Investor Presentation 1 DISCLAIMER This presentation contains - - PowerPoint PPT Presentation

▶
investor presentation
SMART_READER_LITE
LIVE PREVIEW

Investor Presentation 1 DISCLAIMER This presentation contains - - PowerPoint PPT Presentation

Mar 08, 2023 349 likes •826 views

Investor Presentation 1 DISCLAIMER This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Universal Robina Corporation (URC) and plans and objectives of the

slide-1
SLIDE 1

1

Investor Presentation

slide-2
SLIDE 2

2

This presentation contains certain forward looking statements with respect to the financial condition, results of operations and business of Universal Robina Corporation (URC) and plans and objectives of the management of URC. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of URC to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward looking statements were based on numerous assumptions regarding URC’s present and future business strategies and the political and economic environment in which URC will

  • perate in the future.

DISCLAIMER

slide-3
SLIDE 3

3 TABLE OF CONTENTS PART I: Business Overview PART II: URC Investment Highlights PART III: Delivering Results PART IV: 1H CY2020 Results and Updates

slide-4
SLIDE 4

4 1. 60+ Years Of Delightfully Satisfying Customers 2. URC Today 3. Our Structure 4. Our Geographic Presence PART I: Business Overview PART II: URC Investment Highlights PART III: Delivering Results PART IV: 1H CY2020 Results and Updates TABLE OF CONTENTS

slide-5
SLIDE 5

2017: Entered a JV with Vitasoy of Hong Kong 2018: Started its “PURPOSEFUL TRANSFORMATION”, by Integrated Sustainability in its long-term strategy, Revitalized the C2 brand, and Irwin C. Lee became the new President & CEO of URC 2019: Relaunched Great Taste White Coffee in 3 variants URC Started as corn starch manufacturer (Agro-Industrial) 1960s Age of Manufacturing

Age of Brands

Age of Brands Ventured on flour milling business Also entered into the hogs business 1980s

  • Entered sugar

milling & refinery business

  • Entered branded

consumer foods business

  • Launched brands such as

Blend 45, Chippy and Potato Chips

  • Launched

Cloud 9 Age of Domestic Expansion Entered our JV with Hunt’s and Nissin Age of Globalization Thailand Vietnam Indonesia Malaysia Hong Kong China 2006: Introduced C2 to the Philippines and Vietnam Jack n’ Jill became the umbrella brand for snackfoods 2011: Launched Great Taste White and Mang Juan 2014: Entered a JV with Calbee

  • f Japan & Danone of France

Myanmar 2015 1970s 1990s 1990: URC went public New Zealand: 2014: URC acquired Griffin’s Foods Ltd.

For over 60+ years, URC has delighted its customers with brands of exceptional quality

2000s Australia: 2016: URC acquired Snack Brands Australia

5

Investor Presentation: 1H CY2020 Business Results Investor Presentation: 1H CY2020 Business Results

slide-6
SLIDE 6

6

Business Overview

Mark arket Pos

  • sit

ition

Phi hili lippin ines # 1 # 3

Snacks, Candies, Chocolates, RTD tea, Cup Noodles, Sugar Biscuits, Coffee

Vi Vietnam # 3 RTD Tea Th Thail ailand # 1 Biscuits, Wafers Ne New Zeal ealand Aus Australia ia

Salty Snacks

# 2 # 1 # 2

Sweet Biscuits Crackers

(1) 2019 Audited

We have the passion for producing great products and great brands

Investor Presentation: 1H CY2020 Business Results

slide-7
SLIDE 7

7

URC

Branded Consumer Foods (BCF) Philippines Core Packaging International Asia Vietnam

Thailand/Cambodia/Laos

Indonesia Malaysia/ Singapore China/ Hong Kong Myanmar Oceania Australia New Zealand Agro-Industrial & Commodities (AIC) Agro-Industrial Group Animal Nutrition & Health Robina Farms Commodity Foods Group Sugar & Renewables Flour

CY19 Sales Contribution

(1) 2019 Audited

Our structure reflects how we engage in wide variety of synergistic businesses

48% 31% 21%

Philippines International Agro-Industrial and Commodities

Investor Presentation: 1H CY2020 Business Results

slide-8
SLIDE 8

8

One of the leading players in snackfoods and beverage in the ASEAN and Oceania region

Investor Presentation: 1H CY2020 Business Results

slide-9
SLIDE 9

9

One of the leading players in snackfoods and beverage in the ASEAN and Oceania region

