturing Sites
by the End of 2022 Against 2020 Baseline
Over
15,014 1,827,356 700 21.5%

Food Service Cleanliness Safe Person Hour Smallholder Farmers
& Condition Audits across Main Offices, directly Delivering to JFC Reduction in Energy Use Ratio
conducted in restaurants worldwide Stores and Supply Chain versus a 2020 Baseline in Manufacturing
82 9.7 59% 3-7%

Global Net Promoter Score Million Meals Women in Reduced Consumption from the Grid
exceeding benchmark of 50 distributed through FoodAID Management in Each Store with Installed Solar PV Panels
for calamity and disaster and 51% in total workforce
response since 2020
100% Hit 21%

of stores, commissaries, 70th Percentile Reduction in Water Use Ratio
versus a 2020 Baseline in our Philippine Manufacturing Sites
and logistics audited of Gallup's Q12 Percentile Ranking,
a measure of high employee
engagement

Jollibee
Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
JOLLIBEE
PHILIPPINES
Solidifying Market Leadership
with a Dominant 2022

Jollibee
As the largest fast food chain in the Philippines and

an emerging global brand, we have been spreading
joy across the world with our best-tasting food and
‘Alagang Jollibee’ brand of service. We operate a
network of more than 1,500 stores in 17 countries
where we serve customers with the crispylicious,
juicylicious Chickenjoy, sweet-sarap Jolly Spaghetti,
and beefiest langhap-sarap Yumburger, among
other delicious and value-for-money menu offerings.
Awarded recently as America’s Best Chain Fried

Chicken by Eater.com, Jollibee’s Chickenjoy
continues to win over local mainstream
customers around the world.

Jollibee
2022 Business Highlights Notable Campaigns

Bestsellers
1 Ang Pinakamasarap para sa Pamilya
Chickenjoy Campaign
+42.8%
Our campaign on Jollibee’s iconic Chickenjoy that shows how
2 System-wide it will always be there to bring priceless joy to families, despite
Sales Growth the changes happening around us.
(vs. 2021)
Level Up Joy Store Innovations Campaign

We leveled up joy with new store innovations like the Jollibots,
Smart Lockers, Rider’s Area, and Al Fresco Dining Area.
More Self-Order Kiosks (SOKs) have been deployed to
1,204
stores nationwide.
3 Sarap ng Pasko Masterbrand Christmas Campaign

2022 Total Jollibee brought back the all-out, ‘Sarap ng Pasko’ experience
that Filipinos love whenever they visit Jollibee stores and order
Store Network their langhap-sarap favorites. We offered exciting limited-
time offer products: Garlic Pepper Beef, Crisscut Fries, Choco
Crumble Sundae, and Choco Mallow Pie. Our store along
35
Triangle Drive in Bonifacio Global City, Taguig also gave
1 Chickenjoy a festive Christmas drive-thru experience for customers, with
Our signature crispy, juicy, bone-in fried chicken,
a grand welcome arch, brightly-colored lights, parols, and
served with a side of gravy for dipping.
stained glass-like panels.
New Stores Opened
2 Yumburger
Our beefiest “langhap-sarap” Yumburger, with
a beefy patty and our special dressing
CSR Initiative
+1.7%
in between soft buns.
Jollibee Buy One, Gift One Delivery Promo

3 Jolly Spaghetti
Our unique spaghetti topped with Jollibee’s
During the Christmas season, customers who ordered Jolly
Spaghetti, Palabok, and Burger Steak Family Pans via the
signature sweet-style sauce, loaded with chunky Store Network Jollibee App were able to donate pans of the same variant to
slices of savory ham, ground meat, and hotdog.
% Growth underprivileged families. More than 24,500 Family Pans were
given to partner communities nationwide.

Jollibee
JOLLIBEE
INTERNATIONAL
Home of the World-famous Chickenjoy,
Loved by Millions Around the World

Jollibee
32
Bestsellers 2022 Business Highlights Countries Present
1 Philippines USA Canada
2
+43.2% Hong Kong Malaysia Guam
System-wide Sales Growth Italy Spain UAE Qatar

Calculated in PHP
Vietnam Brunei Singapore
31 Macau UK Saudi Arabia
Kuwait
North America Bahrain Oman
Chickenjoy
1
Awards and Features
Our signature crispy, juicy, bone-in fried chicken,
378 40
+9.9%
served with a side of gravy for dipping.
Chicken Sandwich
2 Crispy chicken breast fillet, spread with umami 2022 Total Store Network New Stores Opened Best Chain Fried Chicken in America
mayo, and served on a toasted brioche bun. North America: 86 North America: 11 Eater
Europe, Middle East Europe, Middle East
Store Network
Peach Mango Pie and Asia (EMEA): 292 and Asia (EMEA): 29 % Growth One of America’s Hottest Brands in 2022
3 1
Made with real peaches and Philippine mangoes,
enveloped in a light, crispy crust. AdAge
Business Milestones Sustainability Initiatives One of America’s Favorite Chains in 2023

Europe, Middle East and Asia Newsweek
Opening of flagship location in Rollout of new Jollibee

1 Chickenjoy Times Square, New York, USA
Hong Kong's Best Fast Food Fried Chicken
boxed water in Italy to South China Morning Post
minimize use of
2 Chicken Sandwich Opening of first location for British plastic waste Best Fried Chicken in Brunei
Columbia, Canada in Vancouver Brunei Food Awards
Spaghetti
32 Our unique spaghetti topped with Jollibee’s
Rollout of low-calorie Technomic's Top Restaurant Chains
signature sweet-style sauce, loaded with chunky
Launched the new marinated Spicy meals in the UK and UAE Ranked 178 in Top 500 USA
slices of savory ham, ground meat, and hotdog.
Chickenjoy, spicy inside and out! Ranked 69 in Top 200 Canada

Jollibee Greenwich
Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
GREENWICH
Achieving Market Leadership in the
Pizza Branded Eat-Out Category in 2022

Jollibee Greenwich
Greenwich is a homegrown pizza brand that

brings the joy of eating great-tasting and
feel-good pizzas to Filipinos.

Jollibee Greenwich
Bestsellers 2022 Business Highlights Limited-Time Offers

3 Limited-Time Offers of Seafood Selections
Cajun Shrimp Overload Pizza

2
90%
Total Brand Awareness Creamy Shrimp Spaghetti
+36.3% with the help of always-on support for Greenwich’s Bestsellers

Hawaiian Overload, All-In Overload, and Lasagna Supreme Exciting Limited-Time Offer Pizzas
System-wide Spicy Overload Pizzas

Sales Growth 30%
Market Share Holiday Roast Beef Overload Pizza
Achieved highest-ever market share using past 12-week data,
with closest competitor more than 10 points behind us
(Source: BEO Kantar, Metro Manila)
People Initiatives
Awards
1
35 Million 300M+ #GWithTheBarkada
Greenwich continues to engage and prioritize
2022 Grab Views on TikTok its kabarkada’s wellbeing through its branded
Food Awards Monthly Reach Triple Delicious Dare campaign employee experience, #GWithTheBarkada that
Fan Favorites – Pizza with over 300 Million Views in Tiktok allows Greenwich employees to experience
Hawaiian Overload Pizza Overloaded Joy thru 3Gs–GRIT, GROW, GREAT
1 Our best-tasting Hawaiian Pizza with sweet
pineapples, ham, bacon, mozzarella, and cheddar.
271 7 5
All-In Overload Pizza
2 All-in toppings with bacon, sausage, beef,
pepperoni, ham, cheese, and veggies.
Lasagna Supreme 2022 Total New Stores Delivery and Take-Out

3 stores opened
Our best pasta made with loaded layers of beefy,
cheesy flavors.
Store Network Opened Greenwich Karangalan,
Phoenix Sta. Rosa, GMA Cavite,
Sta. Quiteria, and Bluewave
Marquinton Delivery & Take-out
stores were opened in 2022!
Jollibee Greenwich Chowking

Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
CHOWKING
PHILIPPINES
Faster and Stronger in 2022


Chowking elevates everyday meal occasions

into daily delicious and satisfying moments
with hot and fresh Chinese food. Chowking’s
strong performance in 2022 has given us the
confidence to dream big and aim higher.


Bestsellers 2022 Business Highlights
+46.9% 4.7%
System-wide Sales Growth
Market Share
Increased market share
560
from 4.5% to 4.7% YTD 2022 Total
(+20bps vs 2021)
Store Network
Business Milestones
11
1 2
New Stores
Opened
3
52% 100% Increased Delivery
1 Chao Fan Growth for Direct Digital Stores Branded Eat Out
#3
Chowking’s signature fried rice that is meaty-sahog,
Bestsellers in Web & App Value Share
wok-sarap.
2 Chinese-Style Fried Chicken

Crispy fried chicken with new Chinese Chicken Flavor. Delivery Brand
Deliciously Different! People Initiatives Digital is now 20%
3
Chunky Asado Siopao of the business.
Slow Roasted, Hong Kong-Style Asado Sarap.
Highly Engaged Chowfam
80 engagement score in 2022, vs. 62 in 2017


CHOWKING
INTERNATIONAL
One of America’s Hot Concepts


USA Bestsellers 2022 Business Highlights

Asia & Middle East Bestsellers
+16.4%
1
King Chao Fan
1 Flavorful wok-cooked mixed rice topped with
juicy, tender BBQ chicken.
System-wide Sales Growth

Chinese-Style Fried Chicken
Calculated in PHP
2 Crispy, juicy fried chicken flavored with a
unique blend of Chinese spices.
Peking-Style Sweet &

3 Sour Chicken
Crunchy chicken chunks in a perfectly blended
sweet & sour sauce.
3
53 7
2
2022 Total Store Network New Stores Opened

+8.2%
Store Network
1
USA: 17 USA: 1
2 Asia and Middle East: 36 Asia and Middle East: 6 % Growth
Meaty Asado Siopao

1 The best-in-class siopao, consisting of soft Chinese New Product Campaigns Awards
buns stuffed with a savory filling of meaty pork.
Chinese-Style Fried Meaty Asado Siopao Rice Bowls One of America's Hot Concepts
Chicken Lauriat Technomic
2 The complete and filling rice meal served with
juicy and crispy chicken seasoned with Chinese
spices, a serving of rice, Pancit Canton, and Buchi.
Peking-Style Sweet & Sour Chicken
2023 One of America’s Favorite
Restaurant Chains
Beef Wonton Noodles Beef Wonton Noodles
3 Hot, comforting noodle soup served with
Newsweek
beef chunks and wonton balls.
3

Jollibee Greenwich Chowking Yonghe

Yonghe King
King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
YONGHE
KING
Brand Innovation, Upgrade, and
Digitalization Drive Momentum
to Growth


Yonghe King
To bring the warmth and wholesomeness

of Chinese cooking to the world, Yonghe King
offers a wide range of Chinese fast food that
nourishes our body and brings warmth to
everyone, any time of the day.


Yonghe King
Bestsellers
2022 Business Highlights
421
3
2 King Breakfast 2022 Total

Store Network
in 300 YHK stores
-9.3%
YHK’s online delivery sub-brand, King Breakfast Co.,
64
is now available within 300 YHK two-in-one concept stores.
System-wide
Sales Growth New Stores
+2%
Calculated based
on local currency Opened
Tiktok contributed
Top-of-mind 3 million+ dine-in Record number of stores
1 opened for Yonghe King
brand gross sales per month
awareness since July 2022
1
Freshly Ground Soy Milk
100% natural and authentic soy milk freshly ground
every 4 hours, with over 650 million cups sold since 1995.
+6.9%
Store Network
King’s Minced Pork Rice New Product Launches & Limited Time Offers % Growth
2 Fine pork belly slow-cooked with a secret recipe. The
40+ new products launched, contributing over 50m in incremental gross sales.
number 1 minced pork rice in several cities in China
with over 26 million bowls sold per year.
Opened its
Small Handmade Buns
Crispy & Tender Chicken Thigh with First store in
3 Minced Pork Rice Taizhou, Jiangsu
Crispy and juicy fried chicken thigh, perfectly paired 6 Waves of Chinese Traditional, Seasonal, and Festival special limited time offers
with King’s minced pork rice for great satisfaction.

Jollibee Greenwich Chowking Yonghe King Red Ribbon

Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
RED
RIBBON
PHILIPPINES
Strong Products and Brand Power
Propel Red Ribbon to All-Time High
Sales in 2022


With over four decades of making every moment

sweeter for Filipino families, Red Ribbon offers
attractive, great-tasting, and accessible cakes,
pastries, and breads, making people feel loved
all around the globe.



3
527
+8.9%
2 Celebrating Our System-wide
2022 Total
Highest Sales Ever! Sales Growth
Store Network
New Product Launches

26
& Improvements New Stores
1 Opened
Chocolate Heaven Improved Chocolate Dedication Cake Caramel Crunch
+1.5%
White Forest 1 Choco-Caramel Ensaimada Christmas Dedication Cake 1
Valentine Black Forest 2 Improved Ube Bloom Improved Mango Sunrise

Black Forest Store Network
1 Luscious chocolate fudge cake, rich
chocolate shavings, creamy icing, and % Growth
sweet maraschino cherries. 1 Limited-Time Offer for Christmas | 2 Limited-Time Offer for Valentine’s
Chocolate Dedication Cake

2 Moist chocolate cake deliciously filled and
covered with rich chocolate icing, topped Awards Brand CSR and Sustainability Initiatives
with colorful candies.
Give Love Today Campaign
Triple Chocolate Roll Bronze Award for Excellence Give Love Today Gift-Giving
3 Soft chocolate cake covered in fudgy chocolate
in Integrated Marketing, A total of 250 child beneficiaries were gifted with their
icing, and topped with milk chocolate toppings.
MARKETING-INTERACTIVE’S secret wishes, Red Ribbon treats, and other surprises,
Marketing Excellence Awards 2022 making their Christmas sweet and love-filled.


RED
RIBBON
USA
Positive Same Store Sales Growth
Despite a Challenging US Economy


1
+15.3%
2 No. 1 Philippine
39
Bakeshop in
the USA System-wide Sales Growth
Calculated based on local currency 2022 Total

Store Network

and Improvements
1 3
Cake Sampler Yema Caramel Spicy Chicken Empanada 5
Ube Flan Rocky Road Relaunch Ube Latte Launch
New Stores
Opened
Mango Supreme Cake Mango Supreme, Butter Mamon Repricing HACCP-Cetification of New Jersey Plant
Our signature and best-selling cake pays homage to
1 Philippine mangoes, said to be the sweetest in the world.
It features three layers of moist chiffon cake filled with
cream and topped with mango chunks. It’s mango
+14.7%
sweetness in every layer.
Butter Mamon Awards

2 Everyone’s all-time favorite. This delicate pastry is a
flawless combination of soft, moist chiffon and 100% Store Network
creamy butter for a melt-in-your-mouth indulgence.
Best Restaurant Highest ranking Best of L.A. % Growth
Chicken Empanada for Ube Desserts PH Bakeshop Consistently cited as
3 Made of dough generously filled with 100% real chicken “Best of L.A.” by the
and a unique mix of spices, it’s deep-fried to a crisp Eater named Red Ribbon in the Technomic’s Los Angeles Times
golden-brown perfection. among the best restaurants List of “Top 500 Chain
for ube desserts in Las Vegas Restaurants in the U.S.”

Jollibee Greenwich Chowking Yonghe King Red Ribbon Zhuang Yuan

Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
HONG ZHUANG
YUAN
Positive System-wide Sales Growth
Despite Challenging Landscape


Since 1992, Hong Zhuang Yuan remains committed

to providing value-for-money, healthy, and delicious
congee loved by friends and family. We bring together
fresh ingredients, balanced natural nutrition, and
high-quality cooking.


Bestsellers
3
46 58
+5.1%
New products
2022 Total
launched
Store Network
System-wide
1
Sales Growth
+2%
13
Top-of-mind
2
brand awareness
Calculated based on local currency
New Stores
Awards Opened
Record-high
Congee with Minced Pork and Preserved Egg
11 Stores new store openings
Top 100 Restaurant honored on the 2022
Cooked for 90 minutes with soup boiled with pork
TOP
100
1 for 8 hours, topped with preserved egg for a healthy Brands in Beijing Tiktok Fast Food Award List
and nutritious congee bowl. Over 1,000,000 bowls 2022 Beijing Catering
served annually. Brand Conference
10 Stores
+13.7%
Sautee Roasted Meat
2 Freshly stir-fried and roasted meat in a bun, with a honored with the annual
secret seasoning that adds aroma to the taste. Dianping Star Restaurant in 2022
Chinese Style Stir-fried Chicken 2022 Meituan x Dianping

Selected Lu Hua chicken that offers a firm and chewy Restaurants List of New Store Network
21 Stores
3 meat texture, enveloped in a secret sauce recipe
Beijing Cuisine % Growth
with two-hundred years of history that brings a rich honored on the
and irresistible flavor. Dianping Dish list in 2022

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal
Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
MANG
INASAL
Driving Stronger Performance vs.
Pre-Pandemic Level through Reinvention

For 20 years, Mang Inasal has been serving

Ihaw-Sarap meals and delivering Unli-Saya
moments to its customers across the Philippines.

2 2022 Business Highlights

Bestsellers
+84.6%
System-wide
Sales Growth
20
Years in Service
3
Product Innovation Mang Inasal has been
serving Ihaw-Sarap,
Unli-Saya meals for
Menu Transformation and strengthened off-premise business operations the past two decades!
574
BBQ with Peanut Sauce and Java Rice Family Fiesta Meals
Awards Partnership 2022 Total

1
with Farmers Store Network
Gold Stevie Award for Innovation
#MangInasalFamilyFiesta TikTok won the With over 97%
Chicken Inasal Gold Stevie Award for Innovation in the Use franchised stores
1 Marinated chicken quarters expertly grilled of Viral Media/Word of Mouth in the 2023
the Mang Inasal way. Asia Pacific Stevie Awards.
2
Extra Creamy Halo-Halo
Delicious and extra creamy shaved ice milk dessert
topped with red sago, buko pandan jelly, langka, ube
halaya, yellow beans, red mongo beans, leche flan,
Silver Anvil: Public Relations Tool
#MomsRuleAtMangInasal Campaign won the
Silver Anvil, Public Relations Tool: Social Media
Category in the 58th Anvil Awards of the
5
New Stores
macapuno, banana, and a scoop of ube ice cream. Public Relations Society of the Philippines.
Partnership with Opened
Palabok Silver Award: AGAP farmers Complemented by online
3 Noodles in thick rich sauce seasoned with Excellence in Viral Marketing Sourcing of ginger from AGAP
delivery platforms for
chopped spring onions, hard-boiled egg slices, wider customer reach
Mang Inasal's "16 Cups Challenge” won the farmers in Rizal and Laguna as part of
chicharon bits, meaty pork, and tinapa.
Silver Award: Excellence in Viral Marketing in Jollibee Group Foundation’s Farmer
the 2022 Marketing Excellence Awards. Entrepreneurship Program

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King
Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
BURGER
KING
PHILIPPINES
Breaking Records: Our Best Year Yet

With our freshly-prepared ingredients and signature

flame-grilled beef burgers, we uphold Burger King’s
International Crown Standard with every Whopper
we serve to customers.

Bestsellers
3
Burger King 125

+29.1%
2
achieved one of System-wide
Sales Growth 2022 Total
its best years yet
1 Store Network
100th store since JFC
acquisition in 2011

22
New Stores
Chicken King Spicy Chicken King A&W Rootbeer Float Cheese Bites Opened
Highest number of
Whopper Plant-Based X-tra Long Chicken Spicy Chicken Nuggets Truffle Whopper stores opened in a year
Our flagship product that takes pride in
1 its high-quality ingredients, making it the
5
world-famous flame-grilled burger.
4-Cheese Whopper
The cheesiest flame-grilled burger, with
2 four types of cheeses placed on top of our
Bike ‘n Dine stores
signature 100% beef patty.
Awards Shaw Wack-Wack,
X-tra Long Chicken Visayas Ave., Vermosa,
Alabang-West, & Carmona
3
Made with X-tra Chicken, X-tra Filling, 2022 Grab Food Awards: Fan Favorites – Burgers
and X-tra Tasty Chicken Fillet and
Sesame-topped Sandwich Buns.

HIGHLANDS
COFFEE
Strongest Brand Equity in Vietnam

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King HighlandsCoffee
Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
Highlands Coffee is the #1 coffee player in Vietnam,

offering deliciously authentic, good value-for-money
products made for the modern Vietnamese lifestyle.

Bestsellers 3
2
605 137
+106.5%
System-wide 2022 Total New Stores
Sales Growth Store Network Opened

Brand CSR
88%
Record Breaking Profits
Revenue Growth
at the Outlet and
1
Over 2021
Business Level vs 47% over 2019
˜ Đá
Phin Sua
A bold blend of the finest Vietnamese Robusta and
Supporting Farmers
1 Arabica coffee beans, hand-roasted and flavored to
Conducting training programs for local farmers
perfection, then slow-drip brewed through a traditional
‘Phin’ filter. Sweet condensed milk and ice are added to and providing social welfare programs to support
create this deliciously indulgent pick-me-up. local schools
Leading Market Share
Trà Sen Vàng
2 A refreshing blend of cooling oolong tea, luscious lotus Taking Care of the
Vietnamese Community
25% 35-40%
seeds, and water chestnuts.
Market Share Market Share
Built classrooms and bridges, organized charity
Freeze Trà Xanh Overall in Key Urban Areas activities, and sponsored social activities to
Premium Vietnamese green tea and ice are blended
3 into fine flavor granules with added chewy green tea
support less fortunate provinces
jelly and a topping of rich cream.

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger
Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
SMASHBURGER
Second Year of Positive Sales Growth
and Share Gains

Founded in 2007 in Denver, Colorado, the first Smashburger

opened with one single notion in mind—to serve a better burger
and, in the process, help create a new category. We are known
for our namesake smashing technique—smashing a fresh,
never frozen, 100% Certified Angus Beef hand-packed ball of
meat on a hot seasoned grill—delivering an elevated burger
experience where every bite is made to savor.


3
2
+30% 243 8
+9.8% System-wide
Sales Growth
calculated based
increase in owned channel digital revenues
and improved customer experience
2022 Total
Store Network
New Stores
Opened
on local currency from migration to a new e-commerce platform
Awards
New Product Launches & Limited Time Offers
TOP Fast-Casual Movers and
Scorchin’ Hot Chicken Wings Garlic & Rosemary Chicken Wings BBQ Chicken Wings 10 Shakers Top 100 Awards
S’mores Haagen-Dazs Handmade Shake Tangerine Dream Haagen-Dazs Handmade Shake Bases Menu
Innovation Award
1
Reeces Pieces Cookie Dough Haagen-Dazs Handmade Shake Scorchin’ Hot Chicken Tenders Nielsen 2022
The Throwback Burger - The Cheesy Caramelized Onion Colorado Burger Buffalo Chicken Wings Gold PR Bulldog Award for
Double Classic Smashburger Best Newsjacking Campaign
The burger that started it all, made-to-order
1 smashed and seasoned certified Angus beef
topped with fresh produce toppings and our
secret smash sauce. Brand CSR and Sustainability Initiatives
Double Bacon Smash Frontera Farmers Foundation People Initiatives
2
100+
Classic cheeseburger with Applewood smoked
Partnered with Chef Rick Bayless to raise
bacon and fresh toppings.
money for local small farms in the Midwest US
Best Place 3 Years
Local givebacks
Colorado Burger
A taste of Southern Colorado, with a perfectly Boys and Girls Club to Work of consecutive
3 spicy cheeseburger featuring pepper jack cheese, Partnered with NFL running back Javonte Williams Denver Post positive gains in
melted cheddar cheese, and grilled Anaheim to support schools and organizations in the to raise money for youth sports programs within
chile on a toasted spicy chipotle bun.
communities in which Smashburger serves
employee retention
the local Boy’s and Girl’s clubs

THE COFFEE BEAN

& TEA LEAF
Investing in a Strong Core to Build
Our Global Growth Momentum

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger Leaf
The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
At The Coffee Bean & Tea Leaf, we bring you the best of
specialty Coffee & Tea through all your daily moments.
We serve with friendliness, and we are committed to

creating an engaging work environment, which helps
our people grow their careers from Barista to Boardroom.
We are committed to growing our business through

mutual partnerships and sustainable practices.

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger Leaf
The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation

Bestsellers
2
3
+22.9% System-wide
Sales Growth
20
+6pp improvement in EBITDA structure vs. 2019 Calculated based on local currency Countries as of
December 2022
Continued global footprint:
Business Milestones new franchise relationship
in Saudi Arabia
Strong performance in Malaysia
103
and Singapore
1 Improved USA financials with

new talent, refurbishments, and New Cafés
Rolling Base ADS
drive-thru operations Opened
Improvement
Latte
Crafted with our signature Espresso Roast Blend
All business units delivered
30
1 sequential improvement in
made from 100% Arabica beans, our lattes are a Kuwait opened their 50th cafe average-day-sales from
perfect harmony of the bold taste of coffee and
the luxurious richness of perfectly steamed milk. 2019 to 2022.
The Original Ice Blended®

2 Our Original Ice Blended® series is a crowd favorite. Café Openings
A rich, smooth, and creamy goodness that’s
blended to perfection. It’s never short of indulgent.
Global Core Menu in Malaysia
The highest number of café
Cold Brew Signature Coffee Blend Cold Brew Coffee & Tea openings in operating history
3 We only use beans from the top 1% of specialty-
grade Arabica, which are perfected and
extracted with time.
The Original Ice Blended®

TIM HO WAN
CHINA
Rapid Expansion in Mainland China

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho
Tim Ho Wan
Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
Tim Ho Wan promises to serve delicious, authentic,

affordable, and high-quality Hong Kong Dim Sum
with friendly service in a cozy environment.

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho
Tim Ho Wan
Wan Panda Express Yoshinoya Milksha Jollibee Group Foundation
1
+81.5% System-wide
Sales Growth
17
2022 Total
Store Network
Shrimp and Crab Siu Mai Classic Hong Kong Style Rice with Mixed Sauce 9
New Stores
Portuguese Style Egg Tart Shrimp Red Rice Rolls Hong Kong Style Lemon Tea Opened
3 Cheese Stuffed Crispy Shrimp Dumplings Hong Kong Style Coffee & Milk Tea
2
Warm Red Bean Paste with Osmanthus and Orange Peel 7Up with Salty Lemon +112.5%
Store Network
Oolong Lemon Ribena Lime Soda with Watercress Honey Golden Crispy Tofu
% Growth
Chinese Fried Pigeon
1 Fried baby pigeon with crispy and glossy skin, Hong Kong Style Egg Puff Hong Kong Style Milk Tea Iced Lemon Tea with Soda
tender & juicy meat, and amazing fragrance.
Baked BBQ Pork Buns

2 Hot, crispy buns filled with a savory, slightly
Milestone Openings
sweet filling of Cantonese roast pork.
Shrimp Dumplings
3 Cantonese dim sum fresh shrimp encased in
Zhejiang Province Jiangsu Province Beijing Middle China
translucent and chewy dough.
Hangzhou in June Nanjin in September in August Wuhan in December

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Express
Panda Express Yoshinoya Milksha Jollibee Group Foundation
PANDA
EXPRESS
Greater Heights in the Philippines

We are the home of the Original Orange Chicken,

as well as Wok Smart dishes (under 300 calories,
8 or more grams of protein), with 14 stores and
growing in the Philippines.

Bestsellers 2022 Business Highlights Milestone Openings
+178.2%
Opened 1st stores in the
Highest System-wide
following cities:
Sales Ever
versus 2021
Manila
Robinsons Place Manila
3
Las Piñas
New Product Launches SM Southmall
and Improvements
Muntinlupa
14
Shell SLT
Honey Sesame Chicken Kung Pao Fish
Parañaque
Wok-Seared Steak & Shrimp Betterliving
2022 Total
1 Store Network San Juan
Greenhills
2 Key Campaigns
Opened new store formats:
10
Orange Chicken
1 Crispy coated chicken, wok-tossed in
Panda Express signature orange sauce.
Lunar New Year
resulted to +84% ADQ
Honey Walnut Shrimp New Stores
growth vs. LY
2 Large tempura battered shrimp, tossed in honey
sauce and topped with candied walnuts. Opened
Broccoli Beef Highest number of store Orange Chicken
3 Tender sliced beef and fresh broccoli pieces
wok stir-fried in mild ginger soy sauce.
openings in 1 year.
35th Anniversary
resulted to +21% ADS mix
Don Antonio Shell SLT
Free Standing In-Store

YOSHINOYA
Powering Up Yoshinoya in the Philippines

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya
Yoshinoya Milksha Jollibee Group Foundation
At Yoshinoya Philippines, we are committed to

delivering a distinct culinary experience steeped
in Japanese tradition, taste, and quality.
From our world-famous signature beef bowl to a

wide range of other flavorful dishes, every bite at
Yoshinoya carries the essence of genuine & familiar
Japanese flavors.

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya
Yoshinoya Milksha Jollibee Group Foundation
3 2022 Business Highlights

Bestsellers
and Improvements
Gyudon with Cheese Togarashi Pork Karaage Gyoza

System-wide
+566.9% Sales Growth Grilled Beef Gyudon with Green Onion & Onsen Egg Tempura
2
Motchi Matcha Ice Cream Yuzu Lemonade Coffee Jelly
7 Business Milestones
2022 Total
Gyudon Store Network Brand Identity Refresh
Signature sliced beef, simmered in Yoshinoya’s very We refreshed our brand identity with new store
1 own special broth seasoned with a hundred-year-old
designs, uniforms, and a website ordering platform.
herb recipe and sweet white onions, served over soft
Japanese rice.
4
Prawn Tempura
Store Renovations
Crisp fried shrimp coated in our traditional
2 Japanese-style tempura batter served over
steamed Japanese rice.
New Stores In 2022, we opened four new stores and

Chicken Karaage renovated three existing stores.
Breaded thick cuts of chicken thigh, marinated in Opened
3 special seasoning, deep-fried to a golden brown.
Served over steamed Japanese rice.

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha
Milksha Jollibee Group Foundation
MILKSHA
Introducing the Taste of Milksha to
New Markets in 2022

We strive to build the hand-crafted tea beverage

culture that leaves consumers craving for more,
thanks to our selected premium ingredients and
unique handmade process.

Bestsellers 2022 Business Highlights Countries Present
Taiwan Philippines Australia
Hong Kong Singapore CSR Initiatives
United Kingdom Canada Green Light Charity Program
280
For every purchase of 6 cups, Miksha donates NT$6. We
have donated to over 32 NGOs and donated over NT$40
3 million to 32+ NGOs to support children in need.
Award Charity Cups

2 2022 Total Colored Milksha’s drink cups with hand-drawn
Store Network Most Popular Brand:
illustrations from the children we support, giving them
a platform to showcase their talents.
2022 National Brand
Yushan Award Green Light Inclusive Park
Awarded for our dedication to provide fresh, Supported the St. Raphael Opportunity Center in building
33
1 high-quality, and hand-crafted products. a park with inclusive facilities for developmentally
delayed children, without cutting down a single tree.
Eco Straws Initiative

New Stores Milestone Openings Replaced plastic straws with 100% biodegradable eco
straws in directly-owned company stores, reducing over
Black Tea Latte Opened 2.5 million plastic straws in 2022.
1
with Honey Pearls From February 2022 to Europe
December 2022 London, United Kingdom Carbon Reduction
Cooperated with Ecoco to achieve more than 130 tons of
2 Barley Tea
Australia carbon reduction based on the amount of recycled
plastic bottles and batteries.
Gold Coast, Brisbane
3 Light-roasted Oolong Tea
South East Asia
Philippines

JOLLIBEE GROUP
FOUNDATION
Elevating Work with Partners to
Uplift Communities

Jollibee Group Foundation is the social development

arm of the Jollibee Group.
We promote improved access to food by implementing

programs on agro-entrepreneurship, education, and
disaster response, together with partner organizations
in the Philippines and from other countries.

Jollibee Greenwich Chowking Yonghe King Red Ribbon Hong Zhuang Yuan Mang Inasal Burger King Highlands Coffee Smashburger The Coffee Bean & Tea Leaf Tim Ho Wan Panda Express Yoshinoya Milksha Jollibee
Jollibee Group Foundation
Foundation
Farmer Entrepreneurship Program

A comprehensive agro-entrepreneurship program that engages partners to organize small-scale farming communities all over the Philippines.
9 Million Kilos Strengthening Support Partnering with the

of Vegetables for Farmer Partners Department of Agriculture (DA)
Since 2009 Launched in 2021, the Agro-Entrepreneurship for Inclusive Value Chains
course has produced 205 field facilitators from 104 organizations. They
JGF continued its partnership with the DA to promote the
Agro-Entrepreneurship Clustering Approach. DA has integrated the
in 2022, 834,000 kilos of vegetables are indispensable in providing support and education to farmer groups, approach as a complementary strategy in its Farm and Fisheries
were delivered by FEP farmer groups. coaching them on agro-entrepreneurship. Clustering and Consolidation Program.
Jollibee Group FoodAid ACE (Access, Curriculum, and Employability) Scholarship Program
Jollibee Group’s disaster response program. In partnership with skills training institutions, the ACE Scholarship Program provides technical-vocational courses
to indigent out-of-school youth students with training on technical mechanical courses, agro-entrepreneurship,
and quick-service restaurant operations. Scholars also receive on-the-job training with JGF’s industry partners
and Jollibee Group’s business units.
9,700,000+ meals since March 2020

2,300+ 138 Scholarships in 2022
Scholars In 2022, JGF provided scholarships to 138 underprivileged youth around
Together with its partners, Jollibee Group FoodAid distributed 1,600,000 meals the Philippines for various courses including agro-entrepreneurship,
for families affected by the pandemic and natural calamities in 2022. since 2005 senior high school programs, and quick-service restaurant operations.
Since the COVID pandemic started, JGF has distributed 9,700,000+ meals.

BUSINESS &
FUNCTION HEADS*
HEADS OF Joseph Tanbuntiong Fernando Yu, Jr. Kenneth Andrew Lingan Joseph Michael Castro
PHILIPPINE Philippine Business Jollibee Philippines Chowking Philippines Mang Inasal Philippines
and Jollibee Global
BUSINESS UNITS
Justo Alano III Jose Amado Dominguez Ma. Alfonso Romeo Roderos John Velasco
Greenwich, Red Ribbon, and Red Ribbon Philippines Greenwich Philippines Burger King Philippines
Foreign Franchised Brands
HEADS OF Carl Brian Tancaktiong Louie Liu Li Yi Thai Phi Diep

INTERNATIONAL JFC China and Global Digital JFC China and Yonghe King Hong Zhuang Yuan SuperFoods Group
BUSINESS UNITS
Maribeth Dela Cruz Carl Bachmann John In De Braekt Dennis Flores
North America Asian Brands Smashburger The Coffee Bean & Tea Leaf Europe, Middle East,
Asia and Australia
Peter Huang
Milksha

BUSINESS &
FUNCTION HEADS*
HEADS OF Arsenio Sabado Richard Chong Woo Shin William Tan Untiong Jose Ma. Miñana Jr.
CORPORATE UNITS Human Resources Finance Real Estate and Design Sustainability and Public Affairs
Daniel Rafael Ramon Gomez III Atty. Valerie Amante Marcos Cadena Jaivardhan Rastogi
Marketing Legal and Ethics Technology Procurement
Thomas Ryan Frank Sheng Ma. Gisela Tiongson

Product Development Internal Audit Jollibee Group Foundation, Inc.

AUDITED CONSOLIDATED
FINANCIAL STATEMENTS
TABLE OF CONTENTS
70 Selected Financial Data 78 Consolidated Statements of
Comprehensive Income
71 Statement of Management’s
Responsibility for Financial Statements 80 Consolidated Statements of
Changes in Equity
72 Independent Auditor’s Report
76 Consolidated Statements of 83 Consolidated Statements of

Financial Position Cash Flows
86 Notes to Audited Consolidated

Financial Statements

JFC GROUP OF COMPANIES

SELECTED FINANCIAL DATA
(in P’000, except Number of Stores, Personnel, Ratios, Per Share Data and Outstanding Shares)
FOR THE YEAR 2019 2020 2021 2022 AT YEAR-END 2019 2020 2021 2022
Consolidated System-wide Sales 243,792,179 175,970,286 211,719,459 296,822,356 Total Assets 187,442,763 210,810,130 210,838,227 233,402,705
Revenues 179,626,188 129,313,002 153,575,590 211,902,216 Total Property & Equipment 32,592,122 28,684,131 30,608,819 36,485,718
Net Income (Loss) 7,510,781 (12,633,623) 5,501,991 7,338,493 Total Equity 53,369,742 68,031,863 74,184,155 80,915,033
Net Income (Loss) Attributable to Equity Current Ratio 0.68 1.36 1.43 1.22
Holders of the Parent 7,302,726 (11,510,727) 5,981,690 7,558,503 Debt Ratio 0.72 0.79 0.71 0.71
Payroll and Benefits 28,015,224 27,920,054 28,012,314 35,448,082
Personnel 45,006 35,904 36,314 40,468
Number of Stores
PER SHARE DATA 2019 2020 2021 2022
Jollibee* 1,461 1,485 1,528 1,582
Greenwich 284 273 269 271 Basic Earnings (Loss) Per Share 6.684 (10.445) 5.302 6.400
Chowking* 665 620 605 613 Diluted Earnings (Loss) Per Share 6.608 (10.433) 5.293 6.382
Red Ribbon* 535 526 553 566 Cash Dividend 2.58 1.30 1.67 2.30
Yonghe King 339 354 394 421 Book Value 49.58 62.49 68.01 72.58
Hong Zhuan Yuan 42 31 51 58
Mang Inasal 611 594 578 574
Burger King 105 98 103 125 SHARE INFORMATION 2019 2020 2021 2022
Dunkin’ Donuts 8 3 7 -
Highlands Coffee 401 483 483 605 Outstanding Shares (net of Treasury Shares) 1,076,523,234 1,088,631,598 1,090,716,893 1,114,769,415
PHO24 39 53 54 30
HardRock Cafe 6 2 - -
Smashburger 301 237 245 243
Coffee Bean & Tea Leaf 1,173 1,071 1,048 1,071
Panda Express 1 1 4 14
Tim Ho Wan - 1 8 17
Yoshinoya - - 3 7
Multibrand - - - 3
Milksha - - - 280
*Domestic and International

STATEMENT OF MANAGEMENT’S
RESPONSIBILITY FOR FINANCIAL STATEMENTS
REPUBLIC OF THE PHILIPPINES )
CITY OF PASIG ) S.S
The management of JOLLIBEE FOODS CORPORATION The Board of Directors reviews and approves the Before me, a notary public in and for the city named above,
AND SUBSIDIARIES (the JFC Group) is responsible for the consolidated financial statements including the schedules personally appeared the following:
preparation and fair presentation of the consolidated attached therein, and submits the same to the stockholders.
financial statements including the schedules attached Name Proof of Identification
SyCip Gorres Velayo & Co., the independent auditor
therein, for the years ended December 31, 2022, 2021 and
appointed by the stockholders for the years ended Tony Tan Caktiong Passport No. P3722018B, issued on November 4, 2019
2020, in accordance with the prescribed financial reporting and expiring on November 3, 2029
December 31, 2022, 2021 and 2020, has audited the
framework indicated therein, and for such internal control Ernesto Tanmantiong Passport No. P8719063A, issued on September 12,
consolidated financial statements of the JFC Group in 2018 and expiring on September 11, 2028
as management determines is necessary to enable the
accordance with Philippine Standards on Auditing, and in its Richard Chong Woo Shin Passport No. AS281239, issued on October 11, 2022
preparation of the consolidated financial statements that and expiring on October 11, 2032
report to the stockholders, has expressed its opinion on the
are free from material misstatement, whether due to fraud Marilou N. Sibayan Passport No. P1622233C, issued on September 9,
fairness of presentation upon completion of such audit. 2022 and expiring on September 8, 2032
or error.
In preparing the consolidated financial statements,

Who are personally known to me and to me known to be the
management is responsible for assessing the JFC Group’s
same persons who presented the foregoing instrument and
ability to continue as a going concern, disclosing, as
Signed under oath by the following: signed the instrument in my presence, and who took on oath
applicable matters related to going concern and using the
before me as to such instrument.
going concern basis of accounting unless management
either intends to liquidate the JFC Group or to cease Witness my hand and seal this
operations, or has no realistic alternative but to do so. TONY TAN CAKTIONG ERNESTO TANMANTIONG
Chairman of the Board President and Chief Executive Officer
The Board of Directors is responsible for overseeing the JFC
Doc. No. 210
Group’s financial reporting process.
Page No. 43
RICHARD CHONG WOO SHIN MARILOU N. SIBAYAN Book No. III
Chief Financial Officer VP-Global Comptrollership and Tax Series of 2023

INDEPENDENT AUDITOR’S REPORT

The Stockholders and the Board of Directors
Jollibee Foods Corporation
Doing business under the name and style of Jollibee and Subsidiaries
10/F Jollibee Plaza Building
10 F. Ortigas Jr. Avenue, Ortigas Center
Pasig City
OPINION BASIS FOR OPINION KEY AUDIT MATTERS

We have audited the consolidated financial statements We conducted our audits in accordance with Philippine Key audit matters are those matters that, in our professional
of Jollibee Foods Corporation Doing business under Standards on Auditing (PSAs). Our responsibilities under judgment, were of most significance in our audit of the
the name and style of Jollibee (the Parent Company) those standards are further described in the Auditor’s consolidated financial statements of the current period.
and its subsidiaries (the JFC Group), which comprise Responsibilities for the Audit of the Consolidated Financial These matters were addressed in the context of our audit
the consolidated statements of financial position as Statements section of our report. We are independent of of the consolidated financial statements as a whole, and
at December 31, 2022 and 2021, and the consolidated the JFC Group in accordance with the Code of Ethics for in forming our opinion thereon, and we do not provide a
statements of comprehensive income, consolidated Professional Accountants in the Philippines (Code of Ethics) separate opinion on these matters. For each matter below,
statements of changes in equity and consolidated together with the ethical requirements that are relevant our description of how our audit addressed the matter is
statements of cash flows for each of the three years in to our audit of the consolidated financial statements in provided in that context.
the period ended December 31, 2022, and notes to the the Philippines, and we have fulfilled our other ethical
We have fulfilled the responsibilities described in the
consolidated financial statements, including a summary of responsibilities in accordance with these requirements and
Auditor’s Responsibilities for the Audit of the Consolidated
significant accounting policies. the Code of Ethics. We believe that the audit evidence we
Financial Statements section of our report, including in
have obtained is sufficient and appropriate to provide a
In our opinion, the accompanying consolidated financial relation to these matters. Accordingly, our audit included
basis for our opinion.
statements present fairly, in all material respects, the the performance of procedures designed to respond to our
financial position of the JFC Group as at December 31, 2022 assessment of the risks of material misstatement of the
and 2021, and its consolidated financial performance and consolidated financial statements. The results of our audit
its consolidated cash flows for each of the three years in procedures, including the procedures performed to address
the period ended December 31, 2022 in accordance with the matters below, provide the basis for our audit opinion on
Philippine Financial Reporting Standards (PFRSs). the accompanying consolidated financial statements.

Recoverability of Goodwill and Trademark with Audit Response corporate income tax. Management evaluated the
Indefinite Life recognition of these deferred tax assets based on the
We involved our internal specialist in evaluating the
forecasted taxable income taking into account the period in
Under Philippine Accounting Standard (PAS) 36, Impairment methodologies and the assumptions used in determining
which the deductible temporary differences can be claimed
of Assets, the JFC Group is required to annually test the the recoverable amounts of the cash-generating units
in the Philippines, the People’s Republic of China and the
amount of goodwill and trademark with indefinite life for (CGUs) for goodwill and the trademarks with indefinite life.
United States of America. The recognition of deferred tax
impairment. This annual impairment test was significant to These assumptions include the discount rate, net sales
assets is significant to our audit because the assessment
our audit because the balance of goodwill and trademark forecasts, long-term revenue growth rate and EBITDA. We
process is complex and judgmental, and is based on
with indefinite life amounting to P 15,850.2 million and compared the key assumptions used, such as forecasted
assumptions that are affected by expected future market or
P 35,445.8 million as at December 31, 2022, respectively, are long-term revenue growth rate, forecasted net sales and
economic conditions and the expected future performance
material to the consolidated financial statements. EBITDA against the historical data of the CGUs and inquired
as well as management’s plans and strategies of the
from management and operations personnel about the
In addition, management’s assessment process is complex relevant taxable entities.
plans to support the forecast. Furthermore, we tested the
and highly judgmental and is based on assumptions,
parameters used in the determination of discount rate The disclosures in relation to deferred income taxes are
specifically discount rate, which is applied to the cash flows,
against market data. We also reviewed the JFC Group’s included in Note 24 to the consolidated financial statements.
net sales forecasts, long-term revenue growth rate, and
disclosures about the assumptions to which the outcome
EBITDA which are affected by expected future market or Audit Response
of the impairment test is most sensitive, specifically those
economic conditions, particularly those in the Philippines, the
that have the most significant effect on the determination We updated our understanding of the Parent Company and
People’s Republic of China, Vietnam and the United States of
of the recoverable amount of goodwill and trademarks with its subsidiaries’ deferred income tax calculation process and,
America.
indefinite life. together with our internal specialist, the applicable tax rules
The JFC Group’s disclosures about goodwill and trademarks and regulations. We evaluated management’s assessment
Recognition of Deferred Income Tax Assets
with indefinite life are included in Note 14, which specifically on the availability of future taxable income with reference
explains that small changes in the key assumptions used The Parent Company and certain subsidiaries (foreign and to financial forecasts and tax strategies. We evaluated
could give rise to an impairment of the goodwill balance in local) have recognized deferred tax assets amounting to management’s forecast by comparing the forecasts of
the future. P 18,452.6 million as at December 31, 2022. Of that amount, future taxable income against approved budgets, historical
around 27% relates to net operating loss carryover and performance of the relevant entities like past revenue growth
excess minimum corporate income tax over regular rates and with relevant external market information such as

inflation, taking into consideration the impact associated Responsibilities of Management and Those Charged with our opinion. Reasonable assurance is a high level of
with coronavirus pandemic. We also assessed the timing Governance for the Consolidated Financial Statements assurance, but is not a guarantee that an audit conducted
of the reversal of future taxable and deductible temporary in accordance with PSAs will always detect a material
Management is responsible for the preparation and fair
differences. misstatement when it exists. Misstatements can arise from
presentation of the consolidated financial statements
fraud or error and are considered material if, individually
Other Information in accordance with PFRSs, and for such internal control
or in the aggregate, they could reasonably be expected to
as management determines is necessary to enable the
Management is responsible for the other information. The influence the economic decisions of users taken on the basis
preparation of consolidated financial statements that are
other information comprises the information included in of these consolidated financial statements.
free from material misstatement, whether due to fraud or
the SEC Form 20-IS (Definitive Information Statement), SEC
error. As part of an audit in accordance with PSAs, we exercise
Form 17-A and Annual Report for the year ended December
professional judgment and maintain professional skepticism
31, 2022, but does not include the consolidated financial In preparing the consolidated financial statements,
throughout the audit. We also:
statements and our auditor’s report thereon. The SEC Form management is responsible for assessing the JFC Group’s
20-IS (Definitive Information Statement), SEC Form 17-A and ability to continue as a going concern, disclosing, as • Identify and assess the risks of material misstatement
Annual Report for the year ended December 31, 2022 are applicable, matters related to going concern and using the of the consolidated financial statements, whether due
expected to be made available to us after the date of this going concern basis of accounting unless management to fraud or error, design and perform audit procedures
auditor’s report. either intends to liquidate the JFC Group or to cease responsive to those risks, and obtain audit evidence that
operations, or has no realistic alternative but to do so. is sufficient and appropriate to provide a basis for our
Our opinion on the consolidated financial statements does
opinion. The risk of not detecting a material misstatement
not cover the other information and we will not express any Those charged with governance are responsible for
resulting from fraud is higher than for one resulting from
form of assurance conclusion thereon. overseeing the JFC Group’s financial reporting process.
error, as fraud may involve collusion, forgery, intentional
In connection with our audits of the consolidated financial Auditor’s Responsibilities for the Audit of the Consolidated omissions, misrepresentations, or the override of internal
statements, our responsibility is to read the other information Financial Statements
control.
identified above when it becomes available and, in doing Our objectives are to obtain reasonable assurance about
• Obtain an understanding of internal control relevant to
so, consider whether the other information is materially whether the consolidated financial statements as a whole
the audit in order to design audit procedures that are
inconsistent with the consolidated financial statements or are free from material misstatement, whether due to fraud
appropriate in the circumstances, but not for the purpose
our knowledge obtained in the audits, or otherwise appears or error, and to issue an auditor’s report that includes
of expressing an opinion on the effectiveness of the JFC
to be materially misstated.

