Capital Markets SMC Final

BFM07 – Capital Markets
DEPARTMENT OF FINANCIAL MANAGEMENT

COLLEGE OF ARTS AND SCIENCES
San Beda College
SAN MIGUEL CORPORATION
An Investment Research submitted

In Partial Fulfillment of the Requirements for the Course of
Acta, Michelle Ann B.

Cuenco, John Alfred
De Villa, Renz
Fernando, Darienne Kate
James, NarsonKarlo
Morte, Theo
Sarmiento, Migui
April 2016
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................... 5
CHAPTER I – COMPANY PROFILE ........................................................................................ 7

Brief Background
Director and Management
Ownership and Top 10 Holders
Top 10 Institutional Investors
CHAPTER II – BUSINESS OVERVIEW ............................................................... 11

Business Description (Industry and Sector)
Major Products and Services
Subsidiaries
CHAPTER III - INDUSTRY ANALYSIS ............................................................... 16

Customers
Market Share
Competition
Regulation
CHAPTER IV - ECONOMIC ANALYSIS ............................................................. 21

Global/Regional
Domestic
CHAPTER V - FINANCIAL ANALYSIS ............................................................... 25

Vertical Analysis
Horizontal Analysis
Financial Analysis (Company vs Industry vs Sector)
Financial Strength
Quick Ratio
Current Ratio
Long Term Debt to Equity
Total Debt to Equity
Profitability Ratio
Gross Margin
EBITD Margin
Operating Margin
Net Profit Margin
Dividend
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Dividend Yield
Payout Ratio
Valuation Ratio
P/E Ratio
Beta
Price to Sales
Price to Book
Price to Cash Flows
Efficiency Ratio
RTO
ITO
Asset Turnover Ratio
Management Effectiveness
ROA
ROI
ROE
CHAPTER VI - ESTIMATES ............................................................................... 37

Consensus Recommendation
Dividend Forecast
EPS
Net Income
Price-Target
CHAPTER VII - TECHNICAL ANALYSIS ........................................................... 41

