Our Company
Established in 1890 as a single-product brewery,San Miguel Corporation (San Miguel) is the Philippines largest beverage, food and packaging company. Today, the company has over 100 facilities in the Philippines, Southeast Asia, and China. One of the country s premier business conglomerates, San Miguel s extensive product portfolio includes over 400 products ranging from beer, hard liquor, juices, basic and processed meats, poultry, dairy products, condiments, coffee, flour, animal feeds and various packaging products. For generations, the Company has generated strong consumer loyalty through brands that are among the most formidable in the Philippine food and beverage industry San Miguel Pale Pilsen, Ginebra, Monterey, Magnolia, and Purefoods. Flagship product, San Miguel Beer, holds an over 95% share of the Philippine beer market. In addition to its leadership in the Philippine food and beverage industry, San Miguel has established a significant presence overseas. The Company s operations extend beyond its home base of the Philippines to China (including Hong Kong), Vietnam, Indonesia, Malaysia, Thailand and Australia. Through strategic partnerships it has forged with major international companies, San Miguel has gained access to managerial expertise, international practices and advanced technology, thereby enhancing its performance and establishing itself as a world-class company. San Miguel s partners are world leaders in their respective businesses. Kirin Brewery Co., Ltd. is a major shareholder of San Miguel Brewery. The Company also has successful joint venture relationships with US-based Hormel Foods Corporation, Nihon Yamamura Glass and QTel, a telecommunications company in Qatar. In the Philippines, San Miguel s corporate strategy is at aimed capitalizing on new growth markets through acquisitions and further enhancing its competitive position by improving synergies across existing operational lines. The company has significantly expanded its participation in both its core businesses of food, beverage and packaging, as well as heavy industries including power and other utilities, mining, energy, tollways and airports. Our Core Purpose Making everyday life a celebration We will carry into new markets our over a century-old tradition of quality and integrity. Consumers will take pleasure in reaching for our products and services because they are the best value for money. Our food and beverage brands will be in every household and every retail outlet. We will meet our consumers everyday needs, delighting their every taste. Through our products and services, every occasion to drink and eat will bring enjoyment a celebration. Our Values Passion for Success We will constantly strive for excellence. We will be the best we can be and create value in everything we do. We will be proactive and entrepreneurial, propelled by a sense of urgency, competitiveness and total dedication to results. Teamwork With trust and respect for each other and with unity in purpose, we will work toward our shared aspirations, transcending boundaries along functional and organizational lines. Respect for Our People We recognize our employees as individuals and are committed to nurturing their individual capabilities. We will uplift the dignity of labor by encouraging our people to be the best in their fields. We believe their growth and the growth of the organization go hand in hand. We are committed to creating a work environment that encourages open communication, camaraderie and professional growth. Customer Focus We will be our customers preferred choice. They will choose our products and services above others because we provide them with products and servicesthat exceed their expectations. Innovativeness We will encourage creativity and ingenuity in our processes and systems, products and services. We will be forever looking for ways to outdo ourselves, always striving to be the first to anticipate consumer needs and deliver something better. Integrity

fair and right. we are pursuing plans to integrate our production and distribution facilities for its both our established and newly acquired businesses to generate additional cost savings and efficiencies. Invest in and develop businesses with market leading positions. platform matching and channel management. In addition. We believe our strong domestic market position provides an effective platform to develop markets for an expanding product portfolio. We will develop strategic partnerships with global industry leaders. We aim to enhance the value of our established businesses. And we will continue to invest in and develop businesses that have the potential to gain leading positions in their respective markets and industries. and potentially provide liquidity and opportunities for SMC to divest minority stakes in its businesses as other opportunities arise. ever striving to achieve even greater efficiencies and operational excellence. Strategy San Miguel s goal is to help people enjoy and make progress in their lives through the many products and services that our company offers. In addition to organic growth. Potential investments to develop existing businesses include building additional service and micro-filling stations. San Miguel intends to further enhance our market position in the Philippines by leveraging the company s financial resources and experience to allow it to continue to introduce new products and services.In the conduct of our business. Adopt world-leading practices and joint development of businesses. Our strategy for achieving these goals has five major elements which are common to both our traditional and new businesses: Enhance value of our established businesses. These partnerships provide marketing and expansion opportunities. or affordability or choice. We will strengthen our brands by improving product visibility and targeting areas where there is room for growth in market share. we continue to seek strategic acquisition and greenfield opportunities. constructing new power plants. . expanding our power generation portfolio and expanding food distribution networks. Continue to diversify into industries that underpin the development and growth of the Philippine economy. positioning our businesses in a way to best contribute to our country s economic growth and industrial development. We are committed to improving lives of people in the communities in which we live and work. We believe in profit with honor and are committed to good governance and the highest moral standards. We want to give every customer and consumer we touch access to the best we can offer whether in terms of quality. Social Responsibility We believe social responsibility and corporate citizenship are integral parts of our business. We will create an even broader distribution network for our products and expand our customer base by identifying synergies across our various businesses. including Kirin in the beverages business and Nihon Yamamura Glass in our packaging business. Identify and pursue synergies across businesses through vertical integration. we will be guided by what is ethical.