LEADERSHIP
LEADERSHIP HIGHLIGHTS
HIGHLIGHTS BUSINESSES
COMPANIES FINANCIAL STATEMENTS
FINANCIAL STATEMENTS COMPANY INFORMATION
Group’s internal Control. financial information of the entities or business activities in our report because the adverse consequences of doing
within the JFC Group to express an opinion on the so would reasonably be expected to outweigh the public
• Evaluate the appropriateness of accounting policies used
consolidated financial statements. We are responsible for interest benefits of such communication.
and the reasonableness of accounting estimates and
the direction, supervision and performance of the audit.
related disclosures made by management. The engagement partner on the audit resulting in this
We remain solely responsible for our audit opinion.
independent auditor’s report is Mariecris N. Barbaso.
• Conclude on the appropriateness of management’s use
We communicate with those charged with governance
of the going concern basis of accounting and, based
regarding, among other matters, the planned scope and
on the audit evidence obtained, whether a material
timing of the audit and significant audit findings, including
uncertainty exists related to events or conditions that
any significant deficiencies in internal control that we
may cast significant doubt on the JFC Group’s ability
identify during our audit.
to continue as a going concern. If we conclude that
SYCIP GORRES VELAYO & CO.
a material uncertainty exists, we are required to draw We also provide those charged with governance with
attention in our auditor’s report to the related disclosures a statement that we have complied with relevant
in the consolidated financial statements or, if such ethical requirements regarding independence, and to
disclosures are inadequate, to modify our opinion. Our communicate with them all relationships and other Mariecris N. Barbaso
Partner
conclusions are based on the audit evidence obtained matters that may reasonably be thought to bear on our CPA Certificate No. 97101
up to the date of our auditor’s report. However, future independence, and where applicable, related safeguards. Tax Identification No. 202-065-716
BOA/PRC Reg. No. 0001, August 25, 2021, valid until April 15, 2024
events or conditions may cause the JFC Group to cease to SEC Partner Accreditation No. 97101-SEC (Group A)
From the matters communicated with those charged with
continue as a going concern. Valid to cover audit of 2021 to 2025 financial statements of SEC covered
governance, we determine those matters that were of institutions
• Evaluate the overall presentation, structure and content most significance in the audit of the consolidated financial SEC Firm Accreditation No. 0001-SEC (Group A)
Valid to cover audit of 2021 to 2025 financial statements of SEC covered
of the consolidated financial statements, including the statements of the current period and are therefore the key institutions
disclosures, and whether the consolidated financial audit matters. We describe these matters in our auditor’s BIR Accreditation No. 08-001998-108-2020, November 27, 2020, valid until
November 26, 2023
statements represent the underlying transactions and report unless law or regulation precludes public disclosure PTR No. 9369779, January 3, 2023, Makati City
events in a manner that achieves fair presentation. about the matter or when, in extremely rare circumstances, March 14, 2023
we determine that a matter should not be communicated

• Obtain sufficient appropriate audit evidence regarding the
75
JOLLIBEE FOODS CORPORATION

DOING BUSINESS UNDER THE NAME AND STYLE OF JOLLIBEE
AND SUBSIDIARIES
2022 2021
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DECEMBER 31
LIABILITIES AND EQUITY
(Amounts in Thousand Pesos)
2022 2021 Current Liabilities
Trade payables and other current liabilities and contract liabilities P 43,243,680 P 32,952,755
ASSETS
Current Assets (Notes 16, 31 and 32)
Cash and cash equivalents (Notes 6, 31 and 32) P 28,869,279 P 24,692,675 Short-term debt (Note 18) 4,376,358 510,000
Short-term investments (Notes 6, 31 and 32) 619,168 79,700 Income tax payable 326,064 148,617
Financial assets at fair value through profit or loss (Notes 10, 31 and 32) 8,250,991 14,412,902 Current portion of:
Receivables and contract assets (Notes 7, 31 and 32) 9,627,435 7,245,986 Lease liabilities (Notes 29, 31 and 32) 8,188,929 7,284,154
Inventories (Note 8) 17,297,648 9,355,329 Long-term debt (Notes 18, 31 and 32) 4,671,506 4,950,565
Other current assets (Note 9) 10,196,320 9,595,475 Provisions (Note 17) 685,530 –
Total Current Assets 74,860,841 65,382,067 Total Current Liabilities 61,492,067 45,846,091
Noncurrent Assets Noncurrent Liabilities

Financial assets at fair value through profit or loss (Notes 10, 31 and 32) 27,502 40,232 Senior debt securities (Notes 18 and 31) 33,288,343 30,426,149
Interests in and advances to joint ventures, co-venturers and associates (Note 11) 18,111,291 15,426,603 Noncurrent portion of:
Property, plant and equipment (Note 12) 36,485,718 30,608,819 Lease liabilities (Notes 29, 31 and 32) 39,955,518 35,899,523
Right-of-use assets (Note 29) 42,078,013 38,168,366 Long-term debt (Notes 18, 31 and 32) 11,591,664 17,409,612
Trademarks, goodwill and other intangible assets (Note 14) 51,715,547 50,610,888 Interest in an associate (Note 11) – 179,088
Operating lease receivables (Notes 29 and 31) – 55,532 Pension liability (Note 25) 1,891,302 2,416,465
Finance lease receivables (Notes 29, 31 and 32) 41,619 56,674 Derivative liability (Notes 18, 31 and 32) – 12,795
Deferred tax assets - net (Note 24) 6,026,842 6,874,855 Provisions (Note 17) 915,770 1,035,636
Other noncurrent assets (Notes 15, 31 and 32) 4,055,332 3,614,191 Deferred tax liabilities - net (Note 24) 3,353,008 3,428,713
Total Noncurrent Assets 158,541,864 145,456,160 Total Noncurrent Liabilities 90,995,605 90,807,981
P 233,402,705 P 210,838,227 Total Liabilities (Carried Forward) 152,487,672 136,654,072


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DECEMBER 31
AND SUBSIDIARIES (Amounts in Thousand Pesos)
2022 2021
Total Liabilities (Brought Forward) P 152,487,672 P 136,654,072
Equity Attributable to Equity Holders of the Parent Company (Note 31)
Capital stock:
Preferred (Note 19) 12,000,000 12,000,000

Common - net of subscription receivable (Note 19) 1,131,217 1,107,164
Additional paid-in capital (Note 19) 12,091,767 10,331,342
Other reserve (Note 11) 1,877,400 1,877,400
Cumulative translation adjustments of foreign subsidiaries and interests in joint 1,699,034 1,082,109
ventures and associates (Note 11)
Remeasurement loss on net defined benefit plan - net of tax (Note 25) (693,347) (1,140,807)
Comprehensive loss on derivative liability (Note 18) – (12,795)
Excess of cost over the carrying value of non-controlling interests acquired (2,026,340) (2,026,340)
(Notes 11 and 19)
Retained earnings (Note 19):
Appropriated for future expansion 18,700,000 18,700,000

Unappropriated 17,621,540 13,863,987
62,401,271 55,782,060
Less cost of common stock held in treasury (Note 19) 180,511 180,511
62,220,760 55,601,549
Senior perpetual securities (Notes 10 and 19) 20,264,804 20,264,804
Non-controlling interests (Note 11) (1,570,531) (1,682,198)
Total Equity 80,915,033 74,184,155
P 233,402,705 P 210,838,227
77 JFC Annual Report 2022 See accompanying Notes to Consolidated Financial Statements.

AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31

(Amounts in Thousand Pesos, Except Per Share Data)
2022 2021 2020 2022 2021 2020
REVENUE EQUITY IN NET EARNINGS (LOSSES) OF JOINT VENTURES

AND ASSOCIATES - Net (Note 11) 4,062 (43,423) (1,081,308)
Gross sales P 201,375,231 P 146,496,331 P 124,577,293
Sales discount (4,717,946) (3,909,895) (3,332,250) OTHER INCOME - Net (Note 23) 5,669,710 3,893,018 4,161,177
Net sales 196,657,285 142,586,436 121,245,043 INCOME (LOSS) BEFORE INCOME TAX 11,187,600 6,143,426 (13,292,630)
Royalty, set-up fees and others (Note 20) 11,845,358 8,710,309 6,467,134 PROVISION FOR (BENEFIT FROM) INCOME TAX (Note 24)
208,502,643 151,296,745 127,712,177 Current 3,514,740 2,029,364 1,546,619
3,399,573 2,278,845 1,600,825 Deferred 334,367 (1,387,929) (2,205,626)

PFRS 15 impact on system-wide advertising fees
211,902,216 153,575,590 129,313,002 3,849,107 641,435 (659,007)
DIRECT COSTS (Note 21) 174,945,874 127,496,679 115,726,337 NET INCOME (LOSS) 7,338,493 5,501,991 (12,633,623)
GROSS PROFIT 36,956,342 26,078,911 13,586,665 OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss) to be reclassified to profit

EXPENSES
or loss in subsequent years:
General and administrative expenses - net (Note 22) 22,905,918 16,473,091 23,754,221
Translation adjustments of foreign subsidiaries 1,309,602 1,490,782 (1,331,909)
Advertising and promotions 4,109,053 3,331,207 2,643,907
Translation adjustments of foreign joint ventures and (923,487) (110,257) 69,126
27,014,971 19,804,298 26,398,128 associates (Note 11)
Comprehensive income (loss) on derivative liability 12,795 128,685 (83,239)

INTEREST INCOME (EXPENSE) (Note 23)
(Note 18)
Interest income 341,189 164,967 226,616
398,910 1,509,210 (1,346,022)
Interest expense (4,768,732) (4,145,749) (3,787,652)
Other comprehensive income (loss) not to be reclassified
(4,427,543) (3,980,782) (3,561,036) to profit or loss in subsequent years:
Remeasurement gain (loss) on pension - net of tax 447,460 260,306 (435,722)

(Note 25)

AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31

(Amounts in Thousand Pesos, Except Per Share Data)
2022 2021 2020
846,370 1,769,516 (1,781,744)
TOTAL COMPREHENSIVE INCOME (LOSS) P 8,184,863 P 7,271,507 (P 14,415,367)
Net Income (Loss) Attributable to:
Equity holders of the Parent Company (Note 28) P 7,558,503 P 5,981,690 (P 11,510,727)
Non-controlling interests (220,010) (479,699) (1,122,896)
P 7,338,493 P 5,501,991 (P 12,633,623)
Total Comprehensive Income (Loss) Attributable to:
Equity holders of the Parent Company P 8,635,683 P 7,930,344 (P 13,339,322)

Non-controlling interests (450,820) (658,837) (1,076,045)
P 8,184,863 P 7,271,507 (P 14,415,367)
Earnings (Loss) Per Share for Net Income (Loss)

Attributable to Equity Holders of the Parent
Company (Note 28):
Basic P 6.400 P 5.302 (P 10.445)
Diluted 6.382 5.293 (10.433)

AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY (NOTE 31)
RETAINED EARNINGS (NOTE 19)

IN EQUITY FOR THE YEARS ENDED CUMULATIVE
TRANSLATION
DECEMBER 31, 2022 AND 2021 ADJUSTMENTS EXCESS OF
OF FOREIGN COST OVER
(Amounts in Thousand Pesos) SUBSIDIARIES REMEASUREMENT THE CARRYING
CAPITAL STOCK AND INTERESTS GAIN (LOSS) ON COMPREHENSIVE VALUE OF NON-
- NET OF IN JOINT NET DEFINED INCOME (LOSS) CONTROLLING COST OF SENIOR NON-
SUBSCRIPTION ADDITIONAL OTHER VENTURES AND BENEFIT PLAN - ON DERIVATIVE INTERESTS APPROPRIATED COMMON STOCK PERPETUAL CONTROLLING
PREFERRED STOCK RECEIVABLE PAID-IN CAPITAL RESERVE ASSOCIATES NET OF TAX LIABILITY ACQUIRED FOR FUTURE HELD IN TREASURY SECURITIES INTERESTS
(NOTE 19) (NOTE 19) (NOTE 19) (NOTE 11) (NOTE 11) (NOTE 25) (NOTE 18) (NOTE 19) EXPANSION UNAPPROPRIATED (NOTE 19) TOTAL (NOTE 19) (NOTE 11) TOTAL EQUITY
Balance at January 1, 2022 P 12,000,000 P 1,107,164 P 10,331,342 P 1,877,400 P 1,082,109 (P 1,140,807) (P 12,795) (P2,026,340) P 18,700,000 P 13,863,987 (P 180,511) P 55,601,549 P 20,264,804 (P 1,682,198) P 74,184,155
Net income (loss) - - - - - - - - - 7,558,503 - 7,558,503 - (220,010) 7,338,493

Other comprehensive income (loss) - - - - 616,925 447,460 12,795 - - - - 1,077,180 - (230,810) 846,370
Total comprehensive income (loss) - - - - 616,925 447,460 12,795 - - 7,558,503 - 8,635,683 - (450,820) 8,184,863
Movements in other equity accounts:

Issuances and subscriptions to common stock (Note 19) - 8,884 1,589,033 - - - - - - – - 1,597,917 - – 1,597,917
Reversal of subscription receivable (Note 19) - 15,169 (15,169) - - - - - - – - – - – –
Cost of stock options granted - net of tax (Note 26) - - 186,561 - - - - - - – - 186,561 - – 186,561
Cash dividends (Note 19) - - - - - - - - - (3,036,203) - (3,036,203) - – (3,036,203)
Cash dividend received by a non-controlling interest - - - - - - - - - – - – - (32,565) (32,565)
Acquisition of a subsidiary - - - - - - - - - – - – - 464,810 464,810
Distribution on senior perpetual securities (Note 19) - - - - - - - - - (764,747) - (764,747) - - (764,747)
Additional investment during the year (Note 11) - - - - - - - - - – - - - 130,242 130,242
- 24,053 1,760,425 - - - - - - (3,800,950) - (2,016,472) - 562,487 (1,453,985)
Balances at December 31, 2022 P 12,000,000 P 1,131,217 P 12,091,767 P 1,877,400 P 1,699,034 (P 693,347) P - (P 2,026,340) P 18,700,000 P 17,621,540 (P 180,511) P 62,220,760 P 20,264,804 (P 1,570,531) P 80,915,033
Balance at January 1, 2021 P - P 1,105,079 P 9,913,890 P 1,877,400 (P 477,554) (P 1,401,113) (P 141,480) (P 2,026,340) P 20,000,000 P 9,869,889 (P 180,511) P 38,539,260 P 30,588,000 (P 1,095,395) P 68,031,865
Net income (loss) - - - - – - – - - 5,981,690 - 5,981,690 - (479,699) 5,501,991

Other comprehensive income (loss) - - - - 1,559,663 260,306 128,685 - - – - 1,948,654 - (179,138) 1,769,516
Total comprehensive income (loss) - - - - 1,559,663 260,306 128,685 - - 5,981,690 - 7,930,344 - (658,837) 7,271,507
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY (NOTE 31)
CUMULATIVE
TRANSLATION
ADJUSTMENTS EXCESS OF
SUBSIDIARIES REMEASUREMENT THE CARRYING
PREFERRED STOCK RECEIVABLE PAID-IN CAPITAL RESERVE ASSOCIATES NET OF TAX LIABILITY ACQUIRED FOR FUTURE HELD IN TREASURY SECURITIES INTERESTS
(NOTE 19) (NOTE 19) (NOTE 19) (NOTE 11) (NOTE 11) (NOTE 25) (NOTE 18) (NOTE 19) EXPANSION UNAPPROPRIATED (NOTE 19) TOTAL (NOTE 19) (NOTE 11) TOTAL EQUITY

Issuances and subscriptions to common stock (Note 19) - 2,085 321,749 - - - - - - – - 323,834 – – 323,834
Issuances of preferred stock (Note 19) 12,000,000 - (80,324) - - - - - - – - 11,919,676 – – 11,919,676
Cost of stock options granted - net of tax (Note 26) - - 176,027 - - - - - - – - 176,027 – – 176,027
Cash dividends (Note 19) - - - - - - - - - (1,965,106) - (1,965,106) – (28,581) (1,993,687)
Reversal of appropriated retained earnings during the - - - - - - - - (20,000,000) 20,000,000 - – – – –
year (Note 19)
Appropriation during the year (Note 19) - - - - - - - - 18,700,000 (18,700,000) - – – – -
Redemption of senior perpetual securities (Note 19) - - - - - - - - - (167,423) - (167,423) (10,323,196) – (10,490,619)
Distribution on senior perpetual securities (Note 19) - - - - - - - - - (1,155,063) - (1,155,063) – - (1,155,063)
Additional investment during the year (Note 11) - - - - - - - - - – - – - 100,615 100,615
12,000,000 2,085 417,452 - - - - - (1,300,000) (1,987,592) - 9,131,945 (10,323,196) 72,034 (1,119,217)
Balances at December 31, 2021 P 12,000,000 P 1,107,164 P 10,331,342 P 1,877,400 P 1,082,109 (P 1,140,807) (P 12,795) (P 2,026,340) P 18,700,000 P 13,863,987 (P 180,511) P 55,601,549 P 20,264,804 (P 1,682,198) P 74,184,155
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY (NOTE 31)
CUMULATIVE
TRANSLATION
ADJUSTMENTS EXCESS OF
SUBSIDIARIES REMEASUREMENT THE CARRYING
RECEIVABLE PAID-IN CAPITAL RESERVE ASSOCIATES NET OF TAX LIABILITY ACQUIRED FOR FUTURE HELD IN TREASURY SECURITIES INTERESTS
(NOTE 19) (NOTE 19) (NOTE 11) (NOTE 11) (NOTE 25) (NOTE 18) (NOTE 11 AND 19) EXPANSION UNAPPROPRIATED (NOTE 19) TOTAL (NOTE 19) (NOTE 11) TOTAL EQUITY
Balance at January 1, 2020 P 1,092,971 P 8,797,360 P 1,877,400 P 832,080 (P 965,391) (P 58,241) (P 1,804,766) P 20,000,000 P 23,879,437 (P 180,511) P 53,470,339 - (P 100,597) P 53,369,742
Net income (loss) - - - – – – - - (11,510,727) - (11,510,727) - (1,122,896) (12,633,623)

Other comprehensive income (loss) - - - (1,309,634) (435,722) (83,239) - - – - (1,828,595) - 46,851 (1,781,744)
Total comprehensive income (loss) - - - (1,309,634) (435,722) (83,239) - - (11,510,727) - (13,339,322) - (1,076,045) (14,415,367)

Issuances and subscriptions to common stock 12,108 1,268,689 - - - - - - – - 1,280,797 – – 1,280,797
Cost of stock options granted - net of tax (Note 26) - (152,159) - - - - - - – - (152,159) – – (152,159)
Cash dividends (Note 19) - - - - - - - - (1,431,090) - (1,431,090) – – (1,431,090)
Issuance of senior perpetual securities (Note 19) - - - - - - - - – - – 30,588,000 – 30,588,000
Acquisition of noncontrolling interest (Note 11) - - - - - - (221,574) - – - (221,574) – 72,122 (149,452)
Distribution on senior perpetual securities (Note 19) - - - - - - - - (1,067,731) - (1,067,731) – – (1,067,731)
Additional investment during the year (Note 11) - - - - - - - - – - – – 9,125 9,125
12,108 1,116,530 - - - - (221,574) - (2,498,821) - (1,591,757) 30,588,000 81,247 29,077,490
Balances at December 31, 2020 P 1,105,079 P 9,913,890 P 1,877,400 (P 477,554) (P 1,401,113) (P 141,480) (P 2,026,340) P 20,000,000 P 9,869,889 (P 180,511) P 38,539,260 P 30,588,000 (P 1,095,395) P 68,031,865

AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31

(Amounts in Thousand Pesos)
2022 2021 2020 2022 2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES Other noncurrent assets (Notes 15 and 22) – – (227,279)
Income (loss) before income tax P 11,187,600 P6,143,426 (P 13,292,630) Interest income (Note 23) (341,189) (164,967) (226,616)
Adjustments for: Reversals of provision for impairment on:
Depreciation and amortization 15,598,591 13,482,265 14,568,740 Property, plant and equipment (Notes 12 and 22) (262,266) (390,031) (76,173)
(Notes 12, 14, 15, 21, 22 and 29) Right-of-use assets (Notes 29 and 22) (86,960) (285,635) –
Gain from land conveyance (Note 23) (4,896,610) – – Inventories (Notes 8 and 22) (49,311) (9,475) (82,354)
Interest expense (Note 23) 4,768,732 4,145,749 3,787,652 Receivables (Notes 7 and 22) (4,136) (54,215) –
Unrealized loss (gain) from financial assets at fair value 1,053,738 (196,986) (1,317,728) Stock options expense (Notes 22 and 26) 185,016 155,539 188,290
through profit or loss (Notes 10 and 23)
Pre-termination of leases (Notes 23 and 29) (166,816) (268,615) (886,339)
Provisions (reversal) (Notes 17 and 23) 565,664 (291,110) 501,637
Rent concessions (Note 29) (152,196) (478,727) (1,411,781)
Impairment losses on:
Movement in pension liability (Note 25) 84,089 (67,311) 95,575
Trademark (Notes 14 and 22) 463,101 – –
Amortization of debt issue cost (Note 18) 50,693 44,116 29,377
Receivables (Notes 7 and 22) 415,412 210,870 281,866
Net unrealized foreign exchange loss (gain) (22,167) (220,253) 77,696
Inventories (Notes 8 and 22) 274,297 23,721 332,505
Equity in net losses (earnings) of joint ventures and (4,062) 43,423 1,081,308
Other current assets (Note 22) 121,458 – – associates (Note 11)
Property, plant and equipment (Notes 12 and 22) 107,900 44,392 1,185,512 Gain from disposal of club share (Notes 10 and 23) (3,500) – –
Operating lease receivables (Notes 22 and 29) – 8,046 –
Income before working capital changes 29,250,226 21,928,782 6,759,778
Right-of-use assets (Notes 22 and 29) – – 661,365
Loss (gain) on retirements and disposals of:
Property, plant and equipment, investment 363,148 54,560 1,489,155

properties and other intangibles (Notes 12, 13, 14
and 22)
2022 2021 2020 2022 2021 2020
Decreases (increases) in: Decreases (increases) in:
Receivables (2,682,294) (337,437) (1,447,487) Short term-investments (P 539,468) P 361,300 P1,689,000
Inventories (8,124,264) (1,073,746) 1,420,105 Other noncurrent assets (382,611) (97,181) 274,099
Other current assets (1,559,306) (1,346,115) (151,717) Cash from acquisition of business - (409,672) – 64,316
10,069,263 2,623,762 (5,531,063) net of cash received (paid for) (Note 11)
Increase (decrease) in trade payables and other current
liabilities Dividends received from a non-controlling interest (Note 11) 40,861 7,656 53,047
Advances to a joint venture (Note 11) (30,341) - –

Net cash generated from operations 26,953,625 21,795,246 1,049,616
Income taxes paid (3,337,293) (2,077,404) (1,741,875) Net cash provided by (used in) investing activities (2,970,455) 7,964,881 (40,002,758)
Interest received 305,579 131,095 186,982 CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by (used in) operating activities 23,921,911 19,848,937 (505,277) Payments of:
CASH FLOWS FROM INVESTING ACTIVITIES Lease liabilities (Note 29) (10,094,676) (8,137,825) (7,803,114)
Acquisitions of: Long-term debt (Note 18) (6,975,614) (5,489,503) (3,405,787)
Property, plant and equipment (Note 12) Cash dividends (Note 19) (2,804,324) (1,839,613) (1,429,994)
(9,682,661) (7,863,842) (5,879,525)
Financial assets at fair value through profit or loss (Note 10) Distributions for senior perpetual securities (835,189) (1,245,229) (577,688)
(1,531,200) (86,478) (37,857,050)
Interest in joint ventures and associates (Note 11) Short-term debt (Note 18) (1,102) (15,695,535) (20,272,000)
(1,210,024) (7,970,720) (1,543,214)
Intangible assets (Note 14) Senior perpetual securities (Note 19) – (10,490,620) –
– (11,113) (42,478)
Minority interests (Note 11) – – (149,455) Proceeds from:
Proceeds from: Short-term debt (Note 18) 3,868,308 – 14,327,250
Redemption of financial assets at fair value through profit 7,584,842 23,022,553 3,066,548 Issuances of:
or loss (Note 10) Common stock (Note 19) 1,597,917 323,834 1,280,798
Assets held for sale (Note 9) 2,768,202 – - Preferred stock (Note 19) – 11,919,676 –
321,954
Property, plant and equipment (Note 12) 396,617 280,706 Long-term debt (Note 18) 573,300 8,223,822 375,703
–
Club share (Note 10) 25,000 – Senior perpetual securities (Note 19) – – 30,588,000
–
Investment properties (Note 13) – 322,000 Senior debt securities (Note 18) – – 29,499,047
2022 2021 2020
Interest paid (2,231,208) (2,179,340) (1,471,818)
Contributions from non-controlling interests 130,242 100,615 9,125
Net cash provided by (used in) financing activities (Note 33) (16,772,346) (24,509,718) 41,119,522
NET INCREASE IN CASH AND CASH EQUIVALENTS 4,179,110 3,304,100 611,487
EFFECT OF EXCHANGE RATE CHANGES ON CASH (2,506) 27,089 (142,022)

AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 24,692,675 21,361,486 20,892,021
CASH AND CASH EQUIVALENTS AT END OF YEAR (Note 6) P 28,869,279 P 24,692,675 P 21,361,486

AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION of the JFC Group include manufacturing and property The registered office address of the Parent Company is
leasing in support of the QSR systems and other business 10/F Jollibee Plaza Building, 10 F. Ortigas Jr. Ave., Ortigas
Corporate Information
activities (see Notes 2 and 5). Center, Pasig City.
Jollibee Foods Corporation Doing business under the
name and style of Jollibee (the Parent Company or On June 1, 2021, the Board of Directors (BOD) of the Parent Coronavirus (Covid-19) Pandemic
Ultimate Parent Company) was incorporated in the Company approved the amendment to the Second
2021
Philippines and registered with the Philippine Securities Article of the Articles of Incorporation (AOI) to clarify and
The impact of the pandemic on the JFC Group’s
and Exchange Commission (SEC) on January 11, 1978. The ensure, for avoidance of doubt of the Parent Company,
business around the world in 2021 was mixed. Sales in
Parent Company and its subsidiaries (collectively referred in pursuit of its primary business purpose, can invest
the United States continued to be healthy with sales per
to as “the JFC Group”) and affiliates are involved primarily in, acquire, own, hold, use, sell, assign, transfer, lease,
store already reaching well above pre-pandemic level.
in the development, operations and franchising of quick mortgage, exchange, or otherwise dispose of real and
In the People’s Republic of China, sales growth slowed
service restaurants (QSRs) under the trade names personal properties, of every kind and description, or
in some regions in the third and fourth quarters due to
“Jollibee”, “Greenwich”, “Chowking”, “Yong He King”, “Red interests therein. The amendment of the AOI of the
the reimposition of government restrictions while sales
Ribbon”, “Hong Zhuang Yuan”, “Mang Inasal”, “Burger King”, Parent Company was approved by the Parent Company’s
in the northern region continued to grow above pre-
“Highlands Coffee”, “Pho24”, “Smashburger”, “Tortazo”, shareholders during the Parent Company’s annual
pandemic level. JFC Group’s businesses in Vietnam,
“Tim Ho Wan”, “The Coffee Bean & Tea Leaf”, “Panda stockholders’ meeting on June 25, 2021, and by the
Brunei and Singapore grew above pre-pandemic
Express”, “Yoshinoya” and “Milksha”. The Parent Company Philippine SEC on August 11, 2021.
level in some quarters, but the sales growth reversed
is also primarily organized to invest in, acquire, own, hold,
The common and preferred shares of the Parent due to resurgence of Covid-19 in these countries. The
use, sell, assign, transfer, lease, mortgage, exchange,
Company are listed and traded in the Philippine Stock Philippines, though still faced significant challenges
or otherwise dispose of real and personal properties, of
Exchange (PSE) beginning July 14, 1993 and October 14, due to restrictions related to the pandemic, showed
every kind and description, or interests in the foregoing,
2021, respectively. sequential improvement in the sales performance of its
pursuant to its business objectives. The other activities
various brands.

The global pandemic brought about several changes have eased in most markets where the JFC Group slowed down consumer spending due to reduction of
in customer’s habits both locally and internationally, operates. The following provide an update on the social activities, travel and consumption. Starting June,
such as an increased awareness for safety and a impact of Covid on the JFC Group’s major markets: Shanghai, China’s largest city eased a range of Covid-19
strong usage of digital commerce and technology. The restrictions in a step toward returning to normal after
In the Philippines, store operations and sales were
JFC Group adapted by further strengthening in-store a two-month lockdown. However, in September, there
affected by the Omicron variant in the first month
safety protocols, as well as accelerating delivery and was a resurgence again, resulting in temporary closure
of 2022 but were able to gradually recover starting
takeout channels – developing messenger bots, better of 1% of the China business’ stores and challenges in
February. Restrictions have eased and business
websites and apps, and increasing its presence in food Dine in and Delivery businesses. Widespread Covid
establishments including restaurants have returned to
aggregators so that customers can order easily through outbreaks continued in the fourth quarter resulting
normal operations, while ensuring that safety protocols
these channels without leaving their homes. in temporary store closures (3% in October, 10% in
are being strictly followed. Momentum accelerated
November and 4% in December) thus, hurting the JFC
The JFC Group continued to expand its brands across in the second quarter and continued in succeeding
China business’ sales and profit.
different markets, local and international, opening 398 quarters. The Philippine business generated record
stores in 2021. It was also investing in new store models. system wide sales in 2022, surpassing 2021 and pre- In North America, the impact of Covid-19 was more felt
The Cloud Kitchens or food production and delivery pandemic level. during the first half of the year particularly the Omicron
hubs with no dine-in, in Singapore, Middle East and surge in the first quarter. By the second half of 2022,
In China, some key cities continued to struggle with
the US have been performing well. In the Philippines, the business was back to normal with no temporary
a Covid-19 resurgence and heightened government
JFC Group’s Greenwich brand opened its first Delivery store closures for the JFC Group’s brands. The change
restrictions that created challenging logistics, supply
and Take Out Only Store. Through these models, the observed by the JFC Group was more behavioral i.e.,
chain and operating conditions during the year. Based
JFC Group is able to expand more quickly and cost- Covid-19 has changed the way people live and work,
on reports, the Covid-19 situation started to worsen in
efficiently, especially in central but lower-rent areas – with a large portion of the population continuing to
late March 2022 with the surge of the Omicron variant,
serving the increasing demand while maintaining the work from home. This shift drove lower volumes in
case counts surpassed 2020 and 2021 combined.
same safety and quality standards of its various brands’ central business districts and less dine-in traffic. Despite
Key cities in China have been fully or partially locked
food products. these changes, sales of the JFC Group’s North America
down for weeks, even months and temporary store
business grew by high double-digits in 2022 and even
2022 closure has reached 22% by end of April 2022. The
surpassed 2019 pre-pandemic sales levels.
The Covid-19 pandemic is still ongoing, but restrictions enforcement of the dynamic zero Covid-19 policy

Vietnam has bounced back from the pandemic- • Recognition of impairment losses on inventories, Audit Committee on March 13, 2023, and approved and
induced slowdown. By the second half of 2022, business property, plant and equipment and right-of-use authorized for issuance by the BOD on March 14, 2023.
in the country was back to normal. The government’s assets and derecognition of right-of-use assets and
2. BASIS OF PREPARATION, STATEMENT OF COMPLIANCE,
recovery programs (VAT reduction, loan extension, lease liabilities relating to pre-termination of closed
CHANGES IN ACCOUNTING POLICIES AND BASIS OF
rental support, hospitalization, etc.) which were intended and nonperforming stores.
CONSOLIDATION
to jumpstart the economy remained effective until
• The forecast used for impairment testing of goodwill
January 2023. As a result, the JFC Group’s business in Basis of Preparation
and trademarks with indefinite lives include the JFC
Vietnam showed strong top line and bottom-line growth The consolidated financial statements of the JFC Group
Group’s estimates of the potential future impact
in 2022. have been prepared on a historical cost basis, except for
from Covid-19 pandemic. Cash flow projections
financial assets at fair value through profit or loss (FVTPL)
At the end of December 2022, only 1% of the JFC have been adjusted to reflect a range of possible
and derivative financial instruments which are measured
Group’s stores worldwide are closed temporarily due to outcomes, weighted by their expected occurrence.
at fair value. The consolidated financial statements
Covid-19. The number of customers visiting the stores
• The uncertainty in determining key assumptions are presented in Philippine peso, which is the Parent
to dine increased in most markets where the JFC Group
(including forecast of revenues and expenses) in Company’s functional and presentation currency. All
operates while off premise sales continue to show
the assessment of future taxable income of the JFC values are rounded to the nearest thousand pesos, except
sustained growth. The JFC Group performed well in 2022
Group, upon which the recognition of deferred tax par values, per share amounts, number of shares and
as evidenced by the double-digit growth in sales and
assets is assessed, was considered. when otherwise indicated.
profit compared to a year ago.
The JFC Group continues to monitor the risks and the Statement of Compliance
The JFC Group has assessed the following impact of
ongoing impact of Covid-19 on its business. The accompanying consolidated financial statements
Covid-19 on its assets and liabilities in 2022 and 2021:
have been prepared in compliance with Philippine
Approval and Authorization for Issuance of Audited
• Collectability of accounts with customers continues Financial Reporting Standards (PFRS).
Consolidated Financial Statements
to be closely monitored. An increase in the
The consolidated financial statements as at December
provision for impairment of trade receivables has
31, 2022 and 2021 and for each of the three years ended
been identified because of extended credit terms
December 31, 2022 were reviewed and approved by the
provided to the franchisees.

New Standards, Interpretations and Amendments Provisions, Contingent Liabilities and Contingent Assets and equipment made available for use on or after the
adopted by the JFC Group or Philippine-IFRIC 21, Levies, if incurred separately. beginning of the earliest year presented when the entity
The accounting policies adopted are consistent with those first applies the amendment.
At the same time, the amendments add a new
of the previous financial year, except for the adoption of
paragraph to PFRS 3 to clarify that contingent assets do The amendments had no material impact to the JFC
the following new accounting pronouncements starting
not qualify for recognition at the acquisition date. Group.
January 1, 2022. The JFC Group has not early adopted any
standard, interpretation or amendment that has been The amendments are effective for annual reporting • Amendments to PAS 37, Onerous Contracts – Costs of
issued but is not yet effective. years beginning on or after January 1, 2022 and apply Fulfilling a Contract
prospectively. The amendment had no material impact
Several amendments apply for the first time in 2022, but The amendments specify which costs an entity needs
to the JFC Group.
do not have an impact on the consolidated financial to include when assessing whether a contract is
statements of the JFC Group. • Amendments to PAS 16, Plant and Equipment: Proceeds onerous or loss-making. The amendments apply a
before Intended Use “directly related cost approach”. The costs that relate
• Amendments to PFRS 3, Reference to the Conceptual
directly to a contract to provide goods or services
Framework. The amendments prohibit entities deducting from the
include both incremental costs and an allocation of
cost of an item of property, plant and equipment, any
The amendments are intended to replace a reference costs directly related to contract activities. General and
proceeds from selling items produced while bringing
to the Framework for the Preparation and Presentation administrative costs do not relate directly to a contract
that asset to the location and condition necessary for
of Financial Statements, issued in 1989, with a reference and are excluded unless they are explicitly chargeable
it to be capable of operating in the manner intended
to the Conceptual Framework for Financial Reporting to the counterparty under the contract.
by management. Instead, an entity recognizes the
issued in March 2018 without significantly changing its
proceeds from selling such items, and the costs of The amendments are effective for annual reporting
requirements. The amendments added an exception
producing those items, in profit or loss. years beginning on or after January 1, 2022. The JFC
to the recognition principle of PFRS 3, Business
Group will apply these amendments to contracts for
Combinations to avoid the issue of potential ‘day The amendment is effective for annual reporting
which it has not yet fulfilled all its obligations at the
2’gains or losses arising from liabilities and contingent years beginning on or after January 1, 2022 and must
beginning of the annual reporting year in which it first
liabilities that would be within the scope of PAS 37, be applied retrospectively to items of property, plant
applies the amendments. The amendment has no
material impact to the JFC Group.

• Annual Improvements to PFRSs 2018-2020 Cycle between the borrower and the lender, including fees The amendment had no material impact to the JFC
paid or received by either the borrower or lender on Group.
• Amendments to PFRS 1, First-time Adoption of
the other’s behalf. An entity applies the amendment
Philippines Financial Reporting Standards, Subsidiary Future Changes in Accounting Policies
to financial liabilities that are modified or exchanged
as a First-Time Adopter Pronouncements issued but not yet effective are listed
on or after the beginning of the annual reporting year
below. Unless otherwise indicated, the JFC Group
The amendment permits a subsidiary that elects in which the entity first applies the amendment.
does not expect that the future adoption of the said
to apply paragraph D16(a) of PFRS 1 to measure
The amendment is effective for annual reporting pronouncements will have a significant impact on its
cumulative translation differences using the amounts
years beginning on or after January 1, 2022 with consolidated financial statements. The JFC Group intends
reported by the parent, based on the parent’s date
earlier adoption permitted. The JFC Group will to adopt the following pronouncements when these
of transition to PFRS. This amendment is also applied
apply the amendment to financial liabilities that are become effective.
to an associate or joint venture that elects to apply
modified or exchanged on or after the beginning
paragraph D16(a) of PFRS 1. Effective beginning on or after January 1, 2023
of the annual reporting year in which the entity first
The amendment is effective for annual reporting applies the amendment. The amendment had no • Amendments to PAS 12, Deferred Tax related to Assets
years beginning on or after January 1, 2022 with material impact to the JFC Group. and Liabilities arising from a Single Transaction
earlier adoption permitted. The amendment had no
• Amendments to PAS 41, Agriculture, Taxation in Fair The amendments narrow the scope of the initial
material impact to the JFC Group.
Value Measurements recognition exception under PAS 12, so that it no longer
• Amendments to PFRS 9, Financial Instruments, Fees applies to transactions that give rise to equal taxable
The amendment removes the requirement in
in the ’10 per cent’ test for Derecognition of Financial and deductible temporary differences.
paragraph 22 of PAS 41 that entities exclude cash
Liabilities
flows for taxation when measuring the fair value of The amendments also clarify that where payments that
The amendment clarifies the fees that an entity assets within the scope of PAS 41. settle a liability are deductible for tax purposes, it is a
includes when assessing whether the terms of a matter of judgement (having considered the applicable
An entity applies the amendment prospectively to
new or modified financial liability are substantially tax law) whether such deductions are attributable for
fair value measurements on or after the beginning
different from the terms of the original financial tax purposes to the liability recognized in the financial
of the first annual reporting year beginning on or
liability. These fees include only those paid or received statements (and interest expense) or to the related
after January 1, 2022 with earlier adoption permitted.
asset component (and interest expense).

