San Miguel

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The 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 countrys premier business
conglomerates, San Miguels 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 Companys
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 Miguels 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 Miguels 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

The Companys 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
enjoymenta celebration.

The Companys Values


Passion for Success
We will constantly strive for excellence. We
will be the best we can be and create value
everything we do. We will be proactive and
entrepreneurial, propelled by a sense of
urgency,
competitiveness
and
total
dedication to results.

in

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
services that exceed their expectations.
Innovativeness
We will encourage creativity and
products and services. We will
ourselves,
always
first to anticipate consumer needs

ingenuity in our processes and systems,


be forever looking for ways to outdo
striving
to
be
the
and deliver something better.

Integrity
In the conduct of our business, we will be guided by what is ethical, fair and
right. We believe in profit with honor and are committed to good governance
and the highest moral standards.
Social Responsibility
We believe social responsibility and corporate citizenship are integral parts of
our business. We are committed to improving lives of people in the
communities in which we live and work.

Strategy
San Miguels goal is to help people enjoy and make progress in their lives
through the many products and services that our company offers. We want
to give every customer and consumer we touch access to the best we can
offerwhether in terms of quality, or affordability or choice.
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.


We aim to enhance the value of our established businesses, ever
striving to achieve even greater efficiencies and operational
excellence. We will strengthen our brands by improving product
visibility and targeting areas where there is room for growth in market
share.

Continue to diversify into industries that underpin


development and growth of the Philippine economy.

the

In addition to organic growth, we continue to seek strategic acquisition


and greenfield opportunities, positioning our businesses in a way to
best contribute to our countrys economic growth and industrial
development.

Identify and pursue synergies across businesses through


vertical
integration,
platform
matching
and
channel
management.
We will create an even broader distribution network for our products
and expand our customer base by identifying synergies across our
various businesses. In addition, 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
positions.

and

develop

businesses

with

market

leading

San Miguel intends to further enhance our market position in the


Philippines by leveraging the companys financial resources and
experience to allow it to continue to introduce new products and
services. Potential investments to develop existing businesses include
building additional service and micro-filling stations, constructing new
power plants, expanding our power generation portfolio and expanding
food distribution networks. We believe our strong domestic market
position provides an effective platform to develop markets for an
expanding product portfolio. And we will continue to invest in and
develop businesses that have the potential to gain leading positions in
their respective markets and industries.

Adopt world-leading
businesses.

practices

and

joint

development

of

We will develop strategic partnerships with global industry leaders,


including Kirin in the beverages business and Nihon Yamamura Glass in
our packaging business. These partnerships provide marketing and
expansion opportunities, and potentially provide liquidity and
opportunities for SMC to divest minority stakes in its businesses as
other opportunities arise.

History of San Miguel


Proud Beginning
Established in 1890, La Fabrica de Cerveza
de San Miguel, Southeast Asias first brewery produced and bottled what
would eventually become one of the bestselling beers in the region. Within
the span of a generation, San Miguel Beer would become an icon among
beer drinkers.
By 1914, San Miguel Beer was being exported from its headquarters in
Manila to Shanghai, Hong Kong and Guam. A pioneer in Asia, San Miguel
established a brewery in Hong Kong in 1948, the first local brewer in the
crown colony.
Today, San Miguel Beerthe Companys flagship productis one of the largest
selling beers and among the top 10 beer brands in the world. While brewing
beer is the companys heritage, San Miguel subsequently branched out into
the food and packaging businesses.
From the original cerveza that first rolled off the bottling line, San Miguel
Corporation has since diversified to produce a wide range of popular
beverage, food and packaging products which havefor over a century
catered to generations of consumers ever changing tastes.
The Companys manufacturing operations extend beyond the Philippines to
Hong Kong, China, Indonesia, Vietnam, Thailand and Malaysia. Its products
are exported to major markets around the world. Continuing a tradition of
product quality, San Miguel is capitalizing on its unique strengths in brands
and distribution to weave its products more deeply into the fabric of
everyday life. Not just in the Philippines but in the Asia-Pacific region.

World Class Partners


San Miguels partnerships with major international companies have given the
Company access to the latest technologies and skills. Our marketplace
experience, technical expertise, and innovation capabilities, while largely
homegrown, also reflect our long term partnerships with world class players.
San Miguels joint venture partners include Hormel Foods Corporation,
Yamamura Glass and Fuso Machine and Mold Manufacturing of Japan. A
strategic equity investment in San Miguel by Japans leading brewer and
global player, Kirin Brewery Company, Ltd. has further enhanced San
Miguels competitive position in Asia, a region in which it is already well
placed.

The San Miguel Escudo


Originally the official seal of the City of
Manila,
the escudo was San Miguels corporate logo for close to
nine
decades, from 1890the year of the Companys
founding
to 1975, when it was replaced by the leafdroplets design. The escudo graced the
document conferring on the original San
Miguel Brewery the Spanish Royal Grant of Authority to brew beer.
San Miguels founder, Don Enrique Ma. Barreto, saw the historic significance
of the seal and decided to use it as trademark for San Miguel Beer.
When the brewery was incorporated in 1893, the escudo was adopted as the
new companys symbol. The trademark of the Philippines first beer thus
became the symbol of the corporation itself.
After being used exclusively as the logo of San Miguels flagship product and
beer business for 24 years, the escudo was adapted anew as the corporate
logo.
The escudo and the accompanying modern typeface that comprise the new
corporate identity call to mind the Companys traditional strength of quality
and reliability as well as the dynamism and results-oriented strategy of San
Miguels current leadership.

Corporate Structure

Board of Directors

Eduardo M. Cojuangco, Jr.


Chairman and CEO
Chairman
Executive Committee

Estelito P. Mendoza
Chairman
Nomination & Hearing
Committee
Member
Executive Committee
Audit Committee

Winston F. Garcia
Independent Director
Member
Audit Committee
Executive Compensation

Leo s. Alvez
Member
Nomination & Hearing
Committee

Ramon S. Ang
President and COO
Member
Executive Committee
Nomination & Hearing
Committee

Iigo Zobel

Menardo R. Jimenez
Chairman
Executive Compensation
Committee
Member
Executive Committee

Hector L. Hofilea
Member
Executive Committee

Carmelo L. Santiago
Independent Director
Chairman
Audit Committee
Member
Executive Committee
Executive Compensation
Committee
Nomination & Hearing
Committee

Alexander J. Poblador
Member
Nomination & Hearing
Committee

Roberto V. Ongpin
Member
Nomination & Hearing
Committee

Ferdinand K. Constantino
Member
Audit Committee
Executive Compensation
Committee

I love ice cream, cookies,


cheese, chocolates, canned
food, hotdogs, bacon and ham.
I also enjoy drinking milk, juice
and softdrink.

Do you know the


company that can
provide me all these
things and many more
others?

Its San Miguel Corporation,


the best in the Philippines!

Today, you and I will have the


chance to explore San Miguel
Corporation.
Lets get to know SMC. Its one way
of saying, Thank you! for making
everday life a celebration.

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