PSE Circular for Brokers No. 1911-99

August 2, 1999 PSE CIRCULAR FOR BROKERS NO. 1911-99 JOLLIBEE POSTED P228 Q2 NET INCOME Jollibee Foods Corporation reported a second quarter consolidated net income of P228 million, a growth of 6.5% compared to the same period last year. This translates to P0.24 earnings per share. The company also reported 2nd quarter consolidated revenues of P3.06 billion 11% higher than the same period last year. Systemwide sales at retail for all brands reached P3.82 billion, an increase of 8%. "The second quarter performance of the fastfood industry was quite weak. Consumer retail demand continued to remain sluggish. Also, in the second quarter of the previous year, consumer spending was favorably impacted by the election spending, while the early onset of the rainy season in 1999 was another factor which had a negative effect on the comparative sales", said Jollibee President Tony Tan Caktiong. "The beginning of economic recovery in the country has not yet had a major effect on consumer retail spending. This trend is somewhat similar to the past where there was a considerable lag time before the improving macro-economic conditions translated to major improvements in the retail consumer market", he added. Tan Caktiong stated that the company remains strongly focused on its core businesses. Despite the weaker market conditions, the company continues to support and build its brand equity with strong advertising and promotions and increased emphasis on providing the consumer with better value for money. At the same time, an increased focus on costs has generated some major improvements and efficiencies. All of these, place Jollibee in an excellent position to benefit as the market improves. The company continues to expand the Jollibee and Greenwich retail networks nationwide. In the first half of 1999, 27 new Jollibee stores and 15 new Greenwich Pizza stores were opened. It also continues to upgrade and expand its manufacturing and logistics infrastructure. A new manufacturing and distribution facility is being planned for completion next year. The company operates the largest fastfood chains in the country. As of the end of 2nd quarter, its Jollibee brand has 329 stores and Greenwich brand has 180 store. The company has 23 outlets overseas. Summing up, Tan Caktiong said, "this is a period of an extraordinarily challenging times for almost all businesses. The short term will certainly be tough, but we remain confident of achieving our medium and long-term growth and profitability goals."