Investor Presentation: 1H CY2020 Business Results

slide-10
SLIDE 10

10

  • 1. Strong Portfolio of Brands
  • 2. Disciplined Marketing and Customer Engagement
  • 3. Robust Innovation Pipeline
  • 4. Wide Distribution Network
  • 5. World-class Manufacturing and Supply Chain Management
  • 6. Effective Cost Management
  • 7. Partner of Choice
  • 8. Sustainability
  • 9. Our Strategic Pillars

PART III: Delivering Results PART IV: 1H CY2020 Results and Updates PART I: Business Overview PART II: URC Investment Highlights TABLE OF CONTENTS

slide-11
SLIDE 11

11

Strong portfolio of brands

Our brands offer a diverse portfolio of mainstream and premium products in emerging and developed markets

MAINSTREAM PREMIUM

Umbrella brand of snackfood products that are well-recognized in the ASEAN region #1 player in Snacks (PH), Candies (PH), Chocolates (PH), Biscuits (TH), Wafers (TH) Leading ready-to-drink tea brand in the Philippines and Vietnam A heathy ready-to-drink tea which comes from naturally brewed tea leaves Innovator in making the modern coffee experience accessible and first in the “creamy” sub-segment in the Philippines 2nd largest brand in New Zealand in wrapped snacks Dominant player in New Zealand Wide range of healthy wrapped snacks High quality sweet biscuits with more than 150 years of heritage 3rd largest player in the total coffee category in the Philippines #2 Potato Slow Cooked brand in Australia The Pioneer Hard Bite/Premium Chip #1 Potato Flat brand in Australia The Original Thin Cut Chip #2 Corn Chips brand in Australia The Original Corn Chip #2 Potato Crinkle brand in Australia A new challenger in crinkle cut #2 Extruded brand in Australia A dominant Cheese ring product Investor Presentation: 1H CY2020 Business Results

slide-12
SLIDE 12

12

4.3 5.0 5.7 6.4 6.9 7.6 7.1 8.0

5.9% 6.0% 5.9% 5.7% 6.1% 6.1% 5.6% 6.0%

4.0% 6.0% 8.0%

  • 1.0

2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19

A&P % to Sales

Experiential activations targeting millennials

Innovative on-ground and online participative activation through B’lue YouTV campaign Jack ‘n Jill Calbee pop-up store with one-of- a-kind activity booths

Effective brand communications via traditional and new media

Aggressive in-store visibility and availability

(1) In billion pesos (2) 2019 Audited

Cost efficient & effective customer (trade & consumer) engagement

A&P SPENDING1

Advertising 46% Promotions 54%

A&P Split We execute targeted marketing initiatives using optimal A&P spending

Investor Presentation: 1H CY2020 Business Results

slide-13
SLIDE 13

13 Our research and product development capabilities allow us to proactively deliver new and exciting offers to our consumers

Robust innovation pipeline

Best-in-class technology with the latest capabilities and equipment Established Innovation Process Management (IPM) to strengthen our insighting processes, drive new product development and renovations of existing brands without compromising entrepreneurial speed and agility

Focus on Research and Development

Innovations with key emerging trends in mind

Introduced products that cater to global snacking and drinking themes

Flexibility & adaptability in each markets

Our local expertise has enabled us to launch products that will satisfy the taste profile of each market In Thailand, we continue to push new flavors that Thai consumers love as we launched Roller Coaster Spicy Shrimp flavor while in Oceania, we launched the limited edition Thins Himalayan Pink Salt.

Investor Presentation: 1H CY2020 Business Results

slide-14
SLIDE 14

14

Wide distribution network

We have established a distribution network with strong retailer relationships

PH

exclusive regional distributors

TH

wholesalers, roving salesmen

VN

regional distributors

ID

non-exclusive distributors

MY/SG

wholesalers and distributors

CN/HK

wholesalers and distributors

NZ/AU

MODERN RETAIL TRADITIONAL RETAIL

Serviced Directly Serviced Directly Serviced Directly Serviced Directly Serviced Directly Serviced Directly Serviced Directly

Investor Presentation: 1H CY2020 Business Results

slide-15
SLIDE 15

15

World-class manufacturing and integrated supply chain management

We manage our supply chain to ensure safe and quality products

Raw Materials Production

Finished Goods

World-class facilities are aligned with global standards having certifications such as ISO 9001:2008, ISO 22000:2005 and HACCP Conducts regular testing from raw materials to manufacturing to finished goods Stringent selection of suppliers and distributors to ensure they meet URC’s high quality measures Highly automated manufacturing lines with dedicated control throughout the production process

