COMPANY PRESENTATION October 2019 1 IMPORTANT NOTICE This - - PowerPoint PPT Presentation

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COMPANY PRESENTATION

October 2019

IMPORTANT NOTICE

This presentation does not constitute or form part of and should not be construed as an offer to sell or issue or the solicitation of an

• ffer to buy or acquire securities of the Company or any of its subsidiaries or as an inducement to enter into investment activity. No

part of this presentation should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation is not a financial, legal, tax or other product advice. This presentation has been prepared by the Company for selected recipients for information purposes only and does not constitute a recommendation regarding any securities of the Company. The information has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. This presentation is highly confidential and being given solely for your information and for your use and may not be retained by you nor may this presentation, or any portion thereof, be shared, copied, reproduced or redistributed to any other person in any manner. The statements contained in the presentation speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. By preparing this presentation, none of the Company, its management, and their respective advisers undertakes any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. This material may contain forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements

• f the Company or industry results, to differ materially from the results, financial condition, performance or achievements expressed or

implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this material are cautioned not to place undue reliance on these forward-looking statements. A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION, BUT HAS NOT YET BECOME EFFECTIVE. THE SECURITIES OF THE COMPANY MAY NOT BE SOLD NOR OFFERS TO BUY THE SAME BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS REPORT AND ALL COMMUNICATIONS APPURTENANT THERETO SHALL NOT CONSTITUTE AN OFFER TO SELL OR BE CONSIDERED A SOLICITATION OF AN OFFER TO BUY.

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THE COMPANY

Agenda

Key Strategies Financial Highlights Industry Overview Competitive Strength

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• Overview
• Corporate History and Structure
• Products

THE COMPANY

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• Overview
• Corporate History and Structure
• Products

THE COMPANY

Holding company

• f food and

beverage kiosk

• perators

The LARGEST* diversified kiosk

• perator in the

country Highly Scalable business model Currently 24 active brands 949 stores nationwide

*Source: 2019 UA&P CFA report

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• Overview
• Corporate History and Structure
• Products

THE COMPANY

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

2002 2004-2011 2012 2013

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Corporate History

260 414 819 930 949

2015 2016 2017 2018 2019

The Lush Company was incorporated. The Lush Company gained 95% of Negril Trading which houses De Original Jamaican Pattie Shop and Juice Bar Shou, Johnn Lemon, and Fancie were introduced The Lush Company, Inc. was re- named to Fruitas Holdings, Inc. FHI acquired 150 Maginhawa St. The Lifestyle Park and FGI launched the Le Village Lifestyle Park House

• f

Fruitas, The Pub, Munifico, and Cindy’s Candy Cloud were launched. NTI completed the asset acquisition of Sabroso Lechon Fruitas launched Fresh Ka Pa Ba? campaign which also introduced Sarah Geronimo as the new brand ambassador of Fruitas. Three Frenchmen Creperie was launched

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Corporate History

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Fruitasgroup Incorporated Green Empire International Limited Oceanic Luck Limited Buko ni Fruitas, Inc. Negril Trading, Inc.

100% 100% 100% 100% 100%

Corporate Structure

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

Main Operating Subsidiaries

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• Overview
• Corporate History and Structure
• Products

THE COMPANY

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Products

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Source: 2019 UA&P CAF

FRUITAS FRESH FROM BABOT’S FARM! 2002 Fresh fruit shakes and juices

Leader in Fruit shake category

DE ORIGINAL JAMAICAN PATTIE SHOP AND JUICE BAR 1991 Baked Jamaican Patties and juices

Leader in Meat-filled patties category

JOHNN LEMON 2016 Pure lemonade and lemonade with fruit mixes or tea base

Leader in Lemonade category

BUKO LOCO/BUKO NI FRUITAS FRESH FROM BABOT’S FARM 2012/2005 Bottled pure coconut juice, flavored coconut juice and fruit smoothies Desserts (buko and fruit salads served in coconut shell), fresh coconut juice and buko smoothies (combination of buko meat blended with other fruits)

Leader in Buko category

Market Leaders

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BLACK PEARL 2008 Flavored powder drinks served with tapioca pearls Coolers category JUICE AVENUE 2004 Fresh fruit juice and smoothies Juice and smoothies category SHOU HAND- PULLED NOODLES 2016 Hand pulled noodles; old Beijing braised beef, rice toppings and dimsum SABROSO LECHON 2017 Lechon and

