SAN MIGUEL CORPORATION

Members:
Michelle E. Delaguna
Pamela Jane B. Contreras
Alyssa Mae. A. Ratio
Milca Avita A. Ligan
Dominique D. Villaverde
BS-HRM IIIA
Submitted to:
Mrs. Flor Villaverde

HISTORY
Established in 1890 as a brewery, San Miguel Corporation (PSE: SMC) is Southeast Asia's largest
publicly listed food, beverage and packaging company with over 17,000 employees in over 100 major
facilities throughout the Asia-Pacific region.
Its flagship product, San Miguel Beer, is one of the largest selling beers and among the top ten
selling beer brands in the world. San Miguel's manufacturing operations extend beyond its home market
to Hong Kong, China, Indonesia, Vietnam, Thailand, Malaysia and Australia; and its products are
exported to 60 markets around the world.
Since 2008, SMC has ventured beyond its core businesses, becoming involved in fuel & oil
(Petron Corporation), power generation and infrastructure. It was briefly involved in Philippine Airlines
from April 2012 to September 2014.

OUR COMPANY
San Miguel Corporation is one of the
Philippines
most
diversified
conglomerates,
generating about 6.5% of the countrys gross
domestic product through its highly integrated
operations in beverages, food, packaging, fuel and oil,
power, mining and infrastructure.
San Miguel is one of the nations largest employers,
with a direct workforce of about 18,000 employees.
For each job created within the San Miguel system,
many additional jobs are created through suppliers,
distributors, retailers and other business partners.
Established in 1890, La Fabrica de Cerveza de
San Miguel, Southeast Asia's first brewery produced
and bottled what would eventually become one of the best-selling beers in the region.
Today, San Miguel Beerthe company's flagship productis one of the largest selling beers and
among the top beer brands in the world.
San Miguel Corporation has since diversified to produce a wide range of popular beverage, food
and packaging products, which havefor over a centurycatered to generations of consumers' ever
changing tastes.

San Miguel is now a majority owner

of Petron Corporation, which is the market
leader in the Philippines in terms of sales
volume in the retail, industrial and LPG
market segments, which runs the largest
integrated oil refinery in the Philippines
with a vast network of depots, and retail
service stations. San Miguel has also built a
power company with a full spectrum of
three Independent Power Producer
Agreement contracts with a total capacity
of 2,545 MW, accounting for 16% of the
national grid.
San Miguel recently concluded acquisition of Exxon Mobil downstream business in Malaysia and
a minority stakes in Philippine Airlines, Asias first airline and Air Philippines, now known as PAL Express.
The company's manufacturing and trading operations extend beyond the Philippines to Hong Kong,
China, Indonesia, Vietnam, Thailand, Malaysia 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.
San Miguel follows five key corporate strategies aimed at creating value for its shareholders:

Enhance the value of core businesses

Diversify into industries that underpin the growth of the Philippine economy
Identify and pursue synergies within and among businesses
To invest in and develop businesses in which the company can be a significant player

OUR BUSINESSES
San Miguel Brewery Inc.
San Miguel Brewery Inc. (SMB) is the largest
producer of beer in the Philippines, with nine out of ten
beer drinkers preferring its brands. San Miguel Beer was
first produced by La Fabrica de Cerveza de San Miguel, an
upstart brewery in the heart of Manila that began its
operations in 1890.

Ginebra San Miguel Inc.

Ginebra San Miguel, Inc. is the worlds largest gin
producer by volume as well as the market leader in the
domestic hard liquor market, with core products such as
Ginebra San Miguel Gin, GSM Blue Gin and Gran Matador
Brandy.

San Miguel Pure Foods Company, Inc.

San Miguel Pure Foods Company, Inc. offers a

diverse array of food products spanning across the entire
value chain ranging from B-Meg feeds and San Miguel
Mills flour to Purefoods hotdogs, Magnolia chicken or
Monterey ready-to-eat meat dishes.

Petron Corp.
Petron Corporation is the largest oil refining and
marketing company in the Philippines. Supplying nearly 40%
of the countrys oil requirements, the companys worldclass products and quality services fuel the lives of millions
of Filipinos. Petrons vision is to be the leading provider of
total customer solutions in the energy sector and its
derivative businesses.

Infrastructure
San Miguel Holdings Corp.
TPLEX
The 88.5 kilometer, two-lane, TarlacPangasinan-La Union Expressway, the companys
infrastructure investment in the north, was
inaugurated in December 2013 by President Benigno S.
Aquino III. As administrator of the toll project, SMC
through the Private Infra Development Corporation
(PIDC), the TPLEX concessionaire, will provide
management services, toll collection, traffic safety and
security management, toll road maintenance and other
related services.

Skyway Stage 3
Another major infrastructure initiative,
which broke ground in January 2014, is the Skyway
Stage 3 projecta 14.8-kilometer, six-lane
elevated expressway from Buendia to Balintawak
that will link SLEX to NLEX. The project aims to
decongest major thoroughfares, while at the same
time creating new transport routes, giving more
travel options to commuters and stretching the
capacity of existing transport systems.