Investor Presentation: 1H CY2020 Business Results

slide-16
SLIDE 16

16

Effective cost management

We operate efficiently through best-in-class regional practices

  • Capitalized on lifted trade barriers to realign capabilities and manufacture

products where economies exist

  • Achieved synergies and better asset utilization
  • Ensured sourcing of quality materials at low cost by means of strategic regional

procurement and sourcing

Prod roducts ar are man anufactured and and di distrib ibuted acr across s Asi sia and and Oc Oceania

73.3 83.6 96.7 112.0 112.6 125.0 127.8 134.2

73% 71% 68% 67% 68% 69% 71% 70% 15% 16% 16% 17% 18% 19% 19% 19%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 34% 36% 38% 40% 42% 44% 46% 48% 50% 52% 54% 56% 58% 60% 62% 64% 66% 68% 70% 72% 74% 76% 78% 80% 82% 84% 86% 88% 90% 92% 94% 96% 98% 100% 102% 104% 106% 108% 110% 112% 114% 116% 118% 120% 122% 124% 126% 128% 130% 132% 134% 136% 138% 140% 142% 144% 146% 148% 150% 152% 154% 156% 158% 160% 162% 164% 166% 168% 170%

  • 20.0

40.0 60.0 80.0 100.0 120.0 140.0 160.0

CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 Sales COGS % to Sales OPEX % to Sales

(1) Sales in billion pesos (2) 2019 Audited

Investor Presentation: 1H CY2020 Business Results

slide-17
SLIDE 17

Our credibility made us the preferred partner of strong international companies

Partner of choice

Joint Ventures Licensing

  • To offer instant and cup noodles under

the famous Japanese brand, Nissin and value-for-money instant noodles under Payless

  • Nissin’ s cup format well positioned to

take advantage of the growing trend for convenience and premiumization

  • Started partnership since 1994

51-49 partnership with Nissin Foods

  • To expand the premium snacks

market by bringing into the Philippines an innovative range of Japanese salty snacks targeting consumers with sophisticated taste profiles (e.g. Potato Chips Wasabi flavor, Pizza Potato)

Licensing agreement with Calbee, Japan 50-50 partnership with Danone Waters

  • To introduce a new water plus drink,

Blue designed for on-the-go millennials looking for a refreshing drinking experience

50-50 partnership with Vitasoy Hong Kong

  • To promote consumers’

well-being and sustainable nutrition by launching plant- based beverages

  • Started partnership since

2016

  • Launched Vitasoy last May

2017

  • Started partnership in 1983 to

bring the Hunt’s brand in the Philippines for Beans and Sauces. The JV sold the Hunt’s business in 2017 as part of our portfolio rationalization exercise in URC.

  • We launched new products like Swiss Miss on

2018 in line with our on-the-go portfolio

Licensing agreement with ConAgra, USA

  • Actively engaged target customers through the use
  • f experiential and digital marketing
  • Started partnership since 2015

17

Investor Presentation: 1H CY2020 Business Results

slide-18
SLIDE 18

We started our purposeful transformation by harnessing sustainability as part of our core strategy

18

Investor Presentation: 1H CY2020 Business Results

slide-19
SLIDE 19

19

Our strategic pillars: Getting better for what lies ahead

Investor Presentation: 1H CY2020 Business Results

slide-20
SLIDE 20

20 1. Solid track record of growth and profitability 2. Maintained a healthy financial position while providing consistent shareholder returns PART IV: 1H CY2020 Results and Updates PART I: Business Overview PART II: URC Investment Highlights PART III: Delivering Results TABLE OF CONTENTS

slide-21
SLIDE 21

21

45.1 105.9 15.0 28.3 60.1 134.2 CY10 CY19 BCF AIC

CA CAGR

10% 7%

79% 21%

URC Sales Breakdown BCF Breakdown

We have doubled the business in the past 8 years and diversified geographically

(1) Sales in billion pesos (2) 2019 Audited

UR URC C 9 9 YR YR CA CAGR GR: 9% 9%

Sales

60% 40%

BCF PH BCF Int'l

Investor Presentation: 1H CY2020 Business Results

slide-22
SLIDE 22

22

Strong balance sheet and cash generation to invest for growth and pay dividends

0.29 0.11 0.51 0.42 0.47 0.47 0.48 0.45 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19

