#1Strictly Confidential CENTURY PACIFIC FOOD, INC. Corporate Presentation Century Pacific Food, Inc. (PSE: CNPF) Argentina CORNED BEEF 555 Centu Century Centuentury TUNA Corned T TUNA Flakes in Vegetable Oil Angel opoutal Filled Milk entury TUNA ina Mayo Spread with Real Tune Flakes Easy Open As of March 2017 "To nourish & delight everyone, everyday, everywhere" Century Argentina 555 Century Birch Tree Angel BLUE BAY ORO Home Pride Shanghai Lucky FRESCA 7 TUNA WOW#2Company Overview OCENTURY PACIFIC FOOD, INC. Snapshot • Century Pacific Food, Inc is the largest canned food company in the Philippines Over its 40 year operating history, it has built a portfolio of leading and well recognized brands in three core segments - marine (38% of sales), meat (28% of sales) and milk (11% of sales). The Company is also the Philippines' leading exporter of original equipment manufacturer (OEM) tuna (13% of sales) and OEM coconut products (10% of sales). • The Company listed on the Philippine Stock Exchange in 2014, under the trading symbol CNPF. It currently has a market capitalization of about USD1.2 billion. • Production facilities: 6 manufacturing facilities across the Philippines, strategically located adjacent to supply sources (Tuna and Coconut in General Santos City, Meat in Laguna City, Dairy in Taguig City, Sardines in Cavite and Zamboanga City) Key Management: Christopher T. Po, President and CEO - 14 years at CNPF (8 years as CEO), 11 years of prior multi-industry experience; Teodoro T. Po, EVP and COO - 25 years experience of running various business units in CNPF; Oscar A. Pobre, CFO 20 years in CNPF's corporate finance, treasury, accounting and controllership Financials Revenues (in USD Mill) 409 2014 467 419 2015 Net Income (in USD Mill) 32 2014 9M 2016 43 39 Tuna OEM, 13% Milk, 11% Coconut OEM, Century 10% Marine, 38% Revenue Breakdown OEM, 23% Branded, 77% Local, 74% 2015 9M 2016 Ownership Structure GIC Private Equity, 7% Export, 26% Public, 24% Meat, 28% Argentina 555 Century Birch Tree Angel BLUE BAY Kaffi ORO Home Pride Shanghai Lucky 7 FRESCA TUNA Century Pacific Group, 69% 2#3Company Overview OCENTURY PACIFIC FOOD, INC. Proven track record in brand-building CENTURY CANNING CORP. Century Angel KAE ORO Home Pride 555 Argentina CENTURY PACIFIC FOOD, INC. Birch Tree WOW BLUE BAY Swift CENTURY PACIFIC AGRICULTURAL VENTURES, INC. Birch Tree FORTIFIED 1978 1983 1986 1995 2001 2002 2003 2008 organic 2011 AGORA AWARDS Century Canning Marketing Company of the Year via acquisitions 2011 to 2013 VOTED BY CONSUMERS Digest TRUSTED BRAND 2013 GOLD ATH ANNIVERSARY Century Tuna and Argentina Reader's Digest Trusted Brand 2014 2012 2013 2015 2016 2016 (AMF) 2016 ASIAMONEY AGORA AWARDS Gregory Banzon Awardee for Marketing Excellence Asia Marketing Federation CNPF Asia's Marketing Company of the Year Century Hrgentina 555 Century Birch Tree Angel ef BLUE BAY Kaffe ORO Home Pride Shanghai Lucky 7 FRESCA TUNA CNPF Philippines' Best Managed Company - Small Cap 3#41 Well-positioned to take advantage of rising consumer demand Rising nominal GDP per capita... 