MACD Technique
RSI Technique
Bollinger Bands
CHAPTER VII - RECOMMENDATION…………………………………………42
BIBLIOGRAPHY
APPENDICES
CURRICULUM VITAE
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List of Tables and Figures
Table 1…………………………………………………………..…..…........8
Table 2…………………………………………………………………........9
Table 3…………………………………………………………..……........10
Table 4…………………………………………………………..……........22
Table 5…………………………………………………………..……........25
Figure 1………………………………………………………….……........15
Figure 2………………………………………………………….…………16
Figure 3………………………………………………………….……........17
Figure 4………………………………………………………….……........28
Figure 5………………………………………………………….……........29
Figure 6………………………………………………………….……........31
Figure 7………………………………………………………….……........32
Figure 8………………………………………………………….……........34
Figure 9………………………………………………………….……........34
Figure 10……………………………………………………………….......35
Figure 11……………………………………………………………….......35
Figure 12……………………………………………………………….......36
Figure 13……………………………………………………………….......37
Figure 14……………………………………………………………….......37
Figure 15……………………………………………………………….......37
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EXECUTIVE SUMMARY
San Miguel Corporation comprises in the manufacture and sale of beverage, food, and
packaging products. It operates through the following segments: Beverages, Food,
Packaging, Energy, Fuel & Oil, Infrastructure and Telecommunications.
The main purpose of this Investment research is to know the current status of San Miguel
Corporation for the investors and also for possible incoming investors.
This Investment Research shows the Industry Analysis of San Miguel Corporation
which is subdivided into Customers, Market Share, and Competition. In Customer, Everyone
who uses a wheeled, self-powered motored vehicle is one of the primary customers of San
Miguel Corporation. Second, Filipino families especially those who are interested in their
products. Lastly, people who are used to travel from one place to another. In Competition, it
is stated that there are two competitors of San Miguel Corporation: JG Summit Holdings Inc.,
and LT Group Inc. while in Market Share, We have compared three companies: San Miguel
Corporation and its two competitors, JG Summit Holdings Inc., and LT Group Inc. which has
been concluded that San Miguel Corporation is dominating in the industry by having the
highest percentage in market share consistently for two years.
This Investment Research shows also Economic and Financial Analysis of San
Miguel Corporation which shows that In Global, San Miguel Beer International Operations
posted a higher revenue compared to last year with growth mainly driven by modest gains in
sales of its branded products. Export volumes for San Miguel brands grew 9% on the back of
steady growth in some countries. While in Domestic, San Miguel Corporation’s consolidated
total assets as of December 2014 amounted to P1.2 trillion, P47 billion higher than 2013
mainly due to investments in property, plant and equipment, particularly by Power and
Petron; as well as project development costs for the company’s infrastructure business. On
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the liabilities side, short-term debt increased and long-term debt declined. Total equity
attributable to equity holders of the parent company increased, primarily due to income
during the year net of dividend declarations.
The group of researchers strongly recommend to hold the current shares. San
Miguel Corporation (SMC) is one of the best performing company in the PSE Index
(PSEi) stocks; however, January to March 2016 is substantially unpredictable.
SMC’s performance during the first quarter of 2016 sums up our recommendation. We
perceived that their chart is going upward. It is, indeed, on its peak. As of April 1, 2016,
the price of SMC stock is at ₱76.5. Moreover, 52 week-high of SMC is at ₱79.20. When
the current price is close to the 52 week-high, it is regard as a favorable sign for the
investors because in quite some time, the price of SMC will increase.
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CHAPTER I
COMPANY PROFILE
A. Brief Background
San Miguel Corp. engages in the manufacture and sale of beverage, food, and
packaging products. It operates through the following segments: Beverages, Food,
Packaging, Energy, Fuel & Oil, Infrastructure and Telecommunications. The Beverage
segment produces and markets alcoholic and nonalcoholic beverages. The Food segment
includes feeds production, poultry and livestock farming, processing and selling of poultry
and meat products, processing and marketing of refrigerated and canned meat products,
manufacturing and marketing of flour products, premixes and flour-based products, dairy-
based products, breadfill, desserts, cooking oil, importation and marketing of coffee and
coffee-related products. The packaging segment is involved in the production and marketing
of packaging products including, glass containers, glass molds, polyethylene terephthalate
(PET) bottles and preforms, PET recycling, plastic closures, corrugated cartons, woven
polypropylene, kraft sacks and paperboard, pallets, flexible packaging, plastic crates, plastic
floorings, plastic films, plastic trays, plastic pails and tubs, metal closures and two-piece
aluminum cans, woven products, industrial laminates and radiant barriers. The Energy
segment is engaged in power generation, distribution and trading and coal mining. The Fuel
& Oil segment is engaged in refining and marketing of petroleum products. The
Infrastructure segment is engaged in the business of construction and development of various
infrastructure projects such as airports, roads, highways, toll roads, freeways, skyways,
flyovers, viaducts and interchanges. The Telecommunications segment is engaged in
rendering all types of domestic and international telecommunications services. The company
was founded in 1890 and is headquartered in Mandaluyong, Philippines.
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B. Board of Director and Management
BOD and Officers Officers

Eduardo M. Cojuangco, Alexander J. Poblador Eduardo M. Cojuangco, Jr.
Jr. Member, Nomination & Chairman and Chief Executive Officer
Chairman and CEO Hearing Committee Ramon S. Ang
Chairman, Executive Horacio C. Ramos Vice Chairman, President and
Committee Thomas A. Tan Chief Operating Officer
Ramon S. Ang IñigoZobel Ferdinand K. Constantino
President and COO Member, Executive Senior Vice President and Chief
Member, Executive Committee Finance Officer
Committee Winston F. Garcia Virgilio S. Jacinto
Member, Nomination & Independent Director Senior Vice President
Hearing Committee Member, Audit General Counsel, Compliance Officer
Estelito P. Mendoza Committee and Corporate Secretary
Chairman, Nomination & Member, Executive Joseph Pineda
Hearing Committee Compensation Committee Senior Vice President
Member, Executive Reynato S. Puno Deputy Chief Finance
Committee Independent Director Officer
Member, Audit Member, Executive Aurora T. Calderon
Committee Compensation Committee Senior Vice President
Leo S. Alvez Member, Nomination & Senior Executive Assistant to the
Member, Audit Hearing Committee Office of the President and Chief
Committee Margarito B. Teves Operating Officer
Member, Nomination & Independent Director
Hearing Committee Chairman, Audit
Joselito D. Campos, Jr. Committee
Member, Executive Menardo R. Jimenez
Compensation Committee Chairman, Executive
Aurora T. Calderon Compensation Committee
Member, Executive Member, Executive
Compensation Committee Committee
Ferdinand K.
Constantino
Member, Executive
Committee
Member, Audit
Committee
Member, Executive
Compensation
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Committee
Member, Nomination
C. Top Ownership and Holders

