SAN MIGUEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2021 AND 2020
(In Millions)

Note 2021 2020

ASSETS
Current Assets Cash and cash equivalents 4, 5, 7, 39, 40 P300,030 P347,209
Trade and other receivables - net 4, 5, 8, 33, 35, 39, 40 161,808 124,369
Inventories 4, 5, 9 141,209 102,822
Current portion of biological assets - net 4, 16 3,106 3,401
Prepaid expenses and other current
assets 4, 5, 10, 12, 23, 33, 34, 39, 40 108,689 94,610
Total Current Assets 714,842 672,411

Noncurrent Assets
Investments and advances - net 4, 5, 11, 23 55,002 50,495
Investments in equity and debt instruments 4, 12, 39, 40 41,966 41,766
Property, plant and equipment - net 4, 5, 13, 34 567,609 511,624
Right-of-use assets - net 4, 5, 14, 34 163,364 169,208
Investment property - net 4, 15, 34 69,825 60,678
Biological assets - net of current portion 4, 16 2,244 2,352
Goodwill - net 4, 17 130,081 129,733
Other intangible assets - net 4, 5, 17 190,979 169,532
Deferred tax assets 4, 5, 23 17,141 20,946
Other noncurrent assets - net 4, 5, 18, 33, 34, 35, 39, 40 98,600 83,462
Total Noncurrent Assets 1,336,811 1,239,796
P2,051,653 P1,912,207

LIABILITIES AND EQUITY

Current Liabilities
Loans payable 19, 30, 33, 38, 39, 40 P190,779 P140,645
Accounts payable and accrued expenses 4, 5, 20, 33, 34, 35, 39, 40 194,579 153,249
Lease liabilities - current portion 4, 5, 30, 33, 34, 38, 39, 40 23,423 25,759
Income and other taxes payable 5, 23 23,102 20,998
Dividends payable 33, 36, 38 4,296 4,231
Current maturities of long-term
debt - net of debt issue costs 21, 30, 33, 38, 39, 40 88,857 74,502
Total Current Liabilities 525,036 419,384

Noncurrent Liabilities
Long-term debt - net of current
maturities and debt issue costs 21, 30, 33, 38, 39, 40 725,108 692,407
Lease liabilities - net of current portion 4, 5, 30, 33, 34, 38, 39, 40 71,569 91,278
Deferred tax liabilities 23 28,742 27,749
Other noncurrent liabilities 4, 5, 22, 33, 35, 39, 40 19,959 26,301
Total Noncurrent Liabilities 845,378 837,735
Forward
 Note 2021 2020
Equity 24, 36, 37

Equity Attributable to Equity Holders of the

Parent Company
Capital stock - common P16,443 P16,443
Capital stock - preferred 10,187 10,187
Additional paid-in capital 177,719 177,719
Capital securities 28,171 28,171
Equity reserves 5, 23 14,136 10,131
Retained earnings: Appropriated
66,630 60,155
Unappropriated 23 157,707 162,204
Treasury stock (144,363) (110,146)
326,630 354,864

Non-controlling Interests 2, 5, 23, 24 354,609 300,224

Total Equity 681,239 655,088
P2,051,653 P1,912,207

See Notes to the Consolidated Financial Statements.

San Miguel Corporation’s Statement of Financial Position follows the required

representation of a balance sheet. They separately present current and non-current assets
and liabilities. They also disclose the amount expected to be recovered or settled more than
12 months after the reporting period for each asset and liability line item. Their Statement of
Financial Position clearly identified specific lines, such as cash and cash equivalents,
inventories, property, plant and equipment, investment property, etc. It also clearly separates
its equity from its liabilities and includes any additional necessary line items, headings, and
subtotals that are helpful in understanding its financial position. Overall, the Statement of
Financial Position of San Miguel Corporation was prepared following the PAS 1 Presentation
of Financial Statements.
 SAN MIGUEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019
(In Millions, Except Per Share Data)

