IMPORTANT FOR COMPLIANCE: New PPC and SMAC Handling

Policies and Procedures

12th July 2018

TO: ALL CARDS & LOYALTY STATION DEALERS

FROM: CARDS & LOYALTY OPERATIONS (PPC and SMAC)
RE: New PPC and SMAC Handling Policies and Procedures

Dear Retailers,

Good day!

Please take note of the following policies and procedures which need to be strictly observed when accepting Pepeng
Pasada (PPC) and SM Advantage Cards (SMAC). These changes aim to ensure that we provide the right offer for our
target customer base.

• Effective July 16, 2018:

o Manual posting of points for both SMAC and PPC is strictly prohibited. As such, all SMAC and PPC
transactions taken from the EDC terminal and from the CVPOS should match – corresponding loyalty
points cost for the transaction variance, if any, will be billed to the Retailers accordingly.

▪ If the site is offline for whatever reason, BEFORE refueling (as part of our Basic Service Steps),
the site should advise customers that SMAC/PPC cards cannot be transacted for that period.

o PO / In-house accounts enjoying credit terms and/or discounts cannot avail of SMAC/PPC points,
regardless of transaction value. Please inform your PO/in-house accounts on this change. Where
relevant, Retailers can speak with their RTMs regarding alternative options to maintain the customers.

• Effective August 1, 2018 latest (may be earlier):

o Only a maximum of P10K per day per card (accumulated) will earn SMAC/PPC points: transactions
beyond P10K will no longer earn SMAC/PPC points. SMAC will inform its customer base on this change.

We request for your support to make the necessary changes in your internal controls and processes to ensure that
these new policies and procedures are consistently executed on site. Any deviation from the above policies and
procedures will be subject to investigation/audit and potential consequence management.

We thank you for your usual understanding and cooperation.

Should you have further questions, kindly get in touch with your Territory Manager.

Kind regards,

Shell Retail Team