Jollibee Foods Corporation
Preferred Shares
This communication should be read as an introduction to the Preliminary Prospectus and Preliminary Offer Supplement. Any decision to invest in the securities should be based on a consideration of the foregoing documents including the risk factors, as a whole by the investor.
Overview
Jollibee Foods Corporation (“Jollibee” or the “Company”) and its subsidiaries (collectively referred to as the “Group”) and affiliates are involved primarily in the development, operation and franchising of quick service restaurants (“QSRs”). The other activities of the Group include manufacturing and property leasing in support of the QSR systems and other business activities. As of May 31, 2021, it has 5,815 stores worldwide, of which 3,293 are franchised. It also has a group store network market share of 55%. 3,411 of its stores are in the Philippines.
Key Competitive Strengths:
- Market leading portfolio of iconic and diversified brands
- Leading market position in the Philippines’ food service and restaurant industry
- Attractive business model and strong financial discipline translating into resilient revenue growth and strong operating cash flows
- Best-in-class operational expertise across the value chain
- Track record of profitable growth and successful integration of acquisitions
- Strong corporate culture and experienced, award-winning management team
Risk Factors:
- The following are some of the key factors that may affect cash flows of the Company:
- Effect of COVID-19 on operations
- Highly competitive industry
- Execution of business strategies
- Franchise business model risk
- Successful expansion of food delivery services
- Subordination to other indebtedness of the Company
- Possible deferral of dividend payments
- The Offer Shares may not be redeemed by the Issuer
- Volatility of market prices of the Offer Shares
Indicative Terms and Conditions
| Issuer | Jollibee Foods Corporation |
| Issue Size | [8,000,000] preferred shares with an oversubscription option of up to [4,000,000] preferred shares to be issued in two series: Series A and Series B |
| Offer Price | Php 1,000 per share |
| Optional Redemption | Series A: 3rd anniversary date from Issue Date or any dividend date thereafter; Series B: 5th anniversary date from Issue Date or any dividend date thereafter |
| Dividend Rate | Series A Preferred Shares with a dividend rate of: [3.2821%] p.a.;Series B Preferred Shares with a dividend rate of: [4.2405%] p.a. |
| Dividend Step-up Rate | Series A: 7Y BVAL + 4.00% p.a.; Series B: 10Y BVAL + 4.00% p.a. |
| Dividend Payment | Cumulative and paid quarterly |
| Form and Denomination | Minimum of 50 Initial Offer Shares, and thereafter, in multiples of 10 Initial Offer Shares |
| Public Offer Period | September 28 to October 4, 2021 |
| Listing Date | October 14, 2021 |
DISCLAIMER: A REGISTRATION STATEMENT RELATING TO THE SECURITIES OF THE COMPANY (JOLLIBEE FOODS CORPORATION) HAS BEEN FILED BUT HAS NOT YET BEEN DECLARED EFFECTIVE WITH THE SECURITIES AND EXCHANGE COMMISSION AND THE PHILIPPINE STOCK EXCHANGE. NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE ACCEPTED OR RECEIVED UNTIL THE REGISTRATION STATEMENT HAS BECOME EFFECTIVE, AND ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OF COMMITMENT OF ANY KIND, AT ANY TIME PRIOR TO NOTICE OF ITS ACCEPTANCE GIVEN AFTER THE EFFECTIVE DATE. AN INDICATION OF INTEREST IN RESPONSE HERETO INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.