2,364 2011A CAGR: +4.9% 2,863, 2015A CAGR: +8.6% 4,327 Nominal GDP per capita (in USD) 2020E OCENTURY PACIFIC FOOD, INC. ...to support an emerging middle class Distribution of Families and Income Households Number Annual income SE class % share in 000 in Php AB 193 1 2,213,000 C 2,228 10 632,000 D 12,684 59 218,000 E 6,321 30 68,000 Total 21,426 100 Source: Source: IMF Food accounting for bulk of family expenditure Breakdown of Family Expenditures Miscellaneous NSCB, Kantar Worldpanel, SWS Based on 2012 data PH shelf-stable market the largest in ASEAN Shelf-stable food total consumption (US$m) 24% Health 4% Education 4% Transport 6% Utilities Housing 8% 12% Source: 2015 PSA data 670 Food 42% 581 213 172 35 Philippines Indonesia Thailand Malaysia Singapore Source: 2016 Euromonitor data Century Argentina 555 Century Birch Tree Angel BLUE BAY Kaffi ORO Home Pride Shanghai Lucky FRESCA 7 TUNA#52 Dominant market leadership in ambient food in the Philippines OCENTURY PACIFIC FOOD, INC. 46% The Company's brands are the brands of choice for Filipino consumers Largest and Leading Canned Producer 35% #1 Canned & Preserved Food 11% 9% 8% CNPF Purefoods Del Monte Liberty Gold #1 Dec 2016 Corned Meat CNPF 54% #1 Canned & Processed Fish #1 Canned Meat 37% 30% 19% Liberty Gold 13% 14% Youngstown Others Dominant Positions in Key Sub-Segments #1 Dec 2016 Luncheon Meat 20% 13% CNPF Purefoods PSE: PF CDO Foodsphere Others Source: Euromonitor 84% 34% 18% 15% 11% 15% 9% CNPF CDO Foodsphere Purefoods PSE: PF Sunpride CNPF Maling CDO Foodsphere CNPF Century Argentina 555 Century Birch Tree Angel ef BLUE BAY Kaffe Home Pride Shanghai Lucky ORO 7 FRESCA TUNA Dec 2016 #1 'Canned Tuna 15% CDO Foodsphere Source: Nielsen 5#63 Multiple brands and products catering to all consumers CENTURY PACIFIC FOOD, INC. Diverse product portfolio catering to a broad customer base and different customer tastes and needs Positioning Value for Money Canned and Processed Fish Lucky FRESCA 7 TUNA Mass Market Affordable Premium 555 BLUE BAY Century Century QUALITY Canned and Processed Meat Lucky 7 WOW 555 Shanghai Argentina Swift Canned and Drinking Home Pride Milk; Mixes KAFFE ORO Angel Birch Tree FORTIFIED Birch Tree Full Cream Milk Powder Significant benefits of a multi-brand, multi-product portfolio • Catering to a broad customer base through multiple brands and capturing larger share of the consumers' wallet / stomach through multiple segments/products • Increased bargaining power with suppliers and distributors • Diversification of risk and facilitate brand consolidation play Century Argentina 555 Century Birch Tree Angel ef BLUE BAY Kaffe ORO Home Pride Shanghai Lucky FRESCA 7 TUNA 6#74 A strong focus on marketing and R&D driven innovation OCENTURY PACIFIC FOOD, INC. R&D Process Flow An integral part of launching new products and improving profitability CONCEPTUALIZE (Mktg, R&D, TK & Stakeholders) Innovative Marketing Campaigns Enhancing brand recognition through active and targeted marketing and promotional campaigns Century TUNA Switch to Inputs from experts ----> Formulate and establish process THE ONLY TUNA I TRUST 100% Cary Contury Swift Premium Swift CORNED BEEF BEEF CORNED ↓ Batch Trial Run ↓ CONSUMER TEST No MADE FROM 100% PURE TUNA Capitalizing on healthier lifestyles NEW Birch Tree FORTIFIED with Zinc, Vitamin C, Iron & Inulin Fiber Bilib magpalaki Bilib sa sarap Bilib sa sulit! CENTURY PACIFIC FOOD, INC. Ability to reposition and develop premium products SARDINES KO (555) SARSALICIOUS! PRITOLICIOUS ✓ Yes Commercial PRODUCTION Off to Market NEW Birch Tree 555 SARDINES 555 FRIED SARDINES FORTIFIED TOMATO SAU HOT & SPICY Intuitive and appealing ad-campaigns employing celebrity endorsers to create must have and aspirational brands Century Argentina 555 Century Birch Tree Angel BLUE BAY Kaffe Lucky Home Pride Shanghai FRESCA ORO 7 TUNA 7#85 Trusted partner for customers around the world CENTURY PACIFIC FOOD, INC. Works closely with long standing international partners to produce private label