Gearing ratio Dividend payout

3.7 .7 4.6 5.3 5.7 6.9 4.9 .9 4.2 4.4 1.9 2.4 3.0 3.0 3.2 3.2 3.2 3.2

83% 65% 65% 56% 55% 52% 64% 75% FY12 FY13 FY14 FY15 FY16 CY17 CY18 CY19

EPS Div/share Payout Gearing ratios sustained at acceptable levels as a result of effective financial management Dividend payout was maintained in line or higher than our policy - 50% of last year’s net income

(1) Payout ratio= Div per share/ last year’s EPS (2) Dividend Payout was based on Fiscal Year (ending September) earnings until 2016, Calendar year starting 2017 due to calendar shift (3) 2019 Audited

Investor Presentation: 1H CY2020 Business Results

slide-23
SLIDE 23

23 PART I: Business Overview PART II: URC Investment Highlights PART III: Delivering Results PART IV: 1H CY2020 Results and Updates TABLE OF CONTENTS

  • 1. Business Updates: How we are navigating the

Situation

  • 2. 1H CY2020 Unaudited Financial Results
  • 3. Balance of the Year Plans
slide-24
SLIDE 24

24 PART I: Business Overview PART II: URC Investment Highlights PART III: Delivering Results PART IV: 1H CY2020 Results and Updates TABLE OF CONTENTS

  • 1. Business Updates: How we are navigating the

Situation

  • 2. 1H CY2020 Unaudited Financial Results
  • 3. Balance of the Year Plans
slide-25
SLIDE 25

Business Updates: How we are navigating the situation

APRIL MAY JUNE

Record highest-ever noodles, snacks, and bakery production for a quarter Plant attendance improved and all manufacturing lines are running Truck requirements fully support all requirements

OPERATIONS

Rebuilding stock levels to support demand spikes

PEOPLE

SALES

Adapting the way we serve our customers in the “New Normal” through alternative shopping channels

Telesales Direct to Consumers Distributor Social Commerce eCommerce Selling

Adapted to new normal with record production

OUR PEOPLE Employee Safety and Health: Protocols on handling COVID-19 cases Case Investigation Contact Tracing Communication Plan Complete Disinfection Check COVID-19 Protocols Execution 1 2 3 4 5

Investor Presentation: 1H CY2020 Business Results

slide-26
SLIDE 26

26 PART I: Business Overview PART II: URC Investment Highlights PART III: Delivering Results PART IV: 1H CY2020 Results and Updates TABLE OF CONTENTS

  • 1. Business Updates: How we are navigating the

Situation

  • 2. 1H CY2020 Unaudited Financial Results
  • 3. Balance of the Year Plans
slide-27
SLIDE 27

URC Earnings Grow Strongly

through first wave of COVID crisis

  • Better than expected performance under COVID

lockdowns especially in Philippines and Oceania

  • Strong growth in Snackfoods offset out of home

consumption declines

  • Positive Mix and Spend Controls drive strong

margin, profit and cashflow growth

  • Cost savings offset COVID related expenses and

fuel brand building investments

  • In billion pesos
  • 2020 and 2019 numbers reflects the application of PFRS 16 and 15

33.3 33.5 33.7 34.0 67.0 67.4 2019 2020

+0.4% +1% +1%

4.0 4.0 3.7 4.3 7.6 8.2 2019 2020

+0.4% +16% +8%

12.2% +85

Margins BPS

Q1 Q2 1H 11.9% 12.6%

  • -

+169

Q1 Q2 1H Q1 Q2 1H

27 EBIT IT SALES LES

Investor Presentation: 1H CY2020 Business Results

slide-28
SLIDE 28

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 CY2019 CY2020

Q1

Q1

BCF | PHILIPPINES

Double-digit growth in operating income and market share gains in core categories

EBIT IT SALES LES

  • Strong growth in snacks, bakery, noodles, and

coffee versus out-of-home consumption declines in confectionery and RTD beverages