Note
2021 2020 2019
SALES 6, 25, 33 P941,193 P725,797 P1,020,502

COST OF SALES 26, 34 746,050 576,449 818,815

GROSS PROFIT 195,143 149,348 201,687

SELLING AND ADMINISTRATIVE

EXPENSES 27, 34 (77,991) (77,872) (85,972)
INTEREST EXPENSE AND
OTHER FINANCING CHARGES 19, 21, 30, 33, 34, 35 (49,265) (52,035) (56,019)
INTEREST INCOME 7, 31, 33, 35 3,591 6,182 10,675
EQUITY IN NET EARNINGS OF
ASSOCIATES AND JOINT VENTURES 11, 23 1,040 417 105
GAIN (LOSS) ON SALE OF
PROPERTY AND EQUIPMENT 13, 15, 18 167 (491) (237)
OTHER INCOME (CHARGES) - Net 4, 5, 32,
34, 39, 40 (6,733) 11,861 6,848
INCOME BEFORE INCOME TAX 65,952 37,410 77,087

INCOME TAX EXPENSE 23, 42 17,793 15,531 28,513

NET INCOME P48,159 P21,879 P48,574

Attributable to:
Equity holders of the Parent Company P13,925 P2,973 P21,329
Non-controlling interests 5, 23, 24 34,234 18,906 27,245
P48,159 P21,879 P48,574

Basic/Diluted Earnings (Loss) Per

Common Share Attributable to Equity
Holders of the Parent Company
37 P2.48 (P1.66) P5.93
See Notes to the Consolidated Financial Statements.

SAN MIGUEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019
(In Millions)

Note 2021 2020 2019

P48,159 P21,879 P48,574
NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to profit or
loss
Equity reserve for retirement plan 35 2,143 (357) (3,382)
Income tax benefit (expense) 23 (1,084) 126 971
Net gain (loss) on financial assets at fair value
through other comprehensive income 12 1 (172) (44)
Income tax expense (14) (1) (6)
Share in other comprehensive income (loss)
of associates and joint ventures - net 11 10 (132) (25)
1,056 (536) (2,486)

Items that may be reclassified to profit or

loss
Gain (loss) on exchange differences on
translation of foreign operations 5,412 (4,448) (3,128)
Net gain on financial assets at fair value
through other comprehensive income 12 - 1 11
Income tax expense - - (1)
Net gain (loss) on cash flow hedges 40 268 (23) (679)
5 192
 Income tax benefit (expense) (100) (4,465) (3,605)
5,580

OTHER COMPREHENSIVE INCOME (LOSS) -

Net of tax 6,636 (5,001) (6,091)
TOTAL COMPREHENSIVE INCOME -
Net of tax
P54,795 P16,878 P42,483
Attributable to:
Equity holders of the Parent Company P19,387 (P816) P16,839
Non-controlling interests 5, 24 35,408 17,694 25,644
P54,795 P16,878 P42,483

See Notes to the Consolidated Financial Statements.

Comprehensive Income Statement San Miguel displays their comprehensive income

statement in a single statement format, which means that profit or loss and other
comprehensive income are reported together but in separate sections.

In profit or loss section, San Miguel shown that the certain losses associated and join
ventures accounted for using equity method. It also shows the single amount for the total of
discontinued operation.
 SAN MIGUEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019
(In Millions)

Equity Attributable to Equity Holders of the Parent Company

Capital Securities
Senior Equity Reserve s
Additional Perpetual Redeemable Reserve for Other Retained Earnings Non-
Capital Stock Paid-in Capital Perpetual Retirement Hedging Fair Value Translation Equity Appro- Unappro- Treasury Stock Controlling Total
Note Common Preferred Capital Securities Securities Plan Reserve Reserve Reserve Reserve priated priated Common Preferred Total Interests Equity

As at January 1, 2021 P16,443 P10,187 P177,719 P24,211 P3,960 (P5,102) (P654) P383 (P2,218) P17,722 P60,155 P162,204 (P67,093) (P43,053) P354,864 P300,224 P655,088

