Robinsons Retail Holdings, Inc.

manager for DIY, techs, and mass merchandise, Mr. Charles Wilson, and then the incoming GM of Ministop, Cherez Ramadinigan, and the general manager of our drugstore segment, Christine Suarez. This presentation will cover the financial highlights of our operations for the first quarter of this year. update on our store network and e-commerce platform a detailed discussion on our financials the first segment and group level strategic plans and some recent company developments a brief tna session will follow the formal presentation to be answered by the management team As a reminder, for the Q&A portion, please limit your questions to around three questions, a maximum of three questions, including follow-up. So you can accommodate as many participants as possible. You may cue back. one in four, you need to back in four further questions. If you have any concerns regarding the sound quality of the call, please feel free to send your concerns via private chat to our host, and that's all to go. With that, I'll turn you over to our president and CEO. Good afternoon, everyone. Let me summarize RRHI's consolidated results for the first quarter of 2021. Consolidated net sales reached 35.6 billion. Lended same-store sales broke of negative 16.1%. 110-bits expansion to gross profit margin at 22.9%. EBITDA margin at 8%. Net income attributable to equity holders of the parent company increased by 2.4% to 945 million. Store portfolio of 2,146 stores and 2,051 TTP franchise branches nationwide. E-commerce sales grew seven times year-on-year accounting for 2% of sales. Robinson's Retail's total store count as of end March was 2,146, comprising of 267 supermarkets, 49 department stores, 225 DIY stores, 463 convenience stores, 838 drug stores, and 303 specialty stores. Including the 2,051 franchise stores of PGP, the group store network totaled 4,197 stores. We continue to accelerate our e-commerce presence with the launch of our own e-commerce platform, Go Robinson's, last June 2020. Go Robinson's is a concierge service that takes from the store so it is asset-like. It is envisioned to be the main online hub for all our formats and has already onboarded seven of our banners. Drugstore and appliances segments also operate their own e-commerce websites. We plan to onboard these banners into the Go Robinson's platform soon and yet still maintain the individual e-commerce sites. Lastly, we continue to sell via third-party platforms and have call-and-collect and call-and-delivery services. robinson's retail posted 35.6 million consolidated net sales for the first quarter 11.1 percent lower compared to last year coming off a high base in 2020 induced by panic buying for essential goods such as food and medicine most especially in march last year the government reinstated the advanced community quarantine or ecq In Metro Manila, Cavite, Laguna, and Bulacan, known as NCR+, affecting the sales of our non-essential formats for the last three days of March. Furthermore, the sales of all formats were affected by the 10 p.m. to 5 a.m. curfew imposed by the government from March 15 to 28. Supermarket continued to account for the biggest share in the business at 59.3%. Meanwhile, the share of the drugstore segment grew to 16.7% from 12.5% last year as we consolidated the full quarter sales contribution of most pharmacies. Lended SSSG was minus 16.1 in the first quarter. Recall that we are comparing the sales performance of this year which have a three-month lockdown versus last year, where January to March 17 were regular months with no lockdowns. Also, the rumors of the lockdown first started in March last year, which propelled panic buying for essential goods, with supermarket and drugstore segments registering record high SSSG of 42.1% and 34.7% respectively for the month of March. Given the shift to online shopping, our e-commerce sales grew by seven times from the previous year. We achieved a target of 3% contribution to total sales by the end of the year. Blended gross profit expanded 110 gigs to 22.9%, lifted by the improvement in category mix and higher vendor support from the supermarket. EBITDA margin was at 8% in the first quarter, cushioned by the deliberate cost containment efforts with operating expenses down by 6.8% year-on-year. Net income attributable to PERIP increased to 945 million for the first quarter, with margin up 40 bips to 2.7%. This was due to the company's efforts to minimize the impact of the pandemic through the implementation of austerity measures and gross margin improvement initiatives, coupled with the impact of the 3-8 law. The next speaker will be Jody Gadia, Managing Director of the Supermarket Segment.

