C04529-2017

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Jul 21, 2017
2. SEC Identification Number
54666
3. BIR Tax Identification No.
000-163-396
4. Exact name of issuer as specified in its charter
SHAKEY'S PIZZA ASIA VENTURES INC.
5. Province, country or other jurisdiction of incorporation
Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
15Km East Service Road corner Marian Road 2, Brgy. San Martin de Porres, Parañaque City Postal Code 1700
8. Issuer's telephone number, including area code
(632) 867 7677
9. Former name or former address, if changed since last report
-
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Shares 1,531,321,053
11. Indicate the item numbers reported herein
Item 9. Other Events

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Shakey's Pizza Asia Ventures, Inc.PIZZA

PSE Disclosure Form 4-13 - Clarification of News Reports References: SRC Rule 17 (SEC Form 17-C) and
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Clarification of News Report
Source BusinessWorld Online
Subject of News Report Shakey’s ramping up local, overseas expansion
Date of Publication Jul 21, 2017
Clarification of News Report

We refer to your letter dated July 21, 2017 seeking clarification and/or confirmation of the news article entitled “Shakey’s ramping up local, overseas expansion” published in BusinessWorld Online on July 21, 2017. The article reported in part that:

“SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) is ramping up efforts to take its pizza business to previously untapped territories, as it aims to grow earnings and sales by mid-teens by end 2017.

SPAVI President and Chief Executive Officer Vicente L. Gregorio on Thursday said the company is starting to further expand into the Visayas and Mindanao region, noting that there only 16 Shakey’s branches in the area.

SPAVI is allocating around P400 million to P500 million for the construction of 20 stores in the Philippines, adding to its 189 stores as of end March.

‘We think there’s a lot of runway and opportunity in the Visayas Mindanao region... Despite the current trouble in Mindanao, Marawi, I think there are many other places there, like Roxas, Aklan, to name a few, that would be ready for Shakey’s. That kind of expansion would be very good for the company,’ Mr. Gregorio told reporters after the company’s annual shareholders meeting in Pasig on Thursday.

The SPAVI executive said four locations have been identified, with two more on the way. The company has also recently deployed a team that would screen the additional locations in the area. ‘Because we also have to be very careful, making sure that we not just to open the first possible location,’ Mr. Gregorio added.

. . . .

With the company’s expansion, SPAVI looks to post mid-teens growth for both the top line and bottom line, within the range of the 13.4% growth in earnings to P760 million for 2016.

. . . .”

We would like to confirm that SPAVI is currently looking at the Visayas and Mindanao regions as potential sources of growth. We’d like to clarify however that as of end March 2017, there are a total of 25 branches located in the VisMin area, accounting for approximately 13% of total store network.

We would also like to confirm that for the full-year 2017, the Company is targeting to open a total of 20 new stores throughout the Philippines. With 5 already opened as of end-March, the Company is firmly on track to open 15 more stores locally, expecting to end 2017 with a total Philippine store network of 204.

We confirm that the planned 20 new stores will include branches in Visayas and Mindanao but would like to clarify that the exact number in the VisMin area is yet to be determined. Though potential locations have already been identified, the exact number of stores ready for opening in that area within the year is still subject to finalization.

With regard to capex, we confirm that SPAVI is allocating around Php400 to Php500 million for the construction of new stores. We wish to clarify however that this does not account for the Company’s total capital expenditures which it expects to be Php600 to Php700 million in 2017. This is inclusive of store renovations, a head office expansion, and an increase in commissary capacity. We note however that a significant portion of the total capex will be used for the opening of new stores.

Finally, we wish to confirm that SPAVI is targeting a mid-teens revenue and net income growth this full year 2017 versus the same period last year. However, we would like to clarify that said growth is based on a core net income of Php669 million for full year 2016. Said core net income removes approximately Php90 million in net non-recurring income which was a product of a change in ownership early last year and subsequent corporate restructuring and initial public offering during the second half.

This mid-teens growth is expected to be driven by stable same-store sales growth, an increase in store network, and initiatives to manage costs and increase operating leverage.
Other Relevant Information

Kindly note however that all the above expectations regarding this year’s target new store openings, capital expenditures, and growth rates are based on current business conditions and are subject to ongoing review.

We trust that you find the foregoing clarification sufficient and in order.
Filed on behalf by:
Name Giovanna Vera
Designation Head - Investor Relations