• ther pork-

based rice meals Whole roasted pork category FRUITAS HOUSE OF DESSERTS 2012 Dessert, fresh fruit shakes and juices, boba shakes and milk tea Desserts category TEA-REX MILKTEA 2012 Cold-brew based milk tea and fruit tea Milk tea category FRIENDS FRIES 2012 French Fries Fries category

The Mango Farm (2006) and 7,107 Halo Halo Islands (2013) are also challengers in the Desserts category Source: 2019 UA&P CAF

Category Challengers

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MUNIFICO PIZZERIA 2017 FANCIE 2016 THREE FRENCHMEN CREPERIE 2019 FRUITAS ICE CANDY 2012 UVA 2017 CINDY’S CANDY CLOUD 2017 HOUSE OF FRUITAS 2017 THE PUB 2017 LUCKY CHAN 2019 COFFEE TALK 2019

Source: 2019 UA&P CAF

Niche Brands

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LIFESTYLE FOOD PARK

LE VILLAGE LIFESTYLE FOOD PARK 2017

55 CORDILLERA ST., QUEZON CITY

UNO CINQUENTA LIFESTYLE FOOD PARK 2016

150 MAGINHAWA ST., QUEZON CITY

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Franchise fees 2% Rental <1% Fruitas 27% Buko Loco/BNF 18% Jamaican Pattie 13% Johnn Lemon 10% Black Pearl 10% Friends Fries 3% Juice Avenue 3% Others 13%

Revenue Breakdown: 2018

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Friends Fries 5% Juice Avenue 3% Fruitas 28% Buko Loco/BNF 12% Jamaican Pattie 14% Johnn Lemon 12% Black Pearl 14% Others 12%

Store Breakdown: 1H2019

Industry Overview

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2,000 4,000 6,000 8,000 10,000 12,000 14,000 2 4 6 8 10 12 14

2010 2011 2012 2013 2014 2015 2016 2017 2018

Household final consumption expenditure Food and Non-alcoholic beverages

Household Final Consumption Expenditure

at Current Prices

Value (PHP Bn) Growth Rates (%)

HFCE increased by an average of 8.9% per year at current prices during the past 10 years. Total Food Spending increased by 6.8% per year from 2009 to 2015 Region 2009 2012 2015 AAGR (percent per annum) 2009/ 2012 2012/ 2015 2009/ 2015 NCR 111,696 118,572 126,695 2.01 2.23 2.12 Calabarzon 88,985 98,553 107,160 3.46 2.83 3.15 Central Luzon 82,261 92,308 100,411 3.92 2.84 3.38 Rest of Luzon 64,478 70,147 77,366 2.85 3.32 3.08 Luzon (a) 84,528 92,792 100,496 3.16 2.69 2.93 Visayas 64,144 69,915 80,058 2.91 4.62 3.76 Mindanao 59,855 66,723 72,018 3.69 2.58 3.13 Philippines 74,798 82,466 89,997 3.31 2.96 3.13

Food expenditure: Average spending per family, various years (P)

Based on the latest Family Income and Expenditure Survey (FIES) report (2015), the total earnings of Filipino families reached PHP6 trillion in 2015, which translates to an average income of PHP 267,000 per family.

(a) Including NCR Source of basic data: PSA-FIES (various years)

Growth Outlook

Coolers Php 853m Buko Php 293M Lemonade Php 208M Meat Filled Pastries Php 345M Fries Php 672M Fruit Shakes Php 536M Juices and Smoothies Php 287M 22

Source: 2019 UA&P CFA report

By region, Philippine food expenditure as of 2015 NCR: 30% Calabarzon: 22% Central Luzon: 12% Eating out behavior outpaced total income growth by 1.08 to 1.00. In 2018, sales of street kiosks/stalls reached P103.0B from 40,371 outlets with the number of transactions totaling 2.2B Eating out as percent of food spending rose from 14.2% (P290.7 Billion) in 2009 to 19.5% (P399.2 Billion) in 2015. Food is a major expense item among Filipino

• households. In 2015, food accounted for close to 42%
• f household spending.