NAIAEX
In April 2013, the company won the concession to build and operate the Ninoy Aquino
International Airport Expressway. An important component of the companys infrastructure portfolio,
NAIEX will connect the Skyway system to all three NAIA airport terminals and the Entertainment City of
the Philippine Amusement and Gaming Corporation.

MRT-7
In October 2010, SMC finalized a deal to acquire 51% interest in Universal LRT Corp. Ltd., the
company in charge of developing the Metro Rail Transit Line 7 (MRT7), a planned 22-kilometer-long rail
line, starting from San Jose del Monte in Bulacan and ending in North Avenue in Quezon City.

TransAire Development Holdings Corporation (TADHC)

San Miguel Corp. also owns the
Caticlan Airport concession-holder TransAire
Development Holdings Corporation, which is
currently overseeing the modernization of the
airport. Long-term expansion projects involve
the construction of a bigger airport passenger
terminal, extension of the existing runway
from 950 meters to 2,100 meters,
improvement of the road network and
upgrading of airport facilities and air traffic
control aids. Construction of the expanded
facility is currently ongoing.

San Miguel Yamamura Packaging Corp.

The San Miguel Yamamura Packaging Corporation
provides a wide range of packaging solutions to various
industries including food, pharmaceutical, chemical,
beverages, and personal care across Asia-Pacific, Middle
East, Africa and the United States. It is a major player in
the domestic packaging industry with market leadership in
most of its product formats.

San Miguel Properties Inc.

Although initially established to be San

Miguel Corporations corporate real estate
arm, San Miguel Properties later diversified
into commercial property development in
market opportunities. Its current portfolio of
projects includes mixed-use developments
with economy to middle-income housing as its
core products. Among its real estate
development projects: Bel Aldea, Maravilla,
and Muralla in Cavite and Wedgewoods in Sta.
Rosa, Laguna.

Power and energy

In a relatively short period, San Miguel has built a vertically integrated power company with a
full spectrum of power businesses comprising of IPPA contracts (through holding company SMC Global
Power Holdings), mining assets, which supply raw materials to power plants, and a distribution (through
Meralco) which distributes and sells electricity through a vast network in Luzon island. Being a vertically
integrated power company gives SMC the opportunity to compete and maximize value in key segments
of the value chain by driving and capitalizing on synergies among fuel sourcing, power generation and
power distribution.

Aviation

PAL in a nutshell
Flag carrier Philippine Airlines is a major player in the global aviation industry and the one of
Asias most dynamic carriers today, having unveiled a road map that seeks to transform Asias first

airline into Asias airline of choice. More than 70 years after PAL first took to the sky, the story of PAL
continues to evolve. Under a new management that has a track record for successfully growing
businesses and run a highly diversified conglomerate that includes some of the countrys strongest
brands in virtually every growth sector of the Philippines, PAL is taking a tried-and-tested concept and
applying the discipline of a three-pronged business strategy thats simple yet bold: fleet modernization,
network expansion and service innovation.

Other businesses

Anchor Insurance Brokerage Corp.

ARCHEN Technologies
Bank of Commerce
Bell Telecommunications Philippines, Inc.
Eastern Telecommunications Philippines, Inc.
Liberty Telecommunications Holdings, Inc.
San Miguel Energy Corp.
San Miguel Shipping & Lighterage Corp.
SMC Retirement Funds Office
SMC Stock Transfer Corp.
SMITS, Inc.

Latest News
SMC net income grows 210% to P53.6 billion, less unrealized forex losses.
San Miguel Corporation delivered strong financial results in 2013, with both core and new
businesses bringing stable margins and a healthy cash flow.
Consolidated revenues rose 7% to P748 billion, with new businesses accounting for 70% of total
revenues, improving 9% over the previous year. The core beverage, food, and packaging businesses
posted moderate growth at 2%.
Consolidated operating income grew 7%, reaching almost P55.1 billion, on the back of strong
margins from the beer and power businesses and the sustained performance of Petron and San Miguel
Pure Foods Company, Inc. Consolidated recurring EBITDA, meanwhile, improved 1% to P77.3 billion.
Consolidated net income attributable to equity holders of the parent company grew 42%,
reaching P38.1 billion, as the sale of San Miguels entire stake in Meralco yielded a P40 billion gain.
These earnings completely offset unrealized foreign exchange losses amounting to about P15.6 billion,
brought about by the strengthening of the US dollar in the second half of 2013. Without unrealized forex
losses, net income improved 210% to P53.6 billion.

Financial Position
As of June 30, 2014

Total Assets:
P1,174B
Current Ratio:
1.58x
Cash:
P200B

Debt-to-Equity:
2.04x
Interest-Bearing Debt:
P443B
Interest-Bearing-Debt-to-Equity:
P1.15x
Net-Debt-to-EBITDA:
2.78x

BALANCE SCORECARD