and branded products for sale in international markets Private Label Tuna Market Shares Seatrade, Celebes 6% 7% Ocean, Key Customers SUBWAY PRINCES Hagoromo HOKO 8% Alliance (PSE: FOOD), 10% 35% CENTURY PACIFIC FOOD, INC. largest single-brand restaurant chain UK's leading importer of canned food Japan's leading manufacturers of food products Philbest, 34% Source: 2016 Bureau Of Customs data Availability of Branded Products Branded Products sold Exclusively for Export Argentina CORNED BEEF in sauce MANZO SOTTO sale in salamoia CARNE TIPO CORNED BEEF en salsa CA ارجنتينا قطر أدم عالية الجودة. كورند بيف الوزن الصافية اغ. NET WT/PESO NETO PESO NETTO: 7oz (200g) LONG SHREDS/HEBRAS GRANDES Argentina CORNED BEEF حلال mux OT OF COLD Nutrition Facts HACAD NET WT. 6.3oz (200g) LONG SHREDS القيم الغذائية New Birch Tree SWEETENED Condensed Milk 555 Tuna AFRITADA Sweet and Savory Walmart SAFEWAY > Carrefour Choithrams full of goodness SEAFOOD CITY Spinneys Fresh 99 RANCH MARKET جيان Géant Century Argentina 555 Century Birch Tree Angel BLUE BAY Kaffe ORO Lucky Home Pride Shanghai FRESCA 7 TUNA 8#96 Experienced and dedicated management team Highly experienced professionals in their respective areas of expertise Executive Committee Profile Christopher Po President and CEO Teodoro Po EVP and COO President & CEO 7 Vice Presidents EVP & COO Oscar Pobre VP and CFO • OCENTURY PACIFIC FOOD, INC. Previously served as Management Consultant at McKinsey, Managing Director at Guggenheim Partners, and Corporate Planning Head at JG Summit Summa Cum Laude from Wharton; MBA from Harvard Business School 23 years experience of running various business units of Century Group; Designed, built and managed several factories of the group Summa Cum Laude from Boston University; Owner/President Management Program from Harvard Business School 19 years managing the corporate finance, treasury, accounting and controllership at Century Group of Companies 17 years in finance functions at RFM, Cosmos, Dole, and Meralco Average Tenure - 11 years Average Work Experience - 20 years Johnson & Johnson PEPSICO Dole Century TUNA San Miguel Pure Foods Unilever P&G Procter & Gamble RFM CORPORATION Cumulative Professional Experience - 280 years Argentina Gregory Banzon VP GM Canned Fish, Tuna Cezar Cruz, Jr. VP GM Canned Fish, Sardine Rex Agarrado VP GM Canned Meat Edwin Africa VP GM Dairy and Mixes Teddy Kho VP GM Tuna Export Noel Tempongko VP GM CPAVI Ron Agoncillo VP - Sales 555 Century Birch Tree Angel BLUE BAY Homep ORO • 22 years of experience in various general management, marketing and sales roles including VP- Marketing of Johnson & Johnson ASEAN, Country General Manager of Johnson & Johnson Indonesia, and General Manager at RFM 29 years of experience in various technical, operations and business development roles at San Miguel and RFM President of the Sardine Association of the Philippines 18 years of experience in various technical and manufacturing roles at San Miguel, RFM, Quaker and California Manufacturing Corporation Director of the Philippine Association of Meat Processors, Inc. 22 years of experience in general and brand management roles in the Philippines, Taiwan, Thailand, Singapore, Malaysia and China Procter & Gamble from 1991 to 2001, Nippon Paint from 2001 to 2004, and Pepsico from 2005-2012 21 years of experience in various management, operations and technical roles including President and General Manager of San Miguel Foods Vietnam and Plant Manager of San Miguel Hoecheong 27 years of experience in various general management roles