Philippine Food Expenditure

*Kiosk Revenue in 2018 based on SEC filing

1.3B

Market Size

CATEGORY MARKET SIZE* NUMBER OF STORES BRANDS Fruit shakes Php536.1M Over 506 Fruitas (434.0M), Fruit Magic (17.0M), The Big Chill (85.1M) Juices and Smoothies Php288M 125 Jamba Juice (201.3M) (c), Juice Avenue (53.9M) and Fruitfull (10.6M, FY ended May 2015), Tubo Cane Juice (22.3M) (d) Buko-based Drinks** Php293.5M 281 Buko Loco/Buko ni Fruitas (281.6M), Buko Juan (11.9M) Coolers Php853.4M 583 Zagu (701.9M) and Black Pearl (151.5M) Lemonade Php208.0M 213 Johnn Lemon (163.5M), Lemon na Bai (14.3M), Simply Lemon (30.2M) Meat-filled pastries Php345.1M 176 De Original Jamaican Pattie (207.9M), Yumpanada (137.2M) (e) Fries Php672.3M Over 1,482 Potato Corner (632.8M) and Friends Fries (39.5M) TOTAL Php3,196.4M Over 3,366 23

Source: 2019 UA&P CFA report

There are brands considered best-in class among different food kiosk categories. It is worthy to note of these seven categories, four (4) are dominated by FHI-owned brands.

*Est., 2018 in Php millions **Two dominant brands in the category are owned by FHI

Industry and Competition

1.3B

Market Size

42%

Market Share

81% 16% 3% Fruitas The Big Chill Fruit Magic 96% 4% Buko Loco/Buko ni Fruitas Buko Juan 60% 40% De Original Jamaican Pattie Yumpanada 79% 14% 7% Johnn lemon Lemon ni Bai Simply Lemon 24

Source: 2019 UA&P CFA report. Market share in terms of 2018 Revenue filed in SEC

FRUIT SHAKE LEMONADE BUKO JUICE MEAT-FILLED PATTIES

Market Share

18% 70% 4% 8% Juice Avenue Jamba Juice Fruitfull Tubo Can Juice 6% 94% Friends Fries Potato Corner 18% 82% Black Pearl Zagu 25

JUICE AND SMOOTHIES COOLERS FRIES

Market Share

Source: 2019 UA&P CFA report. Market share in terms of 2018 Revenue filed in SEC

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Competitive Strengths

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Strong and Broad Brand Portfolio

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Leading Kiosk operator in Fruit shakes, Buko Juice, Lemonade and Meat Filled Pastries segment. Multiple food and beverage kiosk brands Competitive Pricing

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Multiple Store Formats

CART KIOSK IN-LINE FOOD STALLS

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Scalable and Sustainable Business Model

Multi-brand kiosk operator leveraging on production cost and economies of scale

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Large in-house logistics and distribution services 40 vehicles for delivery

Efficient Logistics Management

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Well-positioned to utilize Foodparks

Our foodparks are in well-positioned areas- near offices and schools This is a platform where we incubate and test out viability of new concepts Develop new brands and enhance synergy amongst current brands

4 131 70 113 118 138 13 2016 2017 2018 32

Proven Track Record of Brand Introduction And Acquisitions

• No. of Stores

*no FHI-owned stalls pre-acquisition

Income Level (PHP) Total Spending (PHP Bn) Number of families Spending per family (PHP) All 399.2 22,730,410 17,553 Under 40,000 0.7 364,847 1,922 40,000 -<60,000 2.5 901,347 2,732 60,000-<100,000 14.6 3,268,076 4,454 100,000-<250,000 117.5 10,317,925 11,390 250,000-<500,000 136.5 5,262,154 26,935 500,000-<1,000,000 88.9 2,060,072 42,755 Above 1M 38.6 545,989 70,684 33

Well Positioned to Capture Growing Middle Class

Source: 2019 UA&P CFA report

In 2015 there were 2.1m families earning Php500k to Php1m a year. On average, families earning spend Php 42k a year on eating out. Eating out spending is seen to grow dramatically as families move from lower class to middle class which would mean an additional eating out spending of Php16.8B a year. Between 2009 and 2015, total food spending grew by 6.8% per annum while eating out spending expanded at a faster rate or 12.6% per annum. Eating out spending reached Php399B in 2015, about 20% of total food spending. In 2018, estimated eating out spending at around Php525B or about 21% of total food spending Eating out spending* across income classes, 2015 (*food regularly consumed outside the home)

Source of basic data: PSA-FIES, 2019 UA&P CFA report

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In Mindanao

202

in Visayas

218

In Luzon

479

In Metro Manila 34

Vast Branch Network

Over 949 stores nationwide Strong and Competitive Franchising

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Store Distribution

348 639 745 774 66 180 185 175 2016 2017 2018 1H2019 Group Franchised

51% 23% 21% 5%

NCR Luzon Visayas Mindanao

GROUP FRANCHISED METRO MANILA OUTSIDE METRO MANILA

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Highly Experienced Management Team