An entity applies the amendments to transactions Disclosure of Accounting Policies The amendments clarify paragraphs 69 to 76 of PAS
that occur on or after the beginning of the earliest 1, Presentation of Financial Statements, to specify the
The amendments provide guidance and examples
comparative year presented for annual reporting years requirements for classifying liabilities as current or
to help entities apply materiality judgements to
on or after January 1, 2023. noncurrent. The amendments clarify:
accounting policy disclosures. The amendments aim to
The amendments are not expected to have a material help entities provide accounting policy disclosures that • What is meant by a right to defer settlement;
impact to the JFC Group. are more useful by:
• That a right to defer must exist at the end of the
• Amendments to PAS 8, Definition of Accounting • Replacing the requirement for entities to disclose their reporting year;
Estimates ‘significant’ accounting policies with a requirement to
• That classification is unaffected by the likelihood that
disclose their ‘material’ accounting policies, and
The amendments introduce a new definition of an entity will exercise its deferral right; and,
accounting estimates and clarify the distinction • Adding guidance on how entities apply the concept
• That only if an embedded derivative in a convertible
between changes in accounting estimates and of materiality in making decisions about accounting
liability is itself an equity instrument would the terms
changes in accounting policies and the correction of policy disclosures
of a liability not impact its classification.
errors. Also, the amendments clarify that the effects
The amendments to the Practice Statement
on an accounting estimate of a change in an input or The amendments are effective for annual reporting
provide non-mandatory guidance. Meanwhile, the
a change in a measurement technique are changes years beginning on or after January 1, 2024 and must
amendments to PAS 1 are effective for annual years
in accounting estimates if they do not result from the be applied retrospectively. The JFC Group is currently
beginning on or after January 1, 2023. Early application
correction of prior year errors. assessing the impact the amendments will have on
is permitted as long as this fact is disclosed. The
current practice and whether existing loan agreements
An entity applies the amendments to changes in amendments are not expected to have a material
may require renegotiation.
accounting policies and changes in accounting impact to the JFC Group.
estimates that occur on or after January 1, 2023 with • Amendments to PFRS 16, Lease Liability in a Sale and
Effective beginning on or after January 1, 2024
earlier adoption permitted. The amendments are not Leaseback
expected to have a material impact to the JFC Group. • Amendments to PAS 1, Classification of Liabilities as
The amendments specify how a seller-lessee measures
Current or Noncurrent
• Amendments to PAS 1 and PFRS Practice Statement 2, the lease liability arising in a sale and leaseback

transaction in a way that it does not recognize any accounting model for insurance contracts that is Deferred Effectivity
amount of the gain or loss that relates to the right of more useful and consistent for insurers. In contrast to
• Amendments to PFRS 10, Consolidated Financial
use retained. the requirements in PFRS 4, which are largely based
Statements, and PAS 28, Sale or Contribution of Assets
on grandfathering previous local accounting policies,
The amendments are effective for annual reporting between an Investor and its Associate or Joint Venture
PFRS 17 provides a comprehensive model for insurance
periods beginning on or after January 1, 2024 and must
contracts, covering all relevant accounting aspects. The The amendments address the conflict between PFRS
be applied retrospectively. Earlier adoption is permitted
core of PFRS 17 is the general model, supplemented by: 10 and PAS 28 in dealing with the loss of control of a
and that fact must be disclosed. The amendments
subsidiary that is sold or contributed to an associate or
are not expected to have a material impact to the JFC • A specific adaptation for contracts with direct
joint venture. The amendments clarify that a full gain
Group. participation features (the variable fee approach)
or loss is recognized when a transfer to an associate or
Effective beginning on or after January 1, 2025 • A simplified approach (the premium allocation joint venture involves a business as defined in PFRS 3.
approach) mainly for short-duration contracts Any gain or loss resulting from the sale or contribution
• PFRS 17, Insurance Contracts
of assets that does not constitute a business, however,
On December 15, 2021, the Financial and Sustainability
PFRS 17 is a comprehensive new accounting standard is recognized only to the extent of unrelated investors’
Reporting Standards Council (FSRSC) amended the
for insurance contracts covering recognition and interests in the associate or joint venture.
mandatory effective date of PFRS 17 from January 1,
measurement, presentation and disclosure. Once
2023 to January 1, 2025. This is consistent with Circular On January 13, 2016, the FSRSC deferred the
effective, PFRS 17 will replace PFRS 4, Insurance
Letter No. 2020-62 issued by the Insurance Commission original effective date of January 1, 2016 of the said
Contracts. This new standard on insurance contracts
which deferred the implementation of PFRS 17 by two (2) amendments until the IASB completes its broader
applies to all types of insurance contracts (i.e., life, non-
years after its effective date as decided by the IASB. review of the research project on equity accounting
life, direct insurance and re-insurance), regardless of
that may result in the simplification of accounting for
the type of entities that issue them, as well as to certain PFRS 17 is effective for reporting years beginning on
such transactions and of other aspects of accounting
guarantees and financial instruments with discretionary or after January 1, 2025, with comparative figures
for associates and joint ventures.
participation features. A few scope exceptions will required. Early application is permitted. Adoption of
apply. this standard is not expected to have any impact to the Basis of Consolidation
JFC Group. The consolidated financial statements comprise the
The overall objective of PFRS 17 is to provide an
financial statements of the Parent Company and its

subsidiaries as at and for each of the three years ended • Rights arising from other contractual arrangements; The reporting dates of the Parent Company and the
December 31, 2022. and associates or joint ventures are identical and the latter’s
accounting policies conform to those used by the Parent
Control is achieved when the JFC Group is exposed, or • The JFC Group’s voting rights and potential voting
Company for like transactions and events in similar
has rights, to variable returns from its involvement with rights.
circumstances.
the investee and has the ability to affect those returns
The JFC Group re-assesses whether or not it controls an
through its power over the investee. Specifically, the JFC If the JFC Group loses control over a subsidiary, it:
investee if facts and circumstances indicate that there are
Group controls an investee if, and only if, the JFC Group
changes to one or more of the three elements of control. • Derecognizes the assets (including goodwill) and
has:
Consolidation of a subsidiary begins when the JFC Group liabilities of the subsidiary;
• Power over the investee (i.e., existing rights that give it obtains control over the subsidiary and ceases when
• Derecognizes the carrying amount of any non-
the current ability to direct the relevant activities of the the JFC Group loses control of the subsidiary. Assets,
controlling interests;
investee); liabilities, income and expenses of a subsidiary acquired
or disposed of during the year are included in the • Derecognizes the cumulative translation differences
• Exposure, or rights, to variable returns from its
consolidated financial statements from the date the JFC recorded in equity;
involvement with the investee; and
Group gains control until the date the JFC Group ceases to
• Recognizes the fair value of the consideration received;
• The ability to use its power over the investee to affect its control the subsidiary.
returns. • Recognizes the fair value of any investment retained;
Profit or loss and each component of Other
There is a general presumption that a majority of voting Comprehensive Income (OCI) are attributed to the equity • Recognizes any surplus or deficit in profit or loss; and,
rights results in control. To support this presumption when holders of the Parent Company and to the non-controlling
• Reclassifies the parent’s share of components
the JFC Group has less than a majority of the voting or interests, even if this results in the non-controlling interests
previously recognized in other comprehensive income
similar rights of an investee, the JFC Group considers all having a deficit balance. When necessary, adjustments
to profit or loss or retained earnings, as appropriate,
relevant facts and circumstances in assessing whether it are made to the financial statements of subsidiaries to
as would be required if the JFC Group had directly
has power over an investee, including: bring their accounting policies in line with the JFC Group’s
disposed of the related assets or liabilities.
accounting policies. All intra and inter-group assets and
• The contractual arrangement with the other vote
liabilities, equity, income, expenses and cash flows relating Non-controlling interests represent the interests in the
holders of the investee;
to transactions between members of the JFC Group are subsidiaries not held by the Parent Company, and are
eliminated in full at consolidation.
presented separately in the consolidated statement of

comprehensive income and consolidated statement of
financial position, separately from equity attributable to
equity holders of the Parent Company.
A change in ownership interest in a subsidiary that does

not result in a loss of control is accounted for as an equity
transaction. The carrying amounts of the controlling
and non-controlling interests are adjusted to reflect
the changes in the JFC Group’s relative interests in the
subsidiary. The JFC Group recognizes directly in equity
any difference between the amount by which the non-
controlling interests are adjusted and the fair value of
the consideration paid or received, and attribute it to the
equity holders of the Parent Company. In particular cases
where the JFC Group acquires non-controlling interest in
a subsidiary at a consideration in excess of its carrying
amount, the excess is charged to the “Excess of cost over
the carrying value of non-controlling interests acquired”
account under equity. These changes in the ownership
interest in a subsidiary do not result in the recognition of
a gain or loss in profit or loss. These include acquisitions
of non-controlling interests of Greenwich, Yong He King,
Adgraphix, Mang Inasal, Happy Bee Foods Processing Pte.
Ltd. And Smashburger.

The consolidated financial statements include the accounts of the Parent Company and the
following wholly-owned and majority-owned subsidiaries as at December 31, 2022 and 2021:
2022 2021 2022 2021
COUNTRY OF DIRECT INDIRECT DIRECT INDIRECT COUNTRY OF DIRECT INDIRECT DIRECT INDIRECT
INCORPORATION PRINCIPAL ACTIVITIES OWNERSHIP OWNERSHIP OWNERSHIP OWNERSHIP INCORPORATION PRINCIPAL ACTIVITIES OWNERSHIP OWNERSHIP OWNERSHIP OWNERSHIP
Philippines Food Service 100 - 100 - Golden Piatto Pte. Ltd. Singapore Holding company - 75 - 75
Fresh N’ Famous Foods Inc. (Fresh N’ Famous) -
Chowking Food Corporation USA United States of Cibo Felice S.R.L. Italy Food Service - 100 - 100
Holding Company - 100 - 100
America (USA)
Bee World Spain, Sociedad Limitada Spain Food Service - 100 - 100
Zenith Foods Corporation (Zenith) Philippines Food Service 100 - 100 -
Hong Yun Hong (Shanghai) Food and
PRC Food Service - 60 - 60
Pinnacle Quality Food Inc. (PQF)(e) Philippines Food Service - 100 - - Beverages Management Company Ltd
Freemont Foods Corporation (Freemont) Philippines Food Service 100 - 100 - Golden Cup Pte.Ltd. Singapore Holding Company - 60 - 60
RRB Holdings, Inc. (RRBH): Philippines Holding Company 100 - 100 - Beijing Golden Coffee Cup Food and
Beverage Management Co., Ltd.
Red Ribbon Bakeshop, Inc. (RRBI) Philippines Food Service - 100 - 100
Beijing New Hongzhuangyuan Food and
United States of Beverage Management Co., Ltd. (Hong Zhuang PRC Food Service - 100 - 100
Red Ribbon Bakeshop, Inc. USA (RRBI USA) Food Service - 100 - 100 Yuan)
America (USA)
Mang Inasal Philippines Inc. (Mang Inasal) Philippines Food Service 100 - 100 - British Virgin
Southsea Binaries Ltd. (Southsea) Holding Company - 100 - 100
Island (BVI)
Grandworth Resources Corporation (Grandworth): Philippines Leasing 100 - 100 -
Beijing Yong He King Food and Beverage Co., Ltd. PRC Food Service - 100 - 100
Adgraphix, Inc. (Adgraphix) Philippines Digital Printing - 100 - 100
Shenzhen Yong He King Food and
Iconnect Multi Media Network, Inc. (Iconnect) Philippines Dormant - 60 - 60 Beverage Co., Ltd.
JC Properties & Ventures Co. Philippines Dormant - 50 - 50 Hangzhou Yongtong Food and Beverage Co., Ltd. PRC Food Service - 100 - 100
Jollibee Worldwide Pte. Ltd. (JWPL): Singapore Holding Company 100 - 100 - Hangzhou Yong He King Food and
Beverage Co., Ltd.
Financial
accounting, human Wuhan Yong He King Food and Beverage Co., Ltd. PRC Food Service - 100 - 100
Regional Operating Headquarters of JWPL (JWS) Philippines - 100 - 100
resources and
logistics services Tianjin Yong He King Food and Beverage Co., Ltd. PRC Food Service - 100 - 100
Happy Bee Foods Processing Pte. Ltd. (HBFPPL) Singapore Holding Company - 100 - 100
Golden Plate Pte., Ltd. (GPPL): Singapore Holding Company - 100 - 100
Happy Bee Foods Processing (Anhui)

Golden Beeworks Pte. Ltd. Singapore Food Service - 60 - 60 Co. Ltd.

COUNTRY OF DIRECT INDIRECT DIRECT INDIRECT COUNTRY OF DIRECT INDIRECT DIRECT INDIRECT
INCORPORATION PRINCIPAL ACTIVITIES OWNERSHIP OWNERSHIP OWNERSHIP OWNERSHIP INCORPORATION PRINCIPAL ACTIVITIES OWNERSHIP OWNERSHIP OWNERSHIP OWNERSHIP
JSF Investments Pte. Ltd. (JSF): Singapore Holding Company - 100 - 100 United Kingdom
Bee World UK Limited (UK) Food Service - 100 - 100
(UK)
SF Vung Tau Joint Stock Company Vietnam Holding Company - 60 - 60
Bee World Australia Pty Ltd Australia Food Service - 100 - 100
Highland Coffee Service Joint-stock
Vietnam Food Service - 100 - 100
Company Management
JWPL Management Co., Pte. Ltd. (d) Singapore - 100 - -
Company
Quantum Corporation Vietnam Food Service - 100 - 100
Branch of JWPL Management Co., Management
Hong Kong - 100 - -
Pho Viet Joint Stock Company Vietnam Food Service - 100 - 100 Pte. Ltd. (a) Company
Pho 24 Service Trade Super Magnificent Coffee Company Pte. Ltd.

Vietnam Food Service - 100 - 100 Singapore Holding Company - 80 - 80
Manufacture Corporation (SMCC-SG)
Blue Sky Holdings Limited Hong Kong Holding Company - 60 - 60 Super Magnificent Coffee Company Ireland
Ireland Holding Company - 100 - 100
Limited (SMCC-IE)
Sino Ocean Limited Hong Kong Food Service - 100 - 100
Super Magnificent Coffee Company
Hungary Holding Company - 100 - 100
Blue Sky Holdings (Macau) Hungary Kft. (SMCC-HU)
Macau Food Service - 100 - 100
Limited
United States of
Java Ventures, LLC (JVL) (b) Holding Company - - - 100
Jollibee (China) Food & Beverage Management America (USA)
PRC - 100 - 100
Management Co.Ltd. Company
United States of
International Coffee & Tea, LLC (ICTL) Food Service - 100 - 100
America (USA)
British Virgin
Jollibee International (BVI) Ltd. (JIBL): Holding Company - 100 - 100
Island (BVI)
United States of
6000 Jefferson BH, LLC Holding Company - 100 - 100
America (USA)
Jollibee Vietnam Corporation Ltd. Vietnam Food Service - 100 - 100
United States of
Goldstar Food Trade and Service CBTL Ventures, LLC Food Service - 100 - 100
Vietnam Food Service - 100 - 100 America (USA)
Company Limited (GSC)
United States of Franchising

PT Chowking Indonesia Indonesia Dormant - 100 - 100 CBTL Franchising, LLC - 100 - 100
America (USA) Company
PT Jollibee Indonesia Indonesia Dormant - 100 - 100

The Coffee Bean & Tea Leaf
Singapore Food Service - 100 - 100
(Singapore) Pte., Ltd. (CBTL-SG)
Jollibee (Hong Kong) Limited Hong Kong Dormant - 85 - 85
The Coffee Bean & Tea Leaf

Belmont Enterprises Ventures Limited British Virgin Malaysia Food Service - 100 - 100
Holding Company - 100 - 100 (Malaysia) Sdn. Bhd.
(Belmont) Island (BVI)
British Virgin The Coffee Bean & Tea Leaf

Yong He Holdings Co., Ltd. Holding Company - 100 - 100 Hong Kong Dormant - 100 - 100
Island (BVI) (Hongkong) Limited
British Virgin
Centenary Ventures Ltd. Holding Company - 100 - 100 Magnificent Coffee Trading Pte. Ltd Singapore Food Service - 100 - 100
Island (BVI)

COUNTRY OF DIRECT INDIRECT DIRECT INDIRECT

INCORPORATION PRINCIPAL ACTIVITIES OWNERSHIP OWNERSHIP OWNERSHIP OWNERSHIP
Milkshop International Inc. (Milksha) (f) Taiwan Food Service - 51 - -
Chanceux, Inc. Philippines Holding Company 100 - 100 -
BKTitans Inc. (BKTitans) Philippines Holding Company - 54 - 54
PFN Holdings Corporation Philippines Holding Company - 99 - 99
PERF Restaurants, Inc. Philippines Food Service - 100 - 100
PERF Trinoma Philippines Food Service - 100 - 100
PERF MOA Philippines Food Service - 100 - 100
United States of
Jollibee Foods Corporation (USA) Holding Company 100 - 100 -
America (USA)
United States of
Honeybee Foods Corporation (HFC) Food Service - 100 100 -
America (USA)
United States of
Tokyo Teriyaki Corporation (TTC) Food Service - 100 - 100
America (USA)
Honeybee Foods (Canada) Corporation

Canada Food Service - 100 - 100
(HFCC)
United States of
Bee Good! Inc. (BGI) Holding Company - 100 - 100
America (USA)
United States of
SJBF LLC (SJBF) Food Service - 100 - 100
America (USA)
United States of
Jolly USA Services LLC (c) Holding Company - 100 - -
America (USA)
(a) On July 19, 2022, Branch of JWPL Management Co., Pte. Ltd. Was incorporated in Hong Kong.
United States of Franchising (b) On July 14, 2022, Java Ventures, LLC (JVL) was dissolved.
JBM LLC (c) - 100 - -
America (USA) Company
(c) On June 21, 2022, Jolly USA Services LLC and JBM LLC were incorporated in the State of Delaware.
Donut Magic Phils., Inc. (Donut Magic)(g) Philippines Dormant 100 - 100 - (d) On June 7, 2022, the JFC Group, through its wholly owned subsidiary, JWPL, incorporated JWPL Management Co., Pte. Ltd. In Singapore.
(e) On June 6, 2022, Pinnacle Quality Food Inc. was incorporated in the Philippines.
Ice Cream Copenhagen Phils., Inc. (ICCP) (g)
Philippines Dormant 100 - 100 - (f) On February 22, 2022, the Parent company, through its wholly owned subsidiary, JWPL, completed the acquisition of 51% ownership in Milkshop
International Inc.
Mary’s Foods Corporation (Mary’s)(g) Philippines Dormant 100 - 100 -
(g) On June 18, 2004, the stockholders of the JFC Group approved the Plan of Merger of the three (3) dormant companies. The application is
pending approval from the SEC as at December 31, 2022.
QSR Builders, Inc. Philippines Dormant 100 - 100 -

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: • There is no unconditional right to defer the settlement A fair value measurement of a non-financial asset takes
of the liability for at least twelve months after the into account a market participant’s ability to generate
Current versus Noncurrent Classification
reporting period. economic benefits by using the asset in its highest and
The JFC Group presents assets and liabilities in the
best use or by selling it to another market participant that
consolidated statement of financial position based on The JFC Group classifies all other assets and liabilities
would use the asset in its highest and best use.
current/noncurrent classification. as noncurrent. Deferred tax assets and liabilities are
classified as noncurrent assets and liabilities. The fair value for financial instruments traded in active
An asset is classified as current when it is:
markets at the reporting date is based on their quoted
Fair Value Measurement
• Expected to be realized or intended to be sold or price or binding dealer price quotations, without any
Fair value is the price that would be received to sell an
consumed in the normal operating cycle; deduction for transaction costs. Where the JFC Group
asset or paid to transfer a liability in an orderly transaction
has financial assets and financial liabilities with offsetting
• Held primarily for the purpose of trading; between market participants at the measurement date.
positions in market risks or counterparty credit risk, it has
The fair value measurement is based on the presumption
• Expected to be realized within twelve months after the elected to use the measurement exception to measure
that the transaction to sell the asset or transfer the liability
reporting period; or the fair value of its net risk exposure by applying the bid or
takes place either:
ask price to the net open position as appropriate. For all
• Cash or cash equivalent unless restricted from being
• In the principal market for the asset or liability; or other financial instruments not traded in an active market,
exchanged or used to settle a liability for at least twelve
the fair value is determined by using valuation techniques
months after the reporting period. • In the absence of a principal market, in the most
deemed to be appropriate in the circumstances.
advantageous market for the asset or liability.
A liability is classified as current when: Valuation techniques include the market approach (i.e.,
The principal or the most advantageous market must be using prices and other relevant information generated by
• It is expected to be settled in the normal operating
accessible by the JFC Group. market transactions involving identical or comparable
cycle;
assets, liabilities or a group of assets and liabilities), the
The fair value of an asset or a liability is measured using
• It is held primarily for the purpose of trading; income approach (i.e., discounted cash flow analysis and
the assumptions that market participants would use
option pricing models making as much use of available
• It is due to be settled within twelve months after the when pricing the asset or liability, assuming that market
and supportable market data as possible) and the cost
reporting period; or participants act in their economic best interest.
approach (i.e., based on the amount required to replace
the service capacity of an asset).

The JFC Group uses valuation techniques that are significant to the fair value measurement as a whole) at Short-term Investments
appropriate in the circumstances and for which sufficient the end of each reporting period. Short-term investments are deposits with original
data are available to measure fair value, maximizing the maturities of more than three months to one year from
The JFC Group’s management determines the policies
use of relevant observable inputs and minimizing the use acquisition date.
and procedures for both recurring fair value measurement
of unobservable inputs.
and non-recurring measurement. At each reporting Financial Instruments
All assets and liabilities for which fair value is measured date, the management analyzes the movements in the A financial instrument is any contract that gives rise to
or disclosed in the consolidated financial statements are values of assets and liabilities which are required to a financial asset of one entity and a financial liability or
categorized within the fair value hierarchy, described as be remeasured or reassessed as per the JFC Group’s equity instrument of another entity.
follows, based on the lowest-level input that is significant accounting policies. For this analysis, the management
Date of Recognition
to the fair value measurement as a whole: verifies the major inputs applied in the latest valuation by
The JFC Group recognizes a financial asset or a
agreeing the information in the valuation computation to
Level 1 – Quoted (unadjusted) market prices in active financial liability in the consolidated statement of
contracts and other relevant documents.
markets for identical assets or liabilities financial position, when it becomes a party to the
For the purpose of fair value disclosures, the JFC Group contractual provisions of the instrument. Purchases
Level 2 – Valuation techniques for which the lowest-
has determined classes of assets and liabilities based on or sales of financial assets that require delivery of
level input that is significant to the fair value
the nature, characteristics and risks of the asset or liability assets within a time frame established by regulation or
measurement is directly or indirectly observable
and the level of the fair value hierarchy as explained convention in the marketplace (regular way trades) are
Level 3 – Valuation techniques for which the lowest- above. recognized on the trade date, i.e., the date that the JFC
level input that is significant to the fair value Group commits to purchase or sell the asset.
Cash and Cash Equivalents
measurement is unobservable
Cash includes cash on hand and in banks. Cash
For assets and liabilities that are recognized in the equivalents are short-term, highly liquid investments that
consolidated financial statements on a recurring basis, are readily convertible to known amounts of cash with
the JFC Group determines whether transfers have original maturities of three months or less from the date
occurred between levels in the hierarchy by reassessing of acquisition and are subject to an insignificant risk of
categorization (based on the lowest-level input that is change in value.

Financial Instruments – Initial Recognition and give rise to cash flows that are ‘solely payments of Financial Assets at Amortized Cost (Debt Instruments)
Subsequent Measurement principal and interest (SPPI)’ on the principal amount This category is the most relevant to the JFC Group. The
outstanding. This assessment is referred to as the SPPI JFC Group measures financial assets at amortized cost
Financial Assets
test and is performed at an instrument level. if both of the following conditions are met:
Initial Recognition and Measurement
The JFC Group’s business model for managing • The financial asset is held within a business model
Financial assets are classified, at initial recognition, as
financial assets refers to how it manages its financial with the objective to hold financial assets in order to
subsequently measured at amortized cost, fair value
assets in order to generate cash flows. The business collect contractual cash flows; and,
through other comprehensive income (FVOCI) and
model determines whether cash flows will result from
FVTPL. • The contractual terms of the financial asset give
collecting contractual cash flows, selling the financial
rise on specified dates to cash flows that are solely
The classification of financial assets at initial assets, or both.
payments of principal and interest on the principal
recognition depends on the financial asset’s
Subsequent Measurement amount outstanding.
contractual cash flow characteristics and the JFC
For purposes of subsequent measurement, financial
Group’s business model for managing them. With the Financial assets at amortized cost are subsequently
assets are classified in four categories:
exception of trade receivables that do not contain measured using the effective interest (EIR) method
a significant financing component or for which the • Financial assets at amortized cost (debt instruments) and are subject to impairment. Gains and losses
JFC Group has applied the practical expedient, the are recognized in profit or loss when the asset is
• Financial assets at FVOCI with recycling of
JFC Group initially measures a financial asset at its derecognized, modified or impaired.
cumulative gains and losses (debt instruments)
fair value plus, in the case of a financial asset not at
The JFC Group’s cash in banks, short-term deposits,
FVTPL, transaction costs. Trade receivables that do not • Financial assets designated at FVOCI with no
short-term investments, receivables (excluding
contain a significant financing component or for which recycling of cumulative gains and losses upon
receivables from government agencies), security and
the JFC Group has applied the practical expedient are derecognition (equity instruments)
other deposits, operating lease receivables and finance
measured at the transaction price determined under
• Financial assets at FVTPL lease receivables are classified under this category as
PFRS 15.
at December 31, 2022 and 2021.
The JFC Group has no financial assets at FVOCI as at
In order for a financial asset to be classified and
December 31, 2022 and 2021.
measured at amortized cost or FVOCI, it needs to

Financial Assets at FVTPL Impairment of Financial Assets recognizes a loss allowance based on lifetime ECLs at
Financial assets at FVTPL include financial assets held The JFC Group recognizes an allowance for Expected each reporting date. The JFC Group has established
for trading, financial assets designated upon initial Credit Losses (ECLs) for all debt instruments not held a provision matrix that is based on its historical credit
recognition at FVTPL, or financial assets mandatorily at FVTPL. ECLs are based on the difference between loss experience, adjusted for forward-looking factors
required to be measured at fair value. Financial assets the contractual cash flows due in accordance with the specific to the debtors and the economic environment.
are classified as held for trading if they are acquired contract and all the cash flows the JFC Group expects
For security and other deposits, the JFC Group applies
for the purpose of selling or repurchasing in the near to receive discounted at an approximation of the
the general approach and calculates ECL based on the
term. Derivatives, including separated embedded original EIR. The expected cash flows will include cash
12-month ECLs or lifetime ECLs, depending on whether
derivatives, are also classified as held for trading unless flows from the sale of collateral held or other credit
there has been a significant increase in credit risk on
they are designated as effective hedging instruments. enhancements that are integral to the contractual
the financial instruments since initial recognition.
Financial assets with cash flows that are not solely terms.
payments of principal and interest are classified and For cash in banks, short-term deposits and short-term
ECLs are recognized in two stages. For credit exposures
measured at FVTPL, irrespective of the business model. investments, the JFC Group applies the low credit risk
for which there has not been a significant increase in
Notwithstanding the criteria for debt instruments to simplification. The probability of default and loss given
credit risk since initial recognition, ECLs are provided
be classified at amortized cost or FVOCI, as described defaults are publicly available and are considered to be
for credit losses that result from default events that are
above, debt instruments may be designated at low credit risk investments. It is the JFC Group’s policy
possible within the next 12-months (a 12-month ECL).
FVTPL on initial recognition if doing so eliminates, or to measure ECLs on such instruments on a 12-month
For those credit exposures for which there has been a
significantly reduces, an accounting mismatch. basis. However, when there is a significant increase in
significant increase in credit risk since initial recognition,
credit risk since origination, the allowance will be based
Financial assets at FVTPL are carried in the consolidated a loss allowance is required for credit losses expected
on the lifetime ECL. The JFC Group assesses that there
statements of financial position at fair value with net over the remaining life of the exposure, irrespective of
is a significant increase in credit risk of a financial asset
changes in fair value recognized in the consolidated the timing of the default (a lifetime ECL).
when default occurs. The JFC Group uses the ratings
statements of comprehensive income.
For receivables and contract assets, and operating from Moody’s to determine whether the debt instrument
The JFC Group’s investments in golf, leisure club shares lease receivables, the JFC Group applies a simplified has significantly increased in credit risk and to estimate
and bond funds are classified under this category as at approach in calculating ECLs. Therefore, the JFC Group ECLs.
December 31, 2022 and 2021. does not track changes in credit risk, but instead

The JFC Group incorporates forward-looking Financial Liabilities are also classified as held for trading unless they are
information into both its assessment of whether the designated as effective hedging instruments.
Initial Recognition and Measurement
credit risk of an instrument has increased significantly
Financial liabilities are classified, at initial recognition, Gains or losses on liabilities held for trading are
since its initial recognition and its measurement
as financial liabilities at FVTPL, loans and borrowings, recognized in profit or loss.
of ECL. To do this, the JFC Group has considered a
payables or as derivatives designated as hedging
range of relevant forward-looking macro-economic Financial liabilities designated upon initial
instruments in an effective hedge, as appropriate.
assumptions for the determination of unbiased general recognition at FVTPL are designated at the initial
industry adjustments and any related specific industry All financial liabilities are recognized initially at fair date of recognition, and only if the criteria in PFRS 9
adjustments that support the calculation of ECLs. value and, in the case of loans and borrowings and are satisfied. The JFC Group has not designated any
payables, net of directly attributable transaction costs. financial liability as at FVTPL.
Based on the JFC Group’s evaluation and assessment
and after taking into consideration external actual The JFC Group’s financial liabilities include loans and • Loans and Borrowings, and Other Payables. This
and forecast information, the JFC Group considers borrowings, payables and derivative financial liabilities is the category most relevant to the JFC Group.
two or more economic scenarios and the relative as at December 31, 2022 and 2021. After initial recognition, interest-bearing loans and
probabilities of each outcome. External information borrowings, and other payables are subsequently
Subsequent Measurement
includes economic data and forecasts published measured at amortized cost using the EIR method.
by governmental bodies, monetary authorities and • Financial Liabilities at FVTPL. Financial liabilities at Gains and losses are recognized in profit or loss when
selected private-sector and academic institutions. FVTPL include financial liabilities held for trading and the liabilities are derecognized as well as through the
financial liabilities designated upon initial recognition EIR amortization process.
The JFC Group has identified and documented key
as at FVTPL. Financial liabilities are classified as held
drivers of credit risk and credit losses of each portfolio Amortized cost is calculated by taking into account
for trading if they are incurred for the purpose of
of financial instruments and, using an analysis of any discount or premium on acquisition and fees or
repurchasing in the near term. This category also
historical data, has estimated relationships between costs, including debt issue costs for the JFC Group’s
includes derivative financial instruments entered
macro-economic variables and credit risk and credit debts that are an integral part of the EIR. The EIR
into by the JFC Group that are not designated as
losses. The JFC Group considers macro-economic amortization is included as interest expense in the
hedging instruments in hedge relationships as
factors such as gross domestic product growth rates consolidated statement of comprehensive income.
defined by PFRS 9. Separated embedded derivatives
and inflation rates in its analysis.

This category includes the JFC Group’s trade cash flows from the asset or has assumed an and the maximum amount of consideration that the
payables and other current liabilities (excluding local obligation to pay the received cash flows in full JFC Group could be required to repay.
and other taxes payable and unearned revenue without material delay to a third party under a
Financial Liabilities
from gift certificates), short-term and long-term ‘pass-through’ arrangement; and either (a) the JFC
A financial liability is derecognized when the obligation
debts, senior debt securities and lease liabilities as at Group has transferred substantially all the risks and
under the liability is discharged, cancelled or has
December 31, 2022 and 2021. rewards of the asset, or (b) the JFC Group has neither
expired. When an existing financial liability is replaced
transferred nor retained substantially all the risks and
• Debt Issue Costs. Debt issue costs are specific by another from the same lender on substantially
rewards of the asset, but has transferred control of
incremental costs, other than those paid to the different terms, or the terms of an existing liability
the asset.
lender, that are directly related to issuing a debt are substantially modified, such an exchange or
instrument. These are presented in the consolidated When the JFC Group has transferred its rights to modification is treated as a derecognition of the
statement of financial position as a reduction from receive cash flows from an asset or has entered into original liability and the recognition of a new liability,
the related debt instrument and are amortized a pass-through arrangement, it evaluates if, and to and the difference in the respective carrying amounts
through the EIR amortization process. what extent, it has retained the risks and rewards is recognized in the consolidated statement of
of ownership. When it has neither transferred nor comprehensive income.
Derecognition of Financial Assets and Liabilities
retained substantially all of the risks and rewards of
Classification of Financial Instruments Between Liability
Financial Assets the asset, nor transferred control of the asset, the JFC
and Equity
A financial asset (or, where applicable, a part of a Group continues to recognize the transferred asset to
A financial instrument is classified as liability if it provides
financial asset or part of a group of similar financial the extent of its continuing involvement. In that case,
for a contractual obligation to:
assets) is primarily derecognized (i.e., removed from the JFC Group also recognized an associated liability.
the JFC Group’s consolidated statement of financial The transferred asset and the associated liability • Deliver cash or another financial asset to another entity;
position) when: are measured on a basis that reflects the rights and
• Exchange financial assets or financial liabilities with
obligations that the JFC Group has retained.
• The rights to receive cash flows from the asset have another entity under conditions that are potentially
expired, or, Continuing involvement that takes the form of a unfavorable to the Company; or,
guarantee over the transferred asset is measured at
• The JFC Group has transferred its rights to receive • Satisfy the obligation other than by the exchange of a
the lower of the original carrying amount of the asset

fixed amount of cash or another financial asset for a inputs become observable or when the instrument is subsequently remeasured at fair value. Derivatives
fixed number of own equity shares. derecognized. For each transaction, the JFC Group are carried as financial assets when the fair value is
determines the appropriate method of recognizing the positive and as financial liabilities when the fair value is
If the Company does not have an unconditional right
‘Day 1 difference’ amount. negative.
to avoid delivering cash or another financial asset to
settle its contractual obligation, the obligation meets the Offsetting of Financial Instruments Any gains or losses arising from changes in the fair
definition of a financial liability. Financial assets and financial liabilities are offset and the value of derivatives are taken directly to profit or loss,
net amount is reported in the consolidated statement except for the effective portion of cash flow hedges,
The components of issued financial instruments that
of financial position if there is a currently enforceable which is recognized in other comprehensive income
contain both liability and equity elements are accounted
legal right to offset the recognized amounts and there is and later reclassified to profit or loss when the hedge
for separately, with the equity component being assigned
an intention to settle on a net basis, to realize the assets item affects profit or loss.
the residual amount after deducting from the instrument
and settle the liabilities simultaneously. The JFC Group
as a whole the amount separately determined as the fair • Fair value hedges when hedging the exposure to
assesses that it has a currently enforceable right of
value of the liability component on the date of issue. changes in the fair value of a recognized asset or
offset if the right is not contingent on a future event, and
liability or an unrecognized firm commitment;
‘Day 1 Difference’ is legally enforceable in the normal course of business,
Where the transaction price in a non-active market is event of default, and event of insolvency or bankruptcy of • Cash flow hedges when hedging the exposure to
different from the fair value based on other observable the JFC Group and all of the counterparties. variability in cash flows that is either attributable to
current market transactions in the same instrument a particular risk associated with a recognized asset
Derivative Financial Instruments and Hedge Accounting
or based on a valuation technique whose variables or liability or a highly probable forecast transaction
include only data from observable market, the JFC Group Initial Recognition and Subsequent Measurement or the foreign currency risk in an unrecognized firm
recognizes the difference between the transaction price The JFC Group uses derivative financial instruments, commitment; and
and fair value (a ‘Day 1 difference’) in the profit or loss such as cross currency swaps and interest rate swaps
• Hedges of a net investment in a foreign operation.
unless it qualifies for recognition as some other type of to hedge its foreign currency risks and interest rate
asset. In cases where unobservable data is used, the risks, respectively. Such derivative financial instruments The JFC Group’s interest rate swap is a cash flow hedge.
difference between the transaction price and model are initially recognized at fair value on the date on The JFC Group has no fair value hedge and hedge of a
value is recognized in the profit or loss only when the which a derivative contract is entered into and are net investment in a foreign operation as at December

31, 2022 and 2021. JFC Group actually uses to hedge that quantity of If the hedging instrument expires or is sold,
hedged item. terminated or exercised without replacement or
At the inception of a hedge relationship, the JFC
rollover (as part of the hedging strategy), or if
Group formally designates and documents the Hedges that meet the strict criteria for hedge
its designation as a hedge is revoked, or when
hedge relationship to which it wishes to apply hedge accounting are accounted for, as described below:
the hedge no longer meets the criteria for hedge
accounting and the risk management objective and
Cash Flow Hedges accounting, any cumulative gain or loss previously
strategy for undertaking the hedge.
Cash flow hedges are hedges of the exposure to recognized in other comprehensive income remains
The documentation includes identification of the variability in cash flows that is attributable to a separately in equity until the forecast transaction
hedging instrument, the hedged item, the nature of the particular risk associated with a recognized asset, occurs or the foreign currency firm commitment is
risk being hedged and how the JFC Group will assess liability or a highly probable forecast transaction met.
whether the hedging relationship meets the hedge and could affect the consolidated statements
Contract Balances
effectiveness requirements (including analysis of of comprehensive income. Changes in the fair
sources of hedge ineffectiveness and how the hedge value of a hedging instrument that qualifies as a Contract Assets
ratio is determined). A hedging relationship qualifies highly effective cash flow hedge are recognized as A contract asset is the right to consideration in
for hedge accounting if it meets all of the following “Comprehensive income (loss) on derivative liability” exchange for goods or services transferred to the
effectiveness requirements: in the consolidated statement of comprehensive customer. If the JFC Group performs by transferring
income, whereas any hedge ineffectiveness is goods or services to a customer before the
• There is ‘an economic relationship’ between the
immediately recognized in profit or loss. customer pays consideration or before payment is
hedged item and the hedging instrument;
due, a contract asset is recognized for the earned
The JFC Group has an interest rate swap for its
• The effect of credit risk does not ‘dominate the value consideration that is conditional.
exposure to volatility in interest rates.
changes’ that result that economic relationship; and
Trade Receivables
Amounts recognized as other comprehensive
• The hedge ratio of the hedging relationship is the A receivable represents the JFC Group’s right to an
are transferred to profit or loss when the hedged
same as that resulting from the quantity of the amount of consideration that is unconditional (i.e., only
transaction affects profit or loss, such as when the
hedged item that the JFC Group actually hedges the passage of time is required before payment of the
hedged income or expense is recognized or when a
and the quantity of the hedging instrument that the consideration is due).
forecast sale occurs.

Contract Liabilities and revised as necessary to approximate current costs Interests in and Advances to Joint Ventures,
A contract liability is the obligation to transfer goods determined using FIFO. Co-venturers and Associates
or services to a customer for which the JFC Group has An associate is an entity over which the JFC Group has
Net realizable value of processed inventories is the
received consideration (or an amount of consideration significant influence. Significant influence is the power to
estimated selling price in the ordinary course of business,
is due) from the customer. If a customer pays participate in the financial and operating policy decisions
less estimated costs of completion and the estimated
consideration before the JFC Group transfers goods of the investee, but is not in control or joint control over
costs necessary to make the sale.
or services to the customer, a contract liability is those policies.
recognized when the payment is made or the payment Net realizable value of food supplies, packaging, store
A joint venture is a type of joint arrangement whereby
is due (whichever is earlier). Contract liabilities are and other supplies is the current replacement cost. Food
the parties that have joint control of the arrangement
recognized as revenue when the JFC Group performs and other supplies are held for use in the production of
have rights to the net assets of the joint venture. Joint
under the contract. processed inventories.
control is the contractually agreed sharing of control of
Inventories Net realizable value of novelty items is the estimated an arrangement, which exists only when decisions about
Inventories are valued at the lower of cost and net selling price in the ordinary course of business, less the the relevant activities require unanimous consent of the
realizable value. Costs are accounted for as follows: estimated costs necessary to make the sale. parties sharing control.
Processed inventories — Other Current Assets The JFC Group’s investments in its associates and joint
Standard costing, which is reviewed on a quarterly Other current assets include prepaid expenses which ventures are accounted for using the equity method
basis and revised as necessary to approximate current are paid in advance and recorded as asset before based on the percentage share of ownership and
costs determined using first in, first out (FIFO). Cost these are utilized, deposits which pertain to advance capitalization. Interests in joint ventures are accounted for
includes direct materials, labor and a proportion of payments to suppliers to be applied for future purchases, under the equity method from the date the joint control is
manufacturing overhead costs based on normal and creditable withholding taxes, which will be applied obtained.
operating capacity. in the following year against corporate income tax or
Under the equity method, the JFC Group’s investments
be claimed for refund with the Tax Authorities. Prepaid
Food supplies, packaging, store and other supplies, in joint ventures and associates are carried in the
expenses are amortized over time and recognized as
and novelty items — consolidated statement of financial position at cost
expense as the benefit is derived from the asset.
Standard costing which is reviewed on a quarterly basis plus the JFC Group’s share in post-acquisition changes

in the net assets of associates or joint ventures, less ventures against the related investments. Unrealized the Parent Company and its associate or joint venture
any impairment in value. Goodwill relating to the joint losses are eliminated similarly but only to the extent are recognized is restricted to the extent of the interest
ventures or associates is included in the carrying amount that there is no evidence of impairment in the asset that are attributable to the unrelated equity holders in the
of the investment and is not amortized. The consolidated transferred. jointly controlled entity.
statement of comprehensive income includes the
The JFC Group ceases to use the equity method of Property, Plant and Equipment
JFC Group’s share in the financial performance of the
accounting on the date from which it no longer has joint Property, plant and equipment, except land and
associates or joint ventures. The JFC Group’s share in
control in the joint ventures, no longer has significant construction in progress, are stated at cost less
profit or loss of the associates is shown on the face of
influence over the associates, or when the interest accumulated depreciation and amortization and any
the consolidated statement of comprehensive income
becomes held for sale. accumulated impairment in value. Such cost includes the
as “Equity in net earnings (losses) of joint ventures and
cost of replacing part of property, plant and equipment
associates – net”, which is the profit or loss attributable to Upon loss of significant influence over the associate
at the time that cost is incurred, if the recognition criteria
equity holders of the joint ventures and associates. or joint control over the joint ventures, the JFC Group
are met, and excludes the costs of day-to-day servicing.
measures and recognizes its remaining investment at its
When the JFC Group’s share of losses in the joint ventures Land is stated at cost less any impairment in value.
fair value. Any difference between the carrying amount
or associates equals or exceeds its interest, including
of the former associate or former jointly controlled entities The initial cost of property, plant and equipment
any other unsecured receivables, the JFC Group does not
upon loss of significant influence or joint control, and the consists of its purchase price, including import duties
recognize further losses, unless it has incurred obligations
fair value of the remaining investment and proceeds and nonrefundable taxes and any other costs directly
or made payments on behalf of the associates or joint
from disposal is recognized in profit or loss. When the attributable in bringing the asset to its working condition
ventures. Where there has been a change recognized
remaining interest in the former jointly controlled entity and location for its intended use. Cost also includes any
directly in the equity of the associate or joint venture,
constitutes significant influence, it is accounted for as related asset retirement obligation and interest incurred
the JFC Group recognizes its share in any changes and
interest in an associate. during the construction period on funds borrowed to
discloses this, when applicable, in the consolidated
finance the construction of the asset. Expenditures
statement of changes in equity. The contribution of a non-monetary asset to an associate
incurred after the property, plant and equipment
or a joint venture in exchange for an equity interest in the
Unrealized gains arising from transactions with the have been put into operation, such as repairs and
associate or joint venture, where gain or loss resulting
associates or joint ventures are eliminated to the extent maintenance, are normally charged to profit or loss in the
from ‘upstream’ and ‘downstream’ transactions between
of the JFC Group’s interests in the associates or joint period in which the costs are incurred. In situations where

it can be clearly demonstrated that the expenditures Fully depreciated assets are retained in the accounts until this way even if an entity cannot immediately derecognize
have resulted in an increase in the future economic they are disposed or retired. the asset given up. If the acquired item is not measured
benefits expected to be obtained from the use of an item at fair value, its cost is measured at the carrying amount
An item of property, plant and equipment is derecognized
of property, plant and equipment beyond its originally of the asset given up.
upon disposal or when no future economic benefits
assessed standard of performance, the expenditures
are expected from its use or disposal. Any gain or loss Investment Properties
are capitalized as additional costs of property, plant and
arising on derecognition of the asset (calculated as Investment properties consist of land and buildings and
equipment.
the difference between the disposal proceeds and the building improvements held by the JFC Group for capital
Depreciation and amortization are calculated on a carrying amount of the asset) is included in profit or loss appreciation and rental purposes. Investment properties,
straight-line basis over the following estimated useful in the period the asset is derecognized. except land, are carried at cost, including transaction
lives of the assets: costs, less accumulated depreciation and amortization
Construction in progress represents assets under
and any impairment in value. Cost also includes the cost
construction and is stated at cost less any impairment
Land improvements 5 years of replacing part of an existing investment property at
in value. This includes the cost of construction and
Plant, buildings, commercial condominium 5 – 40 years the time that cost is incurred if the recognition criteria are
other direct costs. Cost also includes interest on
units and improvements met; and excludes the costs of day-to-day servicing of
borrowed funds incurred during the construction period.
Leasehold improvements 2 – 10 years or term of an investment property. Land is carried at cost less any
the lease, whichever Construction in progress is not depreciated until such time
impairment in value.
is shorter that the relevant assets are completed and ready for use.
Office, store and food processing equipment 1 – 15 years The depreciation of buildings and building improvements
When one or more items of property, plant and equipment
Furniture and fixtures 3 – 5 years are calculated on a straight-line basis over the estimated
is acquired in exchange for a non‑monetary asset or
useful lives of the assets which are five (5) to thirty-five
Transportation equipment 3 – 5 years assets, or a combination of monetary and non‑monetary
(35) years.
assets, the cost of such property, plant and equipment
The residual values, if any, useful lives and depreciation is measured at fair value unless (a) the exchange The residual values, if any, useful lives and method of
and amortization method of the assets are reviewed transaction lacks commercial substance or (b) the fair depreciation and amortization of the assets are reviewed
at the end of each financial period and adjusted value of neither the asset received, nor the asset given up at each financial year-end and adjusted prospectively, if
prospectively, if appropriate. is reliably measurable. The acquired item is measured in appropriate.