Corporate Structure Board of Directors Eduardo M. y y o Chairman and CEO Chairman Executive Committee Ramon S. Ang y y o o President and COO Member Executive Committee Nomination & Hearing Committee . Jr. Cojuangco.

Jimenez y o y o Chairman Executive Compensation Committee Member Executive Committee Leo S. Mendoza y o y o o Chairman Nomination & Hearing Committee Member Executive Committee Audit Committee Iñigo Zobel Winston F. Garcia y y o o Independent Director Member Audit Committee Executive Compensation Committee Menardo R. Alvez y o Member Nomination & Hearing Committee .Estelito P.

Hofileña y o Member Executive Committee Carmelo L.Hector L. Poblador y o Member Nomination & Hearing Committee Ferdinand K. Ongpin y o Member Nomination & Hearing Committee Alexander J. Santiago y y o y o o o Independent Director Chairman Audit Committee Member Executive Committee Executive Compensation Committee Nomination & Hearing Committee Roberto V. Constantino y o o Member Audit Committee Executive Compensation Committee .

9.Joselito D. Campos. Monitoring And Assessment 7. of San Miguel Corporation (the ³Corporation´) hereby commit themselves to the principles and best practices contained in this Manual. Manual of Corporate Governance The Board of Directors and Management. Social Responsibility 10. corporations are guided by values from which it bases its every business decision. e. 1. Jr. Recto y o Member Executive Compensation Committee Reynato S. officers and staff. i. y o Member Executive Compensation Committee Eric O. Compliance System 3. Shareholders¶ Benefit 6. . Objective 2. Puno y Independent Director Corporate Governance San Miguel has had a long-standing commitment to good corporate governance practices and taking a leadership role in instituting and maintaining practices that represent strong business ethics. Reportorial or Disclosure System of Company¶s Corporate Governance Policies 5. Penalties For Non-Compliance With The Manual 8. Communication Process 4. and acknowledge that the same may guide the attainment of their corporate goals. Now. more than ever. These practices provide an important framework within which the Board of Directors and management can pursue the strategic objectives of the Company and ensure its long-term vitality for the benefit of stockholders.