Gain on exchange differences on

translation of foreign operations - - - - - - - - 4,455 - - - - - 4,455 957 5,412
Share in other comprehensive
income (loss) of associates and
joint ventures - net 11 - - - - - 101 - (96) 1 - - - - - 6 4 10
Net gain on cash flow hedges 40 - - - - - - 120 - - - - - - - 120 48 168
Net gain (loss) on financial assets at
fair value through other
comprehensive income 12 - - - - - - - (15) - - - - - - (15) 2 (13)
Equity reserve for retirement plan 23, 35 - - - - - 896 - - - - - - - - 896 163 1,059
Other comprehensive income (loss) - - - - - 997 120 (111) 4,456 - - - - - 5,462 1,174 6,636
Net income - - - - - - - - - - - 13,925 - - 13,925 34,234 48,159
Total comprehensive income (loss) - - - - - 997 120 (111) 4,456 - - 13,925 - - 19,387 35,408 54,795
Redemption of Subseries “2-C”,
Subseries “2-E” and Subseries
“2-G” preferred shares 24 - - - - - - - - - - - - - (34,217) (34,217) - (34,217)
Net addition (reduction) to non-
controlling interests and others 5, 11, 24 - - - - - (32) - (3) 27 (1,449) - (604) - - (2,061) 47,009 44,948
Appropriations - net 24 - - - - - - - - - - 6,475 (6,475) - - - - -
Cash dividends and distributions: 36

Common - - - - - - - - - - - (3,337) - - (3,337) (10,170) (13,507)

Preferred - - - - - - - - - - - (6,002) - - (6,002) (2,400) (8,402)

Senior perpetual capital
securities - - - - - - - - - - - (1,804) - - (1,804) (14,806) (16,610)
Redeemable perpetual
securities - - - - - - - - - - - (200) - - (200) - (200)
Undated subordinated capital
securities - - - - - - - - - - - - - (656)
Forward

translation of foreign operations - - - - - - - - (3,211) - - - - - (3,211) (1,237) (4,448)

Share in other comprehensive
income (loss) of associates and
joint ventures - net 11 - - - - - (69) - 7 (53) - - - - - (115) (17) (132)
Net gain (loss) on cash flow hedges
40 - - - - - - (40) - - - - - - - (40) 22 (18)
Net loss on financial assets at fair
value through other comprehensive
income 12 - - - - - - - (171) - - - - - - (171) (1) (172)
Equity reserve for retirement plan 35 - - - - - (252) - - - - - - - - (252) 21 (231)
Other comprehensive loss - - - - - (321) (40) (164) (3,264) - - - - - (3,789) (1,212) (5,001)
Net income - - - - - - - - - - - 2,973 - - 2,973 18,906 21,879
Total comprehensive income (loss) - - - - - (321) (40) (164) (3,264) - - 2,973 - - (816) 17,694 16,878

Issuance of capital securities 24 - - - 24,211 14,662 - - - - - - - - - 38,873 - 38,873

Purchase and cancellation of
redeemable perpetual
securities 24 - - - - (10,702) - - - - - - (108) - - (10,810) - (10,810)
Reissuance of treasury shares 24 - - (219) - - - - - - - - - - 33,793 33,574 - 33,574
Redemption of Series “1” and
Subseries “2-D” preferred
shares 24 - - - - - - - - - - - - - (27,656) (27,656) - (27,656)
Net addition (reduction) to non-
controlling interests and others 5, 11, 24 - - - - - 69 - (1) 64 (602) (2,795) 2,135 - - (1,130) 62,586 61,456
Appropriations - net 24 - - - - - - - - - - 6,261 (6,261) - - - - -
Cash dividends and distributions: 36

Common - - - - - - - - - - - (3,337) - - (3,337) (9,967) (13,304)

Preferred - - - - - - - - - - - (6,052) - - (6,052) (1,915) (7,967)

Redeemable perpetual
securities - - - - - - - - - - - (238) - - (238) - (238)
Senior perpetual capital
securities - - - - - - - - - - - - - - - (8,666) (8,666)
Undated subordinated capital
securities - - - - - - - - - - - - -
Forward

Equity Attributable to Equity Holders of the Parent Company

Equity Reserves
Additional Reserve for Other Retained Earnings Non-
Capital Stock Paid-in Retirement Hedging Fair Value Translation Equity Appro- Unappro- Treasury Stock controlling Total
Note Common Preferred Capital Plan Reserve Reserve Reserve Reser ve priated priated Common Preferred Total Interests Equity

As at January 1, 2019, As adjusted P16,443 P10,187 P177,938 (P2,990) (P173) P514 P3,239 P20,923 P72,820 P146,757 (P67,093) (P42,408) P336,157 P173,368 P509,525