LESTER C. YU Director, President and CEO CALVIN F. CHUA Director and Chief Financial Adviser IRENE O. CHUA Director, CFO and Treasurer MADELENE T. SAYSON Chief Operating Officer ROSELYN A. LEGASPI Managing Director - VisMin

Key Strategies and Future Plans

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

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Key Strategies and Future Plans

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Pursue aggressive network expansion to take advantage of Philippine economic expansion as well as rapid urbanization of regions outside Metro Manila

51% 23% 21% 5%

Stores per Region 2019

NCR Luzon Visayas Mindanao 48% 22% 24% 5%

Group Stores per Region 2019

NCR Luzon Visayas Mindanao 62% 27% 10% 5%

Franchised Stores per Region 2019

NCR Luzon Visayas Mindanao

Increase same kiosk sales growth

Key Strategies and Future Plans

• Increase transaction counts and average check
• Convert first-time customers to repeat and loyal customers
• Invest in our brands through advertising and marketing initiatives

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Innovate and introduce new concepts to satisfy evolving consumer tastes and preferences Further enhance operations to improve margins and retain competitive product prices

13.2% 12.2% 15.0%

2018 1H2018 1H2019

EBITDA MARGIN

56.1% 54.7% 58.3%

2018 1H2018 1H2019

GP MARGIN

6.4% 5.4% 5.5%

2018 1H2018 1H2019

NI MARGIN

Key Strategies and Future Plans

131 113 138 13 2016 2017 2018 41

Acquire other food service brands and businesses and expand in new formats where our cost- efficient model can be replicated

• No. of Stores

Key Strategies and Future Plans

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Key Strategies and Future Plans

Diversify distribution channels Expand the Foodpark business as another growth area for our Company

Financial Highlights

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Financial Highlights

₱500 ₱1,153 ₱1,579 ₱726 ₱941 2016 2017 2018 1H18 1H19 ₱311 ₱694 ₱886 ₱397 ₱549 2016 2017 2018 1H18 1H19 ₱82 ₱173 ₱100 ₱39 ₱52 2016 2017 2018 1H18 1H19 ₱121 ₱263 ₱208 ₱89 ₱141 2016 2017 2018 1H18 1H19

Figures In Millions

REVENUES NET INCOME

+30% +33%

GROSS PROFIT

+38%

EBITDA

+58%

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Financial Highlights

253,032 729,159 904,399 1,074,738 2016 2017 2018 1H2019 60,308 410,231 530,668 663,333 2016 2017 2018 1H2019

ASSETS LIABILITIES

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Key Performance Indicator

2016 2017 2018 1H2019

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

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Use of Proceeds

Usage Indicative Amount (Php Millions) Percentage Timing

Store Network Expansion and Store Improvements 586 59.4% 2020-2022 Commissary Expansion 50 5.1% 2020 Expansion of Foodpark Business 50 5.1% 2020-2021 Acquisition Opportunities and Introduction of New Concepts 150 15.2% 2020-2021 Debt Repayment 150 15.2% 2019-2020 Estimated Net Proceeds 986 100%

Issuer Fruitas Holdings, Inc. (“FHI”) Selling Shareholder Next Merchant Holdings, Inc. The Offer Up to [533,660,000] Firm Shares and up to 68,340,000 Optional Shares pursuant to the Over-allotment Option Offer Price Up to ₱ *1.99+ per Offer Share. Public Float [28.21% (if Overallotment Option is fully exercised)] [25.01% (if Overallotment Option is not exercised)] Joint Issue Managers, Bookrunners, and Lead Underwriters BDO Capital & Investment Corporation First Metro Investment Corporation Participating Underwriter RCBC Capital Corporation Issuer’s Counsel Angara Abello Concepcion Regala & Cruz Law Offices Underwriter’s Counsel Picazo Buyco Tan Fider & Santos Law Offices Independent Auditor Reyes Tacandong & Co.

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Terms of the Offer

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Indicative Timetable of the Offer

Activities Indicative Date SEC Pre-effective Clearance October 18, 2019 PSE Notice of Approval October 23, 2019 Pricing Announcement [November 14, 2019] SEC Permit to Sell [November 14, 2019] Public Offer Period [November 18 to 22, 2019] Listing and Trading [November 29, 2019]

Q&A

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