and protect. dependents. etc. preserve and regenerate the environment. our growth plans are as aggressive as ever. The San Miguel Foundation Team 14. up 4% from the previous year. Mission San Miguel Foundation. expressed confidence that the company s strategy of diversifying into non-allied industries will help secure its future and spur economic growth. Reston Program Officers 16. Tanchico Faustino F. the environment and disaster relief following its overall direction of Enterprise. health. Camille B. which reported 2009 net sales of P174. San Miguel Foundation Incorporated. Olaguera Program Assistants Vision To take the lead in realizing San Miguel Corporation¶s commitment to social development in the Company¶s effort to contribute towards the improvement of life in the communities in which it operates and the public it serves. literacy classes and support programs like supplemental feeding. your company is stronger than at any time in its 120-year history. SMC. operating income of P19. Describing San Miguel as virtually unrecognizable from what it was five or six years ago. San Miguel retirees and other stakeholders. From both a financial and portfolio standpoint. Rona Mei Y. Buenaventura Executive Director 15. he said. up 33%. San Miguel Corporation proactively reaches out to others to bring forth change that will enable communities to live better lives. is transforming into a powerhouse conglomerate with interests in essential industries as power. and mining. banking.8 billion. and net income of P57. integrity. is also in a unique position to help the country as its new businesses will allow it to take part in economic development in a meaningful way.7 billion. education. will initiate. a 199% improvement. San Miguel Foundation. Through its corporate social responsibility arm. Goals San Miguel Foundation. Financial Performance Diversification to secure SMC s future. Cojuangco told stockholders at their annual meeting. oil. Inc. Cojuangco outlined its prospects in its new growth areas. book donations. Having spent the last decade or so transforming ourselves into a more efficient and profitable company. manage and support social development initiatives that: Promote education to youth from low income families through scholarships. Support local enterprises that bring livelihood opportunities to community groups. . Rodriguez Ken B. infrastructure. spur economic growth San Miguel Corporation (SMC) chairman and chief executive officer Eduardo Cojuangco Jr. Inc. teamwork.11. Strengthen communities through capability building activities and the provision of basic social services. For San Miguel Corporation. is committed to the empowerment of San Miguel host communities and various stakeholders by harnessing corporate social responsibility among the various San Miguel businesses in pursuing mutually beneficial programs that lead to self-reliance and sustainability. Inc. 13. Jennifer E.2 billion. Provide assistance to disaster-stricken communities through relief and rehabilitation programs. has crafted various programs and projects that address contemporary issues on livelihood. respect for others and social responsibility are just a few of its corporate values that guide them everyday. Education and the Environment. he said. 12. The company. telecommunications.

SMC s infrastructure projects now include the upgrade of Caticlan airport. can bring prices down for consumers and industry in the foreseeable future. Bonanza Energy Resources.125 6. Caticlan airport and our other infrastructure projects are also potential retail points. Petron Corp. the construction of the North Luzon East Expressway. Related to this. he said. and Ilijan. Bank of Commerce has provided credit line for buyers of our property projects and also service the financing needs of SMC s employees. we have also located booths for our property developments and WiMax service in these stations and are working on deploying Bank of Commerce ATMs to widen our network of cash machines. with an ROE (return on equity) far outstripping that of our traditional businesses We will be exercising our option on the remaining shares before year-end. It is estimated that the Philippines uses more than 12 million tons of coal annually. SMC s new coal mining ventures are also seen to complement its power generation businesses. meanwhile continues to have excellent prospects.500 service stations already carry our food and beverage products. oil. Petron s over 1. and Sultan Energy Mining and Development Corp.62 112. Plant & Equipment-net Equity Attributable to Equity Holders of the Parent Company Stockholder s equity Stockholder s equity per share 213. Petron (is) a highly attractive business. coal mining Self sufficiency in power is critical to the national economy. SMC also recently gained a foothold in the coal mining industry through new acquisitions Daguma Agro Minerals Inc. agents and wholesalers. This total is expected to rise by 2014. In our banking business.. a coal-fired power plant. particularly the Sual facility.232 1. most of which is used for energy generation. dealers.222 524. its fuels business and one of the dominant local players.4 billion for the first three quarters alone. infrastructure. Meanwhile.05 91.Power. Financial Highlights First Semester 2010 For the year Sales Income from Operating Activities Net Income Basic Earnings per share Taxes Cash Dividend Cash Dividend per share At Year End Working Capital Total Assets Property.892 12. Inc. Petron is in the position to give our plants access to fuel at very competitive terms. SMC currently has four power-generating plants in its portfolio Limay. The first three plants generated revenues of P11. Cojuangco said. and the Metro Rail Transport-Line 7.46 .278 1. So this is a good business to be in. he said. Synergies Cojuangco also stressed that the company will be extracting synergies between its core businesses and its new acquisitions. San Roque. All are Build-Operate-Transfer (BOT) projects that offer long-term benefits to the company.. Sual.484 92. and we are determined to play an active role particularly now that the combination of private sector efficiencies and an open market.698 3.

976.Net of treasury Shares Number of Stockholders Number of Employee Financial Statistics % of Return on Average Stockholders Equity Current Ratio Debt (Interest Bearing)/Equity Ratio 2.Number of Shares Outstanding .659 5.304.88 2.05 1.17 .

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