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SAN MIGUEL CORPORATION
40 San Miguel Avenue, Mandaluyong City
1550 Metro Manila, Philippines
P.O.: Box 271 Manila Central Post Office
Telephone: (632) 632-3000

Strategy

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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. We want to give every customer and consumer we touch access to the best we can offer—whether 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 the development and growth of the Philippine economy.

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 country’s 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 and develop businesses with market leading positions.

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. 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 practices and joint development of businesses.

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.