Loss on exchange differences on

translation of foreign operations - - - - - - (2,261) - - - - - (2,261) (867) (3,128)
Share in other comprehensive
income (loss) of associates and
joint ventures - net 11 - - - (113) - 77 4 - - - - - (32) 7 (25)
Net loss on cash flow hedges 40 - - - - (441) - - - - - - - (441) (46) (487)
Net gain (loss) on financial assets at
fair value through other
comprehensive income 12 - - - - - (43) - - - - - - (43) 3 (40)
Equity reserve for retirement plan 35 - - - (1,713) - - - - - - - - (1,713) (698) (2,411)

Other comprehensive income (loss) - - - (1,826) (441) 34 (2,257) - - - - - (4,490) (1,601) (6,091)
Net income - - - - - - - - - 21,329 - - 21,329 27,245 48,574

Total comprehensive income (loss) - - - (1,826) (441) 34 (2,257) - - 21,329 - 16,839 25,644 42,483
Redemption of Subseries “2-B”
preferred shares 24 - - - - - - - - - - - (6,782) (6,782) - (6,782)
Net addition (reduction) to
noncontrolling interests and others 5, 11, 24 - - - (34) - - - (2,599) 196 (797) - - (3,234) 63,127 59,893
Reversal of appropriations - net 24 - - - - - - - - (16,327) 16,327 - - - - -
Cash dividends and distributions: 36

Common - - - - - - - - - (3,337) - - (3,337) (11,161) (14,498)

Preferred - - - - - - - - - (7,187) - - (7,187) (2,426) (9,613)

Senior perpetual capital securities - - - - - - - - - - - - - (3,430) (3,430)

Undated subordinated capital

securities - - - - - - - - - - - - - (3,183) (3,183)
As at December 31, 2019 24 P16,443 P10,187 P177,938 (P4,850) (P614) P548 P982 P18,324 P56,689 P173,092 (P67,093) (P49,190) P332,456 P241,939 P574,395
 See Notes to the Consolidated Financial Statements.

San Miguel statement of changes in equity reports changes in the equity or ownership accounts for their corporation. Equity can be defined as the worth or
value to the owners of the company, San Miguel includes the total comprehensive income that includes the profit or loss, the amount of additional money
invested by owners of the company during the period, and the amount of dividends distributed to shareholders during the period.
 SAN MIGUEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019
(In Millions)

Note 2021 2020 2019

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax P65,952 P37,410 P77,087
Adjustments for:
Interest expense and other financing
charges 30 49,265 52,035 56,019
Depreciation, amortization and
others - net 13, 14, 15, 17, 18, 28, 32 46,467 27,723 35,235
Interest income 31 (3,591) (6,182) (10,675)
Equity in net earnings of associates and joint
ventures 11 (1,040) (417) (105)
Loss (gain) on sale of property and
equipment 13, 15, 18 (167) 491 237
Operating income before working capital
changes 156,886 111,060 157,798
Changes in noncash current assets,
certain current liabilities and others 38 (43,608) 12,823 16,390
Cash generated from operations 113,278 123,883 174,188
Interest and other financing charges paid (48,612) (54,909) (58,833)
Income taxes paid (14,528) (16,042) (21,868)
Net cash flows provided by operating activities 50,138 52,932 93,487