Ownership San Miguel Corp.
Mutual Funds that own SMC
% SharesChange In% of
Name Shares Held Out Shares Assets As of Date
1. DFA Dimensional
Emerging Markets Value 6,547,556 0.28% +37,600 0.07% 10/31/15
Fund
2. DFA Emerging
Markets Core Equity 2,117,910 0.09% +54,930 0.02% 10/31/15
Portfolio
3. Government Pension
1,964,482 0.08% -4,781,429 0.00% 12/31/15
Fund - Global (The)
4. Canada Pension Plan 1,743,000 0.07% -752,000 0.00% 03/31/15

5. DFA Emerging
1,065,000 0.05% +188,830 0.04% 10/31/15
Markets Series
6. Dimensional Funds Plc
- Emerging Markets 912,963 0.04% +395 0.10% 05/31/15
Value Fund
7. AXA Rosenberg
Global Invt. Company
745,300 0.03% 0 0.46% 07/31/15
ICVC - Pacific (Ex-
Japan)
8. Eaton Vance
Parametric Emerging 716,000 0.03% 0 0.04% 01/31/16
Markets Fund
9. John Hancock VIT -
Emerging Markets Value 544,330 0.02% -74,130 0.13% 12/31/15
Trust
Table 1
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D. Top Institutional Shareholders

Institutions that own SMC
%
Shares Change In% of
Name Shares Held Out Shares Assets As of Date
1. Dimensional Fund
12,814,536 0.54% +276,683 0.01% 01/31/16
Advisors LP
2. Norges Bank
Investment 1,964,482 0.08% -4,781,429 0.00% 12/31/15
Management
3. Canada Pension Plan

1,743,000 0.07% -752,000 0.01% 03/31/15
Investment Board
4. Parametric Portfolio
1,599,680 0.07% 0 0.00% 01/31/16
Associates LLC
5. AXA Investment
Managers Asia 973,300 0.04% -263,760 0.13% 12/31/15
(Singapore) Ltd.
6. Acadian Asset
510,392 0.02% +37,212 0.00% 01/31/16
Management LLC
7. Eastspring
Investments 408,330 0.02% -194,120 0.00% 06/30/15
(Singapore) Ltd.
8. SSgA Funds
222,280 0.01% 0 0.00% 02/29/16
Management, Inc.
9. Dimensional Fund
206,795 0.01% +43,525 0.01% 11/30/15
Advisors Ltd.
10. Callan Associates,
144,580 0.01% 0 0.00% 12/31/15
Inc.
Table 2
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CHAPTER II
BUSINESS OVERVIEW
A. Business Description (Industry and Sector)
San Miguel Corporation (SMC) is a food, beverage, and packaging company. Established
in 1890 initially as a single-product brewery. The company's extensive product portfolio
includes beer, liquor, non-alcoholic beverages, poultry, animal feeds, flour, meat, dairy
products, coffee, various packaging products, and full range of refined petroleum products.
SMC has transformed itself into a diversified conglomerate with market-leading businesses
and investments in fuel and oil, energy, infrastructure, telecommunications and, banking
industries. The company has strategic partnerships with international companies, among
them are: Nihon Yamamura Glass Company, Ltd; Hormel Foods International Corporation of
United States; Super Coffee Corporation Pte. Ltd. of Singapore; Penderyn Pte. Ltd.; and
Kirin Holdings Company Limited. The Company's subsidiaries include San Miguel Brewery,
inc.; Ginebra San Miguel, Inc.; San Miguel Purefoods Company, Inc.; and Petron
Corporation, among others.
B. Major Products and Services