Investment property is derecognized when either it has an owner-occupied property becomes an investment recognition and measurement of goodwill or a gain from
been disposed of or when the investment property is property, the JFC Group accounts for such property in a bargain purchase.
permanently withdrawn from use and no future economic accordance with the policy stated under property and
When the JFC Group acquires a business, it assesses the
benefit is expected from its disposal. Any gains or losses equipment up to the date of change in use.
financial assets and liabilities assumed for appropriate
on the retirement or disposal of an investment property
Borrowing Costs classification and designation in accordance with
are recognized in profit or loss in the period of retirement
Borrowing costs directly attributable to the acquisition, the contractual terms, economic circumstances and
or disposal.
construction or production of an asset that necessarily pertinent conditions as at acquisition date.
Transfers to, and from, investment property are made only takes a substantial period of time to get ready for its
The cost of an acquisition is measured as the aggregate
when there is a change in use, evidenced by: intended use or sale are capitalized as part of the cost
of the (a) consideration transferred by the JFC Group,
of asset. Capitalization of borrowing costs commences
• Commencement of owner-occupation, for a transfer of measured at acquisition-date fair value, (b) amount
when the activities to prepare the asset are in progress
investment property to owner-occupied property; of any non-controlling interest in the acquiree and (c)
and expenditures and borrowing costs are being
acquisition-date fair value of the JFC Group’s previously
• Commencement of development with a view to sell, for incurred. Borrowing costs are capitalized until the assets
held equity interest in the acquiree in a business
a transfer from investment property to real properties are substantially ready for their intended use. All other
combination achieved in stages. Acquisition costs
held-for-sale and development; borrowing costs are expensed as incurred. Borrowing
incurred are expensed and included in “General and
costs consist of interest and other cost that an entity
• End of owner occupation, for a transfer from owner- administrative expenses” account in the consolidated
incurs in connection with the borrowing of funds.
occupied property to investment property; or, statement of comprehensive income.
Business Combinations
• Commencement of an operating lease to another Initial Measurement of Non-controlling Interest
Business combinations are accounted for using the
party, for a transfer from real properties held-for-sale For each business combination, the JFC Group
acquisition method. Applying the acquisition method
and development to investment property. measures the non-controlling interest in the acquiree
requires the (a) determination whether the JFC Group
using the proportionate share of the acquiree’s fair
For a transfer from investment property to owner- will be identified as the acquirer; (b) determination of
value of identifiable net assets.
occupied property, the cost of property for subsequent the acquisition date; (c) recognition and measurement
accounting is its carrying value at the date of change of the identifiable assets acquired, liabilities assumed Business Combination Achieved in Stages
in use. If the property occupied by the JFC Group as and any non-controlling interest in the acquiree; and (d) In a business combination achieved in stages, the JFC

Group remeasures its previously held equity interests bargain purchase, the JFC Group determines whether it Frequency of Impairment Testing
in the acquiree at its acquisition-date fair value and has correctly identified all of the assets acquired and all Irrespective of whether there is any indication of
recognizes the resulting gain or loss, if any, in profit or of the liabilities assumed and recognize any additional impairment, the JFC Group tests goodwill acquired in
loss. assets or liabilities that are identified in that review. a business combination for impairment annually as at
December 31 and more frequently when circumstances
Measurement Period Subsequent Measurement of Goodwill
indicate that the carrying amount is impaired.
If the initial accounting for a business combination is Following initial recognition, goodwill is measured at
incomplete by the end of the reporting period in which cost less any accumulated impairment losses. Allocation of Impairment Loss
the business combination occurs, the JFC Group reports An impairment loss is recognized for a CGU if the
Impairment Testing of Goodwill
in its consolidated financial statements provisional recoverable amount of the unit or group of units is less
For the purpose of impairment testing, goodwill
amounts for the items for which the accounting is than the carrying amount of the unit or group of units.
acquired in a business combination is, from the
incomplete. The measurement period ends as soon as The impairment loss is allocated to reduce the carrying
acquisition date, allocated to each of the JFC Group’s
the JFC Group receives the information it was seeking amount of the assets of the unit or group of units first
CGU, or groups of CGUs, that are expected to benefit
about facts and circumstances that existed as at the to reduce the carrying amount of goodwill allocated to
from the synergies of the combination, irrespective of
acquisition date or learns that more information is not the CGU or group of units and then to the other assets
whether other assets or liabilities of the acquiree are
obtainable. The measurement period does not exceed of the unit or group of units pro rata on the basis of
assigned to those units or groups of units.
one year from the acquisition date. the carrying amount of each asset in the unit or group
Each unit or group of units to which the goodwill is of units. In allocating the impairment loss, the JFC
Initial Measurement of Goodwill or
allocated: Group cannot reduce the carrying amount of an asset
Gain on a Bargain Purchase
below the highest of its fair value less cost of disposal if
Goodwill is initially measured by the JFC Group at cost • represents the lowest level within the JFC Group
measurable, its value in use if determinable and zero.
being the excess of the total consideration transferred at which the goodwill is monitored for internal
over the net identifiable assets acquired and liabilities management purposes; and, Intangible Assets
assumed. If this consideration is lower than the fair Intangible assets acquired separately are measured
• is not larger than an operating segment as defined in
value of the net assets of the subsidiary acquired, the at cost on initial recognition. Following initial
PFRS 8, Operating Segments, before aggregation.
difference is recognized in profit or loss as gain on recognition, intangible assets are carried at cost less
a bargain purchase. Before recognizing a gain on a any accumulated amortization and any accumulated

impairment loss. The useful lives of intangible assets Amortization of computer software, trademarks and appropriate level of management must be committed to
are assessed at the individual asset level as either finite other intangible assets are calculated on a straight-line a plan to sell the asset and an active program to locate
or indefinite. basis over the following estimated useful lives of the a buyer and complete the plan must have been initiated.
assets: Further, the asset must be actively marketed for sale at a
Intangible assets with finite lives are amortized over
price that is reasonable in relation to its current fair value.
the useful economic life using the straight-line method Computer software 10 years
In addition, the sale should be expected to qualify for
and assessed for impairment whenever there is an
Trademarks 5 years recognition as a completed sale within one year from the
indication that the intangible assets may be impaired.
Other intangible assets 10 years
date of classification.
At a minimum, the amortization period and the
amortization method for an intangible asset with a The JFC Group measures land asset held for sale at the
finite useful life are reviewed at least at each financial Gains or losses arising from derecognition of an lower of its carrying amount and fair value less cost to sell.
year-end. Changes in the expected useful life or the intangible asset are measured as the difference
Impairment of Nonfinancial Assets
expected pattern of consumption of future economic between the net disposal proceeds and the carrying
The carrying values of interests in and advances to joint
benefits embodied in the asset are accounted for amount of the asset, and are recognized in profit or loss
ventures, co-venturers and associates, property, plant and
by changing the amortization period or method, as when the asset is derecognized.
equipment, right-of-use assets, investment properties,
appropriate, and treated as changes in accounting
Land Assets Held for Sale trademarks and other intangible assets with definite
estimates.
Land assets held for sale are carried at the lower of its useful life, and other noncurrent assets are reviewed for
Intangible assets with indefinite useful lives are tested carrying amount and fair value less costs to sell. At impairment when events or changes in circumstances
for impairment annually either individually or at the reporting date, the JFC Group classifies assets as held indicate that the carrying value may not be recoverable.
CGU level. Such intangible assets are not amortized. for sale (disposal group) when their carrying amount If any such indication exists, and if the carrying value
The useful life of an intangible asset with an indefinite will be recovered principally through a sale transaction exceeds the estimated recoverable amount, the assets
life is reviewed annually to determine whether the rather than through continuing use. For this to be the or CGU are written down to their recoverable amounts.
indefinite life assessment continues to be supportable. case, the asset must be available for immediate sale in The recoverable amount of the asset is the greater of
If not, the change in the useful life assessment from its present condition subject only to terms that are usual fair value less costs to sell or value in use. The fair value
indefinite to finite is made on a prospective basis. and customary for sales of such assets and its sale must less costs to sell is the amount obtainable from the sale
be highly probable. For the sale to be highly probable, the of an asset in an arm’s-length transaction between

knowledgeable and willing parties, less costs of disposal. in profit or loss. After such a reversal, the depreciation The balance includes accumulated earnings of
In assessing value in use, the estimated future cash flows charge is adjusted in future periods to allocate the asset’s subsidiaries, joint ventures and associates, which are
are discounted to their present value using a pre-tax revised carrying amount, less any residual value on a not available for dividend declaration.
discount rate that reflects current market assessments of systematic basis over its remaining useful life.
Dividends
the time value of money and the risks specific to the asset.
Equity The JFC Group recognizes a liability to make cash
For an asset that does not generate largely independent
distribution to its equity holders when the distribution
cash inflows, the recoverable amount is determined for Capital Stock and Additional Paid-in Capital
is authorized, and the distribution is no longer at the
the CGU to which the asset belongs. Impairment losses Capital stock is measured at par value for all shares
discretion of the JFC Group. A corresponding amount
are recognized in profit or loss in those expense categories issued. Proceeds and/or fair value of considerations
is recognized directly in the equity. Dividends for the
consistent with the function of the impaired asset. received in excess of par value, if any, are recognized as
period that are approved after the financial reporting
additional paid-in capital. Incremental costs incurred
For nonfinancial assets, excluding goodwill, an date are dealt with as an event after the reporting
directly attributable to the issuance of new shares are
assessment is made at each reporting date as to period.
shown in equity as a deduction from proceeds, net of
whether there is any indication that previously recognized
tax. Other Comprehensive Income
impairment losses may no longer exist or may have
Other comprehensive income comprises items of
decreased. If such indication exists, the recoverable Additional paid-in capital is also credited for the cost of
income and expense (including reclassification
amount is estimated. A previously recognized impairment the JFC Group’s equity-settled share-based payments
adjustments) that are not recognized in profit or loss.
loss is reversed only if there has been a change in the to its employees.
These include cumulative translation adjustments,
estimates used to determine the asset’s recoverable
Subscription Receivable gains or losses on derivatives designated as hedging
amount since the last impairment loss was recognized.
Subscription receivable represents the unpaid balance instruments in an effective hedge, unrealized gains or
If that is the case, the carrying amount of the asset is
of the subscription price for subscribed common stock losses on financial assets at FVOCI, remeasurement
increased to its recoverable amount. That increased
of the Parent Company. gains or losses on pension and their income tax effects.
amount cannot exceed the carrying amount that
would have been determined, net of depreciation and Retained Earnings Treasury Shares
amortization, had no impairment loss been recognized Retained earnings represent the JFC Group’s Acquisitions of treasury shares are recorded at
for the asset in prior periods. Such reversal is recognized accumulated earnings, net of dividends declared. cost. The total cost of treasury shares is shown in

the consolidated statement of financial position as a time when control is transferred to the customer, which certain percentage of the total costs incurred.
deduction from the total equity. Upon re-issuance or is normally upon delivery. Sales returns and discounts
Other Revenues
resale of the treasury shares, cost of common stock are deducted from sales to arrive at net sales shown in
The following specific recognition criteria must also be
held in treasury account is credited for the cost of the the consolidated statement of comprehensive income.
met before other revenue is recognized:
treasury shares determined using the simple average
Royalty Fees
method. Gain on sale is credited to additional paid-in Rent Income
Revenue from royalty fees is recognized as the
capital. Losses are charged against additional paid- Rent income from short-term leases and leases of low-
royalty accrues based on certain percentages of the
in capital but only to the extent of previous gain from value asset is recognized on a straight-line basis over
franchisees’ net sales.
original issuance, sale or retirement for the same class the lease terms.
of stock. Otherwise, losses are charged to retained Set-up Fees
Interest Income
earnings. Revenue from set-up fees is recognized on a straight-
Interest income is recognized as the interest accrues,
basis over the term of the franchise agreement and
Revenue from Contracts with Customers taking into account the effective yield on the asset.
when performance obligations relating to the payment
Revenue from contracts with customers is recognized
of set-up fees have been satisfied. Other Income
when control of the goods or services are transferred to
Other income is recognized when there is an incidental
the customer at an amount that reflects the consideration System-wide Advertising Fees
economic benefit, other than the usual business
to which the JFC Group expects to be entitled in exchange Revenues consisting of reimbursements of network
operations, that will flow to the JFC Group through an
for those goods or services. The JFC Group assesses advertising and promotional costs from franchisees are
increase in asset or reduction in liability and that can
its revenue arrangements against specific criteria to recognized upon performance of service.
be measured reliably.
determine if it is acting as a principal or as an agent. The
Service Fees
JFC Group has concluded that it is acting as principal Cost and Expenses
Revenue is recognized in the period in which the service
in majority of its revenue arrangements. The following Cost and expenses are decreases in economic benefits
has been rendered.
specific recognition criteria must also be met before during the reporting period in the form of outflows or
revenue is recognized: Management Fees decrease of assets or incurrence of liabilities that result
Revenue is recognized in the period in which the in decreases in equity, other than those relating to
Sale of Goods
administration services has been rendered based on a distributions to equity participants. Cost and expenses
Revenue from sale of goods is recognized at the point in

are recognized as incurred. or curtailment occurs. These amounts are calculated cash flows using a discount rate that reflects both the
periodically by independent qualified actuaries. risk associated with the plan assets and the maturity or
Advertising and promotion expenses include costs
expected disposal date of those assets (or, if they have
incurred for advertising schemes and promotional Net interest on the pension liability or asset is the change
no maturity, the expected period until the settlement of
activities for new products. during the period in the liability or asset that arises from
the related obligations). If the fair value of the plan assets
the passage of time which is determined by applying the
Pension Benefits is higher than the present value of the defined benefit
discount rate based on government bonds to the pension
The pension liability or asset is the aggregate of the obligation, the measurement of the resulting defined
liability or asset. Net interest on the pension liability or
present value of the defined benefit obligation at the end benefit asset is limited to the present value of economic
asset is recognized under “Direct costs” and “General and
of the reporting period reduced by the fair value of plan benefits available in the form of refunds from the plan or
administrative expenses” in the consolidated statement of
assets (if any), adjusted for any effect of limiting a net reductions in future contributions to the plan.
comprehensive income.
defined benefit asset to the asset ceiling. The asset ceiling
The JFC Group also participates in various government-
is the present value of any economic benefits available in Remeasurements comprising actuarial gains and losses,
defined contribution schemes for the PRC-based and
the form of refunds from the plan or reductions in future return on plan liability or assets and any change in the
USA-based subsidiaries. Under these schemes, pension
contributions to the plan. effect of the asset ceiling (excluding net interest on
benefits of existing and retired employees are guaranteed
defined benefit liability) are recognized immediately in
The cost of providing benefits under the defined benefit by the local pension benefit plan, and each subsidiary has
other comprehensive income in the period in which they
plans is actuarially determined using the projected unit no further obligations beyond the annual contribution.
arise. Remeasurements are not reclassified to profit or
credit method.
loss in subsequent periods. Employee Leave Entitlement
Pension expense comprises the following: Employee entitlements to annual leave are recognized as
Plan assets are assets that are held by a long-term
a liability when they are accrued to the employees. JFC
• Service cost; and, employee benefit fund or qualifying insurance policies.
Group recognizes undiscounted liability for leave expected
Plan assets are not available to the creditors of the JFC
• Net interest on the net defined benefit liability or asset to be settled wholly before twelve months after the end of
Group, nor can they be paid directly to the JFC Group. Fair
the annual reporting period.
Service costs which include current service costs, value of plan assets is based on market price information.
past service costs and gains or losses on non-routine When no market price is available, the fair value of plan Share-based Payments
settlements are recognized as part of pension expense. assets is estimated by discounting expected future The JFC Group has stock option plans granting its
Past service costs are recognized when plan amendment

management and employees an option to purchase a not been modified. In addition, an expense is recognized right to use the underlying assets.
fixed number of shares of stock at a stated price during a for any modification, which increases the total fair value
• Right-of-Use Assets. The JFC Group recognizes right-
specified period (“equity-settled transactions”). of the share-based payment agreement, or is otherwise
of-use assets at the commencement date of the
beneficial to the management and employees as
The cost of the options granted to the JFC Group’s lease (i.e., the date the underlying asset is available
measured at the date of modification.
management and employees that becomes vested for use). Right-of-use assets are measured at cost,
is recognized in profit or loss over the period in which Where a share-based award is cancelled, it is treated less any accumulated depreciation and impairment
the performance and/or service conditions are fulfilled, as if it had vested on the date of cancellation, and any losses, and adjusted for any remeasurement of
ending on the date on which the relevant management expense not yet recognized for the award is recognized lease liabilities. The cost of right-of-use assets
and employees become fully entitled to the award immediately. However, if a new award is substituted for includes the amount of lease liabilities recognized,
(“vesting date”). the cancelled award, and designated as a replacement initial direct costs incurred, and lease payments
award on the date that it is granted, the cancelled and made at or before the commencement date less
The fair value is determined using the Black-Scholes
new awards are treated as if there were a modification of any lease incentives received. The cost of right-of-
Option Pricing Model. The cumulative expense recognized
the original award. use assets also includes an estimate of costs to be
for the share-based transactions at each reporting
incurred by the lessee in dismantling and removing
date until the vesting date reflects the extent to which Leases
the underlying asset to the condition required by the
the vesting period has expired and the JFC Group’s best The JFC Group assesses at contract inception whether
terms and conditions of the lease, unless those costs
estimate of the number of equity instruments that will a contract is, or contains, a lease. That is, if the contract
are incurred to produce inventories. Unless the JFC
ultimately vest. The charge or credit in profit or loss conveys the right to control the use of an identified asset
Group is reasonably certain to obtain ownership of
or the investment account for a period represents the for a period of time in exchange for consideration.
the leased asset at the end of the lease term, the
movement in cumulative expense recognized as of the
JFC Group as Lessee recognized right-of-use assets are depreciated on
beginning and end of that period.
The JFC Group applies a single recognition and a straight-line basis over the shorter of its estimated
No expense is recognized for awards that do not measurement approach for all leases, except for useful life and the lease term. Right-of-use assets are
ultimately vest. short-term leases and leases of low-value assets. The subject to impairment.
JFC Group recognizes lease liabilities to make lease
Where the terms of a share-based award are modified, at • Lease Liabilities. At the commencement date of
payments and right-of-use assets representing the
a minimum, an expense is recognized as if the terms had the lease, the JFC Group recognizes lease liabilities

measured at the present value of lease payments to The JFC Group’s lease liabilities are included in separate lease if both:
be made over the lease term. The lease payments interest-bearing loans and borrowings.
• The modification increases the scope of the lease
include fixed payments (including in-substance
• Short-term Leases and Leases of Low-value by adding the right to use one or more underlying
fixed payments) less any lease incentives receivable,
Assets. The JFC Group applies the short-term lease assets; and,
variable lease payments that depend on an index
recognition exemption to its short-term leases of
or a rate, and amounts expected to be paid under • The consideration for the lease increases by
QSR outlets. It also applies the lease of low-value
residual value guarantees. The variable lease an amount commensurate with the stand-
assets recognition exemption to leases of that are
payments that do not depend on an index or a rate alone price for the increase in scope and any
considered of low value (i.e., below USD5,000 or
are recognized as expense in the period on which the appropriate adjustments to that stand-alone
approximately P 250,000). Lease payments on short-
event or condition that triggers the payment occurs. price to reflect the circumstances of the particular
term leases and leases of low-value assets are
contract.
In calculating the present value of lease payments, recognized as expense on a straight-line basis over
the JFC Group uses the incremental borrowing rate the lease term. For a lease modification that is not accounted for as
(IBR) at the lease commencement date if the interest a separate lease, at the effective date of the lease
• Subleases of Underlying Asset. The JFC Group
rate implicit in the lease is not readily determinable. modification, a lessee shall:
continues to account for the original lease (the head
In determining the IBR, the JFC Group uses risk-free
lease) as a lessee and accounts for the sublease as • Allocate the consideration in the modified
rate plus credit spread where the credit spread
the lessor (intermediate lessor). contract;
is based on the credit risk of the lessee. After the
commencement date, the amount of lease liabilities • Lease Modification. Lease modification is defined • Determine the lease term of the modified lease;
is increased to reflect the accretion of interest and as a change in the scope of a lease, or the and,
reduced for the lease payments made. In addition, consideration for a lease, that was not part of the
• Remeasure the lease liability by discounting the
the carrying amount of lease liabilities is remeasured original terms and conditions of the lease (for
revised lease payments using a revised discount
if there is a modification, a change in the lease term, example, adding or terminating the right to use one
rate. The revised discount rate is determined
a change in the in-substance fixed lease payments or more underlying assets, or extending or shortening
as the interest rate implicit in the lease for the
or a change in the assessment to purchase the the contractual lease term).
remainder of the lease term, if that rate can be
underlying asset.
A lessee shall account for a lease modification as a readily determined, or the lessee’s incremental

borrowing rate at the effective date of the • Any reduction in lease payment affects only major part of the economic life of the underlying asset
modification, if the interest rate implicit in the payments originally due on or before June 30, and at the inception date, the present value of the
lease cannot be readily determined. The lessee 2022; and, minimum lease payment amounts to substantially all
shall account for the remeasurement of the lease of the fair value of the underlying asset are classified as
• There is no substantive change to other terms
liability by: finance lease.
and conditions of the lease.
• Decreasing the carrying amount of the right-of- If the sublease is classified as finance lease, JFC Group
Rent concession from lessors were accounted for as
use asset to reflect the partial or full termination as an intermediate lessor:
negative variable lease payments in profit or loss.
of the lease for lease modifications that
• Derecognizes the right-of-use asset relating to the
decrease the scope of the lease. The lessee JFC Group as Lessor
head lease that it transfers to the sublessee and
shall recognize in profit or loss any gain or loss Leases in which the JFC Group does not transfer to the
recognizes the net investment in the sublease;
relating to partial or full termination of the lease; lessee substantially all the risks and benefits incidental
or, to ownership of an asset are classified as operating • Recognizes any difference between the right-of-use
leases. Initial direct costs incurred in negotiating an asset and the net investment in the sublease in profit
• Making corresponding adjustment to the right-
operating lease are added to the carrying amount of or loss; and,
of-use asset for all other lease modifications.
the operating lease receivable and recognized over
• Retains the lease liability relating to the head lease
As a practical expedient, a lessee may elect not to the lease term on the same basis as rent income.
in its consolidated statement of financial position,
assess whether a rent concession occurring as a Rent income from operating leases is accounted for
which represents the lease payments owed to the
direct consequence of Covid-19 pandemic is a lease on a straight-line basis over the lease term and is
head lessor.
modification and only if all of the following conditions recognized as income in profit or loss. Contingent rents
are met: are recognized as revenue in the period in which they During the term of the sublease, JFC Group recognizes
are earned. both finance income on the sublease and interest
• The change in lease payments results in revised
expense on the head lease.
consideration for the lease that is substantially JFC Group as an Intermediate Lessor
the same as, or less than, the consideration for Sublease is classified at the inception date as a finance If the sublease is classified as an operating lease, JFC
the lease immediately preceding the change; lease or an operating lease. Subleases in which the Group retains the lease liability and the right-of-use
JFC Group determined that the lease term constitute a asset relating to the head lease in its consolidated

statement of financial position. During the term of the Vietnam dong (VND), Singapore dollar (SGD), Malaysian in equity is recognized in equity (not in the profit or
sublease, JFC Group recognizes a depreciation charge ringgit (MYR), Canadian dollar (CND), Euro, Pound loss). Management periodically evaluates positions
for the right-of-use asset and interest on the lease (GBP), Hong Kong dollar (HKD), Indonesia rupiah (IDR), taken in the tax returns with respect to situations
liability and recognizes rent income from the sublease. Macau pataca (MOP) and New Taiwan dollar (NTP). in which applicable tax regulations are subject to
As at the reporting date, the assets and liabilities of interpretation and establishes provisions where
Foreign Currency Transactions and Translations
foreign subsidiaries are translated into the presentation appropriate.
The consolidated financial statements are presented in
currency of the Parent Company at the rate of exchange
Philippine Peso, which is the Parent Company’s functional Deferred Tax
ruling at the reporting date while the income and
and presentation currency. Each entity in the JFC Group Deferred tax is provided using balance sheet liability
expense accounts are translated at the weighted
determines its own functional currency and items method, on all temporary differences at reporting date
average exchange rates for the year. The resulting
included in the financial statements of each entity are between the tax bases of assets and liabilities and their
translation differences are included in equity under
measured using that functional currency. The functional carrying amounts for financial reporting purposes.
the account “Cumulative translation adjustments of
currency of subsidiaries domiciled and operating in
foreign subsidiaries and interests in joint ventures and Deferred tax assets are recognized for all deductible
the Philippines are also determined to be the Philippine
associates.” On disposal of a foreign subsidiary, the temporary differences and carryforward benefits of
Peso. Where the functional currency is the Philippine
accumulated exchange differences are recognized in unused tax credits from excess of minimum corporate
Peso, transactions in foreign currencies are recorded in
profit or loss. income tax (MCIT) over regular corporate income tax
Philippine Peso using the exchange rate at the date of the
(RCIT) and net operating loss carryover (NOLCO), to
transaction. Monetary assets and liabilities denominated Taxes
the extent that it is probable that taxable profit will
in foreign currencies are restated using the closing
Current Tax be available against which the deductible temporary
rate of exchange at reporting date. All differences are
Current tax liabilities for the current and prior periods differences and carry forward benefits of excess of MCIT
recognized in profit or loss. Nonmonetary items that are
are measured at the amount expected to be paid to over RCIT and NOLCO can be utilized, except:
measured in terms of historical cost in a foreign currency
the tax authority. The tax rates and tax laws used to
are translated using the exchange rates as at the dates of • where the deferred tax asset relating to the
compute the amount are those that are enacted or
the initial transactions. deductible temporary difference arises from
substantively enacted at reporting date.
the initial recognition of an asset or liability in a
The functional currencies of the JFC Group’s foreign
Current income tax relating to items recognized directly transaction that is not a business combination and,
operations are US dollar (USD), PRC Renminbi (RMB),

at the time of the transaction, affects neither the at the time of the transactions, affects neither the in goodwill, as long as it does not exceed goodwill,
accounting profit nor taxable profit; and, accounting profit nor taxable profit; and, if it was incurred during the measurement period or
recognized in profit or loss.
• in respect of deductible temporary differences • in respect of taxable temporary differences
associated with investments in subsidiaries and associated with investments in subsidiaries Deferred tax assets and liabilities are offset, if a legally
interest in joint ventures and associates, deferred and interests in joint ventures and associates, enforceable right exists to off-set current tax assets
tax assets are recognized only to the extent that it is where the timing of the reversal of the temporary against current tax liabilities and the deferred taxes
probable that the temporary differences will reverse differences can be controlled and it is probable that relate to the same taxable entity and the same taxation
in the foreseeable future and taxable profit will be the temporary differences will not reverse in the authority.
available against which the temporary differences foreseeable future.
Value Added Tax (VAT)
can be utilized.
Deferred tax assets and liabilities are measured at the Revenue, expenses and assets are recognized net of the
The carrying amount of deferred tax assets is reviewed tax rates that are expected to apply to the period when amount of VAT, if applicable.
at each reporting date and reduced to the extent that it the asset is realized or the liability is settled, based
When VAT from sales of goods and/or services (output
is no longer probable that sufficient taxable profit will be on tax rates and tax laws that have been enacted or
VAT) exceeds VAT passed on from purchases of goods
available to allow all or part of the deferred tax assets substantially enacted at the reporting date.
or services (input VAT), the excess is recognized as
to be utilized. Unrecognized deferred tax assets are
Deferred tax relating to items recognized outside profit part of “Trade payables and other current liabilities”
reassessed at each reporting date and are recognized
or loss is recognized outside profit or loss. Deferred tax account in the consolidated statement of financial
to the extent that it has become probable that future
items are recognized in correlation to the underlying position. When VAT passed on from purchases of
taxable profit will allow the deferred tax assets to be
transaction either in other comprehensive income or gods or services (input VAT) exceeds VAT from sales
recovered.
directly in another equity account. of goods and/or services (output VAT), the excess is
Deferred tax liabilities are recognized for all taxable recognized as part of “Other current assets” account in
Tax benefits acquired as part of a business
temporary differences, except: the consolidated statement of financial position.
combination, but not satisfying the criteria for separate
• where the deferred tax liability arises from the initial recognition at that date, are recognized subsequently
recognition of goodwill or of an asset or liability in a if new information about facts and circumstances
transaction that is not a business combination and, change. The adjustment is either treated as reduction

Earnings per Share (EPS) Attributable to Equity Holders of a past event, it is probable that an outflow of resources to Philippine businesses and International businesses.
the Parent Company embodying economic benefits will be required to settle These operating and geographical businesses are the
Basic EPS is calculated by dividing the net income for the the obligation and a reliable estimate can be made of basis upon which the JFC Group reports its primary
period attributable to the equity holders of the Parent the amount of the obligation. If the effect of the time segment information presented in Note 5.
Company by the weighted average number of common value of money is material, provisions are determined by
Events after the Reporting Period
shares outstanding during the period, after considering discounting the expected future cash flows at a pre-tax
Post year-end events that provide additional information
the retroactive effect of stock dividend declaration, if any. rate that reflects current market assessment of the time
about the JFC Group’s financial position at reporting
value of money and, where appropriate, the risks specific
Diluted EPS is computed by dividing the net income for date (adjusting events) are reflected in the JFC Group’s
to the liability. Where discounting is used, the increase in
the period attributable to the equity holders of the Parent consolidated financial statements. Post year-end events
the provision due to the passage of time is recognized as
Company by the weighted average number of common that are not adjusting events are disclosed in the notes to
interest expense.
shares outstanding during the period, adjusted for any consolidated financial statements when material.
potential common shares resulting from the assumed Contingencies
4. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES
exercise of outstanding stock options. Outstanding Contingent liabilities are not recognized in the
AND ASSUMPTIONS
stock options will have dilutive effect under the treasury consolidated financial statements but are disclosed in
stock method only when the average market price of the the notes to financial statements unless the possibility of The preparation of the consolidated financial statements
underlying common share during the period exceeds the an outflow of resources embodying economic benefits requires management to make judgments, estimates
exercise price of the option. is remote. Contingent assets are not recognized in the and assumptions that affect the reported amounts in
consolidated financial statements but are disclosed when the consolidated financial statements and related notes
Where the EPS effect of the shares to be issued to
an inflow of economic benefits is probable. at the end of the reporting period. However, uncertainty
management and employees under the stock option plan
about these assumptions and estimates could result in
would be anti-dilutive, the basic and diluted EPS would be Business Segments
outcomes that could require a material adjustment to the
stated at the same amount. The JFC Group is organized and managed separately
carrying amount of the affected asset or liability in the
according to the nature of operations and geographical
Provisions future.
locations of businesses. The three major operating
Provisions are recognized when the JFC Group has a
businesses of the JFC Group are food service, franchising The JFC Group believes the following represents a
present obligation (legal or constructive) as a result of
and leasing while geographical segments are segregated summary of these significant judgments, estimates and

assumptions and the related impact and associated risks set-up fees have been satisfied. The JFC Group has the option, under some of its leases
on the JFC Group’s consolidated financial statements. to lease the assets for additional terms of 5 to 15 years.
Principal versus Agent Consideration
The JFC Group applies judgement in evaluating whether
Judgments The JFC Group’s agreement with the franchisee
it is reasonably certain to exercise the option to renew.
In the process of applying the JFC Group’s accounting includes the right to charge the franchisee its share
That is, it considers all relevant factors that create an
policies, management has made the following judgments, in the JFC Group’s system-wide advertising and
economic incentive for it to exercise the renewal. After
apart from those involving estimations, which have the marketing efforts as well as fees for the JFC Group’s
the commencement date, the JFC Group reassesses
most significant effect on the amounts recognized in the administration of various advertisements, network and
the lease term if there is a significant event or change
consolidated financial statements. media placements. The JFC Group determined that it
in circumstances that is within its control and affects
is acting as principal for the system-wide advertising
Revenue from Contracts with Customers its ability to exercise (or not to exercise) the option to
because it is the JFC Group who retains the right to
Determining the Timing of Satisfaction of Set-up Fees. renew (e.g., a change in business strategy). The JFC
direct the service provider of the advertisements,
The JFC Group undertakes activities prior to store Group included the renewal period as part of the lease
network and media placements, and has the discretion
opening (e.g., initial training, site development, systems term for leases of QSR outlets and warehouses due to
on how to price the advertising fee charges. The JFC
set-up, etc.) as indicated in the franchise agreement. the significance of these assets to its operations. These
Group considers both the legal form and the substance
The JFC Group determines whether these activities are leases have a short non-cancellable period (i.e., 5 to 10
of its agreement to determine each party’s respective
capable of being distinct (i.e., whether the franchisee years) and there will be a significant negative effect on
roles in the agreement.
can benefit on each of these activities on a standalone operations if a replacement is not readily available.
basis) and whether these activities are distinct within Determining the Lease Term of Contracts with Renewal
Assessing Joint Control of an Arrangement and the
the context of the franchise agreement (i.e., whether Options - JFC Group as Lessee
Type of Arrangement
these activities can be separated from the franchise The JFC Group determines the lease term as the
Joint control is the contractually agreed sharing of
license granted to the franchisee). non-cancellable term of the lease, together with any
control of an arrangement which exists only when
periods covered by an option to extend the lease if it
The JFC Group determined that revenue from set- decisions about the relevant activities require the
is reasonably certain to be exercised, or any periods
up fees should be recognized on a straight-line basis unanimous consent of the parties sharing control. The
covered by an option to terminate the lease, if it is
over the term of the franchise agreement and when JFC Group assessed that it has joint control in all joint
reasonably certain not to be exercised.
performance obligations relating to the payment of arrangements by virtue of a contractual agreement

with other stockholders. The JFC Group’s joint ventures future and other key sources of estimation uncertainty The property and equipment were valued using
have separate legal entities and the shareholders have at reporting date that has a significant risk of causing the replacement cost. Adjustments were made to
right to their net assets (see Note 11). a material adjustment to the carrying amounts of replacement cost to reflect depreciation. The valuation
assets and liabilities within the next financial year are of other intangible assets was based on market values
Material Partly-Owned Subsidiaries
discussed below. The JFC Group based its assumptions using income approach.
The consolidated financial statements include
and estimates on parameters available when the
additional information about subsidiaries that have Recoverability of Trademarks, Goodwill and Other
consolidated financial statements are prepared.
non-controlling interests that are material to the JFC Intangible Assets
Existing circumstances and assumptions about future
Group (see Note 11). Management determined material The JFC Group determines whether trademarks,
developments, however, may change due to changes
partly-owned subsidiaries as those with balance goodwill and other intangible assets with indefinite
on market circumstances arising beyond the control
of non-controlling interest greater than 5% of total useful life is impaired at least on an annual basis or
of the JFC Group. Such changes are reflected in the
non-controlling interests and those subsidiaries with more frequently if events or changes in circumstances
assumptions when they occur.
activities that are important to the JFC Group as at end indicate that the carrying value may be impaired. This
of the period. Determination of Purchase Price Allocation requires an estimation of the value in use of the CGU to
Management has measured the trademarks and which the goodwill is allocated. Estimating the value
Material Joint Ventures and Associates
other intangible assets based on the valuation report in use requires the JFC Group to make an estimate
The consolidated financial statements include
prepared by the external valuation specialist and of the expected net sales, long-term growth rates
additional information about joint ventures and
the property and equipment that were acquired and earnings before interest, taxes, depreciation and
associates that are material to the JFC Group (see Note
using the appraisal reports that were prepared by an amortization (EBITDA) from the CGU and also consider
11). Management determined material joint ventures
independent appraiser. The trademarks were valued market data in determining discount rate in order to
and associates as those joint ventures and associates
using the relief-from-royalty method wherein the fair calculate the present value of those cash flows. In
where the JFC Group’s carrying amount of investment
value of trademarks is based on cost savings from addition, the assumptions are also subjected to a
is greater than 5% of the total interests in joint ventures
owning the trademarks. Significant assumptions and higher level of estimation uncertainty due to the current
and investments in associates as at end of the period.
estimates used include comparable royalty rates, long- economic conditions which have been impacted by the
Estimates and Assumptions term growth rates, discount rates based on available Covid-19 pandemic.
The key estimates and assumptions concerning the market data and revenue growth rate forecasts.

Except for Pho24 trademark where JFC Group are impaired. Any resulting impairment loss could have management’s plans and strategies of the relevant
recognized impairment loss of P 463.11 million a material adverse impact on the JFC Group’s financial taxable entities, including the Parent Company and
because it closed its stores in the Philippines and position and performance. certain subsidiaries. The effect of Covid-19 pandemic
plans to discontinue its Pho24 business in the future, on the macroeconomic factors are also used in
The carrying amounts of interests in and advances
Management has determined that trademarks, developing the assumptions.
to joint ventures, co-venturers and associates as at
goodwill and other intangible assets are not impaired.
December 31, 2022 and 2021 are as follows (see Note 11): The carrying amount of the recognized deferred tax
The carrying amount of trademarks, goodwill and other
assets amounted to P 18,452.6 million and P 17,086.6
intangible assets amounted to P 51,715.5 million and
2022 2021 million as at December 31, 2022 and 2021, respectively.
P 50,610.9 million as at December 31, 2022 and 2021,
P 11,580,165 P 10,989,369 Unrecognized deferred tax assets amounted to P
respectively (see Note 14). Interests in joint ventures
4,491,291 2,653,323 2,256.4 million and P 2,689.6 million as at December 31,
Interests in associates
Recoverability of Interests in and Advances to Joint 2,039,835 1,783,911 2022 and 2021, respectively (see Note 24).
Advances to an associate and
Ventures, Co-venturers and Associates co-venturer
Impairment of Property, Plant and Equipment,
The JFC Group performs impairment test of its interests
Right-of-use Assets and Investment Properties
in and advances to joint ventures, co-venturers and Recognition of Deferred Income Tax Assets. The
The JFC Group performs impairment review of
associates when there are facts and circumstances carrying amounts of deferred tax assets at each
property, plant and equipment, right-of-use assets
indicating that their carrying amounts exceed their reporting date is reviewed and reduced to the extent
and investment properties when certain impairment
recoverable amounts. Determining the recoverable that sufficient taxable profits are available to allow
indicators are present. In 2022 and 2021, Management
amount of assets, which requires the determination of all or part of the deferred tax assets to be utilized.
has identified store closures and pre-termination
future cash flows expected to be generated from the The JFC Group’s assessment on the recognition of
of underlying lease agreements due to Covid-19
continued operations of joint ventures and associates, deferred tax assets is based on the forecasted taxable
pandemic as impairment indicators and has performed
requires the JFC Group to make significant assumptions income taking into account the period in which the
impairment assessment on its property, plant and
that can materially affect the consolidated financial deductible temporary differences can be claimed in the
equipment and right-of-use assets and has identified
statements. These assumptions include long-term Philippines, PRC, USA, Europe, Singapore and Malaysia.
the related lease pre-termination costs, if any.
growth rates, EBITDA and discount rate. Future events This forecast is based on assumptions that are affected
could cause the JFC Group to conclude that the assets by expected future market or economic conditions
and the expected future performance as well as

Determining the fair value of assets, which requires The aggregate carrying values of property, plant and ECLs is sensitive to changes in circumstances and
the determination of future cash flows expected to equipment and right-of-use assets as at December 31, of forecast economic conditions. The JFC Group’s
be generated from the continued use and ultimate 2022 and 2021 are as follows: historical credit loss experience and forecast of
disposition of such assets, requires the JFC Group to economic conditions may also not be representative of
make estimates and assumptions that can materially 2022 2021 customers’ actual default in the future.
affect the consolidated financial statements. Future Property, plant and equipment P 36,485,718 P 30,608,819
Other than the considerations on the impact of
events could cause the JFC Group to conclude that (see Note 12)
Covid-19 and conflicts and related sanctions in Ukraine,
the assets are impaired. Any resulting impairment Right-of-use assets 42,078,013 38,168,366
(see Note 29) Russia and/or Belarus on macroeconomic factors
loss could have a material adverse impact on the JFC
used as inputs to the ECL calculation, there have been
Group’s financial position and performance.
no significant changes in estimation techniques or
Provision for impairment loss recognized on property, significant assumptions made during the reporting
plant and equipment and right-of-use assets Impairment of Receivables and Contract Assets period.
amounted to P 107.9 million, P 44.4 million and P 1,846.9 The JFC Group uses a provision matrix to calculate ECLs
for its receivables and contract assets. The provision Provision for impairment loss on receivables amounted
million in 2022, 2021 and 2020, respectively. Reversal of
rates are based on days past due. to P 415.4 million, P 210.9 million and P 281.9 million
previously recognized impairment loss amounted to P
in 2022, 2021 and 2020, respectively (see Note 22).
349.2 million, P 675.7 million and P 76.2 million 2022, 2021 The provision matrix is initially based on the JFC Group’s Reversal of previously recognized impairment loss
and 2022, respectively (see Notes 12 and 22). historical observed default rates. The JFC Group amounted to P 4.1 million, P 54.2 million and nil in 2022,
calibrates the matrix to adjust the historical credit loss 2021 and 2020, respectively (see Note 22). The carrying
experience with forward-looking information. At every amount of receivables and contract assets amounted
reporting date, the historical observed default rates are to P 9,627.4 million and P 7,246.0 million as at December
updated and changes in the forward-looking estimates 31, 2022 and 2021, respectively (see Note 7).
are analyzed.
Net Realizable Value of Inventories
The assessment of the correlation between historical The JFC Group writes down inventories to net realizable
observed default rates, forward-looking information, value, through the use of an allowance account,
and ECLs is a significant estimate. The amount of

whenever the net realizable value of inventories respectively (see Note 8). Share-based Payments
becomes lower than the cost due to damage, physical The Parent Company measures the cost of its equity-
Present Value of Defined Benefit Obligation
deterioration, obsolescence, changes in price levels or settled transactions with management and employees
The pension expense as well as the present value
other causes (i.e., Covid-19 pandemic and conflict and by reference to the fair value of the equity instruments
of the defined benefit obligation are determined
related sanctions in Ukraine, Russia and/or Belarus). at the grant date. Estimating fair value for share-based
using actuarial valuations. The actuarial valuation
payment transactions requires determining the most
The estimates of net realizable value are based on involves making various assumptions. These include
appropriate valuation model, which is dependent on
the most reliable evidence available at the time the the determination of the discount rates and the
the terms and conditions of the grant. The estimate
estimates are made of the amounts the inventories future salary increases. Due to the complexity of
also requires determining the most appropriate inputs
are expected to be realized. These estimates take into the valuation, the underlying assumptions and its
to the valuation model including the expected life
consideration fluctuations of prices or costs directly long-term nature, defined benefit obligations are
of the share option, volatility and dividend yield and
relating to events occurring after reporting date to the highly sensitive to changes in these assumptions. All
making assumptions about these inputs. The fair
extent that such events confirm conditions existing at assumptions are reviewed at each reporting date.
value of the share option is being determined using
reporting date. The allowance account is reviewed on
In determining the appropriate discount rate, the Black-Scholes Option Pricing Model. The expected
a regular basis to reflect the accurate valuation in the
management considers the interest rates of life of the stock options is based on the expected
financial records.
government bonds that are denominated in the exercise behavior of the stock option holders and is not
The JFC Group assessed that the net realizable value for currency in which the benefits will be paid, with necessarily indicative of the exercise patterns that may
some inventories is lower than cost, hence, it recognized extrapolated maturities corresponding to the expected occur. The volatility is based on the average historical
provision for inventory obsolescence amounting to P duration of the defined benefit obligation. price volatility which may be different from the
274.3 million, P 23.7 million and P 332.5 million in 2022, expected volatility of the shares of the Parent Company.
Future salary increases are based on budgetary salary
2021 and 2020, respectively (see Note 22). Reversal of
increases. Total expense arising from share-based payment
previously recognized impairment loss amounted to
recognized by the JFC Group amounted to P 185.0
P 49.3 million, P 9.5 million and P 82.4 million in 2022, The carrying amount of pension liability amounted to
million, P 155.5 million and P 188.3 million in 2022, 2021
2021 and 2020, respectively (see Note 22). The carrying P 1,891.3 million and P 2,416.5 million as at December 31,
and 2020, respectively (see Notes 19, 22, 26 and 27).
amount of inventories amounted to P 17,297.6 million 2022 and 2021, respectively (see Note 25).
and P 9,355.3 million as at December 31, 2022 and 2021,

Fair Value of Financial Assets and Liabilities the interpretation and application of laws and rulings. • The food service segment is involved in the operations
When the fair values of financial assets and financial Management believes that the ultimate liability, if any, of QSRs and the manufacture of food products to be
liabilities recorded or disclosed in the consolidated with respect to the litigations, claims and disputes, and sold to JFC Group-owned and franchised QSR outlets.
statement of financial position cannot be measured regulatory assessments will not materially affect the
• The franchising segment is involved in the franchising
based on quoted prices in active markets, their financial position and performance of the JFC Group.
of the JFC Group’s QSR store concepts.
fair value is measured using valuation techniques,
Total outstanding provisions amounted to P 1,601.3
including the discounted cash flow model. The inputs • The leasing segment leases store sites mainly to the
million and P 1,035.6 million as at December 31, 2022 and
to these models are taken from observable markets JFC Group’s independent franchisees.
2021 (see Notes 17 and 30).
where possible, but when this is not feasible, a degree
of judgment is required in establishing fair values. 5. SEGMENT INFORMATION
Judgments include considerations of inputs such
For management purposes, the JFC Group is organized
as liquidity risk, credit risk and volatility. Changes in
into segments based on the nature of the products
assumptions about these factors could affect the
and services offered and geographical locations. The
reported fair value of financial instruments.
Executive Management Committee monitors the
The fair value of financial assets and liabilities are operating results of its segments separately for resource
discussed in Note 32. allocation and performance assessment. Segment results
are evaluated based on operating profit or loss and is
Provisions and Contingencies
measured consistently with operating profit or loss in the
The JFC Group is involved in litigations, claims and
consolidated financial statements.
disputes, and regulatory assessments which are normal
to its business. The estimate of the probable costs for Business Segments
the resolution of these claims has been developed in The JFC Group’s operating businesses are organized
consultation with the JFC Group’s legal counsels and and managed separately according to the nature of
based upon an analysis of potential results (see Note the products and services provided, with each segment
17). The inherent uncertainty over the outcome of representing a strategic business unit that offers different
these matters is brought about by the differences in products and serves different markets.