in fast-moving consumer goods companies, including San Miguel Yamamura Packaging Corp and The Purefoods-Hormel Company Inc 8 years of experience in sales management roles at National Sales and Cadbury, Unilever Indonesia & Philippines, 3M, and Shell 9#10Financial Results Century TUNA OCENTURY PACIFIC FOOD, INC. CENTURY PACIFIC FOOD, INC. YTD Sep 2016 UNAUDITED FINANCIAL RESULTS Hrgentina 555 Century Birch Tree Angel BLUE BAY KAE Home Pride ORO Shanghai Lucky FRESCA 7 TUNA Century Argentina 555 Century Birch Tree Angel BLUE BAY Kaffi ORO Home Pride Shanghai Lucky FRESCA 7 TUNA 10#11Financial Results 21.0 +22% 17.2 Revenues 8.0 +35% 5.9 9M 9 M Q3 Q3 15 16 15 16 Figures in Php billions . O CENTURY PACIFIC FOOD, INC. Sustained growth in Branded Food with higher volumes and better sales mix Recovery in Tuna OEM with Q3 revenue growth reversing back to double-digits • Consolidation of recently acquired Coconut OEM subsidiary CPAVI beginning January 2016 Total Revenues Century Argentina 555 Century Birch Tree Angel BLUE BAY ORO Home Pride Shanghai Lucky 7 FRESCA TUNA 11#12Financial Results O CENTURY PACIFIC FOOD, INC. Profitability Generally subdued input costs • Continued efficiency gains Improved contribution from higher-margin products Operating Income Net Income Figures in Php Billions 3.0 2.1 2.2 1.5 +42% +44% 1.1 0.8 0.8 +38% 0.6 +42% 12.1% 14.1% 13.4% 13.7% 8.7% 10.3% 9.6% 10.0% 9M15 9M16 3Q15 3Q16 9M15 9M16 3Q15 3Q16 Operating Income -Operating Margin Net Income Net Margin Century Argentina 555 Century Birch Tree Angel BLUE BAY Kaffe Home Pride Shanghai ORO Lucky 7 FRESCA TUNA 12#13Financial Results Branded Food Revenues 16.0 14.0 +15% 5.8 +35% 4.8 9M 9M Q3 Q3 15 16 15 16 . Growth mostly due to higher volume 15 Figures in Php billions CENTURY PACIFIC FOOD, INC. MARINE benefitting from continued brand-building, increasing per capita consumption and growing the category size. MEAT added a new line to address capacity constraints. MILK continuing to make in- roads in mainstream powdered milk. Better sales mix leading to increased average selling price Century Argentina Century Birch Tree Angel 555 BLUE BAY ORO Home Pride Shanghai Lucky 7 FRESCA TUNA 13#14Financial Results Non-Branded Food Revenues 4.9 O CENTURY PACIFIC FOOD, INC. +53% 3.2 2.1 +95% Revenues 10% of CNPF 13% of CNPF Revenues 1.1 9M 2016 9M 2016 9M 9M Q3 Q3 Coco OEM Tuna OEM 15 16 15 16 • • Figures in Php billions Driven by consolidation of coconut subsidiary and tuna OEM recovery in Q3 from both higher volumes and ASP. Stabilizing tuna raw material cost in recent months encouraged demand from OEM customers. Century TUNA Argentina 555 Century Birch Tree Angel ef BLUE BAY Kaffi ORO Home Pride Shanghai Lucky FRESCA 7 TUNA جنات 14#15Financial Results Income Statement O CENTURY PACIFIC FOOD, INC. YTD YTD Change Q3 Q3 Change in PHP Mill Sep '16 Sep '15 YOY 2016 2015 YOY Net Revenues 20,964 17,185 22% 7,959 5,877 35% Cost of Sales 14,283 12,663 13% 5,206 4,341 20% Gross Profit 6,681 4,521 48% 2,754 1,536 79% Operating Expenses 3,769 2,525 49% 1,707 794 115% Operating Income 2,964 2,087 42% 1,087 787 38% EBITDA 3,210 2,216 45% 1,178 828 42% Income Before Tax 2,892 2,084 39% 1,061 786 35% Income Tax 733 587 25% 263 224 17% Net Income 2,160 1,497 44% 798 561 42% EPS (PHP) 0.61 0.45 36% 0.23 0.17 34% Margins Gross Operating EBITDA Net 31.9% 26.3% +5.6pps 34.6% 26.1% +8.5pps 14.1% 12.1% +2.0pps 13.7% 13.4% +0.3pps 15.3% 12.9% +2.4pps 14.8% 14.1% +0.7pps 10.3% 8.7% +1.6pps 10.0% 9.6% +0.5pps Effective tax rate 25.3% 28.2% -2.8pps 24.8% 28.5% -3.7pps