#1DEL MONTE PHILIPPINES, INC. CORPORATE PRESENTATION Del Monte Quality LIFE GETS BETTER 17 May 2018 NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. www.delmontephil.com#2Disclaimer NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. (Del Monte) Quality This presentation may contain statements regarding the business of Del Monte Philippines, Inc. that are of a forward looking nature and are therefore based on management's assumptions about future developments. Such forward looking statements are typically identified by words such as 'believe', 'estimate', 'intend', 'may', 'expect', and 'project' and similar expressions as they relate to the Company. Forward looking statements involve certain risks and uncertainties as they relate to future events. Actual results may vary materially from those targeted, expected or projected due to various factors. Representative examples of these factors include (without limitation) general economic and business conditions, change in business strategy or development plans, weather conditions, crop yields, service providers' performance, production efficiencies, input costs and availability, competition, shifts in customer demands and preferences, market acceptance of new products, industry trends, and changes in government and environmental regulations. The reader is cautioned to not unduly rely on these forward-looking statements. Neither the Company nor its advisers and representatives shall have any liability whatsoever for any loss arising, whether directly or indirectly, from any use or distribution of this presentation or its contents. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for shares in Del Monte Philippines. 2#3Contents I. Overview II. Vision and Strategy III. Growth Drivers IV. Awards and Sustainability V. Financial Highlights VI. Investment Merits 3#4Overview 4#5NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. (Del Monte Del Monte Philippines, Inc. (DMPI) · • DMPI is the 2nd largest subsidiary of Del Monte Pacific Ltd. Comprises of Philippines sales and exports, with Philippines as the largest market of DMPI accounting for 2/3 of sales • Del Monte is a household name as DMPI has been in operation in the Philippines for over 90 years since 1926 YCOPEN THICKER KETCHUP RICHER TASTE Del Monte Quality DMPI FY2017 Sales (by product) 13% 22% P26.7bn 32% 34% Packaged Fruit and Veg Beverage Culinary Fresh Fruit and Others Del Monte ORIGINAL BLEND Ketchup Det Monte Extra Rich TOMATO KETCHUP SW FILIPINO STYLE Spaghetti Sauce Det Monte Quick Easy AFRITADA Sauce Del Monte Quality TOMATO PASTE FOR THICKER, REDDER DISHES Netw.g Good for COPENE Contadina FORMAGGIC Fit Fit 'n Fit Fit 'n SW Right Right 'n Right ACTIVE ACTIVE Right Del Monte Quality Pineapple Orange juice drink Del Monte Quality Pineapple Blueberry avored juice drink SW Sweet 16 EXTRA WEST PINAPLE DMPI FY2017 Sales (by geography) 33% P26.7bn Fiesta Fruit Cocktal 100% Eneapple Julce 43 MIXED BERRIES BLUEBERRY GRAPE 100 Four Seasons Pinnapple Love Cale Net Vol. 1 Liter 67% ■Philippines Exports 5#6NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Vertically Integrated Operations with Economies of Scale in Pineapple Plantation Cannery Fresh Packhouse Nice Fruit unks ha. of ~25,000 plantation in Bukidnon, Philippines; planting & harvesting nearly 24 hour operation year round Cannery capacity of 700,000 tons; located about one hour from plantation; fruit within of harvest freshness processes 24 hours assuring State-of-the-art fresh cold storage and packing house facility Nice Fruit patented technology called Nice Frozen Dry 6#7NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Philippine Market Philippines posted sales of P15.9bn in FY2017 ■ The Company sells through general trade, modern trade and foodservice. DMPI utilizes non-exclusive distributors nationwide to cover general trade accounts such as wholesalers, public markets and retail stores ■ World's largest integrated pineapple operation with a 25,000-hectare pineapple plantation and over 700,000-ton processing capacity. It is proud of its long heritage of 90+ years of pineapple growing and processing Blue Chip Customers SM PUREGOLD e ROBINSONS MALLS Jollibee ELEVEN M McDonald's 80 g greenwich Shakey Culinary (Sauces, Ketchup, Pasta) 35% FY2017 Sales Split (Total Sales P15.9bn) Beverage 39% Packaged Fruit 26% 7#8Philippines NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Sales Split FY2017: Spaghetti spaghetti spaghett SPAGHETTI Det oste Carbonara Del Tent Arenda Pac Tomato Tomato Tomato 39% Beverage 35% Culinary (Sauces, Ketchup, Pasta) 26% Packaged Fruit CALDERETA Вва Cracker Sny MERIDION 1009 Mango Tidbit Chunic Tidbits Fiesta test Tipes Tipco Tipcopco Four SOSTORN 8#9Philippines 85% Market Share (#1) Quality NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte 75% Market Share (#1) 83% Market Share (#1) Canned and Tetra RTD Juices Canned Pineapple Canned Mixed Fruit 85% 41% Market Share (#1) Tomato Sauce Market Share (#1) Spaghetti Sauce The Group owns the Del Monte brand in the Philippines for processed products where it enjoys leading market shares for canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup Modern trade and convenience stores are growing fast: Del Monte is strong in modern trade, generating about 30% of sales Expanding foodservice sales, accounting for 18% of Philippine sales E-commerce and digital are growing To drive growth, continue to build new categories, channels and markets to ensure future competitiveness and growth Source for market shares: Nielsen Retail Index as of 3 months to December 2017 6#10NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Asia and the Middle East - S&W brand DMPL acquired S&W International from Del Monte Corporation in November 2007 ■ A heritage brand which originated in the US in 1896 SW PREMIUM S&W Asia and Middle East FY2017 Sales Split ■ Exceptional quality premium canned fruit and vegetable products ■ S&W entered the fresh pineapple business under the S&W brand and is now ranked Top 3 in China, South Korea, Japan and Singapore ■ DMPI sales to S&W Asia and Middle East of P2.7bn in FY2017 (S&W fresh P1.6bn and S&W packaged P1.1bn) Packaged Fruit 41% SW Region Fresh Fruit 59% Market Share China Within South Korea Top 3 Japan Singapore Source: Management Estimates 10 10#11NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. SW ERICH Wide Distribution Reach and Diversified Portfolio of Customers Asian customers USA DISTRIBUTION REACH Philippines Canada Cambodia Mexico Myanmar QUALITY 佳农 Goodfarmer? FRUIT SHINSEGAE (E-Mart Co Ltd) CJ |프레시웨이 FRESS Central Pacific America Islands Venezuela Australia Farmind. 惠康 wellcome China Israel Japan UAE Sims South Korea Iran Hong Kong Saudi Arabia We Market Professinale 百里 PARKNSHOP FairPrice Taiwan Qatar Mongolia Pakistan Singapore Turkey Malaysia Cyprus Cold Storage The fresh food people Thailand France THE GOURMET C GROCER JASONS SINCE 1975 FINE FOOD AND WINE Giant Indonesia Spain SETAN SINGAPORE MUSTAFA 11#12S&W Products - Asia and Middle East Sales Split FY2017: 59% Fresh Pineapple 41% Packaged Fruit NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. SW Sweet 16 EXTRA SWEET PINEPLE SW ERICH SW PREMIUM 菠萝汁 PINEAPPLE JUICE NFC SW SW SW SW SW SW SW Fiesta Fruit Cocktail Pineapple Slices PINEAPPLE CHUNKS PINEAPPLE SLICES 100% מיץ אננס Pineapple Crush 100% Pineapple Juice 「豬真果 Tom Pentate 12#13NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. SW S&W Asia and the Middle East Consumers moving towards less processed and more natural food: S&W expanding sales of S&W Sweet 16 fresh pineapple E-commerce and digital are growing with North Asia having the largest share of E-commerce pie: S&W is actively exploring this channel To drive growth, realise S&W's full potential in fresh pineapple and other products, channels, and build S&W's brand equity in key markets SW Sweet 16 ENTHLY WEET PFLE PREMIUM 13#14NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Exports - Del Monte companies and Private label customers DMPI also exports to Asia, Europe and America to Del Monte companies and private labels ■ This amounted to P5.7bn in FY2017, up 1% EMEA St MAMET Ananas ORIGINE PHILIP NES SHA Del Monte Quality ANANAS EN MORCEAUX XANASBLOKJES AUS OP SAP fibby Austere Ananas Scheiben Maturat Asia Del Monte SLICED PENTAPPLE USA Real Fruit Juice! Del Monte Pineapple Tidbits Qyally Del Monte Opnlty Fresh Cal. HUIT COCKTA Det meste 100 Calorie Tropical Fruit Salad VERNSE FED Del Monte). 