The following tables present certain information on revenues, expenses and other segment
information of the different business segments for the years ended December 31, 2022, 2021
and 2020:
2022 2021
FOOD SERVICE FRANCHISING LEASING ELIMINATIONS CONSOLIDATED FOOD SERVICE FRANCHISING LEASING ELIMINATIONS CONSOLIDATED
Revenues from external customers P 197,436,005 P 14,158,863 P 307,348 P- P 211,902,216 Revenues from external customers P 143,670,738 P 9,591,132 P 313,720 P- P 153,575,590
Inter-segment revenues 31,330,117 5,565,429 7,309,091 (44,204,637) - Inter-segment revenues 23,888,763 3,199,748 5,826,577 (32,915,088) -
Segment revenues 228,766,122 19,724,292 7,616,439 (44,204,637) 211,902,216 Segment revenues 167,559,501 12,790,880 6,140,297 (32,915,088) 153,575,590
Segment expenses (228,812,871) (8,965,002) (7,408,114) 44,204,637 (200,981,350) Segment expenses (169,515,241) (5,478,593) (5,674,558) 32,915,088 (147,753,304)
Provisions for impairment loss on Provisions for impairment loss on

receivables, inventories, property, plant receivables, inventories, property, plant
(979,495) - - - (979,495) 452,327 - - - 452,327
and equipment, trademark and other and equipment, trademark and other
current assets current assets
Equity in net earnings of joint ventures Equity in net earnings of joint ventures
4,062 - - - 4,062 (43,423) - - - (43,423)
and associates - net and associates - net
Other segment income 5,271,583 - 398,127 - 5,669,710 Other segment income 3,893,018 - - - 3,893,018
Segment result P 4,249,401 P 10,759,290 P 606,452 P- P 15,615,143 Segment result P 2,346,182 P 7,312,287 P 465,739 P- P 10,124,208
Interest income 341,189 Interest income 164,967
Interest expense (4,768,732) Interest expense (4,145,749)
Income before income tax 11,187,600 Income before income tax 6,143,426
Provision for income tax (3,849,107) Provision for income tax (641,435)
Net income P 7,338,493 Net income P 5,501,991

The following tables present certain information on assets and liabilities and other
segment information of the different business segments as at December 31, 2022 and 2021:
2020 2022
FOOD SERVICE FRANCHISING LEASING ELIMINATIONS CONSOLIDATED FOOD SERVICE FRANCHISING LEASING ELIMINATIONS CONSOLIDATED
Revenues from external customers P 121,887,963 P 7,143,865 P 281,174 P- P 129,313,002 Assets and Liabilities
Inter-segment revenues 21,848,511 3,090,888 5,358,264 (30,297,663) - Segment assets P 226,855,890 P- P 519,973 P- P 227,375,863
Segment revenues 143,736,474 10,234,753 5,639,438 (30,297,663) 129,313,002 Deferred tax assets – net 6,021,482 - 5,360 - 6,026,842
Segment expenses (160,006,111) (4,691,713) (5,421,583) 30,297,663 (139,821,744) Consolidated assets P 232,877,372 P- P 525,333 P- P 233,402,705
Provisions for impairment loss on Segment liabilities P 132,521,812 P- P 23,618 P- P 132,545,430

receivables, inventories, property, plant
(2,302,721) - - - (2,302,721)
and equipment, trademark and other Deferred tax liabilities – net 3,353,008 - - - 3,353,008
current assets
Long-term debt –
Equity in net earnings of joint ventures 16,263,170 - - - 16,263,170
(1,081,308) - - - (1,081,308) including current portion
and associates - net
Income tax payable 326,064 - - - 326,064
Other segment income 4,161,177 - - - 4,161,177
Consolidated liabilities P 152,464,054 P- P 23,618 P- P 152,487,672
Segment result (P 15,492,489) P 5,543,040 P 217,855 P- P (9,731,594)
Other Segment Information

Interest income 226,616
Capital expenditures P 9,682,661 P- P- P- P 9,682,661
Interest expense (3,787,652)
Depreciation and amortization 15,596,770 - 1,821 - 15,598,591
Income before income tax (13,292,630)
Provision for income tax 659,007
Net Loss (P 12,633,623)

2021
FOOD SERVICE FRANCHISING LEASING ELIMINATIONS CONSOLIDATED
Assets and Liabilities
Segment assets P 203,313,667 P- P 649,705 P- P 203,963,372
Deferred tax assets – net 6,869,561 - 5,294 - 6,874,855
Consolidated assets P 210,183,228 P- P 654,999 P- P 210,838,227
Segment liabilities P 110,544,308 P- P 172,257 P- P 110,716,565
Deferred tax liabilities – net 3,428,713 - - - 3,428,713
Long-term debt –
22,360,177 - - - 22,360,177
including current portion
Income tax payable 125,612 - 23,005 - 148,617
Consolidated liabilities P 136,458,810 P- P 195,262 P- P 136,654,072
Other Segment Information
Capital expenditures P 7,874,955 P- P- P- P 7,874,955
Depreciation and amortization 13,479,108 - 3,157 - 13,482,265

Geographical Segments
The JFC Group’s geographical segments are based on The following tables present segment revenues, segment assets and capital expenditures of
the location of the assets producing revenues in the the JFC Group’s geographical segments as at and for the years ended December 31:
Philippines and in other locations which include PRC, USA,
Canada, Vietnam, Singapore, Malaysia, Italy, UK, UAE, 2022
PHILIPPINES INTERNATIONAL ELIMINATIONS CONSOLIDATED

Hongkong, Macau, Brunei, Taiwan and Australia. Sales
Segment revenues P 131,580,480 P 82,223,763 (P 1,902,027) P 211,902,216
to external customers disclosed in the geographical
Segment assets 84,418,668 142,957,195 - 227,375,863
segments are based on the geographical location of the
Capital expenditures 3,486,984 6,195,677 - 9,682,661
customers.
Majority of the JFC Group’s revenues were generated from 2021
the Philippines, which is the Parent Company’s country of PHILIPPINES INTERNATIONAL ELIMINATIONS CONSOLIDATED
domicile. Segment revenues P 94,301,174 P 60,921,581 (P 1,647,165) P 153,575,590
Segment assets 63,899,625 140,063,747 - 203,963,372

The JFC Group does not have a single external customer
which revenue amount to 10% or more of the JFC Group’s
revenues.
2020
PHILIPPINES INTERNATIONAL ELIMINATIONS CONSOLIDATED
Segment revenues P 78,405,439 P 51,886,417 (P 978,854) P 129,313,002
Segment assets 64,631,999 140,063,747 - 204,695,746

• Revenue from Contracts with Customers

Set out below is the disaggregation of the JFC Group’s
revenue from contracts with customers:
2022 2021
REVENUE SOURCE FOOD SERVICE FRANCHISING TOTAL REVENUE SOURCE FOOD SERVICE FRANCHISING TOTAL
Sale of goods P 196,657,284 P- P 196,657,284 Sale of goods P 142,586,436 P- P 142,586,436
Royalty fees - 10,414,482 10,414,482 Royalty fees - 7,125,470 7,125,470
Set-up fees - 344,808 344,808 Set-up fees - 186,817 186,817
System-wide advertising fees - 3,399,573 3,399,573 System-wide advertising fees - 2,278,845 2,278,845
Other revenues 778,721 - 778,721 Other revenues 1,084,302 - 1,084,302
Total revenue from contracts with customers P 197,436,005 P 14,158,863 P 211,594,868 Total revenue from contracts with customers P 143,670,738 P 9,591,132 P 153,261,870
Timing of recognition: Timing of recognition:
Goods transferred at a point in time P 197,436,005 Goods transferred at a point in time P 143,670,738
Services transferred over time 14,158,863 Services transferred over time 9,591,132
P 211,594,868 P 153,261,870

2020
Cash in banks earn interest at the respective savings or special demand deposit rates.
REVENUE SOURCE FOOD SERVICE FRANCHISING TOTAL
Short-term deposits are made for varying periods of up to three months depending on
Sale of goods P 121,245,043 P- P 121,245,043
the immediate cash requirements of the JFC Group, and earn interest at the respective
Royalty fees - 5,426,460 5,426,460
short-term deposit rates.
Set-up fees - 116,580 116,580
System-wide advertising fees - 1,600,825 1,600,825 Short-term Investments

Other revenues 642,920 - 642,920
The JFC Group also has short-term investments amounting to P619.2 million and P79.7
million as at December 31, 2022 and 2021, respectively. These pertain to deposits with
Total revenue from contracts with customers P 121,887,963 P 7,143,865 P 129,031,828
maturities of more than three months but less than a year.
Timing of recognition:
Goods transferred at a point in time P 121,887,963 Interest income earned from cash and cash equivalents and short-term investments
Services transferred over time 7,143,865
amounted to P 258.5 million, P 77.0 million and P 114.8 million for the years ended
December 31, 2022, 2021 and 2020, respectively (see Note 23).
P 129,031,828
6. CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
Cash and Cash Equivalents

This account consists of:
2022 2021
Cash on hand P 355,317 P 302,159
Cash in banks 17,396,445 15,309,537
Short-term deposits 11,117,517 9,080,979
P 28,869,279 P 24,692,675

7. RECEIVABLES AND CONTRACT ASSETS • Other receivables consist of receivables from the Social Security System (SSS) and
insurance claims.
2022 2021
The movements in the allowance for impairment loss on trade receivables as at
Trade P 6,519,373 P 5,357,872
December 31 are as follows:
2022 2021
Less allowance for impairment loss 919,192 503,462
Balance at beginning of year P 503,462 P 658,633

5,600,181 4,854,410
Provisions (see Note 22) 415,412 210,870

Advances to employees 1,816,156 326,081
Write-offs (15,013) (299,138)
Receivable from retirement fund (see Notes 25 and 27) 486,647 694,401
Reversals (see Note 22) (4,136) (54,215)
Current portion of employee car plan receivables (see Note 15) 46,359 54,492
Translation adjustments 19,467 (12,688)
Interest receivable 12,984 4,579
Balance at end of year 919,192 503,462
Others 105,222 93,815
8,067,549 6,027,778
Contract assets 1,559,886 1,218,208

8. INVENTORY
P 9,627,435 P 7,245,986 This account consists of:

2022 2021
The terms and conditions of the receivables are as follows: At net realizable value:
Food supplies and processed inventories P 16,380,062 P 8,588,435

• Trade receivables are noninterest-bearing and are generally settled on a 14-day term.
Novelty items 21,666 62,560
The JFC Group classified accrued receivables as contract assets, which are billed and
16,401,728
collected in the next 12 months. 8,650,995
At cost -
• Receivable from retirement fund represents benefit payments made by the JFC Group
Packaging, store and other supplies 895,920 704,334
for and on behalf of the retirement plans. The receivable is noninterest-bearing.
Total inventories at lower of cost and net realizable value P 17,297,648 P 9,355,329
• Advances to employees, current portion of employee car plan receivables, interest and
other receivables are normally collectible within the next financial year.

The cost of food supplies and processed inventories, and novelty items carried at net 9. OTHER CURRENT ASSETS
realizable value amounted to P 16,717.1 million and P 127.3 million, respectively, as at
December 31, 2022 and P 8,676.9 million and P 217.5 million, respectively, as at December
31, 2021. 2022 2021
Prepaid Expenses
The movements in the allowance for inventory obsolescence as at December 31 are as Taxes P 5,584,394 P 4,232,101
follows: Rent 949,990 973,877
2022 2021 Supplies 130,615 100,689

Insurance and others 906,463 599,013
Provisions (see Note 22) 274,297 23,721

Deposits to suppliers and other third parties 2,479,329 2,655,819
Reversals (see Note 22) (49,311) (9,475)

Current portion of security and other deposits (see Note 15) 145,529 18,360
Write-offs (27,791) (42,294)

Land assets held for sale (see Notes 12 and 13) - 1,015,616
Translation adjustments 2,096 2,904

P 10,196,320 P 9,595,475
Balance at end of year P 442,711 P 243,420
Terms and conditions of other current assets are as follows:
• Prepaid taxes represent creditable withholding taxes that can be applied in the
following year against the corporate income tax due or can be claimed as tax refund
from Tax Authorities. This also includes prepaid real property and local business taxes
which are expected to be utilized within the next twelve months.
• Prepaid rent pertains to short-term leases of store and office spaces that are paid in
advance. Supplies consist of various office and administrative supplies. Prepaid rent,
insurance and others are normally utilized within the next financial year.
• Deposits to suppliers and other third parties are generally applied to purchase of
inventories and availment of services within the next financial year.

• In 2015, the Parent Company entered into an agreement to develop a commercial and attached thereto and from the exchange of land assets for condominium units in the
office condominium building (the “Project”) in a parcel of its land in consideration for Project amounted to P 3,923.4 million (see Note 23).
cash and assigned units in the Project. The completion of the transaction is conditional
10. FINANCIAL ASSETS AT FVTPL
upon fifty percent (50%) completion of the Project, as certified by the general
contractor of the Project, and when all of the assigned units are fully constructed and This account consists of:
accepted in accordance with the specifications contained in the Agreed Design. As at 2022 2021
December 31, 2021, the assigned units have not been accepted by and conveyed to the Investment in bond funds P 8,250,991 P 14,412,902
JFC Group. Investment in club shares 27,502 40,232
On April 29, 2022, upon execution of the Amendment to the Deed of Conditional 8,278,493 14,453,134
Conveyance and Deed of Conveyance, the JFC Group completed the exchange of its Less current portion 8,250,991 14,412,902
land asset with a fair value of P 2,401.6 million for condominium units in the Project (see Noncurrent portion P 27,502 P 40,232
Note 12).
Unused proceeds from the issuance of senior perpetual securities in July 2020 and senior
In 2021, the JFC Group engaged property agents to start marketing all its land assets,
debt securities in January 2020 and June 2020 totaling to USD759.8 million (P 37,857.1
including improvements attached thereto, except for certain parcels of land assets
million) were invested by the JFC Group in bond funds (see Notes 18 and 19).
to be exchanged for shares of common stock of CentralHub (see Notes 11 and 12) and
condominium units in the Project. Three (3) of the parcels of land were sold in 2021 (see Investment in club shares includes investment in shares of stocks of Manila Polo Club,
Note 13) and based on market conditions, a sale within 12 months is highly probable. Tagaytay Highlands and other golf and leisure clubs.
The lower of the carrying amount and fair value less costs to sell of all its land assets In July 2022, club share in Manila Polo Club was sold for a cash consideration of P 25.0
were reclassified as held for sale as at December 31, 2021. million resulting to a gain of P 3.5 million (see Note 23).
Land assets held for sale as at December 31, 2021 are categorized under Level 3 fair
value measurement (see Note 32).
In 2022, fourteen (14) of the parcels of land were sold for a total cash consideration
of P 2,768.2 million. Net gain arising from sale of land assets including improvements

The movements in financial assets at FVTPL are as follows: founders of Milksha will continue to retain the 49% ownership. Completion of this
asubject to certain closing conditions, and the final purchase price will be confirmed
2022 2021
after closing.
Balance at beginning of year P 14,453,134 P 35,692,357
Additions 1,531,200 86,478 On February 22, 2022, JWPL completed the acquisition of 51% ownership in Milksha
Redemptions (7,584,842) (23,022,553) under the same terms as disclosed on November 3, 2021 for a total consideration
Marked-to-market gain (loss) on financial assets at FVTPL (see Note 23) (1,053,738) 196,986 of USD12.7 million (P 654.5 million). JWPL paid a total cash consideration of USD12.2
Disposal (21,500) -
million (P 624.8 million). While the remaining amount of USD0.5 million (P 27.7 million),
Interest income (see Note 23) - 72
in accordance with the purchase agreement, was withheld by the JFC Group to
Translation adjustment 954,239 1,499,794

recover for potential liabilities of Milksha until May 31, 2025. This amount is presented
as part of “trade payables and other current liabilities and contract liabilities” in the
Balance at end of year P 8,278,493 P 14,453,134
consolidated statements of financial position.
The fair value of financial assets at FVTPL has been determined directly by reference to The JFC Group included Milksha in its financial consolidation starting February 22,
quoted prices in active market or inputs other than quoted prices that are directly or 2022 (the “acquisition date”).
indirectly observable.
11. BUSINESS COMBINATIONS, INCORPORATION OF NEW SUBSIDIARIES, MATERIAL NON-

CONTROLLING INTERESTS AND INTERESTS IN AND ADVANCES TO JOINT VENTURES,
CO-VENTURERS AND ASSOCIATES
A. Business Combinations
Acquisition of Milksha
On November 3, 2021, the JFC Group announced that it will purchase, through its
wholly owned subsidiary, JWPL a majority stake in the company that owns Milksha.
The JFC Group will purchase shares equivalent to 51% ownership in Milkshop
International Inc. (“Milksha”) for approximately USD12.8 million. One of the co-

The fair value of the identifiable assets acquired, and The amount of goodwill at acquisition date net income for the year would have been P 2,023.4
liabilities assumed as at the date of the acquisition amounted to P170.7 million determined as follows: million and P 157.3 million, respectively.
were as follows:
Fair value of consideration transferred: B. Incorporation of New Subsidiaries
Cash and cash equivalents P 215,164 Total consideration P 654,452 Jolly USA Services Inc. (Jolly USA) and JBM LLC
Receivables 137,238 Fair value of non-controlling interest’s share in On June 21, 2022, the JFC Group, through its wholly
464,810
the net identifiable assets acquired owned subsidiary, JFC USA, incorporated Jolly USA
Inventories 43,041
Other current assets 57,155

Aggregate amount 1,119,262 and JBM LLC in the State of Delaware, USA for the
Less fair value of net identifiable assets acquired 948,593 purpose of franchising the Jollibee brand in North
Property, plant and equipment (see Note 12) 30,736
Goodwill (see Note 14) P 170,669 America. The entities have not started commercial
Right-of-use assets 89,306
operations as at December 31, 2022.
Trademark (see Note 14) 860,905
The net cash outflow from the acquisition is as JWPL Management Co., Pte. Ltd. (JWPLM)
Deferred tax assets 1,266
follows: On June 7, 2022, the JFC Group, through its wholly
Other noncurrent assets 54,680
owned subsidiary, JWPL, incorporated JWPLM
Total identifiable assets acquired 1,489,491 Cash paid on acquisition P 624,835 to house the regional and head office activities
Less: Less cash acquired from subsidiary 215,164 and centralize the administrative and subsidiary
Trade payables and other current liabilities 254,977 P 409,671 management offices. As at December 31, 2022, no
capital investment has been made other than the
Lease liabilities 65,131
The goodwill of P 170.7 million is attributable to investment to incorporate the new entity.
Deferred tax liabilities (see Note 24) 172,181
synergies and other benefits from the acquisition of Branch of JWPL Management Co., Pte. Ltd.
Other noncurrent liabilities 48,609
Milksha. (JWPLM HK)
Total identifiable liabilities assumed 540,898
From the acquisition date, Milksha contributed P 141.8 On July 19, 2022, a branch of JWPLM was
Net identifiable assets acquired P 948,593
million net income to the JFC Group. If the business incorporated in Hong Kong. As at December 31, 2022,
combination had taken place at the beginning of no capital investment has been made other than the
2022, contribution to consolidated revenues and investment to incorporate the new branch.

Pinnacle Quality Food Inc. (PQF) not started commercial operations. Summarized Statements of Comprehensive Income
On June 6, 2022, the JFC Group, through its wholly for the year ended December 31
C. Material Non-Controlling Interests
owned subsidiary, Zenith, incorporated PQF to
GCPL
engage in, operate, conduct and maintain the The JFC Group has subsidiaries with material non- 2022 2021 2020
business of manufacturing, importing, buying, controlling interests as provided below. Revenues P 36,729 P 77,175 P 72,507
selling or otherwise undertaking in wholesale and Net loss (299,181) (64,173) (87,189)
Proportion of equity interest held by non-controlling
retail of all kinds of food products and any and all Other comprehensive income (loss) 85,732 5,289 (50,925)
interests in 2022 and 2021 are as follows:
equipment, materials, supplies used or employed Total comprehensive loss (213,450) (58,884) (138,115)
in or related to the manufacture of such finished Total comprehensive loss attributable to

(85,380) (23,553) (55,246)
non-controlling interests
products; to engage, directly or indirectly, in the
COUNTRY OF INCORPORATION
2022 2021
AND OPERATION
planting, raising, culture, harvesting and processing GCPL Singapore 40% 40% SUPERFOODS GROUP
of raw agricultural and fishery products into semi- SuperFoods Group Vietnam 40% 40%
2022 2021 2020
processed or finished products, the packaging and SMCC-SG Singapore 20% 20%
Revenues P 8,162,150 P 3,955,321 P 4,936,689
marketing of such products, and to engage in other GBPL Singapore 40% 40%
Net loss 336,991 (505,385) (200,433)
farm activities and practices. As at December 31, Other comprehensive income (loss) (37,822) (6,359) (45,985)
Milksha Taiwan 49% -
2022, the capital investment to PQF amounted to Total comprehensive income (loss) 299,169 (511,744) (246,418)
P 150.6 million and has not started commercial The summarized financial information of GCPL, Total comprehensive loss attributable to
119,668 (204,698) (98,567)
operations. SuperFoods Group, SMCC-SG, GBPL and Milksha
Bee World Pty. Ltd. (Bee World Australia) in 2022, 2021 and 2020 are provided below. These SMCC – SG
2022 2021 2020
On May 11, 2021, the JFC Group, through its wholly information are based on amounts before
Revenues P 16,833,441 P 12,499,163 P 10,805,812
owned subsidiary, JWPL, incorporated Bee World intercompany eliminations.
Net loss (499,101) (501,762) (3,377,870)
Australia to own and operate Jollibee stores in
Other comprehensive income (loss) (923,517) (644,240) 445,893
Australia. As at December 31, 2022, no capital
Total comprehensive loss (1,422,618) (1,146,002) (2,931,977)
investment has been made other than the
Total comprehensive loss attributable to
(284,524)
investment to incorporate the new entity and has non-controlling interests
(229,200) (586,395)


GBPL SUPERFOODS GROUP MILKSHA
2022 2021 2020 2022 2021 2022
Revenues P 1,446,668 P 1,379,310 P 1,261,616 Current assets P 1,534,493 P 717,144 Current assets P 802,161
Net income 54,365 123,183 93,347 Noncurrent assets 4,961,547 5,326,259 Noncurrent assets 187,838
Other comprehensive income (loss) 33,912 5,423 (16,593) Current liabilities 4,788,887 3,730,530 Current liabilities 438,812
Total comprehensive loss 88,277 128,606 76,754 Noncurrent liabilities 1,572,592 2,310,255 Noncurrent liabilities 146,927
Total comprehensive loss attributable to Total equity 134,561 2,618 Total equity 404,260
35,311 51,442 30,702
Equity attributable to non-controlling interests 53,824 1,047 Equity attributable to non-controlling interests 198,087
MILKSHA
2022 SMCC – SG
Summarized Cash Flow Information for the year
2022 2021
Revenues P 1,775,301
ended December 31
Current assets P 4,245,218 P 2,983,314
Net income 141,772
GCPL
Noncurrent assets 32,609,950 31,271,103
Other comprehensive income (loss) (3,595) 2022 2021 2020
Current liabilities 22,773,806 19,602,479

Total comprehensive loss 138,177 Net cash provided by (used in) operating
(P 653,095) P 112,705 (P 802,924)
activities
Noncurrent liabilities 10,500,156 9,415,844
Total comprehensive loss attributable to
67,707 Net cash provided by (used in) investing
non-controlling interests Total equity 3,581,206 5,236,094 14,132 (38,554) 46,984
activities
Equity attributable to non-controlling interests (2,211,086) (1,878,977)

Net increase (decrease) in cash and cash
(638,963) 74,151 (755,940)
Summarized Statements of Financial Position equivalents
as at December 31
GBPL
2022 2021 SUPERFOODS GROUP
GCPL 2022 2021 2020

Current assets P 337,052 P 262,001
2022 2021
Net cash provided by (used in) operating
Noncurrent assets 389,057 447,212 P 1,504,501 (P 329,512) (P 46,194)
activities
Current liabilities 195,062 178,825
Net cash used in investing activities (800,903) (329,353) (318,347)
Noncurrent assets - 129,950
Noncurrent liabilities 264,640 270,465
Net cash provided by (used in) financing
Current liabilities 117,784 680,669 (54,793) 50,859 429,843
activities
Total equity 266,407 259,923
Total equity 29,537 245,586
Equity attributable to non-controlling interests 106,563 103,969 648,805 (608,006) 65,302
equivalents
Equity attributable to non-controlling interests 11,815 98,234


SMCC-SG
D. Interests in and Advances to Joint Ventures, Interests in Joint Ventures
2022 2021 2020
Co-venturers and Associates
Net cash provided by operating activities P 1,986,690 P 1,980,705 P 785,607 Titan Dining LP (Titan)
2022 2021 On May 23, 2018, JWPL committed to invest 45%
Net cash used in investing activities (173,752) (1,084,153) (325,292)
Interests in joint ventures: of the total maximum fund of SGD100.0 million (P
Net cash provided by (used in) financing
(1,172,545)
activities
(1,739,183) 118,800
Titan Dining LP P 10,905,903 P 10,502,251 3,749.0 million) in Titan, a private equity fund that
640,393 (842,631) 579,114
Golden Bee Foods Restaurant LLC 342,774 310,851 has executed (through a wholly-owned subsidiary)
equivalents
JBPX Foods Inc. 245,304 109,978 a binding agreement for the acquisition of 100% of
GBPL Yoshinoya Jollibee Foods, Inc. 86,184 66,289 the Asia Pacific master franchise holder of the “Tim
2022 2021 2020
11,580,165 10,989,369
Ho Wan” brand, Tim Ho Wan Pte. Ltd. And its affiliate
Net cash provided by (used in) operating
activities
P 305,821 P 280,227 (P 7,561) Dim Sum Pte. Ltd., which owns and operates Tim Ho
Interests in associates:
Net cash used in investing activities (186,414) (177,434) (151,777)

Wan stores in Singapore.
CentralHub Industrial Centers, Inc. 3,416,391 1,912,121
Net cash provided used in financing activities (81,410) (71,330) (36,592) Tortazo LLC (formerly, Tortas Frontera LLC) 618,379 590,165 The investment provides an opportunity for the JFC
C-Joy Poultry Meats Production, Inc. 273,684 - Group to have a significant interest in the Tim Ho
37,997 31,464 (195,930)
equivalents Entrek (B) SDN BHD 172,402 127,261 Wan franchise in the long-term.
C-Joy Poultry Realty, Inc. 17,247 14,477
MILKSHA On October 2, 2019, the total maximum fund of Titan
2022 Beeworks Food SDN. BHD. (6,812) 9,299
increased from SGD100.0 million (P 3,749.0 million) to
Net cash provided by operating activities P 242,848 4,491,291 2,653,323
SGD200.0 million (P 7,498.0 million). As such, JWPL
Net cash used in investing activities (36,187) Advances to an associate and co-venturer:
increased its capital commitment to Titan from
206,661
Net increase in cash and cash equivalents VTI Group 2,009,362 1,783,911 SGD45.0 million (P 1,687.1 million) to SGD120.0 million
Beeworks Food SDN. BHD. 30,473 - (P 4,498.8 million) which, when completed, JWPL’s
2,039,835 1,783,911 investment will constitute 60% of the total maximum
P 18,111,291 P 15,426,603 fund. The increase in the total maximum fund
and additional capital commitment of JWPL are in
furtherance of certain strategic projects undertaken

by Titan, consistent with its mandate to invest in the shall amount to SGD225.0 million (P 8,496.0 million) 2022 2021
food service sector and grow strong Asia Pacific food comprising 90% of the increased fund size and total Interest in a joint venture – cost:
service brands. commitments. Balance at beginning of year P 10,301,992 P 4,394,180
Additions during the year 465,714 5,907,812

On October 30, 2020, JWPL acquired the 25% interest On November 5, 2021, JWPL made additional
Balance at end of year 10,767,706 10,301,992
of a partner in Titan for a total cash consideration investment amounting to SGD86.5 million (P 3,235.0
Cumulative equity in net earnings:
of SGD36.3 million (P 1,297.0 million). The acquisition million) proportionate to its ownership interest in
Balance at beginning of year 200,259 223,827
increased JWPL’s interest in Titan from 60% to 85%. Titan.
Equity in net loss during the year (62,062) (23,568)
On August 11, 2021, JWPL acquired the 15% remaining On September 28, 2022, the fund size of Titan
interest of the other partners in Titan for a total cash increased from SGD250.0 million (P 9,440.0 million)
P 10,905,903 P 10,502,251
consideration of SGD71.6 million (P 2,672.8 million). to SGD350.0 million (P 14,395.5 million) to fund
The acquisition increased JWPL’s interest in Titan the store expansion plans and working capital
Summarized financial information of Titan based
from 85% to 100%. requirements of Tim Ho Wan and to facilitate
on its financial statements and reconciliation
completion of other projects. With the increase in
On November 1, 2021, the Limited Partnership with the carrying amount of the investment in the
fund size, JWPL’s total commitment to the fund shall
Agreement for Titan was amended. As part of the consolidated financial statements are set out below:
amount to SGD315.0 million (P 12,956.0 million).
amendment, the fund size increased from SGD200.0
million (P 7,498.0 million) to SGD250.0 million (P On September 29, 2022, JWPL made additional 2022 2021

9,440.0 million) to fund working capital requirements investment of SGD11.3 million (P 465.7 million)
of Tim Ho Wan and to facilitate completion of other proportionate to its ownership interest in Titan. As at Noncurrent assets 10,681,190 9,170,342
projects. Titan will also have additional investors December 31, 2022 and 2021, JWPL has 90% interest in Total assets P 10,921,883 P 9,479,112
who will take up a 10% participating interest in Titan. Titan. The details of the JFC Group’s interest in Titan Current liabilities P 24,919 P 42,137
With the increase in fund size and entry of additional as at December 31 are as follows:
investors, JWPL’s total commitment to the fund

The amounts of assets and liabilities above include: 2022 2021 2022 2021 2020
Interest in a joint venture – cost P 33,926 P 33,926 Revenues P 2,106,493 P 1,622,296 P 1,302,792
2022 2021
Cumulative equity in net earnings: Depreciation and amortization 77,914 95,070 92,344
Cash and cash equivalents P 239,768 P 308,071
Balance at beginning of year P 276,925 199,136 Net income (loss) 214,994 158,754 (15,287)
Equity in net earnings during the year 105,347 77,789 Total comprehensive income
214,994 158,754 (15,287)
The amounts of the income accounts include the (loss)
Dividends received (73,424) -
following:
2022 2021
2022 2021 2020
P 342,774 P 310,851 Net assets P 779,012 P 637,496
Net loss (P 68,958) (P 100,246) (P 72,638)
Proportion of the JFC Group’s ownership 49% 49%
(68,958)
Total comprehensive loss (100,246) (72,638)
Summarized financial information of Golden Bee 381,716 312,373
based on its financial statements and reconciliation Cumulative translation adjustments (38,942) (1,522)
2022 2021
with the carrying amount of the investment in the P 342,774 P 310,851
Net assets P 10,896,964 P 9,436,975
consolidated financial statements are set out below:
9,807,268 8,493,277
2022 2021
JBPX Foods Inc. (Panda Express)
Current assets P 1,202,337 P 952,067
Goodwill 2,066,596 2,066,596 The JFC Group, through the Parent Company, has
Cumulative translation adjustments (967,961) (57,622)
Noncurrent assets P 173,198 159,575
50% ownership in JBPX Foods Inc., a company that
P 10,905,903 P 10,502,251
Total assets P 1,375,535 P 1,111,642 owns and operates the Panda Express brand in the
Current liabilities P 596,523 P 474,146 Philippines.
Golden Bee Foods Restaurant LLC (Golden Bee) On August 27, 2021, the Parent Company made
The amounts of assets and liabilities above include:
The JFC Group, through GPPL, has 49% ownership in additional investment amounting to P 65.7 million
Golden Bee, a company that owns and operates the 2022 2021
proportionate to its ownership interest in Panda Express.
Jollibee brand in the United Arab Emirates. Cash and cash equivalents P 681,718 P 590,118
On November 11, 2022, the Parent Company made
The details of the JFC Group’s interest in the Golden additional investment amounting to P 150.0 million
The amounts of the income and expense accounts
Bee as at December 31 are as follows: proportionate to its ownership interest in Panda Express.
include the following:

The details of JFC Group’s interest in Panda Express The amounts of assets and liabilities above include: Yoshinoya Jollibee Foods, Inc. (Yoshinoya)
as at December 31 are as follows: On February 15, 2021, the JFC Group, through the
2022 2021
Parent Company, entered into an agreement with
2022 2021
Yoshinoya International Philippines, Inc. (YIPI) to
Interest in a joint venture – cost
Current financial liabilities (excluding trade
payables and other current liabilities and 39,015 21,861 establish a joint venture entity to own and expand
provisions)
Yoshinoya restaurants in the Philippines.
Additions during the year 150,000 65,727 Noncurrent financial liabilities 352,782 203,224
281,750 131,750 The joint venture entity, incorporated as Yoshinoya

Cumulative equity in net losses: The amounts of the income and expense accounts Jollibee Foods, Inc. on June 18, 2021, is 50% owned
Balance at beginning of year (21,772) (12,709) include the following: by the Parent Company and 50% owned by YIPI. On
Equity in net earnings (loss) during
May 20, 2021, the Parent company made an initial
(14,674) (9,063)
the year 2022 2021 2020 investment amounting to P 65.0 million.
Balance at end of year (36,446) (21,772) Revenues P 822,465 P 296,316 P 101,839
On October 29, 2021, Yoshinoya executed a Franchise
P 245,304 P 109,978 Depreciation and amortization 80,240 31,831 10,574
Agreement with YIPI with effective date on November
Taxes and licenses 283 3,677 20
1, 2021. Subsequently, Yoshinoya acquired from YIPI
Summarized financial information of Panda Express Interest income 3,386 479 615
and operated the existing Yoshinoya stores in the
based on its financial statements and reconciliation Interest expense (19,046) (6,023) (1,366)
Philippines.
with the carrying amount of the investment in the Net loss (29,347) (18,125) (8,890)
consolidated financial statements are set out below: Total comprehensive loss (28,521) (17,883) (9,145)
On August 12, 2022, the Parent Company made an
additional investment proportionate to its ownership
2022 2021
2022 2021
interest in Yoshinoya amounting to P 30.0 million to
Net assets P 490,608 P 219,955 partially fund the store expansion.
Noncurrent assets 652,066 325,314
Total assets P 1,061,264 P 514,906
P 245,304 P 109,978
Current liabilities P 217,874 P 91,727
Noncurrent liabilities 352,782 203,224
Total liabilities P 570,656 P 294,951

The details of JFC Group’s interest in Yoshinoya as at 2022 2021

in CentralHub, a company in the industrial real
December 31 are as follows: Cash and cash equivalents P 109,954 P 143,141
estate business. CentralHub intends to register and
2022 2021
Current financial liabilities (excluding trade operate as a Real Estate Investment Trust (REIT)
payables and other current liabilities and 9,604 841
Interest in a joint venture – cost
provisions) company, with a planned initial public offering on or
Noncurrent financial liabilities 50,412 - before December 2024.
Additions during the year 30,000 -
On August 19, 2021, the Parent Company, together
The amounts of the income and expense accounts
95,000 65,000 with its wholly owned subsidiary, Zenith, CentralHub
for the years ended December 31 include the
Cumulative equity in net earnings (loss):
and other investors entered into a Shareholder’s
following:
Balance at beginning of year 1,289 - Agreement in connection with the investments by
(10,105) 1,289
2022 2021 the JFC Group and other investors in CentralHub,
the year
Revenues P 183,432 P 27,564 through a combination of cash subscription and
Balance at end of year (8,816) 1,289
Depreciation and amortization 11,522 90 exchange of certain parcel of the JFC Group’s
P 86,184 P 66,289
Taxes and licenses 26 30 land assets, subject to fulfillment of certain
Interest income 1,863 65 closing conditions, for shares of common stock of
Summarized financial information of Yoshinoya Interest expense (2,090) - CentralHub. On the same date, JFC Group paid
based on its financial statements and reconciliation Net loss (20,210) 2,578 cash subscription of P 1,922.9 million. Pending the
with the carrying amount of the investment in the application with and approval by the Philippine
Total comprehensive loss (18,877) 2,578
consolidated financial statements are set out below: SEC of the increase in authorized capital stock of
2022 2021 CentralHub, the cash subscription of the JFC Group
2022 2021
Net assets P 172,367 P 132,577 was accounted for as deposits for future stock
Proportion of the JFC Group’s ownership 50% 50% subscription (DFFS) by the latter.
Total assets P 279,917 P 157,059

P 86,184 P 66,289 On September 3, 2021, the Philippine SEC approved
the increase in authorized capital stock of
Interests in Associates CentralHub and the conversion of DFFS to capital

Noncurrent liabilities 50,412 -
stock. Consequently, JFC Group owns 38.71%
CentralHub Industrial Centers, Inc. (CentralHub) ownership interest in CentralHub. On February 24,
On July 7, 2021, the BOD approved the plan to invest 2022, the Philippine SEC issued the confirmation of
valuation of such land assets amounting to P 2,089.4 Summarized financial information of CentralHub 2022 2021
million. On March 24, 2022, upon fulfillment of all based on its financial statements and reconciliation Revenues P 25,439 P 17,000
closing conditions as required by the Shareholders’ with the carrying amount of the investment in the Depreciation and amortization - -
Agreement, the JFC Group conveyed its land assets consolidated financial statements are set out below: Provision for income tax 4,910 40,913
with a total fair value of P 2,089.4 million for an Interest income 2,823 316
2022 2021
additional 18.15% ownership interest in CentralHub Current assets P 3,457,648 P 4,210,225

Interest expense (410) (914)
(see Note 12). Net income (loss) 95,074 (27,800)

Total comprehensive loss 95,074 (27,800)
Consistent with the Shareholder’s Agreement and Total assets P 7,412,805 P 5,865,281
upon the other investors’ additional capital infusion Current liabilities P 67,898 P 773,999
2022 2021
to CentralHub on April 29, 2022, the JFC Group’s Noncurrent liabilities 374,514 301,231
Net assets P 6,970,393 P 4,786,844
ownership interest was diluted to 39.0%. Total liabilities P 442,412 P 1,075,230
Proportion of the JFC Group’s ownership 39% 38.71%
The details of JFC Group’s interest in CentralHub as 2,718,453 1,852,987

at December 31 are as follows: The amounts of assets and liabilities above include:
Provisional notional goodwill 697,938 59,134
2022 2021 P 3,416,391 P 1,912,121

2022 2021
Cash and cash equivalents P 3,235,242 P 4,014,775
Interest in an associate – cost
Balance at beginning of year P 1,922,882 P-

payables and other current liabilities and 43,653 40,117
Tortazo LLC (formerly, Tortas Frontera LLC) (Tortazo)
Additions during the year 1,467,191 1,922,882
provisions)
The JFC Group, through Jollibee Foods Corporation

Noncurrent financial liabilities (excluding
provisions)
374,514 301,232 (USA), has 52.22% ownership in Tortazo, a company
that owns and operates the Tortazo business – a
Cumulative equity in net earnings (loss):
The amounts of the income and expense accounts Mexican fast-casual restaurant business in the USA,
Balance at beginning of year (10,761) -
for the years ended December 31 include the founded by award-winning Chef Rick Bayless.
37,079 (10,761)
the year following:
On July 31, 2022, the JFC Group made an additional
Balance at end of year 26,318 (10,761)
investment proportionate to its ownership interest in
P 3,416,391 P 1,912,121
Tortazo amounting to USD2.2 million (P 114.3 million)
to fund working capital and capital expenditures.

The details of the JFC Group’s interest in Tortazo as The amounts of assets and liabilities above include: The details of JFC Group’s interest in C-Joy Poultry as
at December 31 are as follows: at December 31 are as follows:
2022 2021
2022 2021 2022 2021

Interest in an associate – cost Interest in an associate – cost
Balance at beginning of year P 668,679 P 668,679 The amounts of the income and expense accounts Balance at beginning of year P 1,470,126 P 1,470,126
Additions during the year 114,309 - include the following: Additions during the year 450,000 -
782,988 668,679 1,920,126 1,470,126

2022 2021 2020
Cumulative equity in net earnings (loss): Revenues P 163,320 P 57,915 P 28,047 Cumulative equity in net earnings (loss):
Balance at beginning of year (78,514) (8,004) Net loss (164,868) (135,025) (34,696) Balance at beginning of year (1,649,214) (1,598,020)
Equity in net loss during the year (86,095) (70,510) Total comprehensive loss (164,868) (135,025) (34,696) Equity in net loss during the year 2,772 (51,194)
Balance at end of year (164,609) (78,514) Balance at end of year (1,646,442) (1,649,214)
2022 2021
P 618,379 P 590,165 P 273,684 (P 179,088)
Net assets P 558,956 P 461,521
Proportion of the JFC Group’s ownership 52.22% 52.22%

Summarized financial information of Tortazo based The loss in excess of interest in C-Joy Poultry of P179.1
291,887 241,006
on its financial statements and reconciliation million as at December 31, 2021 is presented as part
Goodwill 381,532 381,532
with the carrying amount of the investment in the of “Noncurrent liabilities” account in the consolidated
Cumulative translation adjustments (55,040) (32,373)
statements of financial position
P 618,379 P 590,165
Summarized financial information of the C-Joy
2022 2021
Poultry based on its financial statements and
Current assets P 81,709 P 159,223 C-Joy Poultry Meats Production, Inc. (C-Joy Poultry)
reconciliation with the carrying amount of the
Noncurrent assets 515,065 330,660 The Parent Company has 30% ownership interest
investment in the consolidated financial statements
Total assets P 596,774 P 489,883 in C-Joy Poultry, a company that operates a
are set out below:
poultry processing plant in Sto. Tomas, Batangas,
Philippines.


2022 2021
The amounts of the income and expense accounts 2022 2021
Current assets P 2,081,589 P 1,266,217

include the following: Interest in an associate – cost P 16,660 P 16,660

2022 2021 2020
Total assets P 4,136,488 P 3,323,315
Revenues P 10,034,776 P 6,557,370 P 4,841,680 Balance at beginning of year 110,601 107,489
Current liabilities P 3,206,975 P 3,867,104 Depreciation and amortization 207,758 193,212 187,781 Equity in net earnings during the year 45,141 39,349
Noncurrent liabilities 17,234 53,172 Taxes and licenses 25,239 23,535 22,781 Dividends received during the year - (36,237)
Total liabilities P 3,224,209 P 3,920,276 Interest income 763 395 757 Balance at end of year 155,742 110,601
Interest expense (78,794) (86,069) (182,848) P 172,402 P 127,261
The amounts of assets and liabilities above include

Net income (loss) 9,239 (170,645) (1,324,300)
the following: Summarized financial information of Entrek based
Total comprehensive income
38,720 (170,645) (1,342,048)
2022 2021
(loss) on its financial statements and reconciliation
with the carrying amount of the investment in the
2022 2021

Net assets (liabilities) P 912,279 (P 596,961)
payables and other current liabilities and (795,060) 996,310
provisions)
Proportion of the JFC Group’s ownership 30% 30% 2022 2021
Noncurrent financial liabilities (17,234) 52,622 Current assets P 675,330 P 487,197

P 273,684 (P179,088)
Entrek (B) SDN BHD (Entrek) Total assets P 1,005,669 P 797,263

The JFC Group, through JIBL, has 1/3 or 33.3%
ownership in Entrek, a company that operates
Noncurrent liabilities - 13,492
Jollibee stores in Brunei.
The details of the JFC Group’s interest in Entrek as at

December 31 are as follows: The amounts of the income and expense accounts
include the following:


2022 2021 2020
Summarized financial information of C-Joy Realty 2022 2021 2020
Revenues P 1,304,237 P 1,050,217 P 967,500

based on its financial statements and reconciliation Revenues P 14,177 P 15,595 P 15,486
Depreciation 92,948 76,653 74,809 with the carrying amount of the investment in the Taxes and licenses 1 2 73
Net income 135,422 118,047 120,393 consolidated financial statements are set out below: Interest income 41 4 -
Total comprehensive income 135,422 118,047 120,393 Interest expense (694) (675) (1,212)
2022 2021
Net income 9,233 10,824 8,945

2022 2021
Total comprehensive income 9,233 10,824 8,945
Net assets P 602,431 P 412,008 Noncurrent assets 62,152 62,152
Proportion of the JFC Group’s ownership 33.33% 33.33% Total assets P 75,009 P 70,945
2022 2021
200,810 137,336 Current liabilities P 1,752 P 2,769 Net assets P 57,490 P 48,258
Cumulative translation adjustments (28,408) (10,075) Noncurrent liabilities 15,767 19,918 Proportion of the JFC Group’s ownership 30% 30%
P 172,402 P 127,261 Total liabilities P 17,519 P 22,687 P 17,247 P 14,477
C-Joy Poultry Realty, Inc. (C-Joy Realty) The amounts of assets and liabilities above include Beeworks Food SDN. BHD.
The Parent Company has 30% ownership interest the following: (Beeworks – West Malaysia)
in C-Joy Realty, a company which leases the land 2022 2021 On July 29, 2021, the JFC Group, through GPPL,
where the C-Joy Poultry plant is located. Cash and cash equivalents P 12,768 P 8,083 entered into an agreement with Beeworks
Current financial liabilities (excluding trade Investment Pte. Ltd. (BIPL) to own and operate
The details of the JFC Group’s interest in C-Joy payables and other current liabilities and 1,373 2,079
provisions) Jollibee stores in West Malaysia which covers the
Realty as at December 31 are as follows:
Noncurrent financial liabilities 15,767 19,918
country’s capital, Kuala Lumpur. GPPL and BIPL have
2022 2021
committed to invest an initial amount of USD8.0
Interest in an associate – cost P 10,586 P 10,586
The amounts of the income and expense accounts million (P 402.5 million) to Beeworks – West Malaysia,
include the following: of which up to USD2.4 million (P 120.7 million) will be
Balance at beginning of year 3,891 644 contributed by GPPL in proportion to its ownership
Equity in net earnings during the year 2,770 3,247 interest. Beeworks – West Malaysia, under the
Balance at end of year 6,661 3,891 Exclusive License Agreement, will have the exclusive
P 17,247 P14,477

license rights to develop the Jollibee brand in West investment in the consolidated financial statements Advances to a Co-venturer
Malaysia. It aims to open at least 120 stores within as at December 31, 2022 are set out below:
Advances to VTI Group
the next 10 years. Its first store started commercial
2022 The details of the JFC Group’s advances to VTI Group
operations on February 8, 2022.
Current assets P 43,174 as at December 31 are as follows:
The agreement between GPPL and BIPL provides a Noncurrent assets 236,882
2022 2021
mechanism wherein GPPL has the option, but not the Total assets P 280,056
obligation, to purchase all BIPL’s shares in Beeworks
Current liabilities P 303,353 Accrual of interest (see Note 23) 57,464 51,949
– West Malaysia any time within one (1) year from
Translation adjustments and others 167,987 102,781
the expiration or termination of the Exclusive License
The amounts of the income and expense accounts Balance at end of year P 2,009,362 P 1,783,911
Agreement.
for the year ended December 31, 2022 include the
Beeworks Foods SDN. BHD., incorporated on August following:
On December 14, 2016, a loan of USD9.0 million
12, 2021, is 30% owned by GPPL and 70% owned by 2022
(P447.5 million) was extended to the VTI Group with
BIPL. Revenues P 132,635
an interest rate of 3.5% per annum. The loan was
The details of the JFC Group’s interest in Beeworks –
Depreciation 10,691 agreed to be used for SuperFoods Group’s capital
West Malaysia as at December 31 are as follows: Net loss (53,704) needs. The loan is part of the total agreed loan of
Total comprehensive loss (53,704) USD30.0 million payable in eight (8) years from the
2022 2021
Net liabilities (23,297) first utilization date. On June 2, 2017, the additional
Interest in an associate – cost P 9,299 P 9,299
Proportion of the JFC Group’s ownership 30% loan of USD21.0 million (P1,060.0 million) was granted
Equity in net loss during the year (16,111) -
(6,989) to the VTI Group. The loan is secured by pledged
(P 6,812) P 9,299
Cumulative translation adjustments 177 shares in SFVT and Blue Sky which will be released
Summarized financial information of Beeworks – (P 6,812)
in proportion to the amount of the principal paid.
West Malaysia based on its financial statements Total interest from this loan, recognized as interest
and reconciliation with the carrying amount of the income, amounted to USD1.1 million (P57.5 million),
USD1.1 million (P51.9 million) and USD1.1 million (P52.5
million) for the years ended December 31, 2022, 2021
and 2020, respectively (see Note 23).