  • Gained strong market shares in all key categories
  • Growth in profits driven by favorable price/cost

mix, coupled with OPEX control and cost savings

  • Investments in innovation and A&P continues

14.4% +148

Margins BPS

Q1 Q2 1H

15.3% 13.5% +183 +111

15.2 15.7 15.5 15.7 30.7 31.4 2019 2020

+3% +1% +2%

2.1 2.4 1.9 2.1 4.0 4.5 2019 2020

+17% +10% +14%

Q1 Q2 1H Q1 Q2 1H

  • In billion pesos | Excluding packaging
  • 2020 and 2019 numbers reflects the application of PFRS 16 and 15
  • Note that Sales & EBIT of exports to non-affiliates from the Philippines was removed

for both CY2019 and CY2020 and now treated as part of URC International

28

Investor Presentation: 1H CY2020 Business Results

slide-29
SLIDE 29

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 CY2019 CY2020

Q1

Q1

BCF | PHILIPPINES

Double-digit growth in operating income and market share gains in core categories

Snackfoods Coffee

+1%

CATEGORY SALES RTD Tea

  • 18%

Noodles

+6%

Q1 Q2 1H

+25% +28%

  • 6%
  • 6%

+3% +8% +8%

  • 30%

+22%

*Based on AC Nielsen’s Exit reading from January 2019 to April, May, June 2020

Snacks

+8% +5% +10%

Bakery

+10% +2% +19%

Confectionery

  • 5%

+1%

  • 11%

MARKET SHARES*

JANUARY 2019 Average

  • APRIL. MAY, JUNE 2020

Noodles

19.9% 21.6%

RTD Tea

83.0% 87.7%

Coffee

21.1% 22.1%

Chocolates

20.2% 24.7%

Candies

26.8% 28.9%

Biscuits

16.0% 16.9%

Snacks

35.1% 41.3%

29

Investor Presentation: 1H CY2020 Business Results

slide-30
SLIDE 30

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 CY2019 CY2020

Q1

Q1

BCF | INTERNATIONAL

Double Double digit g digit growth th in o in oper perating ting pr profit

  • fit in Q2

in Q2

EBIT IT SALES LES

  • FX held back sales (by 6 growth points) and total

business has been impacted by the lockdown in varying degrees

  • Total Oceania continue to post buoyant sales
  • Indochina negatively impacted by COVID-19 but

improving month by month

  • Profits and margins pivoted in Q2 with double digit

growth as a result of higher volumes in Oceania and cost control measures across all countries

  • In billion pesos
  • 2019 and 2020 numbers reflects the application of PFRS 16 and 15
  • *includes Yarra Valley Sales

9.7%

+37

Margins BPS

Q1 Q2 1H 8.2% 11.2%

  • 207

+288

10.5 9.7 10.4 9.3 21.0 19.0 2019 2020

  • 8%
  • 11%
  • 9%

1.1 0.8 0.9 1.0 1.9 1.8 2019 2020

  • 26%

+20%

  • 6%

Q1 Q2 1H Q1 Q2 1H Vietnam Thailand

  • 6%
  • 34%

Q1 Q2 1H

  • 11%
  • 36%
  • 32%

+1%

In Local Currency

Oceania*

+12% +19% +5%

Q1 Q2 1H In Constant FOREX

30

Investor Presentation: 1H CY2020 Business Results

slide-31
SLIDE 31

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 CY2019 CY2020

Q1

Q1

AIC

EBIT IT SALES LES

  • Profit growth is driven by higher volumes in

Sugar and Flour and higher margins in Animal Nutrition and Health and Flour

  • In billion pesos | Non-branded Consumer Foods Group is now called Agro-Industrial and Commodities (AIC)
  • Feeds is now called Animal Nutrition & Health (including Pet Food) | Farms is now called Robina Farms

SURE +31% FLOUR +12% ROBINA FARMS

  • 16%

ANH +4%

BUSINES ESS S UNIT PERFROM OMANCE Commodity Foods Group (CFG) Agro-Industrial Group(AIG)

6.6 6.4 8.0 10.1 14.6 16.5

1H 2019 1H 2020

  • 3%

+26% +13%

0.6 0.5 2.0 2.4 2.7 3.0

1H 2019 1H 2020

  • 17%

+20% +11%

Strong performance in Commodities and Animal Nutrition & Health

CFG AIG

  • Double digit growth driven by higher volumes in

Sugar, Flour, and Animal Nutrition and Health

  • Decline in Robina Farms due to downsized
  • perations and lower volumes

SALES EBIT

31

Investor Presentation: 1H CY2020 Business Results

slide-32
SLIDE 32

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 CY2019 CY2020

Q1

Q1

Balance Sheet & Cash Flows Str Stron

  • ng Balan

g Balance ce S She heet et and Ca Cash sh Position sition

11.2 19.2 39.8 36.3 1H CY19 1H CY20

Cash and Financial Debt*

Cash + Financial Assets at FVPL + AFS Financial Debt

In billion pesos

  • Php 18.7B Cash balance – very

strong

  • Net Debt of Php 17.1B, LT debt in

Oceania

  • Gearing ratio of 0.38
  • Strong 1H free cash flows
  • OPEX and CAPEX savings identified
  • Cash conversion cycle focus
  • Special cash dividends payments as

planned last June 26,2020 20.5 11.9 3.1 6.9 3.7 18.7

Cash as of Dec 2019 EBITDA CAPEX Dividends Working Capital and Others Cash as of Jun 2020