푸드림 파인애플 Pineapple Jac 청크 New Fruit REFRESHERS Pinacole in TSURU9 Coat Pineapple 14 14#15Vision and Strategy 15#16Vision and Strategy Del Monte Quality NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. We nourish families by providing delicious food and beverages that make eating healthfully effortless anytime and anywhere. We build brands with quality products that are perfectly wholesome and thoughtfully prepared. Strengthen the Core STRATEGIC PILLARS Expand the Product Portfolio Expand Markets 1 ון 品 Improve Operational Excellence and Sustainability HI III IV ENABLERS BUILD THE RIGHT CAPABILITIES, TALENT, CULTURE AND TEAM TO DELIVER AGAINST VISION Strive for Commercial Excellence V 16#17Strategy ■ Continue to strengthen consumer loyalty in the core Philippines business through investment in brand equity and marketing ■ Invest in R&D for product innovation, targeting in particular health-focused categories ■ New packaging formats to attract new target markets ■ Continue to expand channel coverage both in the Philippines and internationally ■ Expand in the international market ■ Maintain a culture of operational and commercial excellence, and sustainability NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Del Monte Quatry Tomato sauce Come Home to 100% LOVE Del Monte Quality Det Monte Life gets Better 17#18Growth Drivers 18#19Growth Drivers A. New products B. S&W fresh fruit expansion NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte CELEBRATE WITH OUR Quality CREAMIEST & CHEESTEST EVER! C. Foodservice expansion D. E-commerce opportunities E. Improve margins through cost optimisation programs Del Monte Spaghetti sauce Crearmy & Chept New SW PINEAPPLE CHUNKS SW PINEAPPLE SLICES SW Apple Cider Vinegar SW Apple Cider Vinegar Cegunte Apure delight plucked straight from Mother Nature. USPAREND CEPITEL USDA EVENINGS 19#20New Products Contadina PENNE Cocadia LINGUINE NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Hand-picked ingredients from the world over for truly authentic flavours. Quality Contactica DRINK THE ONLY 2-IN-1 ISOTONIC ELECTROLYTES L-CARNITINE Fit Fit TO HYDRATE NO HELP REDUCE FAT Right Right BONE More AFFORDABLE price per serving vs. 240 mL can CONVENIENT resealable pack Del Monte Quality 100% PINEAPPLE JUICE WITH VITAMINS A-C-E 7 SUPPORT THE SANGRE SYSTEM 100% PINEAPPLE TO AID DIGESTION JUICE FIBER- ENRICHED 100% PINEAPPLE Del Monte Quality Del Monte Quality Del Monte Quality JUICE DRINK Heart Smart Redincel LOWER CHOLESTEROL 100% PINEAPPLE JUICE SMART FORTIFIED WITH CALCIUM FTALENT TO 2 GLASSES OF MAL GARADOED Net Voc L NO SUGAR ADCET et Vol. 1 Liter NO SUGAR ADDED L LACTOSE PEL fegets Better For health tips, visit www.egatsbetter.ph ACTIVE SO ONE OF23 ACTIVE ONECKS ALREADYMIXCO A Many L-EwaY 20 20#21New Usage NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Encourage new twists on classic tomato Sauce sarap to add twists to classic favorites! Empower working moms to go beyond fried dishes GO BEYOND FRIED DAYS IN AS Quickor Easy AS 1-2-3! Level-up even simple recipes with Del Monte Del Monte Quality Tomato sauce Creamy Cheesy Menudo For recipes, vet www.fagetsbetter ph. Afegets Getter Afeges Better COOK MEAT ADD VEGETABLES POUR SMMER Bet Mente Tidbits pineapple TURN MONDAYS WITH AROUND PIÑA-LEVEL UP ADOBO! Life gets Better 21#22Expand Distribution New market: Turkey SH SW 57958 1143485 SW 655 5096 SW 10-10-8 10 Digital campaigns SW NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Foodservice: Tie-ups and menu creation Quality E-commerce: Amazon Japan, Singapore and JD.com China Qs&w prime now SW S&W Orchard Fruit Cocktail in Syrup, 825g SW 664.40 S$3.90 S&W Whole Peeled Tomatoes, 411g S$2.10 S&W Crushed Tomatoes, 794g S$3.05 S&W Garbanzo Beans, 439g 662-30 S$2.15 S&W Apple Cider Vinegar, 946ml S$6.30 NEW! GULP