Advances to an Associate 12. PROPERTY, PLANT AND EQUIPMENT
Advances to Beeworks – West Malaysia The rollforward analysis of property, plant and
The details of the JFC Group’s advances to Beeworks equipment are as follows:
– West Malaysia as at December 31, 2022 are as 2022
follows: PLANT,
BUILDINGS,
2022 COMMERCIAL OFFICE, STORE
CONDOMINIUM AND FOOD
Advances during the year P 30,341 LAND AND LAND UNITS AND LEASEHOLD PROCESSING FURNITURE AND TRANSPORTATION CONSTRUCTION
IMPROVEMENT IMPROVEMENTS IMPROVEMENTS EQUIPMENT FIXTURES EQUIPMENT IN PROGRESS TOTAL
Accrual of interest (see Note 23) 335

Cost
Translation adjustments (203)

Balance at beginning of year P 561,436 P 8,764,708 P 28,497,759 P 26,670,549 P 2,924,922 P 648,062 P 4,381,183 P 72,448,619
Balance at end of year P 30,473

Additions - 420,217 2,278,354 2,099,463 431,384 54,683 4,398,560 9,682,661
Condominium units in exchange for land (see Note 9) - - - - - - 2,429,398 2,429,398
On May 11, 2022, the JFC Group, through GPPL, Retirements and disposals - (193,250) (1,608,687) (2,329,336) (213,619) (28,429) (138,909) (4,512,230)
extended a 5-year loan to Beeworks – West Malaysia Acquisition of a business (see Note 11) - - - 29,813 - 923 - 30,736
amounting to MYR2.4 million (P30.0 million) available Reclassifications (see Note 11) (494,042) 115,696 2,761,156 1,322,023 60,962 - (4,259,837) (494,042)
in two (2) tranches subject to an interest rate of Translation adjustments 6,290 145,419 1,106,358 708,683 168,013 2,777 184,997 2,322,537
3.5% per annum. The first tranche amounting MYR1.2 Balance at end of year 73,684 9,252,790 33,034,940 28,501,195 3,371,662 678,016 6,995,392 81,907,679
million (P15.0 million) was issued on June 10, 2022. Accumulated Depreciation and Amortization
Subsequently, the second tranche amounting
Balance at beginning of year - 2,969,184 15,804,492 19,443,824 2,228,617 538,219 - 40,984,336
to MYR1.2 million (P15.3 million) was issued on
Depreciation and amortization (see Notes 21 and 22) - 649,215 2,634,328 2,704,435 340,084 45,570 - 6,373,632
September 1, 2022. The loan is payable in full on the
Retirements and disposals - (154,845) (1,275,725) (2,117,715) (190,445) (27,839) - (3,766,569)
5th year from the date of the agreement.
Translation adjustments - 88,599 477,940 473,655 120,431 2,531 - 1,163,156
Balance at end of year - P 3,552,153 P 17,641,035 P 20,504,199 P 2,498,687 P558,481 - P44,754,555


2022 2021
PLANT, PLANT,
BUILDINGS, BUILDINGS,
COMMERCIAL OFFICE, STORE COMMERCIAL OFFICE, STORE
CONDOMINIUM AND FOOD CONDOMINIUM AND FOOD
LAND AND LAND UNITS AND LEASEHOLD PROCESSING FURNITURE AND TRANSPORTATION CONSTRUCTION LAND AND LAND UNITS AND LEASEHOLD PROCESSING FURNITURE AND TRANSPORTATION CONSTRUCTION
IMPROVEMENT IMPROVEMENTS IMPROVEMENTS EQUIPMENT FIXTURES EQUIPMENT IN PROGRESS TOTAL IMPROVEMENT IMPROVEMENTS IMPROVEMENTS EQUIPMENT FIXTURES EQUIPMENT IN PROGRESS TOTAL
Accumulated Cost
Impairment Loss
Balance at beginning of year P 1,040,804 P 7,963,196 P 25,033,818 P 25,311,849 P 2,701,090 P 621,445 P 3,751,360 P 66,423,562
Balance at beginning of year - 1,437 421,442 420,732 3,226 - 8,627 855,464
Additions - 82,853 2,273,838 1,245,055 278,711 49,768 3,933,617 7,863,842
Additions (see Note 22) - - - 107,900 - - - 107,900
Retirements and disposals - (66,798) (1,434,636) (1,252,134) (192,075) (26,508) (40,267) (3,012,418)
Reversals (see Note 22) - - (17,223) (238,194) (159) - (6,690) (262,266)
Reclassifications (503,698) 655,450 1,794,112 886,827 32,460 - (3,368,849) (503,698)
Retirements and disposals - - (12,876) (13,183) (172) - (1,048) (27,279) (see Note 9)
Translation adjustments - - - (6,413) - - – (6,413) Translation adjustments 24,330 130,007 830,627 478,952 104,736 3,357 105,322 1,677,331
Balance at end of year - 1,437 391,343 270,842 2,895 - 889 667,406 Balance at end of year 561,436 8,764,708 28,497,759 26,670,549 2,924,922 648,062 4,381,183 72,448,619
Net Book Value P 73,684 P 5,699,200 P 15,002,562 P 7,726,154 P 870,080 P 119,535 P 6,994,503 P 36,485,718 Accumulated Depreciation
and Amortization
Balance at beginning of year - 2,457,444 14,110,630 17,473,893 1,996,337 503,633 - 36,541,937

Depreciation and - 510,413 2,292,338 2,646,468 323,310 51,806 - 5,824,335
amortization (see Notes 21
and 22)
Retirements and disposals - (66,621) (1,092,796) (1,079,224) (175,777) (20,394) - (2,434,812)
Reclassifications - – (108) – 108 – - –
Translation adjustments - 67,948 494,428 402,687 84,639 3,174 - 1,052,876
Balance at end of year - 2,969,184 15,804,492 19,443,824 2,228,617 538,219 - 40,984,336
Accumulated
Impairment Loss
Balance at beginning of year - 1,437 501,327 669,771 4,155 338 20,466 1,197,494
Additions (see Note 22) - – 11 44,344 37 – – 44,392
Reversals (see Note 22) - – (185,548) (178,793) (7,033) (338) (18,319) (390,031)
Retirements and disposals - – 105,652 (118,199) 6,067 – 6,480 –
Translation adjustments - – – 3,609 – – – 3,609
Balance at end of year - 1,437 421,442 420,732 3,226 - 8,627 855,464
Net Book Value P 561,436 P 5,794,087 P 12,271,825 P 6,805,993 P 693,079 P 109,843 P 4,372,556 P 30,608,819

Construction in progress account mainly pertains to On March 24, 2022, upon fulfillment of all closing 13. INVESTMENT PROPERTIES
costs incurred for ongoing construction of properties, conditions as required by the Shareholders’ Agreement,
The rollforward analysis of this account as at
including soon-to-open stores and commissaries. the JFC Group conveyed its land assets with a carrying
December 31, 2021 are as follows:
value of P494.0 million for a fair value of P2,089.4 million
In relation to JFC Group’s business transformation
to CentralHub in exchange for an additional 18.15% BUILDINGS
initiative implemented, certain stores have been AND BUILDING
ownership interest (see Note 11). Consequently, the LAND IMPROVEMENTS TOTAL
permanently closed resulting in a loss on retirements

exchange resulted to a gain to the extent of unrelated Cost
and disposals of property, plant and equipment
investors’ interest in the associate amounting to P973.2 Balance at beginning of year P 572,722 P 179,377 P 752,099
amounting to P296.9 million and P1,489.2 million in 2021 Retirements and disposals (60,804) (11,140) (71,944)
million (see Note 23). Reclassifications (see Note 9) (511,918) 12,679 (499,239)
No property, plant and equipment as at December Balance at end of year - 180,916 180,916
The JFC Group also performed impairment assessments
31, 2022 and 2021 have been pledged as security or Accumulated Depreciation and
of fixed assets considering that there are observable Amortization
collateral for the JFC Group’s debts.
indications that the assets’ values have declined Balance at beginning of year – 179,377 179,377
Retirements and disposals – (11,140) (11,140)
specially that certain stores were planned to be closed, Reclassifications (see Note 9) – 12,679 12,679
resulting to recognition of provision for impairment Balance at end of year - 180,916 180,916
amounting to P107.9 million, P44.4 million and P1,185.5
Net Book Value P- P- P-
million in 2022, 2021 and 2020, respectively (see Note 22).
Management reassessed the recoverable amount of the Rent income derived from income-generating
JFC Group’s office, store and food processing equipment properties amounted to P1.6 million and P8.5 million
and recognized reversal of provision amounting to for the years ended December 31, 2022 and 2021,
P262.3 million, P390.0 million and P76.2 million in 2022, respectively (see Notes 20 and 29).
2021 and 2020, respectively (see Note 22). Consequently, Direct operating costs relating to the investment
allowance for impairment loss amounted to P667.4 properties which include maintenance expenses
million and P855.5 million as at December 31, 2022 and totaled to P10.7 million and P3.9 million in 2022 and
2021, respectively. 2021, respectively.

In 2021, Grandworth, a wholly owned subsidiary, sold 2022 2021 2022 2021
three (3) parcels of land, including improvements Trademarks: Allowance for Impairment
CBTL P 18,484,721 P 18,484,721 Balance at beginning of year – -
attached thereto, for a total consideration of P322.0 Smashburger 10,414,000 10,414,000 Impairment loss (see Note 22) 463,101 –
million. Net gain arising from the sale of these SuperFoods Group:
Balance at end of year 463,101 -
Highlands Coffee 3,681,912 3,681,912
investment properties amounted to P261.2 million Pho 24 (see Note 22) – 463,101 Net Book Value P 35,445,794 P 35,047,990
Mang Inasal 2,004,256 2,004,256
(see Note 22).
Milksha (see Note 11) 860,905 –
The rollforward analysis of the JFC Group’s goodwill
No investment properties as at December 31, 2022 Total 35,445,79 35,047,990
as at December 31 are as follows:
and 2021 have been pledged as security or collateral Goodwill:
for the JFC Group’s debts. Smashburger 5,724,308 5,235,648 2022 2021
Hong Zhuang Yuan 3,015,109 2,988,858
Cost
SuperFoods Group 2,662,643 2,484,456
14. TRADEMARKS, GOODWILL AND OTHER INTANGIBLE Mang Inasal 1,781,267 1,781,267
Addition (see Note 11) 170,669 -
ASSETS Red Ribbon Bakeshop:
Philippine operations 737,939 737,939 Balance at end of year 14,566,386 14,395,717
This account consists of: US operations 441,138 403,480

Yong He King 638,432 632,873
2022 2021
2022 2021 Chowking US operations 493,971 451,803
GSC 179,446 167,438 Translation Adjustments
Trademarks P 35,445,794 P 35,047,990 Balance at beginning of year 493,290 (298,434)
Milksha (see Note 11) 170,669 –
Goodwill (see Note 11) 15,850,167 14,889,007 Translation adjustments of foreign 790,491 791,724
Burger King 5,245 5,245
Computer software, net of accumulated 252,125 355,754 subsidiaries
amortization
15,850,167 14,889,007
Other intangible assets, net of 167,461 318,137 Balance at end of year 1,283,781 493,290
accumulated amortization Trademarks and Goodwill P 51,295,961 P 49,936,997
Net Book Value P 15,850,167 P 14,889,007
P 51,715,547 P 50,610,888
The rollforward analysis of the JFC Group’s
Computer Software
trademarks as at December 31 are as follows:
Trademarks and Goodwill The JFC Group’s computer software pertains to
Trademarks and goodwill acquired through business 2022 2021
the Enterprise Resource Planning (ERP) system
Cost
combinations are attributable to the following group Balance at beginning of year P 35,047,990 P 35,047,990
which the JFC Group started to use on August 1,
of CGUs as at December 31: Addition (see Note 11) 860,905 – 2014 and cloud-based hosting arrangements and
Balance at end of year 35,908,895 35,047,990 implementation costs of CBTL.

The rollforward analysis of the JFC Group’s computer The rollforward analysis of other intangible assets as into consideration effect of significant events (i.e.,
software as at December 31 are as follows: at December 31 are as follows: Covid-19, conflict and related sanctions in Ukraine,
2022 2021 2022 2021
Russia and Belarus ) on the macroeconomic factors
Cost Cost used in developing the assumptions. Furthermore,
Balance at beginning of year P 936,510 P 1,006,084 Balance at beginning of year P 740,286 P 809,198
the trademarks of Smashburger, SuperFoods
Addition (see Note 11) (29,156) (69,574) Addition (see Note 11) – 11,113
Reclassification (see Note 29) - (80,025) Group and Mang Inasal are allocated to the CGU
Balance at end of year 740,286 740,286 of Smashburger, SuperFoods Group and Mang
Inasal, respectively. The recoverable amount of
Accumulated Amortization the trademarks of CBTL and Pho24 was determined
Balance at beginning of year 575,330 513,013 Accumulated Amortization
Amortizations (see Note 22) 109,301 113,035 Balance at beginning of year 359,373 214,141
using the relief-from-royalty method wherein the
Write-off (23,811) (50,718) Amortizations (see Note 22) 202,874 145,232 value is based on cost savings from owning the
Balance at end of year 660,820 575,330 Balance at end of year 562,247 359,373 trademark.
Translation Adjustment 5,591 (5,426) Translation Adjustment (10,578) (62,776)
The calculation of value in use is most sensitive
Net Book Value P 252,125 P 355,754 Net Book Value P 167,461 P 318,137
to the following assumptions which vary per
geographical location:
Other Intangible Assets Impairment Testing of Trademarks and Goodwill LONG-TERM
The JFC Group’s other intangible assets include Goodwill acquired through business combinations GEOGRAPHICAL
PRE-TAX
DISCOUNT
REVENUE
GROWTH
other trademarks and patents, liquor licenses and have been allocated to eleven (11) groups of CGUs, CGUS LOCATION RATE RATE
Hong Zhuang Yuan PRC 11.2% 5.5%

customer list amortized over a useful life of five (5) which are subsidiaries of the Parent Company, Mang Inasal Philippines 15.1% 7.4%
years. owned directly or indirectly. The recoverable Red Ribbon Bakeshop:
Philippine operations Philippines 15.1% 7.4%
amounts of the groups of CGUs have been US operations USA 5.5% 3.7%
determined based on value in use calculations Yong He King PRC 11.2% 3.3%
Chowking US operations USA 5.5% 3.7%
and fair value less cost of disposal calculation of Burger King Philippines 14.1% 7.4%
the underlying net assets of the CGUs using cash GSC Vietnam 13.8% 7.8%
SuperFoods Group Vietnam 14.0% 7.8%
flow projections from financial budgets approved Smashburger USA 9.5% 3.7%
by the BOD covering a five-year period, taking CBTL USA 12.6% 3.5%

Key assumptions with respect to the calculation of as well as the economic environment where the 15. OTHER NONCURRENT ASSETS
value in use of the groups of CGUs as at December group of CGUs operate.
31, 2022 used by management in its cash flow
• EBITDA - is based on the most recent value
projections to undertake impairment testing of 2022 2021
achieved in the year preceding the start of
goodwill are as follows: Security and other deposits P 3,481,197 P 3,051,421
the budget period, and adjusted for planned (see Notes 9, 31 and 32)
Noncurrent portion of employee car plan 84,329 83,369
• Discount rates: Discount rates represent the efficiency improvement, if any. receivables (see Notes 7, 31 and 32)
Franchise rights - net of accumulated 49,688 55,986
current market assessment of the risks specific amortization of P95.8 million and P83.4
A rise in the pre-tax discount rate to 10.46% (i.e., million in 2022 and 2021, respectively
to each group of CGUs, regarding the time value
+1.0%) in one of the US CGUs would result in an Deferred compensation 14,661 13,889
of money and individual risks of the underlying Returnable containers and others 2,135 2,801
impairment. Decreased demand can lead to a Prepaid market entry fee - net of –
assets which have not been incorporated in the accumulated amortization of P36.2
decline in the sales. A decrease in the sales and million and P31.2 million in 2022 and 2021,
75,416
cash flow estimates. The discount rate calculation respectively
gross margin by 5.0% would result in the impairment 423,322 331,309
is based on the specific circumstances of the JFC Tools and other assets
of one of the US CGUs.
Group’s group of CGUs, derived from the weighted P 4,055,332 P 3,614,191
average cost of capital (WACC) of each group Management believes that any reasonably
Terms and conditions of other noncurrent assets are as
of CGUs. The WACC takes into account both possible change in the key assumptions on
follows:
the cost of debt and equity. The cost of equity which recoverable amount is based could cause
is calculated using the Capital Asset Pricing the carrying amount of the CGUs to exceed its • Security and other deposits generally represent
Model (CAPM). The cost of debt is based on the recoverable amount in the future. deposits for leases entered into by the JFC Group
assumed interest-bearing borrowings each group as lessee. The security deposits are recoverable
In 2022, the JFC Group closed its Pho24 stores
of CGUs is obliged to service. CGU-specific risk from the lessors at the end of the lease terms, which
in the Philippines and plans to discontinue its
is incorporated by applying individual alpha and range from three to twenty years. These are carried
Pho24 business. Management assessed that
beta factors. The beta factors are evaluated at amortized cost. The discount rates used range
Pho24 trademark is impaired hence, the JFC
annually based on publicly available market data. from 1.28%-14.46% and 1.28%-21.57% in 2022 and 2021,
Group recognized a provision for impairment loss
respectively. The difference between the fair value
• Long-term growth rates: Rates are determined in amounting to P463.1 million (see Note 22). No
at initial recognition and the notional amount of the
consideration of historical and projected results, impairment loss was recognized in 2021.
security deposits is recognized as right-of-use asset.

• Employee car plan receivables are presented at 2022 2021

The rollforward analysis of prepaid market entry fee
amortized cost. The difference between the fair Franchise Rights
as at December 31 are as follows:
value at initial recognition and the notional amount Additions 6,561 2,880
(439) 2022 2021
of the employee car plan receivables is recognized Write-off -
Market Entry Fee

as “Deferred compensation” and is amortized on a Balance at end of year 145,483 139,361
Balance at beginning and end of year P 93,870 P 93,870
straight-line basis over the credit year. Accumulated Amortization
Balance at beginning of year 83,375 71,982 Accumulated Amortization
Amortizations (see Note 22) 12,420 11,393 Balance at beginning of year 31,212 26,039
Accretion of interest on security and other deposits Amortizations (see Note 22) 5,007 5,173
and employee car plan receivables amounted to Balance at end of year 95,795 83,375
P22.5 million and P32.9 million in 2022 and 2021, P 49,688 P 55,986
Write-off (see Note 22) (77,332) –
respectively (see Note 23). Translation adjustment 19,681 12,758
• Prepaid market entry fee represents upfront fee paid P- P 75,416

• Franchise rights pertain to franchise fees paid by
to the franchisor prior to the operations of Dunkin’
PERF entities to Burger King Asia Pacific for the license
Donuts restaurants in the PRC. Market entry fee is
to operate Burger King stores in the Philippines.
amortized over twenty (20) years effective February • Tools and other assets represent tools for repairs and
Franchise rights are amortized over ten (10) years.
2016 (i.e., start of Dunkin’ Donuts operations). maintenance of office and store equipment which
The rollforward analysis of franchise rights as at are still unused as at December 31, 2022 and 2021.
On November 8, 2022, the JFC Group and Jasmine
December 31 are as follows:
Asset Holdings, Ltd., announced the termination of
the Master Franchise Agreement (MFA) for Dunkin’
Donuts and ceased the operations of Beijing Golden
Cup Food & Beverage Management Co., Ltd., which
operates seven (7) Dunkin’ Donuts restaurants in
Beijing. Upon execution of the exit agreement on
November 14, 2022, the remaining balance of market
entry fee amounting to P77.3 million was written-off
(see Note 22).

16. TRADE PAYABLES AND OTHER CURRENT LIABILITIES The terms and conditions of the above liabilities are and unearned revenues from gift certificates from
AND CONTRACT LIABILITIES as follows: international operations.
This account consists of: • Trade payables to suppliers are noninterest- Movements in contract liabilities arising from
2022 2021
bearing and are normally settled on a 30 to 60- deferred revenues and unearned revenues from
Trade P 18,520,998 P 13,256,806 day term. gift certificates from international operations are
Accruals for: as follows:
Salaries, wages and employee 4,393,978 4,144,889 • Accrued expenses are noninterest-bearing and
benefits 2022 2021
Store operations 1,918,879 1,847,189 are normally settled within the next financial year.
Balance at beginning of year P 1,424,799 P1,318,924
Rent 1,675,708 1,490,579 Other accrued liabilities presented under “Service Additions 2,712,902 2,278,305
Local taxes 1,636,632 871,473
Advertising and promotions 1,493,424 1,173,896 fees and others” consist of asset retirement Utilization and amortization (2,247,122) (2,233,327)
Write-off (34,706) –
Freight 1,294,265 985,890
obligation and other miscellaneous expenses. Translation adjustments 100,798 60,897
Utilities 537,554 479,493
Interest (see Note 18) 522,926 545,563
Repairs and maintenance 516,454 394,068
• Customer deposits pertain to deposits from Balance at end of year P 1,956,671 P 1,424,799
Professional fees 272,353 358,683 franchisees for sale of store assets and security
Operating supplies 198,370 209,225 The amount of contract liabilities arising from
Security 186,326 172,195
deposits from operating leases with franchisees
deferred revenues and unearned revenues from
Transportation and travel 98,967 104,056 which are refundable at the end of the lease term.
Communication 60,258 71,112 gift certificates from international operations is
Insurance 55,860 87,949
• Accretion of interest on customer deposits expected to be earned within one year.
Trainings and seminars 4,304 9,792
Service fees and others 2,868,779 1,818,586 amounted to P 1.1 million and P 0.7 million in 2022
Customer deposits 1,155,150 1,050,421
Dividends and distributions payable 822,429 636,008
(see Note 19)
Unearned revenue from gift certificates 614,745 529,781 • Other current liabilities consist of amounts
Contractors’ retention 255,816 123,875
payable for mascots and various subscriptions
Staled checks 59,952 80,409
Other current liabilities 2,122,882 1,086,018 in newspapers given to customers as a
41,287,009 31,527,956
complementary to their meals.
Contract liabilities 1,956,671 1,424,799
• Contract liabilities pertain to deferred revenues
P 43,243,680 P 32,952,755

17. SHORT AND LONG-TERM DEBTS AND SENIOR DEBT 18. SHORT AND LONG-TERM DEBTS AND SENIOR DEBT rate based on LIBOR plus spread determined by
SECURITIES SECURITIES the bank and subject to quarterly repricing. The
loan is payable in three months from drawdown
Short-term Debt Short-term Debt
date and can be rolled over until September 24,
The short-term debt of the subsidiaries consists of The short-term debt of the subsidiaries consists of
2021, the maturity date. On September 24, 2021, the
the following: the following:
credit agreement was extended up to March 24,
2022 2021
AVAILMENT MATURITY INTEREST 2022 and was further extended up to March 24, 2023
DATE DATE RATE CONDITION 2022 2021
Addition during the year (see Note 23) 565,664 – USD-denominated
subject to a new variable interest rate based on CME
Term SOFR plus spread determined by the bank.
LIBOR plus
Reversal during the year (see Note 23) – (291,110) Loan 1 10/27/20 09/24/21 spread;
Unsecured P 557,600 P 510,000
quarterly
03/24/22
03/24/23
SOFR plus
spread;
On August 9, 2022, ICTL requested to increase the
Current portion 685,530 –
uncommitted line of credit to USD15.0 million (P727.7
quarterly
Loan 2 04/15/22 02/03/23 Unsecured 1,672,800

Noncurrent portion P 915,770 P 1,035,636
million) and payable to six months from drawdown
SOFR plus
spread;
VND-denominated quarterly
Loan 3 12/31/22 02/28/23 Non-interest

bearing
Unsecured 21,218 date. As at December 31, 2022 and 2021, the carrying
The JFC Group’s outstanding provisions consist PHP-denominated
Loan 4 12/15/22 09/11/23 5.5% per Unsecured 2,000,000
value of the loan amounted to USD10.0 million
mainly of provisions for asserted claims which are annum
SGD-denominated (P557.6 million) and USD10.0 million (P510.0 million),
normal to the JFC Group’s business. These include Loan 5 12/28/22 12/28/23
SORA plus
Unsecured 124,740
spread;
quarterly respectively.
estimates of legal services, settlement amounts and
P4,376,358
USD-denominated loan of SJBF
P 510,000
other costs of claims made against the JFC Group.
Other information on the claims is not disclosed as
LIBOR – LONDON INTERBANK OFFERED RATE
Loan 2 consist of a restated short-term
SOFR – SECURED OVERNIGHT FINANCING RATE
this may prejudice the JFC Group’s position on such SORA – SINGAPORE OVERNIGHT RATE AVERAGE uncommitted line of credit agreement with a local
claims (see Note 30). bank up to an aggregate amount of USD35.0 million
USD-denominated loan of ICTL
(P1,786.8 million) signed on February 3, 2022. The
Loan 1 consist of a short-term uncommitted line of
loan is subject to variable interest rate based on
credit agreement signed on September 25, 2020 with
CME Term SOFR plus spread determined by the
a local bank up to an aggregate amount of USD10.0
bank and subject to quarterly repricing. The initial
million (P483.8 million). The loan was availed on
drawdown was availed on April 15, 2022 amounting
October 27, 2020 and is subject to variable interest

to USD10.0 million (P549.8 million). The loan is As at December 31, 2022, the carrying value of the The details of long-term debt follow:
payable in three months from drawdown date and loan amounted to P2,000.0 million.
can be rolled over until February 3, 2023, the last AVAILMENT MATURITY INTEREST
SGD-denominated loan of CBTL-SG DATE DATE RATE CONDITION 2022 2021
available date of the credit agreement. On August USD-DENOMINATED SUBSIDIARIES

Loan 5 consist of a short-term uncommitted line
30, 2022, SJBF requested to decrease the maximum October 21, October 21,
LIBOR plus
of credit agreement with a local bank up to an 1

2015 2025
spread; Unsecured P- P 2,493,334
amount for uncommitted line of credit to USD30.0 quarterly
aggregate amount of SGD13.0 million (P540.5

million (P1,531.5 million). Subsequent drawdowns of
3.0% per
November November
2 annum; Unsecured 1,572,432 1,453,500
million) signed on August 22, 2022. The loan is 29, 2016 29, 2024 annually
USD10.0 million (P586.3 million) each were made on

subject to variable interest rate based on SORA plus ROP 2121 and
July 1 and August 17, 2022. As at December 31, 2022, 3

November November ROP 2024
Unsecured - 387,600
spread of 1.5% subject to quarterly repricing. The 29, 2016 29, 2022 plus spread;
annually
the carrying value of the loan amounted to USD30.0
initial drawdown was availed on December 28, 2022
million (P1,672.8 million).
amounting to SGD3.0 million (P124.7 million). The VND-DENOMINATED SUBSIDIARIES
VND COF
VND-denominated loan of SuperFoods Group loan is payable on December 28, 2023, the maturity 4
April
3, 2017
April
1, 2022
plus spread; Unsecured - 28,088
quarterly
Loan 3 consists of a short-term loan availed on date. As at December 31, 2022, the carrying value of VND COF
February March 20,
December 31, 2022 amounting to VND9.4 billion (P21.2 the loan amounted to SGD3.0 million (P124.7 million). 5
13, 2018 2023
plus spread;
quarterly
Unsecured 19,057 106,688
million) payable on February 28, 2023, the maturity Bank’s three-

Interest expense recognized on short-term debt 6
November 15,
2018 - October
December month COF
Unsecured 145,595 305,666
date. The loan is non-interest bearing granted by 9, 2019 24, 2023 plus spread;
amounted to P59.7 million, P362.7 million and P421.8 quarterly
government policy bank to support the impact of

million for the years ended December 31, 2022, 2021
Bank’s three-
November 19 -
August 30, month COF
Covid-19 pandemic. As at December 31, 2022, the 7 December 31,
2024 plus spread; Unsecured 165,270 242,330

2020
quarterly
carrying value of the loan amounted to VND9.0 Bank’s three-

August 27,
July 26,
billion (P21.2 million). Long-term Debt 8 2020 - July 30,
2021 2026
month COF
plus spread; Unsecured 327,676 416,929
quarterly
The long-term debt consists of the following:
PHP-denominated loan of Zenith January
7, 2022- September
Bank’s three-
month COF
9 Unsecured 326,249 -
Loan 4 consists of a short-term loan availed on 2022 2021
September 26,
2022
26, 2026 plus spread;
quarterly
December 15, 2022 amounting to P2,000.0 million Principal P 16,338,349 P 22,464,134 Bank’s BLR
August 25, August 25,
10 Unsecured 207,070
payable on September 11, 2023, the maturity date.
plus spread; -
Unamortized debt issue cost (75,179) (103,957) 2022 2027 quarterly
The loan is subject to a fixed rate of 5.5% per annum. P 16,263,170 P 22,360,177

AVAILMENT MATURITY INTEREST

DATE DATE RATE CONDITION 2022
value of the loan amounted to VND138.8 billion
2021
P 16,263,170 P 22,360,177
PHP-DENOMINATED PARENT COMPANY
PDST-R2
Less current portion - net of debt issue costs of P23.7
4,671,506 4,950,565
(P327.7 million) and VND189.3 billion (P416.9 million),
December December million and P16.8 million in 2022 and 2021, respectively
11 Unsecured
respectively.
plus spread; P- P 398,400
22, 2017 22, 2022 quarterly
Noncurrent portion P 11,591,664 P 17,409,612
PDST-R2
December December
12
22, 2017 22, 2022
plus spread;
quarterly
Unsecured - 522,900
LIBOR – LONDON INTERBANK OFFERED RATE
Loan 9 consists of a 5-year unsecured loan acquired
VIOR – VIETNAM INTERBANK OFFERED RATE
PDST-R2
BVAL – BLOOMBERG VALUATION SERVICE from a local bank in Vietnam amounting to VND232.0
December December PDST-R2 – PHILIPPINE DEALING SYSTEM TREASURY - REFERENCE RATE TWO
13 plus spread; Unsecured - 199,200
22, 2017 22, 2022 quarterly billion (P519.7 million) available in tranches within
December December
PDST-R2 VND-denominated Loans of SuperFoods Group twelve (12) months from September 27, 2021, the
14 plus spread; Unsecured - 149,400
22, 2017 22, 2022 quarterly
Loan 8 consists of a 5-year unsecured loan acquired date of loan agreement. The loan is subject to a
15
March 27, March 27,
PDST-R2
plus spread; Unsecured 1,879,875 2,715,375 from a local bank in Vietnam amounting to VND232.0 variable interest rate based on the Bank’s three-
2018 2025 quarterly
billion (P484.6 million) available in tranches within month COF plus spread of 1.6%. The principal
PDST-R2
May May
16
11, 2018 11, 2025
plus spread;
quarterly
Unsecured 1,492,232 2,089,018
twelve (12) months from July 27, 2020, the date of is payable in sixteen (16) quarterly installments
PDST-R2 loan agreement. The loan is subject to a variable commencing on the 15th month from the date of
August 15, August 15,
17 plus spread; Unsecured 1,477,286 2,014,393
2018 2025 quarterly interest rate based on the Bank’s three-month agreement. Initial drawdown amounting to VND9.4
18
October 6, October 7, BVAL plus
Unsecured 3,977,000 3,971,000
COF plus spread of 1.5%. The principal is payable in billion (P21.1 million) was availed on January 7,
2021 2026 spread
sixteen (16) quarterly installments commencing on 2022. Subsequent tranches amounting to a total
the 16th month from the date of agreement. Initial of VND151.5 billion (P364.8 million) were availed in
PHP-DENOMINATED PARENT SUBSIDIARIES
drawdown amounting to VND7.2 billion (P15.0 million) January to December 2022. As at December 31, 2022,
May May BVAL plus
19 Unsecured 696,428 895,356
8, 2019 8, 2026 spread
was availed on the carrying value of the loan amounted to VND138.2
20
October October BVAL plus
Unsecured 2,982,750 2,978,250 billion (P326.2 million).
6, 2021 7, 2026 spread
August 27, 2020. Subsequent tranches amounting
21
October October
Fixed Unsecured 994,250 992,750
to a total of VND63.1 billion (P131.1 million) were Loan 10 consist of a 5-year facility agreement
6, 2021 8, 2026
availed in September to December 2020 and a total with a local bank up to an aggregate amount of
P 16,263,170 P 22,360,177
of VND133.5 billion (P283.8 million) were availed in VND114.0 billion (P285.6 million) available in tranches
2021. As at December 31, 2022 and 2021, the carrying within twelve (12) months from April 27, 2022, the

agreement date. The loan is subject to a variable documentary stamp tax, in relation to this loan. The rate based on PHP BVAL Reference Rate for three (3)
interest rate based on the Bank’s Based Lending principal is payable in equal quarterly installments months tenor plus spread of 0.75% or to an interest
Rate (BLR) plus spread of 0.7% payable quarterly. commencing on the 6th quarter from the drawdown rate floor equal to the BSP Reverse Repurchase
The principal is payable in seventeen (17) quarterly date and every quarter thereafter until maturity. The Rate. The second tranche is subject to a fixed rate of
installments commencing on the 13th month from carrying amount of the loan amounted to P3,977.0 3.9765% per annum. Zenith incurred debt issue cost
the first utilization date. Initial drawdown amounting million, net of unamortized debt issue cost of P23.0 of P22.5 million, representing documentary stamp
to VND9.6 billion (P24.1 million) was availed on million, and P3,971.0 million, net of unamortized debt tax, in relation to this loan. The principal is payable
August 25, 2022. Subsequent tranches amounting issue cost of P29.0 million, as at December 31, 2022 in equal quarterly installments commencing on
to VND78.1 billion (P 183.0 million) were availed in and 2021, respectively. the 6th quarter from the drawdown date and every
October to December 2022. As at December 31, 2022, quarter thereafter until maturity. The carrying
The Parent Company’s PHP denominated long-term
the carrying value of the loan amounted to VND87.7 amount of the loan amounted to P2,982.8 million, net
debt (Loans 11 to 18) amounted to P8,826.4 million,
billion (P207.1 million). of unamortized debt issue cost of P17.2 million, and
net of unamortized debt issue cost of P48.6 million,
P2,978.3 million, net of unamortized debt issue cost
Loans 4 to 10 are guaranteed by the Ultimate Parent and P12,059.7 million, net of unamortized debt issue
of P21.8 million, as at December 31, 2022 and 2021,
Company. cost of P70.3 million, as at December 31, 2022 and
respectively.
2021, respectively. The current portion amounted to
PHP-denominated Loans of the Parent Company
P3,030.9 million and P3,239.3 million, net of debt issue Loan 21 consists of a 5-year unsecured loan
Loan 18 consists of a 5-year unsecured loan
cost of P17.8 million and P15.7 million as at December acquired from a local bank on October 6, 2021
acquired from a local bank on October 6, 2021
31, 2022 and 2021, respectively. amounting to P1,000.0 million. The loan is subject
amounting to P4,000.0 million split into two (2)
to a fixed rate of 3.395% per annum. Zenith incurred
tranches. The first tranche is subject to a floating In 2022, loans 11 to 14 were paid upon maturity.
debt issue cost of P7.5 million, representing
rate based on PHP BVAL Reference Rate for three (3)
PHP-denominated Loan of Zenith documentary stamp tax, in relation to this loan. The
months tenor plus spread of 0.75% or to an interest
Loan 20 consists of a 5-year unsecured loan principal is payable in equal quarterly installments
rate floor equal to the BSP Reverse Repurchase
acquired from a local bank on October 6, 2021 commencing on the 6th quarter from the drawdown
Rate. The second tranche is subject to a fixed rate of
amounting to P3,000.0 million split into two (2) date and every quarter thereafter until maturity. The
3.9765% per annum. The Parent Company incurred
tranches. The first tranche is subject to a floating carrying amount of the loan amounted to P994.3
debt issue cost of P30.0 million, representing

million, net of unamortized debt issue cost of P5.8 2022 2021

a fixed interest rate. The IRS will terminate and the
P 16,338,349 P 22,464,134
million, and P992.8 million, net of unamortized debt loan will mature simultaneously on October 21, 2025.
Less debt issue costs (75,179) (103,957)
issue cost of P7.2 million, as at December 31, 2022 The JFC Group has designated the IRS as a cash flow
P 16,263,170 P 22,360,177
and 2021, respectively. hedge.
The loans are guaranteed by the Parent Company. Embedded Derivatives The IRS with a notional amount equal to the principal
Consequently, the Parent Company is subject to Certain long-term loans of the JFC Group include amount of the loan requires the JFC Group to pay
certain debt covenants which include, among provisions for an option to convert the variable fixed interest payments at 3.36% in exchange of
others, maintaining Debt-to-Equity ratio, Debt-to- interest rate into a fixed interest rate. Certain long- variable interest payments at three-month LIBOR
EBITDA ratio and Debt-to-Service Coverage Ratio. term loans are also subject to an interest rate plus spread of 1.20% from the bank throughout the
The Parent Company is in compliance with the floor. In addition, the JFC Group’s long-term loans term of the IRS on the notional amount. The IRS
applicable debt covenants as at December 31, 2022 generally provide an option to pre-pay the loan in settles quarterly on a net basis.
and 2021. full before the maturity date.
The fair value of the IRS amounted to nil and
Interest expense recognized on long-term debt The JFC Group assessed that the derivatives P12.8 million as at December 31, 2022 and 2021,
amounted to P 697.8 million, P 506.6 million and P embedded in the loan contracts need not be respectively, presented as derivative liability in the
744.1 million in 2022, 2021 and 2020, respectively (see bifurcated since they are clearly and closely related consolidated statements of financial position. The
Note 23). to the economic characteristics and risks of the terms of the IRS approximately match the terms
host loan contract and do not qualify for separate of the interest payments on the loan. Accordingly,
The future expected principal settlements of the JFC accounting as at December 31, 2022 and 2021. there is no hedge ineffectiveness to be recognized in
Group’s loans follow:
Freestanding Derivatives, Hedges and Hedge profit or loss.
2022 2021
Effectiveness Testing The IRS was terminated when Loan 1 was prepaid on
2022 P– P4,966,155
2023 4,712,007 5,190,642 On November 20, 2015, the JFC Group entered into January 20, 2022.
2024 6,146,644 6,435,397
an Interest Rate Swap (IRS) with a bank to convert
2025 3,324,027 3,771,940
2026 2,155,671 2,100,000 its exposure in the variable interest rate of Loan 1 to

Realized gain of P12.8 million and unrealized Interest expense recognized on senior debt securities the shelf registration in the Philippines of 20,000,000
gain of P128.7 million were recognized in other amounted to P1,451.1 million and P1,311.8 million in cumulative, non-voting, non-participating, non-
comprehensive income in 2022 and 2021, 2022 and 2021, respectively (see Note 23). convertible, redeemable, peso-denominated
respectively. perpetual preferred shares to be offered within a
19. EQUITY
period of three (3) years from the date of effectivity
Senior Debt Securities (Notes)
a. Preferred Stock of the registration statement and granted the Parent
On June 24, 2020, the JFC Group, through JWPL,
Company the permit to sell 8,000,000 preferred
issued a USD300.0 million (P14,994.0 million) 5.5-year On May 11, 2021, the BOD of the Parent Company
shares and an over subscription option of up to
and USD300.0 million (P14,994.0 million) 10-year Reg approved the amendment to the Seventh Article
4,000,000 preferred shares, at an offer price of P1,000
S dual tranche US dollar denominated guaranteed of the AOI of the Parent Company to reclassify
per share in two (2) series: Preferred Shares-Series
Notes with coupon rates of 4.125% and 4.750%, 20,000,000 unissued common shares, with par value
A and Series B with a dividend rate of 3.2821% and
respectively, and payable semi-annually. This was of P 1.00 per share, out of the authorized capital stock
4.2405% per annum, respectively.
listed in the Singapore Exchange Securities Trading of the Parent Company, into 20,000,000 cumulative,
Limited on June 25, 2020. non-voting, non-participating, and non-convertible On October 14, 2021, the Parent Company issued
perpetual preferred shares, with a par value of P 1.00 Preferred Shares-Series A and Series B totaling to
The proceeds from the issuance were used for
per share and the Parent Company’s plans to issue 3,000,000 shares and 9,000,000 shares, respectively.
general corporate purposes as well as fund
peso-denominated preferred shares within 2021. The The preferred shares were listed in the Philippine
initiatives of the JFC Group (see Note 10).
amount of the planned preferred shares issuance is Stock Exchange on the same day.
The JFC Group incurred debt issue cost of USD4.0 estimated at P8,000.0 million.
The total number of shareholders of the Parent
million (P200.4 million) for this transaction.
The issuance of the preferred shares was approved Company for Preferred Shares-Series A and Series B
As at December 31, 2022 and 2021, the carrying by the Parent Company’s shareholders during the is 3 and 5, respectively, as at December 31, 2022 and
value of the Notes amounted to USD597.0 million Parent Company’s annual stockholders’ meeting on 3 and 4, respectively, as at December 31, 2021.
(P33,288.3 million) and USD596.5 million (P30,426.1 June 25, 2021, and is subject to the approval of the
million), net of unamortized debt issue cost of USD3.0 Philippine SEC.
million (P167.7 million) and USD3.4 million (P173.9
On September 24, 2021, the Philippine SEC approved
million), respectively.

b. Common Stock c. Additional Paid-in-Capital d. Treasury Shares
The movements in the account are as follows: The movements in the additional paid in-capital The cost of common stock of the Parent Company
2022 2021
pertain to the difference between the exercise held in treasury of P180.5 million consists of
Authorized - P 1 par value prices of stock options exercised and the par 16,447,340 shares as at December 31, 2022 and 2021.
value of Parent Company’s shares. For the year
Reclassification to preferred shares – (20,000) e. Senior Perpetual Securities (Securities)
ended December 31, 2022 and 2021, stock options
Balance at end of year P 1,430,000 P 1,430,000
totaling 8,883,935 shares and 2,085,295 shares, The Securities amounting to USD600.0 million
Issued and subscribed: respectively, were exercised (see Note 26). This (P30,588.0 million) was issued by the JFC Group,
Issuances during the year 8,884 2,085 resulted to an additional paid-in capital amounting through JWPL, on January 23, 2020 and was listed in
Cancellation during the year (2,009) – to P1,589.0 million and P321.7 million in 2022 and 2021, the Singapore Exchange Securities Trading Limited
Balance at end of year 1,131,217 1,124,342 respectively. (SGX-ST) on January 24, 2020. The Securities confer
Subscriptions receivable – (17,178)
a right to receive a return on the Securities (the
P 1,131,217
Issuance cost for the preferred shares incurred by
P 1,107,164
“Distribution”) every Distribution Payment Date
the Parent Company charged to additional paid in
as described in the terms and conditions of the
capital amounted to P80.3 million in 2021.
Upon ratification of the January 26, 2005 resolution Securities. These distributions are payable semi-
by the BOD on March 22, 2022, the Parent Company Stock options expense, amounting to P185.0 million annually in arrears on the Distribution Payment
cancelled the subscriptions receivable totalling to and P155.5 million in 2022 and 2021, respectively, Dates of each year. The Securities offered an initial
P17.2 million; which P2.0 million pertains to common were also recognized as part of additional paid-in distribution rate of 3.9%, noncallable in five (5) years
stock and P15.2 million to additional paid-in capital. capital (see Notes 22, 26 and 27). and payable semi-annually. However, the Issuer
may, at its sole and absolute discretion, prior to any
The total number of shareholders of the Parent The Parent Company recognized deferred tax assets
Distribution Payment Date, resolve to defer payment
Company is 2,940 and 2,981 as at December 31, 2022 on MSOP and ELTIP in additional paid-in capital
of all or some of the Distribution which would
and 2021, respectively. resulting to an increase of P1.6 million and P20.5
otherwise be payable on that Distribution Payment
million in 2022 and 2021, respectively.
Date subject to exceptions enumerated in the terms
As at December 31, 2022 and 2021, total additional and conditions of the Securities. The Securities are
paid-in capital amounted to P12,091.8 million and perpetual securities in respect of which there is no
P10,331.3 million, respectively. fixed redemption date, but the Issuer may, at its
option change the status of the Securities or redeem for cash up to USD250.0 million of the outstanding Early Settlement Date at a price equal to (a) the
the same on instances defined under its terms and Securities on the official list of SGX-ST. The Tender amount of USD1,000 per USD1,000 principal amount
conditions. The Securities are unconditionally and Offer to buy back up to USD250.0 million of the of Securities plus accrued distribution (as defined
irrevocably guaranteed by the Parent Company. Securities will be funded partly from the proceeds in the Tender Offer Memorandum), plus (b) an
of the Parent Company’s issuance of 12,000,000 amount equal to USD16.25 per USD1,000 principal
The proceeds from issuance of the Securities were
preferred shares under its 20,000,000 preferred amount of Securities which constitutes the Early
partially used to refinance the short-term debt for
shares shelf registration. Tender Premium. JWPL expects to cancel such
the acquisition of CBTL while some were invested to
Securities on the same date.
bond funds (see Note 10). On October 19, 2021, in relation to the announced
Tender Offer, JWPL disclosed the following: On October 21, 2021, the settlement of the Securities
On July 23, 2020, JWPL paid the first distribution
that have been validly tendered by holders of
amounting to USD11.7 million (P577.7 million). • That, as at 4:00 PM, London time, on October 18,
Securities at the Early Tender Time, not validly
Accrued distribution due in January 2023 and 2021 (the Early Tender Time), holders of Securities
withdrawn and accepted for payment pursuant to
January 2022 amounted to USD3.9 million (P218.9 had validly tendered and not validly withdrawn
the Tender Offer, has been completed. As at Early
million) as at December 31, 2022 and USD11.7 million USD203.1 million in aggregate principal amount of
Settlement Date, USD203.1 million (P10,303.0 million)
(P590.0 million) as at December 31, 2021 (see Note Securities;
in aggregate principal amount of Securities has
16).
• The Tender Offer cap of USD250.0 million has not been repurchased and cancelled. Immediately
The Securities are treated as equity as part of non- been reached and all Securities tendered at or following the Early Settlement Date, USD396.9 million
controlling interests in the consolidated financial prior to the Early Tender Time will be accepted for in principal amount of Securities remain outstanding.
statements of the JFC Group because nothing in purchase; and,
Early Tender Premium paid by JWPL amounted to
the terms and conditions of the Securities gives rise
• As JWPL expects that the financing condition and USD3.3 million (P167.4 million).
to an obligation of the JFC Group to deliver cash or
all other conditions to the Tender Offer will be
another financial asset in the future as defined by On November 5, 2021, JWPL further disclosed that:
fully satisfied prior to October 21, 2021 (the Early
PAS 32.
Settlement Date), JWPL plans to make payment for • It has been advised that, after the Early Tender
On October 4, 2021, JWPL announced the Tender Securities validly tendered at or prior to the Early Time but at or prior to the Expiration Deadline,
Offer to the holders of the Securities to purchase Tender Time and accepted for purchase on the holders of Securities had validly tendered and

not validly withdrawn USD0.4 million in aggregate “Equity Attributable to Equity Holders of the Parent dividends are declared, cash dividends shall be as
principal amount of Securities; Company” section in the consolidated statements follows:
of financial position, resulted from the following
• The Tender Offer cap has not been reached and • Preferred Shares-Series A shall be at the fixed rate
acquisitions of non-controlling interests:
accordingly all Securities validly tendered after the of 3.2821% per annum; and,
Early Tender Time but at or prior to the Expiration
20% of Greenwich in 2006 P 168,257 • Preferred Shares-Series B shall be at the fixed rate
Deadline will be accepted for purchase; and, 15% of Belmont in 2007 375,721
of 4.2405% per annum.
40% of Adgraphix in 2010 (1,214)
• As the financing condition and all other conditions 30% of Mang Inasal in 2016 1,217,615
Cash dividends on Preferred Shares-Series A and
to the Tender Offer have been satisfied, JWPL plans 30% of HBFPPL in 2016 391,782
15% of SJBF in 2018 (347,395) Series B will be payable quarterly.
to make payment for Securities validly tendered 30% of Smashburger Long Island in 2020 95,774
after the Early Tender Time but at or prior to the 49% of Smashburger Westchester in 2020 125,800
The Parent Company’s cash dividend declarations
Expiration Deadline and accepted for purchase on P 2,026,340
November 8, 2021 at a price equal to the amount

of the USD1,000 per USD1,000 principal amount of
g. Retained Earnings
Securities plus accrued distribution. JWPL also
expects to cancel such Securities on the same The JFC Group has a cash dividend policy of
date. declaring one-third of the JFC Group’s net income
for the year as cash dividends payable to all
On November 8, 2021, JWPL accepted the purchase
common stockholders. It uses best estimate of its
of USD0.4 million (P20.2 million) and cancelled the
net income as basis for declaring cash dividends.
Securities on the same date.
Actual cash dividends per share declared as a
f. Excess of Cost over the Carrying Value of Non- percentage of the EPS are 35.9%, 31.5% and 12.4% in
controlling Interests Acquired 2022, 2021 and 2020, respectively.
The amount of excess of cost over the carrying Preferred Shares-Series A and Series B shareholders,
value of non-controlling interests acquired as at subject to the discretion of the BOD to the extent
December 31, 2022 and 2021, recognized as part of permitted by law, are entitled to dividends. If cash

for 2022, 2021 and 2020 follow: TOTAL

the entities comprising the Smashburger business
CASH DIVIDEND CASH DIVIDENDS
DECLARATION DATE RECORD DATE PAYMENT DATE PER SHARE DECLARED
in US (P4,812.8 million), including transaction costs
2021
TOTAL
in 2015, the remaining 30% minority share each in
Preferred Shares - Series A
DECLARATION DATE RECORD DATE PAYMENT DATE
CASH DIVIDEND
PER SHARE
CASH DIVIDENDS
DECLARED
Mang Inasal (P2,000.0 million) and HBFPPL (P514.9
2022 (In Thousands, except dividend per share)
December 7 December 23 January 14,
2022
P 8.21 P 24,616
million), acquisition of GSC (P8.6 million) in 2016, the
Common Shares
acquisition of additional 10% share in SuperFoods
Preferred Shares-Series B
April 19 May 5 May 19 P 1.07 P 1,185,021
Group (P2,712.7 million) in 2017, acquisition of the
December 7 December 23 January 14, P 10.60 P 95,411
November 8 November 23 December 14 1.23 1,371,074 2022 remaining 60% share in SJBF LLC (P5,735.8 million) in
P 2.30 P2,556,095 2018, acquisition of the 80% of The Coffee Bean & Tea
2020
Preferred Shares - Series A