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment 13 (74,421) (60,629) (65,640)
Additions to intangible assets 17 (26,007) (16,618) (17,106)
Additions to advances to contractors and
suppliers 18 (16,067) (4,855) (13,601)
Decrease (increase) in other noncurrent assets
and others 18 (7,053) 358 (16,796)
Additions to investment property 15 (6,546) (8,711) (9,386)
Additions to investments in equity and debt
instruments 12 (6,101) (70) (71)
Additions to investments and advances 11 (5,223) (4,001) (2,098)
Proceeds from the redemption and disposal of
investments in equity and debt instruments 12 6,509 108 94
Interest received 3,313 6,402 10,549
Dividends received 12 2,674 1,344 1,886
Proceeds from sale of property and
equipment 13, 15, 18 1,350 912 871
Cash and cash equivalents of a consolidated
(deconsolidated) subsidiary 5 - 1,053 (626)
Acquisitions of subsidiaries, net of cash and
cash equivalents acquired 38 - - (1,408)
Net cash flows used in investing activities (127,572) (84,707) (113,332)
Forward
 Note 2021 2020 2019
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from:
Short-term borrowings 38 P760,746 P813,187 P1,405,972
Long-term borrowings 38 140,777 160,437 158,746
Payments of:
Short-term borrowings 38 (711,147) (841,775) (1,416,504)
Long-term borrowings 38 (113,419) (58,913) (85,968)
Net proceeds from issuance of capital securities and
preferred shares of subsidiaries 24 61,899 67,799 85,733
Redemption of preferred shares 24 (34,217) (27,656) (6,782)
Cash dividends and distributions paid to non-controlling
shareholders 38 (27,555) (21,777) (20,065)
Payments of lease liabilities 38 (26,151) (24,825) (20,673)
Redemption of capital securities and preferred shares
of subsidiaries 24 (17,459) (15,000) (22,305)
Cash dividends and distributions paid 36, 38 (11,755) (9,731) (10,587)
Decrease in non-controlling interests’ share in the net
assets of subsidiaries and others 24 (623) (1,526) (811)
Proceeds from reissuance of treasury shares 24 - 33,588 -
Net proceeds from issuance of capital securities 24 - 28,171 -
Net cash flows provided by financing activities 21,096 101,979 66,756

EFFECT OF EXCHANGE RATE CHANGES ON

CASH AND CASH EQUIVALENTS 9,159 (9,452) (3,604)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
(47,179) 60,752 43,307
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR 7 347,209 286,457 243,150
CASH AND CASH EQUIVALENTS
AT END OF YEAR
7 P300,030 P347,209 P286,457

See Notes to the Consolidated Financial Statements.

San Miguel Corporation's cash flows are categorized and provided as either 'direct' or
'indirect' operating activities, investment activities, or financing activities, with the latter two
generally presented on a gross basis. San Miguel examined changes in cash and cash
equivalents throughout time. Cash and cash equivalents include cash on hand and demand
deposits, as well as short-term, highly liquid investments that are easily convertible to a
known amount of cash and are exposed to a minor risk of value change.
 SAN MIGUEL CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in Millions, Except Per Share Data and Number of Shares)

1. Reporting Entity

San Miguel Corporation (SMC or the Parent Company), a subsidiary of Top Frontier
Investment Holdings, Inc. (Top Frontier or the Ultimate Parent Company), was
incorporated on August 21, 1913. On March 16, 2012, the Philippine Securities and
Exchange Commission (SEC) approved the amendment of the Articles of
Incorporation and By-Laws of the Parent Company to extend the corporate term for
another fifty (50) years from August 21, 2013, as approved on the March 14, 2011 and
June 7, 2011 meetings of the Parent Company’s Board of Directors (BOD) and
stockholders, respectively.

The Parent Company has a corporate life of 50 years pursuant to its articles of
incorporation. However, under the Revised Corporation Code of the Philippines, the
Parent Company shall have a perpetual corporate life.

The Parent Company is a public company under Section 17.2 of the Securities
Regulation Code. Its common and preferred shares are listed on The Philippine Stock
Exchange, Inc. (PSE).

The accompanying consolidated financial statements comprise the financial

statements of the Parent Company and its Subsidiaries and the Group’s interests in
associates and joint ventures (collectively referred to as the Group).

The Group is engaged in various businesses, including food and beverage, packaging,
energy, fuel and oil, infrastructure, cement and real estate property management and
development.

The registered office address of the Parent Company is No. 40 San Miguel Avenue,
Mandaluyong City, Philippines.

2. Basis of Preparation

Statement of Compliance
The accompanying consolidated financial statements have been prepared in
compliance with Philippine Financial Reporting Standards (PFRS). PFRS are based
on International Financial Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB). PFRS consist of PFRS, Philippine Accounting
Standards (PAS) and Philippine Interpretations issued by the Philippine Financial
Reporting Standards Council (FRSC).

The consolidated financial statements were approved and authorized for issue in
accordance with a resolution by the BOD on March 10, 2022.
https://www.sanmiguel.com.ph/storage/files/reports/SMC-SEC%20FORM%2017-
A%20(04.25.2022)%20Part%202-FINAL.pdf?fbclid=IwAR1JooyhFC2VuL9xcIA6A2-
IK_lluv4co8YtTLLJUcJEGzll-jVkSpFVtSM