 Beverages
 Food
 Packaging
o Plastics
o Papers
o Cospak
 Fuel and Oil
 Power
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 Infrastructure
 Properties
C. Subsidiaries
 San Miguel Brewery Inc. (SMB) is the largest producer of beer in the Philippines,
withnine 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. It received the Royal Grant from the Spanish king to brew
beer in the Philippines, then a colony of Spain. In 1963, the brewery was renamed San
Miguel Corp. (SMC) to reflect its growing ventures into food and packaging. As the beer
business grew at a steady pace, it provided the foundation from which SMC expanded its
interests from food, beverage and packaging, to power, oil, airline and infrastructure.
Today, SMC is the country's biggest diversified conglomerate.
 Ginebra San Miguel, Inc. is the world’s 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. It also produces and sells distilled
spirits in Thailand under a joint venture agreement with Thai Life Group of Companies. In
addition, it has a non-alcoholic beverage business, which produces and sells non-
carbonated ready-to-drink tea and fruit juices primarily under the Magnolia brand in the
Philippines.
 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. Pure Foods
offers an unrivalled breadth of food products that can be consumed during any time of the
day, providing a comprehensive food solution to its customers, thereby building greater
brand loyalty and prestige.
 The San Miguel Yamamura Packaging Corporation provides a wide range of
packaging solutions to various industries including food, pharmaceutical, chemical,
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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
Corporation’s 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.
 Petron Corporation is the largest oil refining and marketing company in the Philippines.
Supplying nearly 40% of the country’s oil requirements, the company’s world-class
products and quality services fuel the lives of millions of Filipinos. Petron’s vision is to be
the leading provider of total customer solutions in the energy sector and its derivative
businesses.
 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. 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.
 San Miguel Holdings Corp.
TPLEX
o The 88.5 kilometer, two-lane, Tarlac-Pangasinan-La Union Expressway, the
company’s 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 DevCorporation (PIDC), the TPLEX
concessionaire, will provide management services, toll collection, traffic safety
and security management, toll road maintenance and other related services.
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Skyway Stage 3
o Another major infrastructure initiative, which broke ground in January 2014, is
the Skyway Stage 3 project—a 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
o In April 2013, the company won the concession to build and operate the Ninoy
Aquino International Airport Expressway. An important component of the
company’s 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
o 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)
o 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.
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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.
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CHAPTER III
INDUSTRY ANALYSIS
A. Customers
Almost every Filipino patronizes products made by San Miguel Corporation. This
mammoth company is one of the most popular company here in the Philippines. Everyone
who uses a wheeled, self-powered motored vehicle used for transportation is one of the
primary customers of San Miguel Corporation. Second, Filipino families especially their
children who loves these products by the said company. Lastly, people who are traveling
from one place to another. They are the one who regularly make us of TPLEX, Skyway Stage
3, NAIAEX, MRT 7. They made traveling faster and more comfortable by providing quality
express ways and public transportations like MRT 7.
B. Market Share
Based on Total Assets

The data below shows the market share of 3 companies (San Miguel Corporation and
its two competitors, JG Summit Holdings Inc., and LT Group Inc.) with the same industry in
terms of total assets.
TOTAL ASSETS 2013
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29%
50% San Miguel Corp.
21%
Figure 1
TOTAL ASSETS 2014
28% 49%
San Miguel Corp.
23%
Figure 2
Figures 1 and 2 shows the annual total assets of each company from 2013 to 2014. In
figure 1, the total asset of SMC is P1.17T; JG Summit P473B; and LT Group P678B. In
figure 2, the total assets of SMC is P1.21T; JG Summit P558B; and LT Group P696B.
This shows how dominating San Miguel Corporation in the industry by having the highest
percentage in market share consistently for two years. San Miguel Corporation had its
highest total assets in 2014 with P1.21 Trillion.
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Based on Net Sales (Amounts In Millions)
900,000
800,000
700,000
600,000
2014
500,000
2013
400,000 2012
300,000
200,000
100,000
0
San Miguel Corp. JG Summit Holdings LT Group Inc.
Inc.
Figure 3
Table 1 shows the net sales of the 3 firms in the industry. It shows the annual net sales of
each company from 2012 to 2014. San Miguel Corporation has the highest net sales for the
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past three years, Php 699.9 Billion in 2012, Php 748.2 Billion in 2013, and Php 782.4 Billion
in 2014. While JG Summit holds the second spot with in annual net sales with Php 135.5
Billion in 2012, Php 147.6 Billion in 2013, and Php 184.8 Billion in 2014.
C. Competition
Top two competitors of San Miguel Corporation in the Philippines are:
 JG Summit Holdings, Inc. is one of the leading conglomerates in the Philippines,