Century Argentina 555 Century Birch Tree Angel ef BLUE BAY Kaffe ORO Home Pride Shanghai Lucky FRESCA 7 TUNA 15#16Financial Results Balance Sheet O CENTURY PACIFIC FOOD, INC. YTD FY YTD FY in Php Mill Sep '16 in Php Mill 2015 Sep '16 2015 Cash 768 722 Trade and Other Payables 4,904 3,864 HTM Investment 27 15 Notes Payable 654 2,250 Receivables 4,050 3,593 Others 401 161 Inventories Others 7,487 538 5,926 Current Liabilities 5,958 6,274 291 Long-term Loan 1,650 0 Current Assets 12,870 10,547 Others 201 161 PPE 3,817 3,134 Noncurrent Liabilities 1,851 161 Intangible Assets 3,017 2,955 Share Capital 3,541 2,361 Other Noncurrent Assets 138 146 Share Premium 4,912 4,912 Total Noncurrent Assets 6,972 6,235 Retained Earnings 3,497 2,990 Other Equity Total Equity 83 12,033 10,347 84 Total Assets 19,843 16,782 Total Liabilities and Equity 19,843 16,782 Book value per share (PHP) 3.40 2.92 Century TUNA Argentina 555 Century Birch Tree Angel BLUE BAY Kaffe ORO Home Pride Shanghai Lucky FRESCA 7 TUNA 16#17Financial Results OCENTURY PACIFIC FOOD, INC. Cash Flows and Cash Conversion Cycle in Php Mill YTD Sep '16 Sep '15 YTD in Php Mill YTD Sep '16 Sep '15 YTD Income before Tax 2,892 2,084 Beginning Cash 722 1,264 Depreciation & Amortization 246 129 Change in Cash 46 (735) Change in Working Capital (1,099) (1,517) Ending Cash 768 529 Taxes Paid (733) (587) Others 220 (41) Receivable Days ■Inventory Days ■Payable Days CF from Operating Activities 1,527 67 Acquisition of PPE 101 101 (930) (513) Others (61) 159 126 142 CF from Investing Activities (991) (353) Dividends Paid (472) (446) 57 52 Change in Debt 54 (82) (93) Others (72) (3) CF from Financing Activities (490) (449) FY 2015 YTD SEP 2016 Century Argentina 555 Century Birch Tree Angel ef BLUE BAY Kaffe ORO Lucky Home Pride Shanghai 7 FRESCA TUNA 17#18Share Price Performance OCENTURY PACIFIC FOOD, INC. As of 01/13/17 Source: Deutsche Phil Consumer Bank CNPF Average Current Price PHP15.96 2017 Estimates PER 20.0x 19.2x 52 Week Range PHP9.85-18.60 EV/EBITDA 13.3x 10.0x 3 Mo Avg Turnover USD0.8 Million PBV 3.9x 3.0x Market Capitalization PHP56.53 Billion Operating 12.5% 8.4% USD1.13 Billion Margin ROE 21.0% 15.4% Free Float 20.9% 12 Mo Absolute Performance 12 Mo Relative to Index +48.6% 3 Mo Absolute Performance +60.0% Sell-Side Coverage Deutsche Bank Maybank -0.3% COL FINANCIAL 3 Mo Relative to FHILIPPINES I CLSA Jefferies ☑DBS +0.8% Index SECURITY BANK RCBC VICKERS SECURITIES Century Argentina 555 Century Birch Tree Angel BLUE BAY Kaffe ORO Lucky Home Pride Shanghai 7 FRESCA TUNA 18#19OCENTURY PACIFIC FOOD, INC. This document is highly confidential and being given solely for your information and for your use and may not be, or any portion thereof, shared, copied, reproduced or redistributed to any other person in any manner. The statements contained in this document speak only as of the date 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 presentation contains 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 of 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 document are cautioned not to place undue reliance on these forward-looking statements. Any reference herein to "the Company" shall mean, collectively, Century Pacific Food, Inc. and its subsidiaries. CENTURY PACIFIC FOOD, INC. Ortigas Center, Pasig City, Philippines +632-633-8555 [email protected] www.centurypacific.com.ph http://edge.pse.com.ph/companyPage/stockData.do?cmpy_id=652 Century TUNA Argentina 555 Century Birch Tree Angel BLUE BAY Kaffe ORO Home Pride Shanghai Lucky FRESCA 7 TUNA 19