*As of June 2020 versus June 2019

32

Investor Presentation: 1H CY2020 Business Results

slide-33
SLIDE 33

33 2.) 33 PART I: Business Overview PART II: URC Investment Highlights PART III: Delivering Results PART IV: 1H CY2020 Results and Updates TABLE OF CONTENTS

  • 1. Business Updates: How we are navigating the

Situation

  • 2. 1H CY2020 Unaudited Financial Results
  • 3. Balance of the Year Plans
slide-34
SLIDE 34

People and Planet Friendly Culture

People Productivity, New Workplace, Accelerate Digital, Quality/Health & Safety Enhancement; Sustainability Savings

Product Supply Chain Transformation

LEAN Acceleration; Logistics Transformation; Supply Network Re-Design

Preferred Partner of Choice

Shift in Modern Retail; Distribution Expansion models; Route to Market availability and Service; eCommerce/sCommerce/DTC; Supplier Base Flexibility

Products and Brands People Love

IPM 2020; Brands with Purpose; New Consumer Trends towards health and in- home consumption; Strengthen the Core and Expand for More Portfolio

Balance of The Year Plans

34

Investor Presentation: 1H CY2020 Business Results

slide-35
SLIDE 35

35

THANK YOU

slide-36
SLIDE 36

36

APPENDIX

slide-37
SLIDE 37

37

UNIVERSAL ROBINA CORPORATION

Branded Consumer Foods Group Philippines International Packaging

Macro-snacking Beverage Grocery Others Vietnam Thailand Indonesia Malaysia/Singapore China/Hong Kong

Agro-industrial and Commodities Group (AIC)** Commodity Foods Group Agro-Industrial Group

Sugar, Cogen, & Distillery Flour Animal Nutrition and Health Robina Farms

New Zealand/ Australia

Myanmar Cambodia/ Laos

Php Billions

CY 2019 Total BCFG Phil BCFG Int’l CFG AIG Net Sales 134.2 63.7 42.2 15.2 13.1 % to total sales 100% 47% 31% 11% 10% EBIT 15.0* 8.0 4.0 4.0 0.9 % to total EBIT 100% 53% 27% 26% 6%

(*) net of Corporate Expenses of Php1.9B, includes revaluation gains/loss of our biological assets for the Farms Division (**) Philippines only; 2019 Audited

Investor Presentation: 1H CY2020 Business Results

slide-38
SLIDE 38

38

CORE BRANDED CONSUMER FOODS PHILIPPINES

47% 9% #1

9 YR CAGR Sales Growth Contribution to total URC Sales

Built strong heritage brands that Filipinos grew up with

Snackfoods and beverage company in the Philippines

Macro- Snacking Noodles Beverage

Ready-to-Drink (RTD) CATEGORY BREAKDOWN

Product Shots

Entered into strategic partnerships with Calbee (Salty Snacks), Danone (Water Plus Drink), Nissin’s (Noodles), ConAgra and Vitasoy (Soy Milk Drink) Partnered with approximately 120,000 outlets, both in traditional and modern retail to distribute its products in the Philippines Disciplined A&P expenditures to support branding initiatives, and to maintain its market position

(1) Confectionery includes Chocolates and Candies (2) Bakery is composed of Biscuits and Cakes

Investor Presentation: 1H CY2020 Business Results

slide-39
SLIDE 39

39

BRANDED CONSUMER FOODS INTERNATIONAL

31% 11%

Product Shots

#1

9 YR CAGR Sales Growth Contribution to total URC Sales

Established a strong presence in the ASEAN region and expanded reach to include Oceania

Acquired Griffin’s, the number one snack foods company in New Zealand, and Snack Brands Australia, the number 2 salty snacks player in Australia for synergistic opportunities in Oceania