Leaf (P17,098.7 million) in 2019, the remaining 30%
Common Shares
minority share in Smashburger Long Island (P95.8
March 14 March 29 April 18 P 8.21 P 24,616 April 7 April 27 May 22 P 0.62 P 680,528
April 19 June 22 July 14 8.21 24,616 November 9 November 24 December 14 0.68 750,562 million) in 2020 and acquisition of the 51% of Milksha
April 19 September 21 October 14 8.21 24,616
P 1.30 P 1,431,090
(P654.5 million) in 2022.
November 8 December 20 January 13, 8.21 24,616
2023
The JFC Group plans to continue to make substantial
P 32.84 P 98,464
An important part of the JFC Group’s growth strategy acquisitions in the coming years. The JFC Group
Preferred Shares - Series B is the acquisition of new businesses in the Philippines uses its cash generated from operations to finance
March 14 March 29 April 18 P 10.60 P95,411 and abroad. Examples were acquisitions of 85% these acquisitions and capital expenditures. These
April 19 June 22 July 14 10.60 95,411
of Yonghe King in 2004 in PRC (P1,200.0 million), limit the amount of cash dividends that it can
April 19 September 21 October 14 10.60 95,411
November 8 December 20 January 13, 10.60 95,411 100% of Red Ribbon in 2005 (P1,700.0 million), the declare and pay.
2023
remaining 20% minority share in Greenwich in 2006
P 42.40 P 381,644
(P384.0 million), the remaining 15% share of Yonghe On December 7, 2021, the BOD approved the release
2021 King in 2007 (P413.7 million), 100% of Hong Zhuang of previously approved appropriated retained
Common Shares Yuan restaurant chain in PRC in 2008 (P2,600.0 earnings in 2018 amounting to P20,000.0 million. On
April 8 April 26 May 12 P 0.78 P 861,054 million), 70% of Mang Inasal in 2010 (P2,976.2 million), the same day, the BOD approved the appropriation
November 8 November 23 December 14 0.89 984,025
100% of Chowking US operations in 2011 (P693.3 of P 18,700.0 million from the Parent Company’s
P 1.67 P 1,845,079
million), 40% of SJBF LLC, the parent company of unappropriated retained earnings for capital

expenditures in 2022. Consequently, appropriated NUMBER

NO. OF HOLDERS
OF SECURITIES
consideration thereof, the franchisees agree to pay set-
OF SHARES INITIAL ISSUE /
retained earnings for capital expenditures amounted REGISTERED OFFER PRICE LISTING DATE 2022 2021 up fees and monthly royalty fees equivalent to a certain
to P18,700.0 million as at December 31, 2022 and 2021. Common
shares
75,000,000 P9 July 14, 1993 2,940 2,981 percentage of the franchisees’ net sales.
The unappropriated retained earnings of the Parent Preferred The JFC Group’s franchisees pay service fees for various
shares - 3,000,000 1,000 October 14, 2021 3 3
Company is also restricted to the extent of cost Series A services, including repairs and maintenance services,
of common stock held in treasury amounting to Preferred rendered by the JFC Group’s personnel.
shares - 3,000,000 1,000 October 14, 2021 7 4
P180.5 million as at December 31, 2022 and 2021. The Series B
21. DIRECT COSTS
unappropriated retained earnings of the JFC Group
includes accumulated losses from its subsidiaries. 20. ROYALTY, SET-UP FEES AND OTHERS This account consists of:
The Parent Company’s retained earnings available This account consists of: 2022 2021 2020
Cost of Sales
for dividend declaration, computed based on 2022 2021 2020 Cost of inventories P 99,273,159 P 68,694,594 P 58,999,321
the guidelines provided in SEC Memorandum Royalty fees P 10,414,482 P 7,125,470 P 5,426,460
Personnel costs:
Salaries, wages and other 23,278,163 18,543,938 16,943,784
Circular No. 11, amounted to P25,621.1 million and Set-up fees 344,808 272,341 237,568
employee benefits
Service fees 280,007 186,817 116,580
P15,728.1 million as at December 31, 2022 and 2021, Scrap sales 132,662 84,175 103,427
Pension expense (see Note 25) 213,071 149,345 47,419
Depreciation and amortization 14,907,987 12,831,649 13,863,747
respectively. Rent income (see Notes 13 and 29) 6,971 24,394 35,771 (see Notes 12 and 29)
Delivery fees and others 666,428 1,017,112 547,328 Contracted services 8,417,982 6,358,720 6,741,864
In relation with the Securities Regulation Code, below P 11,845,358 P 8,710,309 P 6,467,134
Electricity and other utilities 5,468,598 4,030,719 4,096,589
Rent (see Note 29) 4,559,715 2,741,734 2,537,011
is the summary of the Parent Company’s track Supplies 3,364,439 2,473,970 2,260,351
record of registration of securities. The JFC Group has existing Royalty and Service Repairs and maintenance 2,576,398 1,884,213 1,934,204
Security and janitorial 1,097,320 905,246 955,561
Agreements with independent franchisees for the latter Communication 371,083 328,566 377,760
Professional fees 122,049 86,090 107,305
to operate quick service restaurant outlets under the
Representation and entertainment 90,212 61,591 81,249
“Jollibee”, “Greenwich”, “Chowking”, “Yong He King”, “Red Delivery costs, insurance and others 7,806,124 6,127,459 5,179,347
Ribbon”, “Hong Zhuang Yuan”, “Mang Inasal”, “Highlands 171,546,300 125,217,834 114,125,512
Coffee”, “Pho 24”, “Smashburger”, “The Coffee Bean & Cost of Services
Advertising expense 3,399,574 2,278,845 1,600,825
Tea Leaf” and “Milksha” concepts and trade names. In
P 174,945,874 P 127,496,679 P 115,726,337

Delivery costs, insurance and others include lease pre- 2022 2021 2020
23. INTEREST INCOME (EXPENSE) AND OTHER
termination costs amounting to P1,042.5 million in 2020. Reversals of provision for
impairment on:
INCOME (EXPENSE)
Property, plant and equipment (262,266) (390,031) (76,173)
22. GENERAL AND ADMINISTRATIVE EXPENSES (see Note 12) 2022 2021 2020
Right-of-use assets (86,960) (285,635) –

Interest income
(see Note 29)
This account consists of: Inventories (see Note 8) (49,311) (9,475) (82,354)
Cash and cash equivalents and P 258,484 P 76,968 P 114,824
short-term investments (see Note 6)
Receivables (see Note 7) (4,136) (54,215) –
2022 2021 2020 Loans and advances (see Note 11) 57,799 51,949 69,921
Insurance 170,830 113,990 101,232
Accretion of:
Personnel costs: Supplies 148,959 103,562 102,590
Interest on security and other 22,455 32,913 35,927
Salaries, wages and other P 11,517,320 P 8,994,529 P 10,692,405 Donations 97,912 54,155 260,726 deposits and employee car
employee benefits
Training 94,662 59,712 107,775 plan receivables (see Note 15)
Stock options expense 185,016 155,539 188,290
Corporate events 88,782 32,911 230,880 Lease receivables (see Note 29) 2,451 3,065 5,944
(see Notes 19, 26 and 27)
Representation and entertainment 54,640 49,873 43,188 Financial assets at FVTPL (see Note 10) – 72 –
Pension expense (see Note 25) 254,511 168,963 48,156
Taxes and licenses 2,075,552 1,571,662 1,403,482 Electricity and other utilities 47,318 39,293 46,280
P 341,189 P 164,967 P226,616
Professional fees 1,377,184 1,143,571 1,432,451 Association dues 37,041 46,224 42,179
Contracted services 915,596 718,561 1,252,357 Security and janitorial 9,046 11,667 11,970
Depreciation and amortization 690,604 650,616 704,993 Research and development 1,536,679 1,219,560 1,496,414 2022 2021 2020
(see Notes 12, 14, 15 and 29) and others
Interest expense
Impairment in value of:
P 22,905,918 P 16,473,091 P 23,754,221 Financing:
Trademark (see Note 14) 463,101 – –
Senior debt securities (P 1,451,063) (P 1,311,814) (P 682,448)
Receivables (see Note 7) 415,412 210,870 281,866
(see Note 18)
Inventories (see Note 8) 274,297 23,721 332,505
Research and development and others include Long-term debt (see Note 18) (697,794) (506,637) (744,050)
Other current assets (Note 9) 121,458 – –
Short-term debt (see Note 18) (59,714) (362,722) (421,779)
Property, plant and equipment 107,900 44,392 1,185,512 costs (gain) on lease pre-termination and
(see Note 12)
Operating lease receivables – 8,046 –
derecognition of unfavorable leases amounting to (2,208,571) (2,181,173) (1,848,277)
(see Note 29)

P332.5 million and (P233.1 million), respectively, in Accretion of:
Right-of-use assets – – 661,365 Lease liabilities (see Note 29) (2,559,104) (1,963,848) (1,938,530)
(see Note 29) 2020. Customer deposits (1,057) (728) (845)
Membership and subscriptions 505,405 390,963 275,785 (see Note 16)
Rent (see Note 29) 498,368 427,127 492,322
Transportation and travel 492,698 336,597 412,146 (2,560,161) (1,964,576) (1,939,375)
Repairs and maintenance 491,157 348,499 313,263
(P 4,768,732) (P 4,145,749) (P 3,787,652)
Loss on retirements and disposals 363,148 54,560 1,489,155
of property, plant and equipment,
investment properties and intangibles
(see Notes 12, 13 and 14)
Communication 273,995 233,284 303,461

2022 2021
Deferred tax assets:
Lease liabilities P 8,998,337 P 5,930,795
2022 2021 2020
24. INCOME TAXES NOLCO:
Other income (expense) USA-based entities 3,496,122 2,530,684
Gain on land conveyance and P4,896,610 P- P- The JFC Group’s provision for current income tax Hungary 772,564 –
disposals (see Notes 9, 11 and 12)
Write-off of liabilities 1,922,502 2,824,015 2,102,109 consists of the following: PRC-based entities 557,617 314,151
Europe-based entities 35,703 36,280
Marked-to-market gain (loss) on (1,053,738 196,986 1,317,728
financial assets at FVTPL (see Note 10) 2022 2021 2020 Singapore 15,866 –
Bank charges (668,454) (470,620) (542,884) Philippine-based entities ¬– 534,907

Final tax withheld on:
Rebates, suppliers’ incentives and 476,663 462,791 600,593 Pension liability and other benefits 442,462 585,158
Royalty income P 1,990,974 P 1,351,070 P 1,039,849
government subsidies Accumulated impairment loss in value of receivables, 363,068 272,010
Interest income 34,847 2,596 6,055 inventories, property, plant and equipment and other
Gain on pre-termination of lease 166,816 268,615 886,339
agreements (see Note 29) RCIT: nonfinancial assets
Foreign exchange gain (loss) - net 43,967 41,147 (142,364) With itemized deduction 1,263,492 620,936 239,481 Accrued benefit liability and bonus 265,720 248,817
Penalties and charges 29,843 35,042 47,137 With Optional Standard 54,762 46,154 6,288 Provision 146,114 47,172
Deduction (OSD) Unrealized foreign exchange loss 145,326 28,714
Other rentals 29,452 9,723 18,453
MCIT 62,104 8,608 254,946 Accrued expenses of USA-based entities 138,319 1,293,241
Charges to franchisees 6,229 4,606 6,954
Capital gains 108,561 – – Capital allowance 116,619 –
Gain from disposal of club share 3,500 – –
(see Note 10) MSOP and ELTIP 91,312 126,771
P 3,514,740 P 2,029,364 P 1,546,619
Reversal of (provisions for) business (565,664) 291,110 (501,637) Excess of MCIT over RCIT 50,167 462,557
transformation and contingencies Unaccreted discount on security deposits and 23,589 27,068
(see Note 17) employee car plan receivables
Insurance claims and others 381,984 229,603 368,749 RCIT consists of corporate income taxes from the JFC Unamortized past service costs 3,579 4,273
P 5,669,710 P 3,893,018 P 4,161,177

Group’s operations in the Philippines, PRC, USA, Vietnam, Others 67,084 60,716
and Singapore. 15,729,568 12,503,314
In the normal course of business, the JFC Group accrues Deferred tax liabilities:
For the years ended December 31, 2022 and 2021,
liabilities based on management’s best estimate of Right-of-use assets 7,731,681 4,970,541
Grandworth, a wholly-owned subsidiary, elected to use Excess of fair value over book value of 1,582,444 493,028
costs incurred, particularly in cases when the JFC Group identifiable assets of acquired businesses
OSD in computing for its taxable income. The net tax Operating lease receivables 189,899 22,365
has not yet received final billings from suppliers and
benefit from the availment of OSD amounted to P31.7 Unrealized foreign exchange gain 152,908 93,184
vendors. There are also ongoing negotiations and Deferred rent expense 16,635 13,748
million and P28.9 million in 2022 and 2021, respectively. Prepaid rent 14,025 13,954
reconciliations with suppliers and vendors on certain Unaccreted discount on employee car plan 12,386 18,891
liabilities recorded. These balances are continuously The components of the JFC Group’s recognized net receivables and security deposits
Unrealized gain on change in fair value of 2,748 2,748
reviewed by management and are adjusted based on deferred tax assets as at December 31 follow: financial assets at FVTPL
these reviews, resulting to write-off of certain liabilities 9,702,726 5,628,459
as other income. P6,026,842 P 6,874,855

The components of the JFC Group’s recognized net The rollforward analysis of the net deferred tax assets are recognized only to the extent of their future tax
deferred tax liabilities as at December 31 follow: and liabilities of the JFC Group follows: consequence under the OSD method. Hence, the
2022 2021 2022 2021
tax base of these deferred tax assets and liabilities is
Deferred tax assets: Balance at beginning of year P 3,446,142 P 2,258,805 reduced by the 40% allowable deduction provided for
Lease liabilities P 2,554,306 P 3,816,017 Income tax effect to profit or loss (334,367) 1,387,929
under the OSD method.
NOLCO: Income tax effect arising from business acquisition (172,181 –
USA-based entity 28,554 - (see Note 11)
Hungary-based entity - 571,472 Income tax effect of remeasurements of net (149,153) (168,037) Accordingly, the JFC Group’s deferred tax assets and
defined benefit plan
Asia-based entities - 8,453
Tax effect of MSOP and ELTIP 1,595 20,488
liabilities, which were not recognized due to the use of
Capital allowance - 69,416
Accrued expenses 79,752 19,620
Translation adjustments (118,202) (53,043) the OSD method, are as follows:
Pension liability and other benefits 25,465 31,105 Balance at end of year P 2,673,834 P 3,446,142 2022 2021
Allowance for impairment loss on receivables, 20,010 60,862
inventories and property, plant and equipment Deferred tax assets:
Accrued bonus 10,685 1,521
OSD Allowance for impairment loss on receivables and P 4,449 P 4,244
MSOP and ELTIP 3,710 4,297 nonfinancial assets
Unaccreted discount on security deposits and 399 284 The availment of the OSD method also affected Lease liabilities 3,497 6,257
employee car plan receivables Unaccreted discount on financial instruments 33 40
Unamortized past service costs 178 225
the recognition of several deferred tax assets and and others
Unrealized foreign exchange loss 8 - liabilities. Deferred tax assets and liabilities, for which Customer deposits 5 6,257
2,723,067 4,583,272 the related income and expense are not considered in 7,984 16,798
Deferred tax liabilities: determining gross income for income tax purposes, are Deferred tax liabilities:
Operating lease receivables 4,047 8,656
Excess of fair value over book value of 3,668,255 4,353,549 not recognized. This is because the manner by which
identifiable assets of acquired businesses Others 52 123
Right-of-use assets 2,401,074 3,658,010 the JFC Group expects to recover or settle the underlying
Finance lease receivables 6,070 – 4,099 8,779
assets and liabilities, for which the deferred tax assets
Unaccreted discount on employee car plan 676 409
Deferred tax assets - net P 3,885 P 8,019
receivables, security and product security and liabilities were initially recognized, would not result
deposits
Unrealized foreign exchange gain – 17 to any future tax consequence under the OSD method.
As at December 31, 2022, NOLCO and excess of MCIT
6,076,075 8,011,985 Meanwhile, deferred tax assets and liabilities, for which
over RCIT of the Philippine-based entities that can
Deferred tax liabilities - net P 3,353,008 P 3,428,713
the related income and expense are considered in
be claimed as deductions from taxable income and
determining gross income for income tax purposes,

income tax due, respectively, are as follows: newspaper of general circulation on April 11, 2021. Applying the provisions of the CREATE Act, the JFC Group
has been subjected to the lower RCIT rate of 25% of
CARRYFORWARD EXCESS OF MCIT
The following are the key changes to the Philippine tax
YEAR INCURRED / PAID BENEFIT UP TO NOLCO OVER RCIT
taxable income or the reduced MCIT rate of 1% of gross
2021 December 31, 2026 P– P 72,657 law pursuant to the CREATE Act which have an impact to
2020 December 31, 2025 2,203,561 170,394
income, effective July 1, 2020. Likewise, the impact on
the JFC Group:
2019 December 31, 2022 – 218,970 the December 31, 2020 consolidated balances had the
2,203,561 462,021 • Effective July 1, 2020, regular corporate income tax CREATE Act been substantially enacted as of then, that
Utilized during the year (2,203,561) (411,854)
(RCIT) rate is reduced from 30% to 25% for domestic were adjusted in 2021, are as follows:
P- P 50,167
and resident foreign corporations. For domestic
Consolidated Statement of Financial Position
corporations with net taxable income not exceeding
On September 30, 2020, the BIR issued Revenue
P 5 million and with total assets not exceeding P 100 AMOUNT IN MILLIONS INCREASE (DECREASE)
Regulations No. 25-2020 implementing Section 4(bbbb)
million (excluding land on which the business entity’s Prepaid taxes P 59.9
of “Bayanihan to Recover As One Act” which states that Deferred tax assets (1,089.6)
office, plant and equipment are situated) during the
Income tax payable
the NOLCO incurred for taxable years 2020 and 2021 can (8.8)
taxable year, the RCIT rate is reduced to 20%. Deferred tax liabilities (530.6)
be carried over and claimed as a deduction from gross Remeasurement loss on net defined benefit plan 59.4
income for the next five (5) consecutive taxable years • MCIT rate reduced from 2% to 1% of gross income Additional paid-in capital 0.4
immediately following the year of such loss. effective July 1, 2020 to June 30, 2023.
Consolidated Statement of Comprehensive Income
President Rodrigo Duterte signed into law on March • Imposition of improperly accumulated earnings tax
AMOUNT IN MILLIONS INCREASE (DECREASE)
26, 2021 the Corporate Recovery and Tax Incentives for (IAET) is repealed. Provision for current income tax (P 68.7)
Provision for deferred income tax 499.1
Enterprises (CREATE) Act to attract more investments
• For investments prior to effectivity of CREATE - Other comprehensive income 59.4
and maintain fiscal prudence and stability in the Net income attributable to equity holders of the Parent Company (423.1)
Philippines. Republic Act (RA) 11534 or the CREATE Act • Registered business enterprises granted only an Net income attributable to non-controlling interests (7.3)
introduces reforms to the corporate income tax and income tax holiday (ITH) – can continue with the
As at December 31, 2022 and 2021, the component of
incentives systems. It took effect 15 days after its availment of the ITH for the remaining year of the
deferred tax assets of the Philippine-based subsidiaries
complete publication in the Official Gazette or in a ITH.
which were not recognized as it is not probable that

taxable income will be sufficient against which they can Taxation No. 8 of 2020, the maximum carryforward year YEAR INCURRED TAX LOSSES
DEFERRED
TAX AT 19%
be utilized are as follows: for losses incurred by enterprises in difficult industries 2020 P 176,358 P 33,508
2022 2021
greatly affected by the pandemic in 2020 is extended 2018 14,589 2,772
NOLCO P 2,105,914 P 2,460,247 from five (5) years to eight (8) years. 190,947 36,280
Translation adjustments (3,036) (577)
Excess MCIT over RCIT 150,530 221,201
Contract liability on set-up fees 66,938 29,394 As at December 31, 2022, NOLCO of the USA-based P 187,911 P 35,703
P 2,323,382 P 3,171,837 entities that can be claimed as deductions from taxable

income are as follows: NOLCO of Europe-based entities has no prescription.
The PRC enterprise income tax law provides that income DEFERRED
The following are the movements in deferred tax assets
tax rates are unified at 25%. As at December 31, 2022, YEAR INCURRED TAX LOSSES TAX AT 21%
2022 P1,966,000 P 412,860 on NOLCO of the JFC Group:

NOLCO of the PRC-based entities that can be claimed 2021 2,583,181 542,468
as deductions from taxable income are as follows: 2020 4,437,881 931,955 2022 2021
2019 3,877,686 814,314 Balance at beginning of year P 3,995,947 P 2,771,280

CARRYFORWARD DEFERRED 2018 1,093,819 229,702 Additions 1,256,110 1,792,330
YEAR INCURRED / PAID BENEFIT UP TO TAX LOSSES TAX AT 25%
2017 940,933 197,596 Utilization during the year (592,389) (484,870)
2022 December 31, 2027 P 1,125,668 P 281,417 2016 852,671 179,061 Write-off and expirations (40,636) (23,267)
2021 December 31, 2026 156,844 39,211 2015 104,510 21,947 Change in tax rate due to the CREATE Act – (177,601)
2020 December 31, 2028 956,072 239,018
15,856,681 3,329,903
2019 December 31, 2024 59,900 14,975
Utilization (197,262) (41,425)
2018 December 31, 2023 44,564 11,141 P 4,906,426 P 3,995,947
Translation adjustments 1,124,752 236,198
2017 December 31, 2022 39,216 9,804
P 16,784,171 P 3,524,676
2,382,264 595,566 The following are the movements in deferred tax assets
Utilization (296) (74)
Write-off and expirations (162,544) (40,636) on Excess of MCIT over RCIT of the JFC Group:
NOLCO of USA-based entities has no prescription
2022 2021
effective taxable year 2018. The 2015, 2016 and 2017
P 2,230,468 P 557,617
NOLCO will expire in 2035, 2036 and 2037, respectively. Additions – 91,853
Utilization during the year (412,390) –
As provided in Article 4 of the Announcement of the As at December 31, 2022, NOLCO of the Europe-based Change in tax rate due to the CREATE Act – (40,628)
Ministry of Finance and the State Administration of entities that can be claimed as deductions from taxable P 50,167 P 462,557
income are as follows:

The net change in deferred tax liabilities recognized in Provision for current income tax of foreign entities Under the existing regulatory framework, Republic Act No.
equity amounted to (P149.2 million), (P168.0 million) and operating in the US, PRC, Vietnam and Singapore 7641 requires a provision for retirement pay to qualified
P165.3 million in 2022, 2021 and 2020, respectively. amounted to P10.1 million, P29.2 million, P188.4 million private sector employees in the absence of any retirement
and P13.1 million, respectively, for the year ended plan in the entity, provided however that the employees’
The reconciliation of provision for income tax computed
December 31, 2022 and P82.3 million, P56.0 million, retirement benefits under any collective bargaining and
at the statutory income tax rates to provision for
nil and P44.1 million, respectively, for the year ended other agreements shall not be less than those provided
income tax as shown in the consolidated statements of
December 31, 2021. under the law. The law does not require minimum funding of
comprehensive income are as follows:
the plan.
2022 2021 2020
25. PENSION LIABILITY
The following tables summarize the components of pension
Provision for income tax at statutory P 2,796,900 P 1,535,856 (P 3,987,789)
Defined Benefit Plan
income tax rate
expense, included under “Cost of sales” and “General and
Income tax effects of: The Parent Company and certain Philippine-based
Effect of different tax rates for (552,269) – 662 administrative expenses” accounts in the consolidated
capital gains tax subsidiaries have funded, independently-administered,
(402,485)
statements of comprehensive income and pension liability in
Effect of different tax rate for
royalty and interest income
(338,226) (522,090)
non-contributory defined benefit pension plan covering
the consolidated statements of financial position, which are
Expired/written off NOLCO and 203,610 67,291 384,502 all permanent employees.
excess of MCIT over RCIT based on actuarial valuations.
Net movement in unrecognized (144,712) 45,452 2,174,421
DTA The benefits are based on the employees’ projected
109,128
Nondeductible expenses 37,236 584,378
salaries and number of years of service.
Intrinsic value of stock options (101,731) (8,412) (128,436)
exercised
Nontaxable income (40,062) (30,000) (27,000) The funds are administered by trustee banks. Subject to
37,591
Tax effect of MSOP and ELTIP (25,096) 126,790
the specific instructions provided in writing, the Parent
Difference between OSD and (31,732) (28,865) (2,041)
itemized deductions Company and certain Philippine-based subsidiaries
Change in tax rate – 354,403 –
Effect of different tax rates for 2,047,381 (968,204) 737,596
direct the trustee banks to hold, invest and reinvest the
international operations and
others
funds and keep the same invested, in its sole discretion,
P 3,849,107 P 641,435 (P 659,007)
without distinction between principal and income in,
but not limited to, certain cash and other short-term
deposits, investments in government and corporate
debt securities and quoted equity securities.

Changes in pension liability of the JFC Group in 2022 are Changes in pension liability of the JFC Group in 2021 are The following table presents the carrying amounts,
as follows: as follows: which approximate the estimated fair values, of the
PRESENT VALUE OF PRESENT VALUE OF
DEFINED BENEFIT FAIR VALUE OF PENSION DEFINED BENEFIT FAIR VALUE OF PENSION assets of the plan:
OBLIGATION PLAN ASSETS LIABILITY OBLIGATION PLAN ASSETS LIABILITY
At January 1, 2022 P 4,421,591 P 2,005,126 P 2,416,465 At January 1, 2021 P 4,711,002 P 1,793,502 P 2,917,500 2022 2021
Opening balance adjustment (5,381) - (5,381) Cash and cash equivalents P 227,737 P 30,507
Pension expense
(see Notes 21 and 22): Investments in government and corporate 1,572,503 1,843,471
Pension expense debt securities
Current service cost 345,434 – 345,434 (see Notes 21 and 22):
Investments in quoted equity securities:
Net interest 219,146 99,560 119,586 Current service cost 375,120 – 375,120
Holding firms 235,147 238,751
Settlement loss 2,562 – 2,562 Net interest 165,211 65,625 99,586
Banks 135,912 144,834
Past service cost (50,574) – (50,574)
567,142 99,560 467,582 Property 135,555 174,253
Settlement gain (105,824) – (105,824)
Food and beverage 67,752 61,452
Benefits paid (237,288) (237,288) - Electricity, energy, power and water 49,203 52,377
383,933 65,625 318,308
Settlement paid (20,230) (19,277) (953) Telecommunications 46,310 74,348
Benefits paid (138,167) (143,122) 4,955 Transportation 41,960 45,118
Remeasurements in other Others 23,274 19,912
comprehensive income: Settlement paid (50,873) (45,918) (4,955)
Interest and dividends receivable 22,133 18,339
Return on plan assets - (165,613) 165,613
Remeasurements in other Fund liabilities (see Notes 7 and 27) (491,485) (698,236)
(excluding amount
comprehensive income:
included in net interest)
Return on plan assets – (50,580) 50,580 P 2,066,001 P 2,005,126
Actuarial changes (693,781) - (693,781)
(excluding amount
arising from changes in
included in net interest)
financial assumptions
Actuarial changes (577,221) – (577,221)
Actuarial changes due 66,058 - 66,058
to experience
arising from changes in The plan assets consist of the following:
financial assumptions
adjustment
Actuarial changes due 130,600 – 130,600
Actuarial changes (134,503) - (134,503)
to experience • Investments in debt securities consist of long-term
due to demographic
adjustment
adjustment
Actuarial changes (32,302) – (32,302)
corporate bonds in the property sector, which bear
(762,226) (165,613) (596,613) due to demographic
adjustment
interest ranging from 4.34%-6.54% maturing from May
Contributions - 383,493 (383,493) 2024 to April 2032.
(478,923) (50,580) (428,343)
Transferred out-net (11,686) - (11,686)
Contributions - 385,619 (385,619) • Investments in government securities consist of
At December 31, 2022 P 3,957,303 P 2,066,001 P 1,891,302
At December 31, 2021 P 4,421,591 P 2,005,126 P 2,416,465 retail treasury bonds that bear interest ranging from
2.65%-6.25% and have maturities from March 2024
The maximum economic benefit available is a to October 2037 and fixed-rate treasury notes that
combination of expected refunds from the plan and
reductions in future contributions.
bear interest ranging from 3.38%-11.70% and have year, assuming all other assumptions were held subsidiaries ensure that there will be sufficient assets
maturities from February 2023 to November 2042. constant: to pay the retirement benefits as they fall due while
PHILIPPINE PLAN
INCREASE
attempting to mitigate the various risks of the plans.
• Investments in equity securities consist of (DECREASE) 2022 2021
Discount rates +0.50% (P 430,617) (P 693,183)

investments in listed equity securities, including -0.50% 770,593 801,562
The plan assets are primarily exposed to financial risks
equity securities of the Parent Company, for certain such as liquidity risk and price risk. Liquidity risk pertains
Future salary increases +0.50% 777,232 798,337
retirement plans of the JFC Group (see Note 27). -0.50% (455,090) (715,557)
to the plans’ ability to meet obligation to the employees
upon retirement. To effectively manage liquidity risk,
• Other financial assets held by the retirement plan are
the trustee banks maintain assets in cash and short-
primarily accrued interest income on cash and cash Shown below is the maturity analysis of the un-
term deposits. Price risk pertains mainly to fluctuation
equivalents, debt instruments and other securities. discounted benefit payments as at December 31:
in market prices of the retirement funds’ marketable
Pension expense as well as the present value of securities. In order to effectively manage price risk, the
2022 2021
the pension liability are determined using actuarial Less than 1 year P 943,135 P 765,404
trustee banks continuously assess these risks by closely
valuations. The actuarial valuation involves making More than 1 year to 5 years 1,451,423 1,451,480 monitoring the market value of the securities and
More than 5 years to 10 years 2,351,784 2,176,459
various assumptions. The principal assumptions used More than 10 years to 15 years 3,107,963 2,867,018 implementing prudent investment strategies.
in determining pension expense and liability for the More than 15 years to 20 years 3,731,237 3,367,326
More than 20 years 9,127,038 8,514,005 The Parent Company and certain Philippine-based
defined benefit plans are shown below:
subsidiaries contributed P 383.5 million to the defined
DECEMBER 31, 2022 DECEMBER 31, 2021
The Parent Company and certain Philippine-based benefit pension plans in 2022.
Discount rate 3.7% – 7.3% 3.7% – 5.2%
Salary increase rate 6.00% 6.00% subsidiaries do not have a formal asset-liability The average duration of the defined benefit obligation is
matching strategy. The overall investment policy and 10 years as at December 31, 2022 and 2021.
The sensitivity analysis below has been determined strategy of the retirement plans is based on the client
based on reasonably possible changes of each suitability assessment, as provided by trustee banks, in Defined Contribution Plan
significant assumption on the present value of the compliance with the BSP requirements. Nevertheless, The employees of the PRC-domiciled subsidiaries of the
defined benefit obligation as at the end of the reporting the Parent Company and certain Philippine-based JFC Group are members of a state-managed pension

benefit scheme operated by the national government. The Plan is divided into two programs, namely, the the date of grant for the 1st up to the 7th MSOP cycle.
These subsidiaries are required to contribute a specified Management Stock Option Program (MSOP) and the Starting with the 8th MSOP cycle, the exercise price
percentage of their payroll costs to the pension benefit Executive Long-term Incentive Program (ELTIP). The of the option is determined by the JFC Group with
scheme to fund the benefits. The only obligation of MSOP provides a yearly stock option grant program reference to the market closing price at date of grant.
these subsidiaries with respect to the pension benefit based on company and individual performance while
The options will vest at the rate of one-third of the
scheme is to make the specified contributions. Pension the ELTIP provides stock ownership as an incentive to
total options granted from the start of the grant date
expense under the defined contribution plan amounted reinforce entrepreneurial and long-term ownership
on each anniversary date which will start after a year
to P445.0 million and P447.1 million in 2022 and 2021, behavior of executive participants.
from the grant date. For instance, under the 1st MSOP
respectively
MSOP cycle, the Compensation Committee of the JFC Group
26. STOCK OPTIONS PLAN The MSOP is a yearly stock option grant program open granted 2,385,000 options to eligible participants
to members of the senior management committee on July 1, 2004. One-third of the options granted, or
Senior Management Stock Option and Incentive Plan
of the JFC Group and members of the management 795,000 options, vested and may be exercised starting
On January 10, 2017 and December 17, 2002, the SEC
committee, key talents and designated consultants of July 1, 2005. The exercise period for the 1st MSOP cycle
approved the exemption requested by the JFC Group
some of the business units. was until June 30, 2012. From July 1, 2005 to August 10,
on the registration requirements of 31,500,000 and
2022, the Compensation Committee granted series
101,500,000 options, respectively, underlying the Parent Each MSOP cycle refers to the period commencing on
of MSOP grants under the 2nd to 19th MSOP cycle to
Company’s common shares to be issued pursuant to the MSOP grant date and ending on the last day of the
eligible participants. Under the most recent grant on
the JFC Group’s Senior Management Stock Option and MSOP exercise period. Vesting is conditional on the
August 10, 2022, the 19th MSOP cycle, the Compensation
Incentive Plan (the Plan). The Plan covers selected employment of the employee-participants in the JFC
Committee granted 4,324,884 options. These options
key members of management of the JFC Group and Group within the vesting period. The options will vest
vest similar to the 1st MSOP cycle.
designated affiliated entities. at the rate of one-third of the total options granted on
each anniversary of the MSOP grant date until the third The options under MSOP expire eight years after grant
On December 23, 2022, the Philippine SEC approved the
anniversary. date. The 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th and
registration of up to 136,000,000 common shares with a
11th MSOP cycles expired in 2012, 2013, 2014, 2015, 2016,
par value of P 1.00 per share to be issued at P 167.20 to P The exercise price of the stock options is determined by
2017, 2018, 2019, 2020, 2021 and 2022, respectively.
216.80 per share to eligible participants of the Company the JFC Group with reference to the prevailing market
pursuant to the Plan. prices over the three months immediately preceding The JFC Group does not pay cash as a form of
settlement.
The movements in the number of stock options outstanding under MSOP and related The inputs in the valuation of the options granted on the dates of grant for each MSOP
weighted average exercise prices (WAEP) in 2022, 2021 and 2020 follow: cycle are shown below:
EXPECTED RISK-FREE EXPECTED LIFE STOCK PRICE EXERCISE

2022 2021 2020 MSOP CYCLE YEAR OF GRANT DIVIDEND YIELD VOLATILITY INTEREST RATE OF THE OPTION ON GRANT DATE PRICE
NUMBER OF NUMBER OF NUMBER OF 1st 2004 1.72% 36.91% 6.20% 5-7 years P 24.00 P 20.00
OPTIONS WAEP OPTIONS WAEP OPTIONS WAEP
2nd 2005 1.72% 36.91% 6.20% 5-7 years 29.00 27.50
Total options granted at beginning 61,141,454 P 122.96 56,922,204 P 118.03 52,715,144 P 116.43 3rd 2006 1.72% 36.91% 6.20% 5-7 years 35.00 32.32
of year 4th 2007 1.70% 28.06% 6.41% 3-4 years 52.50 50.77
Options granted during the year 4,324,884 218.00 4,219,250 189.60 4,207,060 138.00 5th 2008 1.80% 26.79% 8.38% 3-4 years 34.00 39.85
6th 2009 2.00% 30.37% 5.28% 3-4 years 48.00 45.45
Total options granted at end of year 65,466,338 P 129.24 61,141,454 P 122.96 56,922,204 P 118.03 7th 2010 2.00% 29.72% 5.25% 3-4 years 70.00 57.77
8th 2011 2.00% 34.53% 4.18% 3-4 years 89.90 89.90
Outstanding at beginning of year 20,984,985 P 194.51 19,415,930 P 191.22 17,905,148 P 200.38
9th 2012 2.00% 28.72% 3.50% 3-4 years 107.90 107.90
Options granted during the year 4,324,884 218.00 4,219,250 189.60 4,207,060 138.00
10th 2013 2.00% 29.38% 2.68% 3-4 years 145.00 145.00
Options exercised during the year (5,886,568) 180.01 (2,031,961) 154.66 (1,223,364) 112.70
11th 2014 2.00% 24.87% 2.64% 3-4 years 179.80 179.80
Options forfeited during the year (2,177,142) 189.61 (618,234) 188.72 (1,472,914) 215.80
12th 2015 2.00% 18.94% 2.98% 3-4 years 180.00 180.00
13th 2016 2.00% 17.76% 2.63% 3-4 years 236.00 236.00
Outstanding at end of year 17,246,159 P 205.97 20,984,985 P 194.51 19,415,930 P 191.22
14th 2017 2.00% 16.70% 3.92% 3-4 years 206.20 206.20
Exercisable at end of year 8,706,088 P 216.22 13,220,262 P 206.69 12,624,653 P 201.00 15th 2018 2.00% 28.98% 4.95% 3-4 years 245.00 245.00
16th 2019 2.00% 27.65% 4.18% 3-4 years 219.00 219.00
17th 2020 2.00% 35.17% 2.40% 3-4 years 138.00 138.00
The weighted average share price of the Parent Company’s common shares is P228.53, 18th 2021 1.70% 36.19% 2.29% 3-4 years 189.60 189.60
19th 2022 1.70% 37.18% 4.92% 3-4 years 218.00 218.00
P200.38 and P147.16 in 2022, 2021 and 2020, respectively. The weighted average
remaining contractual life for the stock options outstanding is 5.14 years, 4.73 years and
4.70 years as at December 31, 2022, 2021 and 2020, respectively. The expected life of the stock options is based on historical data and current
expectations and is not necessarily indicative of exercise patterns that may occur.
The weighted average fair value of stock options granted in 2022, 2021 and 2020 is
The expected volatility reflects the assumption that the historical volatility over a
P64.50, P48.71 and P33.84, respectively. The fair value of share options as at the date of
period similar to the life of the options is indicative of future trends, which may also not
grant is estimated using the Black-Scholes Option Pricing Model, taking into account, the
necessarily be the actual outcome.
terms and conditions upon which the options were granted. The option style used for
this plan is the American style because the option plan allows exercise before the expiry
date.

ELTIP The exercise price of the stock options under ELTIP minimum hurdle rate of 10% of annual growth of the EPS
The ELTIP entitlement is given to members of the senior is determined by the JFC Group with reference to due to the impact of the COVID-19 pandemic to JFC
management committee and designated consultants the prevailing market prices over the three months Group’s business performance in 2020.
of the JFC Group. immediately preceding the date of entitlement for the
The JFC Group does not pay cash as a form of
first and second ELTIP cycles. Starting with the 3rd ELTIP
Each ELTIP cycle refers to the period commencing on settlement.
cycle, the exercise price of the option is determined by
the ELTIP entitlement date and ending on the last day
the JFC Group with reference to the closing market price
of the ELTIP exercise year. Actual grant and vesting
as at the date of entitlement.
are conditional upon achievement of the JFC Group’s
medium to long-term goals and individual targets in The options will vest at the rate of one-third of the total
a given period, and the employment of the employee- options granted on each anniversary date which will
participants in the JFC Group within the vesting period. start after the goals are achieved. For instance, on
If the goals are achieved, the options will be granted. July 1, 2004, the Compensation Committee gave an
For the 3rd ELTIP cycle, a percentage of the options to entitlement of 22,750,000 options under the 1st ELTIP
be granted are based on the percentage of growth in cycle to eligible participants. One-third of the options
annual earnings per share such that 100%, 50% or 25% granted, or 7,583,333 options, vested and were exercised
of the options granted when percentage of growth in starting July 1, 2007 until June 30, 2012. On July 1, 2008,
annual earnings per share are 12% and above, 10% to October 19, 2012, August 25, 2015 and January 3, 2018,
less than 12% or 8% to less than 10%, respectively. For entitlement to 20,399,999, 24,350,000, 11,470,000 and
the 4th ELTIP cycle, the percentage of the options to 9,290,000 options were given to eligible participants
be granted and the targeted percentage of growth in under the 2nd, 3rd, 4th, and 5th ELTIP cycles, respectively.
annual earnings per share have been further revised The 1st, 2nd, and 3rd ELTIP cycles expired on June 30,
such that 150%, 100% or 50% of the options granted when 2012, April 30, 2017, and April 30, 2020, respectively. The
percentage of growth in annual earnings per share are stock options granted under the 4th ELTIP cycle will
15% and above, 12% to less than 15% or 10% to less than expire in 2023. The 5th ELTIP cycle was not granted to
12%, respectively. ELTIP participants as the JFC Group did not achieve the

The movements in the number of stock options outstanding for the 3rd to 4th ELTIP cycles The inputs to the model used for the options granted on the dates of grant for each ELTIP
and related WAEP 2022, 2021 and 2020 follow: cycle are shown below:
EXPECTED RISK-FREE EXPECTED LIFE STOCK PRICE EXERCISE
2022 2021 2020 ELTIP CYCLE YEAR OF GRANT DIVIDEND YIELD VOLATILITY INTEREST RATE OF THE OPTION ON GRANT DATE PRICE
1st 2004 1.72% 36.91% 6.20% 5 years P 24.00 P 20.00

NUMBER OF NUMBER OF NUMBER OF
OPTIONS WAEP OPTIONS WAEP OPTIONS WAEP 2nd 2008 1.80% 26.79% 8.38% 3-4 years 34.00 39.85
3rd 2012 2.00% 28.74% 3.60% 3-4 years 105.00 105.00
Total options granted at beginning 78,969,999 P 74.58 78,969,999 P 74.58 78,969,999 P 74.58
and end of year 4th 2015 2.00% 18.94% 2.98% 3-4 years 180.00 180.00
Outstanding at beginning of year 3,680,034 P 180.00 4,073,368 P 180.00 15,368,368 P 123.22

Options exercised during the year (2,997,367) 180.00 (53,334) 180.00 (10,885,000) 105.00 The expected life of the stock options is based on historical data and current
(206,000) 180.00
Options forfeited during the year (340,000) 180.00 (410,000) 110.56
expectations and is not necessarily indicative of exercise patterns that may occur.
Outstanding at end of year 476,667 P 180.0 3,680,034 P 180.00 4,073,368 P 180.00 The expected volatility reflects the assumption that the historical volatility over a
Exercisable at end of year 476,667 P 180.00 3,680,034 P 180.00 4,073,368 P 180.00 period similar to the life of the options is indicative of future trends, which may also not
necessarily be the actual outcome.
The weighted average remaining contractual life for the stock options outstanding is 0.33 The cost of the stock options expense charged to operations for both MSOP and ELTIP in
year, 1.33 years and 2.33 years as at December 31, 2022, 2021 and 2020, respectively. the “General and administrative expenses” account amounted to P185.0 million, P155.5
The fair value of stock options granted is P 26.13 in 2015. There were no additional stock million and P188.3 million in 2022, 2021 and 2020, respectively (see Notes 19, 22 and 27).
option grants under ELTIP in 2022, 2021 and 2020. The fair value of share options as at Correspondingly, a credit was made to additional paid-in-capital (see Note 19).
the date of grant is estimated using the Black-Scholes Option Pricing Model, taking into
account the terms and conditions upon which the options were granted. The option
style used for this plan is the American style because this option plan allows exercise
before the maturity date.