PINEAPPLE GULP LYCHEE ELEVEN Del Monte Pineapple 50 SNACK MEAL Det Monte KFC Love even more with Ketchup 22 22#23Awards and Sustainability 23 23#24Awards NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte ■ DMPI's CEO, Mr. Joselito D. Campos, Jr., bagged the Entrepreneur of the Year Award in the Asia Pacific Entrepreneurship Awards in Singapore Del Monte Kitchenomics, the biggest culinary club in the Philippines, has won numerous awards: · • • PANAta (Philippine Association of National Advertisers) Marketing Effectiveness Award Spark Awards for Media Excellence: Gold for Best App and Best Use of Branded Content Anak TV Seal, a national award on TV programs which are child-sensitive and family-friendly ■ Tomato Sauce's Come Home Campaign won the Tambuli Award ◉ ◉ Bagged 7-11 Philippines' Best Supplier of the Year Award, Most Innovative Supplier and Best in Account Management Bagged Robinsons' Gold Apple Award (Food Division) in the Philippines Quality ENTREPRENEUR OF THE YEAR JoseLD DESAMPOS, JR APEA 2016 C LIMITED Det Monte Quilty Tomato sauce Original M A Win for Filipino Families A strong Filpino family, a strong wis for Die Monte Hewn Sway TRIPE Farity Chen Nigy deals to DAY wriks one lood terang hoyanced carving rudent to brant he pon a bocas the perfe osing how soooc de eo and Fore my bol towe 24 224#25☐ Awards - Sustainability NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Bagged the Employer of the Year Award 3x from the Personnel Management Association of the Philippines Hall of Fame Award and SSS Kabalikat ng Bayan Top Employer of the Year Award from the Social Security System in the Philippines Gawad Kaligtasan at Kalusugan (the National Award for Excellence in the Practice of Occupational Health and Safety) awarded to our Cannery by the Department of Labor and Employment Won the Don Emilio Abello Energy Conservation Award from the Department of Energy Champion of Biodiversity and Watershed Conservation from the Enterprise Works Worldwide Philippines Best Industry Partner in Northern Mindanao from the Technical Education and Skills Development Authority Bagged the Salamat Po (Thank You) Award for sustainable livelihood programs from the Department of Social Welfare and Development Provies al ARAUBAT DEL MONTE FOUNDATION, PC Kabalikat Award given by TESDA OUTSTANDING AWARD and OUTSTANDING ENERGY MANAGER 25 25#26• Sustainability SW Sweet 16 MOBILE CUS Nutrition, Health and Wellness Del Monte Tomato зана • • Drawing our strength from our heritage of quality and reliability, we produce globally competitive food products in the most sustainable way possible Our goal is to produce healthier and more nutritious products Health and wellness has been the anchor for new product introductions with the consumers' health in mind Del Monte Foundation Through the Del Monte Foundation, we continue to contribute to the upliftment of the quality of life in communities where we operate The Foundation focuses its activities on community health and home care education, environmental conservation, education and youth development, and technical skills and livelihood development NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Strategic Pillar Quality H • Strengthen the Core Expand the Product Portfolio Expand Markets Improve Operational Excellence and Sustainability Strive for Commercial Excellence Sustainability is one of DMPI's strategic pillars and is embedded in the five strategic pillars We build the right capabilities, talent, culture and team to achieve these pillars Environmental Stewardship Across 92 years of operation, our farming practices are aimed at improving yield through ecologically friendly land and water, plant disease management, and use of sustainable planting materials Our waste-to-energy system produces bio-gas using wastewater and discharges. clean water to coastal waters Economic Reduces cost of power and electricity $ Community Sustains community livelihood Environment Minimizes and cleans wastewater discharge Governance Complies with environmental laws 26 26#27Sustainability SYSTEM CELICATION SGS NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Our quality standards and processes are accredited by the world's leading certifying bodies Food Safety System Certification 22000 Agricultural Pract GOOD MA FACTURING GMP PRACTICE CERTIFIED CERTIFIED ISO 9001:2015 COMPANY Del Monte Del Monte Tomato Tomato sauce Four Jas lentons demain ISO 9001 HALAL حلال SURR SGF CERTIFIED ISO 9001:2008 CERTIFIED PhilGAP HACCP CERTIFIED BRC GLOBAL STANDARDS Empowering responsible Sedex® supply chains IDCP CERTIFIED www K GLOBALG.A.P. Fruit & Vegetables 27#28Financial Highlights 28#29DMPI's Historical Performance - Profitability NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Three-Year Summary FY = May to April (Amounts in PhP '000 unless otherwise stated) Quality FY2015 FY2016 FY2017 9M FY2018 Profitability Revenues 21,994,129 23,686,314 26,703,905 21,241,005 Gross Income 5,211,266 5,346,111 6,529,414 5,033,300 EBITDA 2,314,247 3,115,147 4,030,666 3,170,436 Operating Income 1,675,938 2,408,591 3,192,459 2,520,288 Net Income 1,062,042 1,784,911 2,735,130 2,000,309 EPS (in PhP) 48.0 86.2 136.7 108.0 Gross Margin (%) 23.7 22.6 24.5 23.7 EBITDA Margin (%) 10.5 13.2 15.1 14.9 Operating Margin (%) 7.6 10.2 12.0 11.9 Net Margin (%) 4.8 7.5 10.2 9.4 EPS Growth (%) na 79.6 58.6 3.2 Return on Equity (%) na 14.4 18.6 na Return on Assets (%) na 7.1 9.1 na 29 29#30DMPI's Balance Sheet and Cash Flow Three-Year Summary FY = May to April NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality 820,194 8,600,168 FY2015 FY2016 FY2017 9M FY2018 (Amounts in PhP '000 unless otherwise stated) Balance Sheet Cash Debt 231,026 866,804 891,237 8,646,892 11,907,920 15,962,062 Net Debt 7,779,974 8,415,866 11,041,116 15,070,825 Fixed Assets 8,227,978 8,369,805 8,924,681 8,786,744 Total Assets 24,150,340 26,443,764 33,561,758 39,318,703 Shareholders' Equity 11,476,617 13,231,219 16,137,477 18,126,066 Net Tangible Asset Per Share (in PhP) Net Debt to Equity Ratio (%) 576.2 669.6 826.1 934.4 67.8 63.6 68.4 83.1 Cash Flow Cash Flow from Operations 3,305,685 3,937,194 2,372,328 (117,013) Capital Expenditure 3,878,100 4,341,835 4,815,752 3,339,698 30 30#31Investment Merits 31#32Investment Merits NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Solid Fundamentals Growth Drivers • • • Well-known premium Del Monte and S&W brands Long heritage of 90+ years Leading market shares in the Philippines Globally competitive integrated pineapple producer Experienced, dynamic management . New product categories / innovation • S&W fresh pineapple exports . . New channels, including digital . New international markets . . Deeper reach in existing markets and channels Active cost management Valuations • DMPI's net profit expected to grow Sustainability • Wide reach, strategic 32 32#33Strengths NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Brands Leading -Heritage Market Health & Wellness -Quality Shares Play -Versatile Strong Extensive Supply Domestic Chain Distribution Large Scalable Global Business Active Cost Management Growing Sales and Net Income Strong Shareholder Sustainability and Management 333#34NOURISHING FAMILIES. ENRICHING LIVES. EVERY DAY. Del Monte Quality Strong Shareholder Support & Experienced Management Team with Proven Track Record Strong Shareholder Support Owned by Del Monte Pacific Ltd. (DMPL) which is listed in Singapore and Philippines. DMPL is in turn majority-owned by NutriAsia Pacific Limited (NPL) and Bluebell Group Holdings Ltd., which are beneficially-owned by the Campos family. NPL has been the majority shareholder of DMPL since 2006. NPL and Bluebell combined have 71% ownership in DMPL. Experienced Management Team Strong core management team with wide-ranging experience Luis Alejandro CFO Parag Sachdeva 20 Years Industry Experience Corporate Secretary Antonio Ungson 20 Years Industry Experience President and CEO COO Joselito Campos, Jr. 35 Years Industry Experience 35 Years Industry Experience R&D Head Bella Javier 35 Years Industry Experience Marketing Head Eileen Manuel 25 Years Industry Experience Sales Head Lana Parungao 30 Years Industry Experience 34 =4