Thank you, Ms. Rubina. Good afternoon, everyone. Starting 2021 this year, the financials of GroSari and No Brand will now be under the supermarket segment from the specialty segment previously. The supermarket segment posted consolidated net sales of 21.1 billion for the first quarter of this year. down by 13.5% due largely to the 14.6% drop in same-store sales growth attributable to the high base last year caused by the following factors. First is the panic buying on essential goods by customers starting mid-March last year at the start of the ECQ lockdown. With March alone, same-store sales quote peaking at 42.1%, as mentioned by Ms. Rubin earlier on. The second reason is the bulk purchases of relief goods amounting close to 40 million for the victims of the Taal volcano eruption. And third, additional one retail day in February, as we note last year was a leap year. Our e-com sales now account for 2% of total segment sales. from only 0.2% last year. Our fiscal year 2021 target is for our e-com sales to reach as high as 2.4% of total sales. Our gross margin expanded by 30 basis points to 20.6% despite the consolidation of the lower margin business of GroSari. This was due to the strong vendor support on our category promotions and higher revenues from new product listings and portal fees. Excluding the consolidation of Grocery and No Brand, however, for like-for-like comparison, our gross margin increased by 70 basis points to 21%. Our EBITDA margin was 8.1% during the last quarter On a like-for-like basis, EBITDA margins increased by 20 basis points to 8.4%. Our operating expenses declined as we implemented several austerity measures such as manpower reduction, rent, CUSA concessions, reduction in utilities, and supplies expenses. Our key strategies moving forward will be as follows. We will aggressively expand our mini-mart format, Robinson's Easy Mart, to as many as 450 to 500 stores in five years. We will grow our e-commerce footprint through online store expansion. We will expand grocery by opening seven more pick and pack hubs, bringing total number of hubs to 17. Fourth is we will improve our EBIT margins through cost containment and efficiency improvement measures. Fifth is to accelerate the implementation of data analytics projects. And lastly, we will build a robust supply chain capability in investment improvements and productivity. We will be opening our third distribution center in San Fernando, Pampanga in October that will provide us the required capacity to support our expansion in the next 10 to 12 years. As of end of March, there are 144 Robinson Supermarket, 35 Premium The Marketplace, 69 Robinson's Easy Mart, 16 Shopwise Hypermarket, and four no-brand stores, bringing our total network to 268 stores. Our banners that are now on board with Go Robinson's online platform include Robinson Supermarket, The Marketplace, Shopwise, and No Brand. But we also partner with third-party online aggregators such as MetroMart, GrabMart, and Picaru. We are accelerating the onboarding of more stores online with a target to end the year with 160 stores Double that from the 87 stores last year. I will now turn you over to Ms. Selena Chua for the department store segment.

Thank you, Mr. Gaglia. Robinson's department store recorded net sales of $1.9 billion in the first quarter of 2021, down from $2.7 billion last year. For this year, we are competing against the pandemic sales of January to mid-March last year. 17 of our stores in the NCR plots were closed starting March 29, which was right before Easter when there is usually an upsurge in demand for summer merchandise. In addition, Robinson Department Store Ermita, our top store, was also closed due to barangay lockdown starting March 24th. Resulting SSSG for the quarter was at negative 30.6%. In terms of category performance, home has the lowest decline in SSSG at negative 11% since most people are still in a work-from-home setup. We saw An increase in our online sales with 14 times growth year on year, accounting for 0.8% of sales. Our e-commerce target for the segment is at 1% for 2021. Gross margin declined by 40 bps to 30.2% due to discounts on commission and fees extended to vendors. EBITDA margin turned negative 0.7% due to the decline in sales. We continue to keep our costs contained with OPEX down by 16.3% year-on-year. The key strategies for the segment are, first, we plan to expand our e-commerce presence by launching Robinson's department store in Go Robinson in May 2021. and shopee buying the second quarter and further grow the business in lazada secondly we would we want to improve our reshop for you this is our call collect and deliver service by improving the customer experience third we will write size and rationalize non-performing stores and collaborate with robinson's reward card for persistent marketing to drive sales Robinson's department store has 49 stores. It currently has third-party partnership with Lazada. The next speaker will be Mr. Charles Susan for the DIY segment.