In Thailand and New Zealand for key categories

Leveraged on its ASEAN operations to manufacture BCF products at the lowest cost possible (i.e. regional sourcing) Brought strong popular brands from the Philippines to Asia with slight modifications to satisfy the taste profile of each market

Vietnam Thailand

ASIA

Indonesia

OCEANIA

Malaysia/ Singapore China/ Hong Kong Myanmar

Snacks, Wafers, Chocolates, Candies, Biscuits, Marshmallow, Cakes Snacks, Chocolates, Candies, Biscuits MY: Snacks, Chocolates, Wafer, Biscuits, Candies, Beverage SG: Snacks, Biscuits CN: Cereal/Oats, Snacks, Biscuits, Coffee HK: Snacks, Bakery, Confectionery, Beverage Snacks, Wafers

New Zealand

Sweet Biscuits, Crackers, Salty Snacks, Wrapped Snacks

Australia

Biscuits, Wrapped Snacks, Salty Snacks RTD Beverage, Snacks, Candies, Biscuits

Investor Presentation: 1H CY2020 Business Results

slide-40
SLIDE 40

40

VIETNAM IS SLOWLY MOVING ON ITS PATH TO RECOVERY

“Passion for Quality” campaign to ensure customers that C2 and Rong Do are safe to consume Marketing activities to rebuild positive brand awareness Accelerate snackfoods expansion

Investor Presentation: 1H CY2020 Business Results

slide-41
SLIDE 41

41

Agro-Industrial and Commodity Foods Group (AIC)

Maintained stable business with successful vertically integrated business model

BCF

Flour Sugar

Approximately 35% - 40% of output are used internally Approximately 80%- 90% of millshare and 30%-40% of traded volume sold to BCF

Feeds

100% glucose sold to BCF Approximately 50-60%

  • f bran and pollard*

sold to Feeds

Farms Veterinary Drugs Commodity Foods (CFG) Agro-Industrial (AIG) Flour

Hard flour, soft flour and specialty flour, pasta products, and premium soft bread

Sugar/ Renewables (SURE)

Sugar: Raw sugar, refined sugar and molasses Renewables: Generates power and exports to the national grid and; produces fuel-grade anhydrous ethanol

Bioethanol supplies ethanol requirement to Big Oil Companies Cogeneration exports 20MW power to National Grid

Robina Farms

Hogs: Live hogs, carcass, fresh meat cuts Poultry: Layer chicks, commercial table eggs

Commercial Feeds

Animal feeds for hogs, poultry, gamefowl, dog food and other specialty feeds

Commercial Drugs

High-quality animal health products

Shifted 50% of volume sales to meat cuts

Investor Presentation: 1H CY2020 Business Results

slide-42
SLIDE 42

PARENT COMPANY

As of May 27, 2020 Forex Rate: 1USD= 50.617 PHP

42

Investor Presentation: 1H CY2020 Business Results

slide-43
SLIDE 43

Income Statement

43

  • Increase in net income

was attributable to higher

  • perating income driven by flat

cost of sales and operating expenses as well as lower forex losses

Full P&L include market revaluation gain/loss for Farms 2020 and 2019 numbers reflects the application of PFRS 16 and 15 along with its impact to Sugar

(Php Millions) 1H 2020 1H 2019 YoY (Unaudited) (Unaudited) NET SALES 67,407 67,041 1% Cost of Sales 46,936 47,143

  • 0.4%

GROSS PROFIT 20,472 19,898 3% Operating Expense

  • 12,235
  • 12,276
  • 0.3%

OPERATING INCOME 8,236 7,623 8% Equity in net income of JVs

  • 55
  • 32

Finance cost – net

  • 630
  • 687

Other revenues/ expenses

  • 78
  • 38

CORE EARNINGS 7,474 6,866 9% Market valuation gain/ (loss)

  • 13

13 Foreign exchange gain/ (loss) – net

  • 330
  • 425

Other non-core revenues/expense

  • 2

INCOME BEFORE INCOME TAX 7,131 6,452 11% Provision for Income Tax 1,156 1,147 NET INCOME 5,975 5,305 13% Net income attributable to holders of the parent 5,528 5,130 8% EBITDA 11,925 11,369 5%

Investor Presentation: 1H CY2020 Business Results

slide-44
SLIDE 44

Decrease in net income was attributable to flat operating income and higher forex losses

