PSE Circular for Brokers No. 170-99

January 29, 1999 PSE CIRCULAR FOR BROKERS NO. 170-99 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT PURSUANT TO SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11 (a)-1(b)(3) THEREUNDER 1. Date of Report JANUARY 28, 1999 2. Commission identification number 77487 3. BIR Tax Identification No. 000-388-771 4. JOLLIBEE FOODS CORPORATION Exact name of registrant as specified in its charter 5. PHILIPPINES Province, country or other jurisdiction of incorporation or organization 6. Industry classification code (SEC Use Only) 7. 5/F JOLLIBEE CENTRE BUILDING, SAN MIGUEL AVENUE, PASIG CITY Address of registrant's principal office 1600 Postal Code 8. (632) 634-1111 Registrant's telephone number, including area code 9. N/A Former name, former address and former fiscal year, if changed since last report 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of each Class Number of shares of common stock outstanding Common 954,000,000 JOLLIBEE INCOME UP 32% JOLLIBEE FOODS CORPORATION (PSE:JFC) January 28, 1999 Pasig City, Metro Manila Philippines Jollibee Foods Corporation reported unaudited consolidated recurring net income of P853 million for 1998, up 32% over the P647 million in 1997. This translates to earnings per share of P0.905, an increase of 23% over P0.735 in 1997. llcd However, net income including the extraordinary gain of P22 million in 1998 and the extraordinary loss of P205 million in 1997, amounted to P876 million for 1998, an increase of 98% over the P442 million in 1997. This translates to earnings per share of P0.928, an increase of 85.0% over the P0.502 in 1997. Consolidated revenues increased by 31% to P11.6 billion from P8.9 billion in 1997. Revenues and earnings were driven by systemwide sales growth for both the Jollibee and Greenwich brands. Total systemwide sales were P14.5 billion in 1998, 30% higher than the P11.2 billion in 1997. "The very satisfactory financial result we achieved in the weaker economic climate of 1998 is a reflection of the relative resiliency of the fast-food sector, as well as the strong business focus that we have endeavored to maintain in the company," Tony Tan Caktiong, JFC President and Chief Executive Officer said. "We are also fortunate to have a very healthy balance sheet with a strong net cash position during these challenging times," he continued. In conjunction with the successful public offering of 220 million Jollibee warrants by affiliate Queenbee Resources Corporation in March, Jollibee raised P1.3 billion of additional equity through the sale of 73.2 million new common shares. This enabled the company to retire its entire dollar-denominated debt. The Company the country's largest fast-food corporation exceeded its planned expansion goals during the year. Jollibee had a net addition of 59 stores in the Philippines in 1998 and ended the year with 302 outlets. Greenwich added 48 new stores in 1998 for a total of 169 stores nationwide at year-end. Tan Caktiong said he believed that Greenwich has gained the leadership in the pizza-pasta market segment. In 1998 it contributed about P2.0 billion in systemwide sales, 85% higher than the previous year. Tan Caktiong noted that despite the very satisfactory performance registered by the Company for the year, Jollibee continues to be concerned about the current economic environment. He cited the continued foreign exchange volatility that affects costs. "We are likewise concerned about the growing unemployment level and declining disposable incomes of domestic and overseas workers in the light of the economic slowdown both here and abroad," he said. This, he explained, will lead to weaker overall consumer demand. Despite the difficult environment, Jollibee expressed confidence that it can maintain its momentum in the medium-term on the basis of its strong leadership in the fastfood industry. The Company was named the Philippines' leading company by the Far Eastern Economic Review in its annual survey of Asia's top corporations and was cited its strong management, business focus, and its financial prudence. Jollibee also won recognition as the "Employer of the Year" by the Personnel Management Association of the Philippines for 1998. Jollibee's meat processing plant at its Pasig commissary was recently awarded ISO 9002 certification, becoming the first meat plant in the country to get the distinction. LLjur