Annual Report 2011

SAN MIGUEL CORPORATION

ANNUAL REPORT

food

beverage

packaging

power & energy

oil refining

infrastructure

mining

property

banking

telecommunications

TABLE OF CONTENTS

2

Message to Stockholders

6

Management’s Discussion & Analysis

13

Financial Position

14

Corporate Governance

20

Corporate Social Responsibility

23

Board of Directors

24

Key Executives

28

Financial Section

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Through our products and services, we want to give every

single person we come in contact with access to the very best

we can offer—whether in terms of quality, or affordability or

choice. Our vision is to contribute to a strong Philippines, where

our businesses create new jobs. Where the cost of basic services

is well within the reach of every Filipino. Where quality roads

and transport infrastructure help bring down the cost of goods,

putting more money in the pockets of manufacturers and

consumers alike. And where our beverages and food products

provide nutrition, and enjoyment in celebrating

life’s big and small moments.

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A YEAR OF CHANGE

CONTINUITY

MESSAGE TO STOCKHOLDERS

DURABILITY

GROWTH

Over the past five years, our company has undergone a significant

transformation. These last two years, in particular, have been a

period of dramatic change. We’ve made strategic acquisitions and

built up our position in fast-growing and high-potential industries.

As a group, we’ve made real progress in making extensive portfolio

changes and in carrying out the diversification we aim for.

2010*

2011

18.5%

BEVERAGES

BEVERAGES

PETRON

Contribution by revenue

*2010 is pro-forma with full-year

consolidation of Petron and power business

16.0%

50.2%

46.8%

16.4%

16.4%

FOOD

FOOD

PETRON

4.4%

4.8%

13.5%

PACKAGING

13.0%

POWER

POWER

Contribution by EBITDA

*2010 is pro-forma...