Balance Sheet

44

*2020 and 2019 numbers reflect the application of PFRS 16

(Php Millions) 1H 2020 CY 2019 (Unaudited) (Audited) Cash & cash equivalents 19,180 20,975 (including Financial assets at FVPL and FVOCI) Other current assets 44,895 43,945 Property, plant, and equipment 53,385 54,626 Other noncurrent assets 48,745 49,106 TOTAL ASSETS 166,204 168,653 Current liabilities 34,774 34,933 Noncurrent liabilities 36,938 38,535 TOTAL LIABILITIES 71,712 73,468 Retained earnings 65,229 66,644 Other equity 29,263 28,540 TOTAL EQUITY 94,492 95,185

Investor Presentation: 1H CY2020 Business Results

slide-45
SLIDE 45

Decrease in net income was attributable to flat operating income and higher forex losses 45

Divisional Financials

*EBIT and margins include revaluation gains/loss of our biological assets for the Farms Division

SALES EBIT EBIT MARGIN

(Php Millions)

1H 2020 1H 2019 YoY 1H 2020 1H 2019 YoY 1H 2020 1H 2019 bps Branded Consumer Foods 50,914 52,444

  • 3%

6,345 5,908 7% 12.5% 11.3% 120 Total Philippines

31,902 31,477 1% 4,508 3,960 14% 14.1% 12.6% 155

Philippines

31,381 30,725 2% 4,518 3,970 14% 14.4% 12.9% 148

Packaging

521 752

  • 31%
  • 10
  • 11
  • 6%
  • 1.9%
  • 1.4%
  • 50

International

19,012 20,967

  • 9%

1,837 1,949

  • 6%

9.7% 9.3% 37

Agro-industrial and Commodity 16,494 14,597 13% 2,955 2,663 11% 17.9% 18.2%

  • 33

CFG (net)

10,106 8,008 26% 2,421 2,018 20% 24.0% 25.2%

  • 124

Flour

2,335 2,090 12% 567 456 24% 24.3% 21.8% 245

SURE

7,771 5,918 31% 1,855 1,562 19% 23.9% 26.4%

  • 253

AIG (net)

6,388 6,589

  • 3%

534 645

  • 17%

8.4% 9.8%

  • 144

Animal Nutrition and Health

4,510 4,351 4% 719 536 34% 15.9% 12.3% 361

Robina Farms

1,878 2,238

  • 16%
  • 185

109

  • 271%
  • 9.9%

4.9%

  • 1,471

Corporate Expense

  • 1,063
  • 949

12% Total URC 67,407 67,041 1% 8,236 7,623 8% 12.2% 11.4% 85

Investor Presentation: 1H CY2020 Business Results

slide-46
SLIDE 46

Decrease in net income was attributable to flat operating income and higher forex losses 46

Market Shares

AC Nielsen, Value, MAT: Snacks, Candies, Chocolates ,Biscuits , RTD Tea, Coffee and Cup Noodles as of Jun 2020 URC Thailand: Biscuits and Wafers – MAT Jun 2020, URC Vietnam: RTD Tea – MAT May 2020 New Zealand: Sweet Biscuits and Crackers-IRI MarketEdge NZ Grocery MAT 21 June 2020; Australia: Aztec Scan AUS Grocery MAT to 7/6/20

CATEGORY MARKET SHARE #1 #2 #3 Snacks 37.1% URC 21.8% 5.7% Candies 26.3% URC 12.7% 10.9% Chocolates 21.3% URC 13.7% 9.2% Biscuits 16.2% 25.6% 18.9% URC Cup Noodles 49.1% URC 38.7% 7.1% RTD Tea 84.4% URC 2.9% 2.5% Coffee 22.6% 36.0% 35.9% URC

Instant Coffee

21.6% 75.1% URC 1.7%

Coffee Mixes

22.8% 43.7% 27.5% URC

CATEGORY MARKET SHARE #1 #2 #3

Biscuits 24.6% URC 11.4% 7.7% Wafers 23.0% URC 11.9% 9.4%

CATEGORY MARKET SHARE #1 #2 #3

RTD Tea 15.4% 49.1% 18.4% URC

Vietnam Thailand New Zealand Philippines

CATEGORY MARKET SHARE #1 #2 #3

Sweet Biscuits

40.8% URC 20.4% 13.0% Crackers 20.0% 30.1% URC 12.0%

Australia

CATEGORY MARKET SHARE #1 #2 #3

Salty Snacks 24.7% 52.3% URC 5.8%

Investor Presentation: 1H CY2020 Business Results

slide-47
SLIDE 47

Let us get in touch with you

In our Investor Directory