27. RELATED PARTY TRANSACTIONS Transactions with the Retirement Plans 28. EARNINGS PER SHARE (EPS)
As at December 31, 2022 and 2021, certain retirement
The JFC Group has transactions with related parties. Basic and diluted EPS are computed as follows:
funds of the JFC Group include investment in equity
Enterprises and individuals that directly, or indirectly
securities of the Parent Company with details as follows: 2022 2021 2020
through one or more intermediaries, control or are (In Thousand pesos, except for shares data and EPS)
controlled by, or under common control with the JFC 2022 2021
Net income (loss) attributable to the P 7,558,503 P 5,981,690 (P 11,510,727)
Group, including holding companies, subsidiaries Number of shares 110,610 95,250 equity holders of the Parent Company
Less dividends on preferred shares - 451,190 112,847 –
and fellow subsidiaries are related entities of the JFC Market value P 25,440 P 20,612 net of tax
Group. Individuals owning, directly or indirectly, an Cost 23,383 19,387

Adjusted net income (loss) P 7,107,313 P 5,868,843 (P 11,510,727)
attributable to the equity holders of
interest in the voting power of the JFC Group that give Unrealized gain P 2,057 P 1,225 the Parent Company (a)
them significant influence over the enterprise, key Weighted average number of shares 1,110,581,972 1,106,835,216 1,102,060,627
management personnel, including directors and officers -basic (b)
The JFC Group’s receivable from the retirement fund Weighted average number of shares 16,441,062 12,345,197 6,649,068
of the JFC Group, and close members of the family of outstanding under the stock options
amounted to P486.6 million and P694.4 million as at plan
these individuals and companies associated with these (13,405,748)
December 31, 2022 and 2021, respectively (see Notes 7 Weighted average number of shares
that would have been purchased at
(10,380,791) (5,455,186)
individuals also constitute related parties.

and 25). The receivable arose from benefit payments fair market value
Compensation of Key Management made by the JFC Group for and on behalf of the Adjusted weighted average shares – 1,113,617,286 1,108,799,622 1,103,254,509
diluted (c)
Personnel of the JFC Group retirement plans. The receivable is noninterest-bearing.
EPS
The aggregate compensation and benefits to key
Terms and Conditions of Transactions with other Basic (a/b) P 6.400 P 5.302 (P10.445)
management personnel of the JFC Group are as follows: Diluted (a/c) 6.382 5.293 (10.433)
Related Parties
2022 2021 2020 Transactions with related parties are made at market
Salaries and short-term benefits P 1,803,677 P 1,073,972 P 1,118,025 prices and are normally settled in cash. The JFC Group Potential common shares for stock options under the
Net pension expense 187,618 135,372 275,883
Stock options expense 185,016 155,539 188,290
has approval process and established limits when 13th and 15th MSOP cycles in 2022 and 13th to 16th MSOP
(see Notes 19, 22 and 26) entering into material related party transactions. Other cycles in 2021 were not included in the calculation of the
Employee car plan and other 51,999 51,375 51,677
long-term benefits related party transactions between entities under the diluted EPS because they are anti-dilutive.
P 2,228,310 P 1,416,258 P 1,633,875 JFC Group are eliminated in the consolidation process.

29. LEASES QSR OUTLETS WAREHOUSES OFFICE SPACES TOTAL 2022 2021
As at December 31, 2020 P 33,710,403 P 504,826 P 8,914 P 34,224,143 As at end of year P 48,144,447 P 43,183,677
JFC Group as Lessee Additions 11,021,980 – 5,321 11,027,301
Pre-terminations (see Note 23) (1,510,979) – 37 (1,510,942) Current P 8,188,929 P 7,284,154
The JFC Group has lease contracts for QSR outlets, Depreciation expense (see (7,281,055) (75,515) (26,527) (7,383,097) Noncurrent 39,955,518 35,899,523
warehouses, and office spaces. Leases of QSR outlets Notes 21 and 22)
Reversal of impairment loss 285,635 – – 285,635
and warehouses generally have lease terms between (see Note 22) The maturity analysis of lease liabilities is disclosed in
three (3) to twenty (20) years. The JFC Group’s
Reclassification (see Note 14) 917 – 79,108 80,025
Note 31.
Cumulative translation 1,446,970 – (1,669) 1,445,301
obligations under its leases are secured by the lessor’s adjustments
The following are the amounts recognized in profit or
title to the leased assets. Generally, the JFC Group is As at December 31, 2021 37,673,871 429,311 65,184 38,168,366
loss:
restricted from assigning and subleasing the leased Additions 12,671,744 175,717 – 12,847,461
2022 2021 2020
Pre-terminations (see Note 23) (754,009) (41,046) – (795,055)
assets. There are several lease contracts that include Depreciation expense (see (8,814,570) (58,268) (22,519) (8,895,357) Depreciation expense of right-of-use P 8,895,357 P 7,383,097 P 7,794,582
extension and termination options and variable lease Notes 21 and 22) assets (see Notes 21 and 22)
Reversal of impairment loss 86,960 – – 86,960 Interest expense on lease liabilities 2,559,104 1,963,848 1,938,530
payments, which are further discussed in subsequent (see Note 22) (see Note 23)
Cumulative translation 665,446 – 192 665,638 Rent expense - short-term leases 3,049,252 1,915,515 1,851,080
paragraphs. adjustments (see Notes 21 and 22)
Rent expense - variable lease 2,008,831 1,253,346 1,178,253
The JFC Group also has certain leases of QSR outlets As at December 31, 2022 P 41,529,442 P 505,714 P 42,857 P 42,078,013 payments (see Notes 21 and 22)
Loss (gain) on pre-termination of (166,816) (554,250) 488,727
with lease term of 12 months or less. The JFC Group lease agreements (see Notes 21, 22
and 23)
applies the ‘short-term lease’ recognition exemptions Set out below are the carrying amounts of lease
for these leases. liabilities (included under interest-bearing loans and P 16,345,728 P 11,961,556 P 13,251,172
borrowings) and the movements during the year:

Set out below are the carrying amounts of right-of-use The JFC Group had total cash outflows for leases of P
2022 2021
assets recognized and the movements during the year: 15,152.8 million and P11,306.7 million in 2022 and 2021,
As at beginning of year P43,183,677 P39,083,725
Additions 12,933,379 11,011,919 respectively.
Payments (10,094,676) (8,137,825)
Accretion of interest (see Note 23) 2,559,104 1,963,848 In 2022 and 2021, the JFC Group received rent
Pre-terminations (see Note 23) (961,871) (1,779,557)
Rent concessions (152,196) (478,727)
concessions from lessors amounting to P152.2 million
Cumulative translation adjustments 677,030 1,520,294 and P478.7 million, respectively, accounted for as
As at end of year P 48,144,447 P 43,183,677 negative variable lease payments in the consolidated
statements of comprehensive income.

JFC Group as Lessor JFC Group as an Intermediate Lessor liability, if any, with respect to these litigations, claims
The JFC Group entered into commercial property leases The JFC Group subleases certain parcels of land with and disputes will not materially affect the financial
for its investment property units. These leases have lease terms between five (5) to twenty (20) years. The position and financial performance of the JFC Group.
terms of between three (3) and twenty (20) years. lease contracts contain renewal options under terms Thus, other than the provisions in Note 17, there were no
Leases generally include a clause to enable upward and conditions that are mutually agreed upon by the other provisions made for contingencies.
revision of the rent charges on an annual basis based parties.
The JFC Group does not provide further information
on prevailing market conditions.
Set out below are the carrying amounts of finance lease on these provisions and contingencies in order not
Rent income recognized on a straight-line basis receivables and the movements during the year: to impair the outcome of the litigations, claims and
amounted to P7.0 million, P24.4 million and disputes.
2022 2021
P 35.8 million 2022, 2021 and 2020, respectively (see At beginning of year P 56,674 P 70,800 31. FINANCIAL RISK MANAGEMENT OBJECTIVES
Note 20). The difference of rent income recognized Payments (17,457) (17,191)
AND POLICIES
Accretion of interest (see Note 23) 2,402 3,065
under the straight-line method and the rent amounts
At end of year P 41,619 P 56,674 The JFC Group is exposed to a variety of financial risks
in accordance with the terms of the lease are included
from its operating, investing and financing activities.
under “Operating lease receivables” which amounted
Shown below is the maturity analysis of the The JFC Group’s risk management policies focus
to nil million and P55.5 million, net of allowance for
undiscounted finance lease receivables: on actively securing the JFC Group’s short-term to
impairment of nil and P8.0 million as at December 31,
medium-term cash flows by minimizing the exposure to
2022 and 2021, respectively. 2022 2021
financial markets.
1 year P 19,615 P 18,609
The future minimum lease receivables under More than 1 year to 5 years 24,145 43,759
The JFC Group’s principal financial instruments
noncancelable operating leases as at December 31, 2021
comprise of cash and cash equivalents, short-term
are as follows: 30. CONTINGENCIES investments, current portion of financial assets at FVTPL,
Within one year P 7,683
The JFC Group is involved in litigations, claims and receivables, short-term and long-term debts and senior
After one year but not more than five years 43,395
disputes, and regulatory assessments which are normal debt securities. The main purpose of these financial
More than five years 38,315
to its business. Management believes that the ultimate instruments is to obtain financing for the JFC Group’s
P 89,393

operations. The JFC Group has other financial assets policy centers on reducing the JFC Group’s overall Long-term Debt with Floating Interest Rates
and liabilities such as security and other deposits, interest expense and exposure to changes in the interest INCREASE/
EFFECT IN PROFIT OR LOSS BEFORE INCOME TAX
DECREASE IN
finance lease receivables, operating lease receivables, rates. BASIS POINTS 2022 2021 2020
lease liabilities and trade payables and other current PHP +100 (134,998) (169,260) (135,017)
To manage the interest rate risk related to the JFC -100 134,998 169,260 135,017
liabilities (excluding accrual for local and other taxes,
Group’s long-term debts, the JFC Group used a
liabilities to government agencies and unearned USD +100 (15,724) (43,344) (46,863)
derivative instrument to fix the interest rate over the -100 15,724 43,344 46,863
revenue from gift certificates) which arise directly from
term of one of its long-term debts
its operations and noncurrent portion of financial assets VND +100 (11,909) (10,997) (10,702)
-100 11,909 10,997 10,702
at FVTPL. (see Note 18). With the JFC Group’s Corporate Planning
Team, it enters into loan contracts with variable interest
The main risks arising from these financial instruments The assumed movement in basis point for interest rate
rates and option to fix interest rates which can be
are interest rate risk, foreign currency risk, credit risk sensitivity analysis is based on the currently observable
availed to manage its loan risks.
and liquidity risk. The risk management policies market environment.
reviewed regularly by the Parent Company’s BOD and There is minimal exposure on the other sources of the
Foreign Currency Risk
management for managing each of these risks are JFC Group’s interest rate risk. These other sources are
The JFC Group’s exposure to foreign currency risk arises
summarized as follows: from the JFC Group’s cash in banks, short-term deposits
from the Parent Company’s investments outside the
and short-term investments.
Interest Rate Risk Philippines, which are mainly in PRC and USA. The net
Interest rate risk arises from the possibility that the fair The following tables demonstrate the sensitivity to a assets of foreign businesses account for 12.9% and 21.8%
value or future cash flows of financial instruments will reasonably possible change in interest rates, of the consolidated net assets of the JFC Group as at
fluctuate because of changes in market interest rates. December 31, 2022 and 2021, respectively.
with all other variables held constant, of the JFC Group’s
The JFC Group’s exposure to interest rate risk income before income tax as at December 31, 2022 and The JFC Group also has transactional foreign currency
relates primarily to short-term and long-term debts 2021. The impact on the JFC Group’s income before exposures. Such exposure arises from the JFC Group’s
with floating interest rates. Floating rate financial income tax is due to changes in the fair value of floating Philippine operations’ cash and cash equivalents,
instruments are subject to cash flow interest rate risk. interest rates. receivables and trade payables in foreign currencies.
The JFC Group’s interest rate exposure management

The table below shows the JFC Group’s Philippine December 31, 2022 55.76 that have gone through rigorous screening before
operations’ foreign currency-denominated monetary December 31, 2021 51.00
granting them the franchise. The credit terms are very
December 31, 2020 48.02
assets and liabilities and their peso equivalents as at short, while deposits and advance payments are also
December 31, 2022 and 2021: required before rendering the services or delivering
The table below demonstrates the sensitivity to a
the goods, thus, mitigating the possibility of non-
reasonably possible change in USD to Philippine peso
2022 2021
collection. In cases of non-collection, defaults of the
PHP PHP exchange rate, with all other variables held constant,
USD EQUIVALENT USD EQUIVALENT debtors are not tolerated; the exposure is contained
of the JFC Group’s income before income tax (due
Foreign currency the moment a default occurs and transactions that
denominated assets: to changes in the fair value of monetary assets and
Cash and cash 15,328 854,689 13,587 692,937 will further increase the exposure of the JFC Group are
equivalents liabilities) as at December 31, 2022 and 2021:
Receivables 31,181 1,738,653 11,780 600,780
discontinued.
46,509 2,593,342 25,367 1,293,717 2022 2021

The JFC Group has no significant concentration of credit
Foreign currency (10,192) (568,306) (2,103) (107,253) APPRECIATION EFFECT ON EFFECT ON EFFECT ON EFFECT ON risk with counterparty. The JFC Group’s franchisee
denominated liability - (DEPRECIATION) OF AGAINST INCOME BEFORE EQUITY BEFORE INCOME BEFORE EQUITY BEFORE
Accounts payable - trade FOREIGN CURRENCY INCOME TAX INCOME TAX INCOME TAX INCOME TAX
profile is such that no single franchisee accounts for
(P 54,476) (P 54,476)
Foreign currency denominated
assets - net
36,317 2,025,036 23,264 1,186,464
USD 1.50 (P 34,896) (P 34,896)
more than 5% of the total system wide sales of the JFC
(1.50) 54,476 54,476 34,896 34,896
1.00 (36,317) (36,317) (23,264) (23,264) Group.
(1.00) 36,317 36,317 23,264 23,264
Foreign Currency Risk Sensitivity Analysis

The JFC Group has recognized in profit or loss, a net
Credit Risk
foreign exchange gain of P205.6 million and P202.8
Credit risk is the risk that a customer or counterparty
million for the years ended December 31, 2022 and
fails to fulfill its contractual obligations to the JFC Group.
2021, respectively (see Note 23), included under
This includes risk of non-payment by borrowers, failed
“Other income - net” account. This resulted from the
settlement of transactions and default on outstanding
movements of the Philippine peso against the USD as
contracts.
shown below:
The JFC Group has a strict credit policy. Its credit
transactions are with franchisees and customers

The aging analysis of financial assets as at December 31, 2022 and 2021 are as follows:
2022 2021
NEITHER PAST PAST DUE BUT NOT IMPAIRED (AGE IN DAYS) NEITHER PAST PAST DUE BUT NOT IMPAIRED (AGE IN DAYS)
DUE NOR DUE NOR
TOTAL IMPAIRED 1-30 31-60 61-120 OVER 120 IMPAIRED TOTAL IMPAIRED 1-30 31-60 61-120 OVER 120 IMPAIRED
Financial Assets at Amortized Cost (In Millions) Financial Assets at Amortized Cost (In Millions)
Cash and cash equivalents* P 28,514.0 P 28,514.0 P– P– P– P– P– Cash and cash equivalents* P 24,390.5 P 24,390.5 P– P– P– P– P–
Short-term investments 619.2 619.2 – – – – – Short-term investments 79.7 79.7 – – – – –
Receivables: Receivables:
Trade 6,519.3 2,873.8 775.2 267.6 314.6 1,368.9 919.2 Trade 5,357.9 1,978.9 601.8 186.4 298.8 1,788.5 503.5
Receivable from 486.6 28.3 21.7 11.4 14.8 410.4 – Receivable from 694.4 15.6 56.4 7.2 13.5 601.7 –
retirement fund retirement fund
Advances to employees 1,816.0 1,816.0 – – – – – Advances to employees 326.1 326.1 – – – – –
Employee car plan 130.7 130.7 – – – – – Employee car plan 137.9 137.9 – – – – –
receivables** receivables**
Other receivables*** 14.6 14.6 – – – – – Other receivables*** 5.7 5.7 – – – – –
Finance lease receivables 41.6 41.6 – – – – – Operating lease receivables 55.5 55.5 – – – – –
Other noncurrent assets - Finance lease receivables 56.7 56.7 - - - - -
Security and other deposits** 3,626.7 3,626.7 – – – – – Other noncurrent assets -
41,768.7 37,664.9 796.9 279.0 329.4 1,779.3 919.2 Security and other deposits** 3,069.8 3,069.8 – – – – –
Financial Assets at FVTPL** 8,278.5 8,278.5 – – – - –
34,174.2 30,116.4 658.2 193.6 312.3 2,390.2 503.5
P 50,047.2 P 45,943.4 P 796.9 279.0 329.4 1,779.3 919.2
Financial Assets at FVTPL** 14,453.1 14,453.1 – – – - –
*Excluding cash on hand amounting to P 355.3 million P 48,627.3 P 44,569.5 P 658.2 P 193.6 P 312.3 P 2,390.2 P503.5
**Including noncurrent portion
*Excluding cash on hand amounting to P 302.2 million
***Including interest receivable and excluding receivables from government agencies amounting to P103.6 million
**Including noncurrent portion
***Including interest receivable and excluding receivables from government agencies amounting to P 92.7 million

Credit Risk Exposure

The tables below show the maximum exposure to credit risk of the JFC Group as at
December 31, 2022 and 2021 without considering the effects of collaterals and other
credit risk mitigation techniques:
2022 2021
FAIR VALUE AND FINANCIAL FAIR VALUE AND FINANCIAL

EFFECT OF COLLATERAL OR EFFECT OF COLLATERAL OR
GROSS MAXIMUM EXPOSURE (A) CREDIT ENHANCEMENT (B) NET EXPOSURE (C) – (A) - (B) GROSS MAXIMUM EXPOSURE (A) CREDIT ENHANCEMENT (B) NET EXPOSURE (C) – (A) - (B)
Financial Assets at Amortized Cost (In Millions) Financial Assets at Amortized Cost (In Millions)
Cash and cash equivalents* P 28,514.0 P 264.1 P28,249.9** Cash and cash equivalents* P 24,390.5 P 195.7 P 24,194.8**
Short-term investments 619.2 – 619.2 Short-term investments 79.7 – 79.7
Receivables: Receivables:
Trade 6,519.3 – 6,519.3*** Trade 5,357.9 2,261.5 3,096.4***
Receivable from retirement fund 486.6 – 486.6 Receivable from retirement fund 694.4 – 694.4
Advances to employees 1,816.0 – 1,816.0 Employee car plan receivables***** 137.9 – 137.9
Employee car plan receivables***** 130.7 – 130.7 Advances to employees 326.1 – 326.1
Other receivables**** 501.3 – 501.3 Other receivables**** 5.7 – 5.7
Finance lease receivables 41.6 – 41.6 Operating lease receivables 55.5 – 55.5
Other noncurrent assets - Finance lease receivables 56.7 – 56.7
Security and other deposits**** 3,626.7 – 3,626.7 Other noncurrent assets -
Financial assets at FVTPL 8,278.5 – 8278.5 Security and other deposits**** 3,069.8 – 3,069.8
Financial assets at FVTPL 14,453.1 – 14,453.1
P 50,533.9 P 264.1 P 50,269.8
P 48,627.3 P 2,457.2 P 46,170.1
* Excluding cash on hand amounting to P 355.3 million.
** Gross financial assets after taking into account insurance bank deposits for cash and cash equivalents. * Excluding cash on hand amounting to P 355.3 million.
*** Gross financial assets after taking into account payables to the same counterparty. ** Gross financial assets after taking into account insurance bank deposits for cash and cash equivalents.
**** Including interest receivable and excluding receivables from government agencies amounting to P 103.6 million *** Gross financial assets after taking into account payables to the same counterparty.
***** Including noncurrent portion **** Including interest receivable and excluding receivables from government agencies amounting to P 92.7 million
***** Including noncurrent portion

With respect to credit risk arising from financial assets of the JFC Group, the JFC Group’s 2022
exposure to credit risk arises from default of the counterparty, with a gross maximum STAGE 1 STAGE 2 STAGE 3
exposure equal to the carrying amount of these instruments. TOTAL 12-MONTH ECL LIFETIME ECL LIFETIME ECL
Financial Assets at Amortized Cost (In Millions)
Credit Quality Receivables:

Trade P 6,519.3 P 3,649.0 P 1,951.1 P 919.2
The financial assets of the JFC Group are grouped according to stage of which Receivable from retirement fund 486.6 50.0 436.6 –
1,816.0 1,816.0 – –
description is explained as follows: Advances to employees
Employee car plan receivables* 130.7 130.7 – –
Other receivables** 14.6 14.6 – –
Stage 1 - Those that are considered current and up to 30 days past due, and based on Financial Assets at FVTPL* 8,278.5 8,278.5 – –
change in rating, delinquencies and payment history, do not demonstrate significant P 17,245.7 P 13,938.8 P 2,387.7 P 919.2
increase in credit risk. *Including noncurrent portion
**Including interest receivable and excluding receivables from government agencies amounting to P 103.6 million
Stage 2 - Those that, based on change in rating, delinquencies and payment history,
2021
demonstrate significant increase in credit risk, and/or are considered more than 30 days
past due but does not demonstrate objective evidence of impairment as at reporting STAGE 1 STAGE 2 STAGE 3
TOTAL 12-MONTH ECL LIFETIME ECL LIFETIME ECL

date.
Financial Assets at Amortized Cost (In Millions)
Receivables:
Stage 3 - Those that are considered in default or demonstrate objective evidence of Trade P 5,357.9 P 2,580.7 P 2,273.7 P 503.5
impairment as at reporting date. Receivable from retirement fund 694.4 72.0 622.4 –
Advances to employees 326.1 326.1 – –
137.9 137.9 – –
The tables below show determination of ECL stage of the JFC Group’s financial assets: Employee car plan receivables*
Other receivables** 5.7 5.7 – –
Financial Assets at FVTPL* 14,453.1 14,453.1 – –
P 20,975.1 P 17,575.5 P 2,896.1 P 503.5
*Including noncurrent portion
**Including interest receivable and excluding receivables from government agencies amounting to P 92.7 million

Liquidity Risk 2022
DUE AND
The JFC Group’s exposure to liquidity risk refers to the risk that its financial liabilities are DEMANDABLE LESS THAN 1 YEAR 1 TO 5 YEARS OVER 5 YEARS TOTAL
not serviced in a timely manner and that its working capital requirements and planned Financial Liabilities (In Millions)
Trade payables and other current liabilities* P 12,531.4 P 27,613.6 P- P- P 40,145.0

capital expenditures are not met. To manage this exposure and to ensure sufficient Short term debt - 4,376.4 - - 4,376.4
- 5,091.9 12,043.2 - 17,135.1
liquidity levels, the JFC Group closely monitors its cash flows to be able to finance its Long-term debt (including current portion)
Senior debt securities - 1,484.6 20,941.4 18,714.5 41,140.5
capital expenditures and to pay its obligations as and when they fall due. Lease liabilities - 9,274.7 29,989.3 28,952.2 68,216.2
Total Financial Liabilities P 12,531.4 P 47,841.2 P 62,973.9 P 47,666.7 P 171,013.2

On a weekly basis, the JFC Group’s Cash and Banking Team monitors its collections,
*Excluding statutory obligations such as local and other taxes payable, PHIC, SSS, HDMF and NHMFC payables and unearned revenue from gift certificates amounting to P 3,098.7 million as at
expenditures and any excess/deficiency in the working capital requirements, by December 31, 2022
preparing cash position reports that present actual and projected cash flows for the
2021
subsequent week. Cash outflows resulting from major expenditures are planned so that DUE AND
DEMANDABLE LESS THAN 1 YEAR 1 TO 5 YEARS OVER 5 YEARS TOTAL
money market placements are available in time with the planned major expenditure.
Financial Liabilities (In Millions)
In addition, the JFC Group has short-term cash deposits and portfolio investments and Trade payables and other current liabilities* P 8,299.4 P 22,505.2 P- P- P 30,804.6
Short term debt - 513.5 - - 513.5
has available credit lines with accredited banking institutions, in case there is a sudden
Long-term debt (including current portion) - 5,437.8 18,284.0 - 23,721.8
deficiency. The JFC Group maintains a level of cash and cash equivalents deemed Senior debt securities - - 18,140.1 21,477.4 39,617.5
Lease liabilities - 7,514.1 23,309.2 26,303.3 57,126.6
sufficient to finance its operations. No changes were made in the objectives, policies or
Total Financial Liabilities P 8,299.4 P 35,970.6 P 59,733.3 P 47,780.7 P 151,784.0
processes of the JFC Group for the year ended December 31, 2022 and 2021.
*Excluding statutory obligations such as local and other taxes payable, PHIC, SSS, HDMF and NHMFC payables and unearned revenue from gift certificates amounting to P2,148.2 million as at
December 31, 2021
The JFC Group’s financial assets, which have maturity of less than 12 months and are
used to meet its short-term liquidity needs, are cash and cash equivalents, short-
term investments, financial assets at FVTPL and trade receivables and contract assets
amounting to P 28,513.9 million, P 619.2 million, P 8,278.5 million and P 7,160.1 million,
respectively, as at December 31, 2022 and P 24,692.7 million, P 79.7 million, P 14,453.1
million and P 6,072.6 million, respectively, as at December 31, 2021.
The tables below summarize the maturity profile of the JFC Group’s other financial
liabilities based on the contractual undiscounted cash flows as at December 31, 2022
and 2021:

Price Risk could have an impact of approximately P252.2 million the JFC Group would borrow money for acquisitions of
Price risk is the risk that the fair value or future cash and P6.3 million P1,035.7 million on the profit or loss and new businesses.
flows of financial instruments will fluctuate because of equity before income tax as at December 31, 2022 and
As at December 31, 2022 and 2021, the JFC Group’s debt
changes in market prices (other than those arising from 2021, respectively.
ratio and net debt ratio are as follows:
interest rate or foreign exchange rate risk), whether
The analysis was performed for reasonably possible
those changes are caused by factors specific to the Debt Ratio
movements in the market index with all other variables
individual financial instrument or contract, or by factors
held constant. The correlation of variables will have a 2022 2021
affecting all similar contracts or financial instruments Total debt (a) P 152,487,672 P 136,654,072
significant effect in determining the ultimate impact
traded in the market. Total equity attributable to equity holders 62,220,761 55,601,549
on price risk, but to demonstrate the impact due to of the Parent Company
The JFC Group’s price risk exposure relates to financial changes in variables, variables had to be changed on Total debt and equity attributable to equity P 214,708,433 P 192,255,621
holders of the Parent Company (b)
assets which values will fluctuate as a result of changes an individual basis.
Debt ratio (a/b) 71% 71%
in market prices.
Capital Management Policy
The JFC Group price risk policy requires it to manage Capital includes equity attributable to equity holders of Net Debt Ratio
such risks by setting and monitoring objectives and the Parent Company.
2022 2021
constraints on investments.
The primary objective of the JFC Group’s capital Total debt P 152,487,672 P 136,654,072
Less cash and cash equivalents, short-term 37,739,438 39,185,277
The JFC Group has no significant concentration of price management is to ensure that it maintains a strong investments and current portion of financial assets
at FVTPL
risk. credit rating and healthy capital ratios in order to
Net debt (a) 114,748,234 97,468,795
support its business and maximize shareholder value.
The JFC Group is not exposed to significant equity Total equity attributable to equity holders 62,220,761 55,601,549
The JFC Group has sufficient capitalization. of the Parent Company
price risk on its investment in quoted equity securities
Net debt and equity attributable P 176,968,995 P 153,070,344
consisting of investment in golf and club shares. The JFC Group generates cash flows from operations to equity holders of the Parent Company (b)
sufficient to finance its organic growth. It declares Debt ratio (a/b) 65% 64%
At the reporting date, the JFC Group’s exposure to other
cash dividends representing at least one-third of its
price risk arises from the changes in fair value of bond
consolidated net income, a ratio that would still leave
funds. The JFC Group has determined that an increase/
some additional cash for future expansion. If needed,
(decrease) ranging from 1% to 5% on the market prices

32. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES and cost approach, which considers the local market
conditions, the extent, character and utility of the
Fair value is the price that would be received to
property, sales and holding prices of similar parcels of
sell an asset or paid to transfer a liability in an
land and the highest and best use of the investment
orderly transaction between market participants at
properties.
measurement date.
Finance Lease Receivables, Security and Other
Financial Instruments Which Carrying Amounts
Deposits, Employee Car Plan Receivables, Long-term
Approximate Fair Value
Debt and Lease Liabilities
Management has determined that the carrying
Management has determined that the estimated fair
amounts of cash and cash equivalents, short-term
value of security and other deposits, noncurrent portion
investments, receivables, operating lease receivables,
of employee car plan receivables, long-term debt and
trade payables and other current liabilities, based on
derivative asset or liability are based on the discounted
their notional amounts, reasonably approximate their
value of future cash flows using applicable rates as
fair values because of their short-term nature or due to
follows:
the immaterial effect of discounting when the present
value of future cash flows from these instruments are 2022 2021
Finance lease receivables 3.90%-5.36% 3.90%-5.36%

calculated. Security and other deposits 1.28%-14.46% 1.28%-21.57%
Employee car plan receivables 0.73%-8.55% 0.73%-8.55%
Financial Assets at FVTPL Long-term debt 1.03%-4.12% 1.03%-4.12%
The fair value of bond funds and quoted shares of stock Lease liabilities 0.18%-14.46% 0.18%-22.48%
in golf and leisure clubs are based on quoted prices.

The following tables provide the fair value measurement
The JFC Group does not have the intention to dispose its
hierarchy of the JFC Group’s recurring financial assets
quoted shares of stock in the near term.
and liabilities.
Investment Properties
The fair value of the investment properties is determined
by independent appraisers using the market data

Quantitative disclosure fair value measurement hierarchy for assets as at Quantitative fair value measurement hierarchy for liabilities as at December 31, 2022:
December 31, 2022:
FAIR VALUE MEASUREMENT USING
FAIR VALUE MEASUREMENT USING QUOTED PRICES IN SIGNIFICANT SIGNIFICANT

ACTIVE MARKETS OBSERVABLE INPUTS UNOBSERVABLE INPUTS
QUOTED PRICES IN SIGNIFICANT SIGNIFICANT
DATE OF VALUATION TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3)
CARRYING ACTIVE MARKETS OBSERVABLE INPUTS UNOBSERVABLE INPUTS
VALUE TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Liabilities disclosed at fair value:
Assets measured at fair value - Tenants’ deposit December 31, 2022 P 2,581 P- P- P 2,581
Long-term debt December 31, 2022 14,293,556 - - 14,293,556
Financial assets at FVTPL P 8,250,991 P 8,250,991 P- P 8,250,991 P-
Assets for which fair values are
disclosed:
Land assets held for sale – – – – – Quantitative disclosure fair value measurement hierarchy for liabilities as at
Finance lease receivables 41,619 41,619 - - 41,619
December 31, 2021:
Other noncurrent assets:
Security and other deposits 3,626,726 1,635,138 - - 1,635,138 FAIR VALUE MEASUREMENT USING
Employee car plan 130,688 95,160 - - 95,160 QUOTED PRICES IN SIGNIFICANT SIGNIFICANT
receivables ACTIVE MARKETS OBSERVABLE INPUTS UNOBSERVABLE INPUTS
DATE OF VALUATION TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3)
Liabilities measured at fair value -

Quantitative fair value measurement hierarchy for assets as at December 31, 2021: Derivative liability - interest December 31, 2021 P 12,795 P- P 12,795 P-
rate swap
FAIR VALUE MEASUREMENT USING
Liabilities measured at fair value:
QUOTED PRICES IN SIGNIFICANT SIGNIFICANT
CARRYING ACTIVE MARKETS OBSERVABLE INPUTS UNOBSERVABLE INPUTS Tenants’ deposit December 31, 2021 6,092 - - 6,092
VALUE TOTAL (LEVEL 1) (LEVEL 2) (LEVEL 3) Long-term debt December 31, 2021 17,635,816 - - 17,635,816
Assets measured at fair value -
Financial assets at FVTPL P 14,412,902 P 14,412,902 P- P 14,412,902 P-
Assets for which fair values are – There were no transfers between Level 1 and Level 2 fair value measurements, and no
disclosed:
Land assets held for sale 1,015,616 2,397,837 - - 2,397,837 transfers into and out of Level 3 fair value measurements during the year.
Finance lease receivables 56,674 56,674 - - 56,674
Other noncurrent assets:
Security and other deposits 3,069,781 1,769,413 - - 1,769,413
Employee car plan receivables 137,861 112,199 - - 112,199

33. NOTES TO THE STATEMENTS OF CASH FLOWS
For the years ended December 31, 2022 and 2021, movements in the JFC Group’s
liabilities and equity arising from financing activities follow:
2022
SHARE IN
GRANTED STOCK CUMULATIVE
REVERSAL OF OPTIONS TO AMORTIZATION SHARE IN NET TRANSLATION
DIVIDENDS SUBSCRIPTION EMPLOYEES AND INTEREST ACQUISITION OF DEBT ISSUE CUMULATIVE LOSSES OF ADJUSTMENTS OF RENT PRE-TERMINATION
DECLARED RECEIVABLE SUBSIDIARIES EXPENSE OF A SUBSIDIARY COST TRANSLATION NONCONTROLLING NONCONTROLLING ADDITIONS CONCESSIONS OF LEASES
JANUARY 1, 2022 CASH FLOW (NOTE 19) (NOTE 19) (NOTE 22) (NOTE 23) (NOTE 11) (NOTE 18) ADJUSTMENTS INTEREST (NOTE 11) INTEREST (NOTE 11) (NOTE 29) (NOTE 29) (NOTE 29) DECEMBER 31, 2022
(In Millions)
Dividends and distributions payable P 636.0 (P 3,639.5) P3,036.2 P– P– P 764.7 P– P– P 25.0 P– P– P– P– P– P 822.4
(see Note 16)
Short-term debt (Note 18) 510.0 3,867.2 – – – – – – (0.8) – – – – – 4,376.4
Long-term debt (Note 18) 22,360.2 (6,402.2) – – – – – 28.8 276.4 – – – – – 16,263.2
Senior debt securities (Note 18) 30,426.1 – – – – – – 21.9 2,840.3 – – – – – 33,288.3
Interest payable (Note 16) 545.7 (2,231.2) – – – 2,208.5 – – – – – – – – 523.0
Lease liabilities (Note 29) 43,183.6 (10,094.7) – – – 2,559.1 – – 677.1 – – 12,933.4 (152.2) (961.9) 48,144.4
Preferred stock (Note 19) 12,000.0 – – – – – – – – – – – – – 12,000.0
Common stock (Note 19) 1,124.3 8.9 – (2.0) – – – – – – – – – – 1,131.2
Additional paid-in capital (Note 19) 10,331.3 1,589.0 – (15.2) 186.7 – – – – – – – – – 12,091.8
Senior perpetual securities (Note 19) 20,264.8 – – – – – – – – – – – – – 20,264.8
Non-controlling interest (Note 11) (1,682.2) 130.2 (32.6) – – – 464.8 – – (220.0) (230.7) – – – (1,570.5)
Total liabilities and equity P 139,699.8 (P 16,772.3) P 3,003.6 (P 17.2) P 186.7 P 5,532.3 P 464.8 P 50.7 P 3,818.0 (P 220.0) (P 230.7) P 12,933.4 (P 152.2) (P 961.9) P 147,335.0
on financing activities


2021
SHARE IN
GRANTED STOCK CUMULATIVE
OPTIONS TO AMORTIZATION SHARE IN NET TRANSLATION
DIVIDENDS ISSUANCE COST/ EMPLOYEES AND INTEREST DEFERRED OF DEBT ISSUE CUMULATIVE LOSSES OF ADJUSTMENTS OF RENT PRE-TERMINATION
DECLARED PREMIUM PAID SUBSIDIARIES EXPENSE TAX ASSETS COST TRANSLATION NONCONTROLLING NONCONTROLLING ADDITIONS CONCESSIONS OF LEASES
JANUARY 1, 2021 CASH FLOW (NOTE 19) (NOTE 19) (NOTE 22) (NOTE 23) (NOTE 24) (NOTE 18) ADJUSTMENTS INTEREST (NOTE 11) INTEREST (NOTE 11) (NOTE 29) (NOTE 29) (NOTE 29) DECEMBER 31, 2021
(In Millions)
Dividends and distributions payable P 579.1 (P 3,084.8) P 1,965.1 P– P– P 1,155.1 P– P– P 21.5 P– P– P– P– P– P 636.0
(see Note 16)
Short-term debt (Note 18) 15,875.5 (15,695.5) – – – – – – 330.0 – – – – – 510.0
Long-term debt (Note 18) 19,258.3 2,734.3 – – – – – 24.3 343.3 – – – – – 22,360.2
Senior debt securities (Note 18) 28,629.0 – – – – – – 19.8 1,777.3 – – – – – 30,426.1
Interest payable (Note 16) 543.8 (2,179.3) – – – 2,181.2 – – – – – – – – 545.7
Lease liabilities (Note 29) 39,083.7 (8,137.8) – – – 1,963.8 – – 1,520.3 – – 11,011.9 (478.7) (1,779.6) 43,183.6
Preferred stock (Note 19) – 11,919.7 – 80.3 – – – – – 12,000.0
Common stock (Note 19) 1,122.2 2.1 – – – – – – – – – – – – 1,124.3
Additional paid-in capital (Note 19) 9,913.9 321.7 – (80.3) 155.5 – 20.5 – – – – – – – 10,331.3
Senior perpetual securities (Note 19) 30,588.0 (10,490.6) – 167.4 – – – – – – – – – – 20,264.8
Non-controlling interest (Note 11) (1,095.4) 100.5 (28.5) – – – – – – (479.7) (179.1) – – – (1,682.2)
Total liabilities and equity P 144,498.1 (P 24,509.7) P 1,936.6 P 167.4 P 155.5 P 5,300.1 P 20.5 P 44.1 P 3,992.4 (P 479.7) (P 179.1) P 11,011.9 (P 478.7) (P 1,779.6) P 139,699.8
on financing activities
Noncash Activities In 2021, the principal noncash transactions under 34. EVENTS AFTER REPORTING PERIOD
In 2022, the principal noncash transaction under investing activities pertain to transfer of land assets
Dividend Declaration
investing activities pertains to land conveyed to held-for-sale to other current assets from property,
On March 14, 2023, the BOD of the Parent Company
CentralHub with a total fair value of P2,089.3 million in plant and equipment and investment properties
approved a regular cash dividend of P8.20525 per
exchange for an additional 18.15% ownership interest amounting to P 503.7 million and P 511.9 million,
share and P10.60125 per share of preferred shares-
(see Notes 11 and 12) and land with a total fair value of respectively (see Notes 9, 12 and 13).
Series A and preferred shares-Series B, respectively, to
P2,401.6 million in exchange for condominium units (see
stockholders of record as of March 29, 2023. The cash
Notes 9 and 12).
dividend is expected to be paid out on April 14, 2023.

COMPANY INFORMATION &

STOCKHOLDER SERVICES
Company Headquarters Annual Stockholders Meeting Stakeholder Inquiry SEC Form 17-A
10/F Jollibee Plaza Building The Annual Stockholders’ Meeting will be held on Inquiries regarding dividend payments, account The financial information in this report, in the
No. 10 F. Ortigas Jr. Road June 30, 2023 at 2:00 P.M. The Corporation shall status, address changes, stock certificates, and opinion of Management, substantially conforms
Ortigas Center, Pasig City, Philippines conduct the meeting virtually and the stockholders other pertinent matters may be addressed to the with the information required in the “17-A Report”
1605 Telephone: (632) 8634-1111 may attend and participate via remote Company’s registrar and transfer agent: submitted to the Securities and Exchange Commission.
Website: www.jollibeegroup.com communication and by voting in absentia or by
appointing the Chairman of the meeting For Common Stock, please contact: SEC Form 17-A is available in the Jollibee Group’s
For investor inquiries, please as their proxy. Rizal Commercial Banking Corporation corporate website.
contact ir@jollibee.com.ph Stock Transfer Office
Ground Floor, West Wing, Grepalife Building
221 Senator Gil Puyat Avenue, Makati City
Telephone: (632) 8894-9000
locals 3690, 3691, 3693 and 3694
Email address: rcbcstocktransfer@rcbc.com
For Preferred Stock, please contact:

Stock Transfer Service, Inc.
34-D Rufino Pacific Tower,
6784 Ayala Avenue, Makati City
Telephone: (632) 5310-3671

www.JollibeeGroup.com
Jollibee Plaza Building
F. Ortigas Jr. Road
Ortigas Center, Pasig City
Philippines

2023 06 PClMDNJ1 JFC Annual Report 2022

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2023 06 PClMDNJ1 JFC Annual Report 2022

Uploaded by

Copyright:

Available Formats

01 JFC Annual Report 2022

03 CHAIRMAN’S MESSAGE 06 CEO’S MESSAGE 09 DIRECTORS AND CORPORATE OFFICERS

10 FINANCIAL HIGHLIGHTS 11 CORPORATE HIGHLIGHTS

13 Jollibee Philippines 26 Yonghe King 40 Burger King Philippines 55 Panda Express

16 Jollibee International 29 Red Ribbon Philippines 43 Highlands Coffee 58 Yoshinoya

24 Chowking International 39 Mang Inasal 52 Tim Ho Wan China

Chairman’s Message CEO’S Message Directors and Corporate Officers

Chairman’s Message CEO’S Message Directors and Corporate Officers

04 JFC Annual Report 2022

Chairman’s Message CEO’S Message Directors and Corporate Officers

beginnings 45 years ago. the joy of eating great-tasting food.

05 JFC Annual Report 2022

Chairman’s Message CEO’S Message Directors and Corporate Officers

Chairman’s Message CEO’S Message Directors and Corporate Officers

07 JFC Annual Report 2022

Chairman’s Message CEO’S Message Directors and Corporate Officers

08 JFC Annual Report 2022

Chairman’s Message CEO’S Message Directors and Corporate Officers

Artemio Panganiban Cesar Purisima Kevin Goh Ee Rong Chong

CORPORATE Tony Tan Caktiong Ernesto Tanmantiong William Tan Untiong

*As of December 31, 2022

09 JFC Annual Report 2022

Financial Highlights Corporate Highlights

FINANCIAL FINANCIAL SUMMARY

System-wide sales amounted to

JFC Operating Income amounted to

Net Income Attributable to Equity Holders of

EARNINGS PER SHARE - BASIC 6.400 5.302 1.098 20.7%

PHP31.2 BILLION EARNINGS PER SHARE - DILUTED

Financial Highlights Corporate Highlights

2022 NOTABLE ACCOMPLISHMENTS

Milksha Acquisition 542 New Stores

Declaration of Cash Dividends Titan Dining Expansion

Land Conveyance Stock Price Growth

11 JFC Annual Report 2022

Financial Highlights Corporate Highlights

To learn more about Joy for Tomorrow, visit www.jollibeegroup.com/sustainability

FOOD PEOPLE PLANET

17 19,224 187,079 38%

15,014 1,827,356 700 21.5%

82 9.7 59% 3-7%

100% Hit 21%

12 JFC Annual Report 2022

13 JFC Annual Report 2022

As the largest fast food chain in the Philippines and

Awarded recently as America’s Best Chain Fried

14 JFC Annual Report 2022

2022 Business Highlights Notable Campaigns

Level Up Joy Store Innovations Campaign

3 Sarap ng Pasko Masterbrand Christmas Campaign

Jollibee Buy One, Gift One Delivery Promo

15 JFC Annual Report 2022

16 JFC Annual Report 2022

System-wide Sales Growth Italy Spain UAE Qatar

31 Macau UK Saudi Arabia

Business Milestones Sustainability Initiatives One of America’s Favorite Chains in 2023

Opening of flagship location in Rollout of new Jollibee

17 JFC Annual Report 2022

18 JFC Annual Report 2022

Greenwich is a homegrown pizza brand that

19 JFC Annual Report 2022

Bestsellers 2022 Business Highlights Limited-Time Offers

Cajun Shrimp Overload Pizza

+36.3% with the help of always-on support for Greenwich’s Bestsellers