with business interests in Food and Beverages, Real Estate and Hotels, Air
Transportation, Banking and Petrochemicals, as well as core investments in Real
Estate, Telecommunications and in Power Distribution.
 LT Group Inc is a diversified investment company that engages in beverages,

tobacco, property development, and banking businesses. The Company brews soft
drinks and manufactures bottled water, supplies and manufactures cigarettes and
tobacco, develops, leases and manages residential properties, and provides a full
range of banking and financial services to corporate and retail customers.
D. Regulation
 Food and Drug Administration (FDA)
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As a regulatory agency under the Department of Health, the Food and Drug Administration,
created under Republic Act No. 3720, series of 1963, as amended by Executive Order 175,
series of 1987, otherwise known as the “Food, Drugs and Devices, and Cosmetics Act”, and
subsequently Republic Act No. 9711 otherwise known as “The Food and Drug
Administration Act of 2009”, is mandated to ensure the safety, efficacy or quality of health
products as defined by RA No. 97111, which include means food, drugs, cosmetics, devices,
biologicals, vaccines, in-vitro diagnostic reagents, radiation-emitting devices or equipment,
and household/urban hazardous substances, including pesticides and toys, or consumer
products that may have an effect on health which require regulations as determined by the
FDA.
 Bureau of Internal Revenue (BIR)
In Philippines, the Corporate Income tax rate is a tax collected from companies like SMC. Its
amount is based on the net income companies obtain while exercising their business activity,
normally during one business year. The benchmark we use refers to the highest rate for
Corporate Income. Revenues from the Corporate Tax Rate are an important source of income
for the government of Philippines.
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CHAPTER IV
ECONOMIC ANALYSIS
A. Global/Regional
San Miguel Beer International Operations posted P14.7 billion in revenues in 2014,
slightly higher than the previous year, with growth mainly driven by modest gains in sales of
its branded products.
SMB Hong Kong volumes were flat due to the termination of distribution agreements for
certain premium brands and the disruption in business resulting from pro-democracy
demonstrations also in South China.
In terms of operating profitability, improvements in margins, together with higher export
volumes, slightly offset the effects of lower volumes.
Despite political turmoil in Thailand in the second quarter, volumes grew 3%. Marketing
programs and outlet penetration activities proved successful in achieving an average 5%
monthly growth in the second half of 2014. Operating performance substantially improved,
buoyed by higher volumes and better margins.
Export volumes for San Miguel brands grew 9% on the back of steady growth in the UAE,
Taiwan, Korea and the US, and new markets in Africa and Australia. This, however, was
outweighed by some discontinued private labels, resulting in a 9% drop in total export
volumes.
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Effect
This expansions of San Miguel Corp. in other countries results large amount of
imports to them because San Miguel brewery is giving them a good competition when it
comes in beverages. SMC is a well-diversified conglomerate with leading market positions in
the food, beverage, and packaging industry in the Philippines and Southeast Asia. In recent
years, SMC has also become an industry leader in fuel, oil, and energy in the Philippines. In
the region, SMC has operations in several emerging markets, such as Hong Kong, Malaysia,
Indonesia, Thailand and Vietnam. These markets demonstrate high potential for economic
growth.
B. Domestic
San Miguel Corporation’s consolidated total assets as of December 2014 amounted to

P1.2 trillion, P47 billion higher than 2013 mainly due to investments in property, plant and
equipment, particularly by Power and Petron; as well as project development costs for the
company’s infrastructure business, particularly TPLEX, STAR, NAIA Expressway, and
Boracay Airport. On the liabilities side, short-term debt increased by about P37 billion while
long-term debt declined by P4.5billion, with the increased short-term requirements of Petron,
coupled with the decline in long - term debt of San Miguel Brewery Inc. Total interest-
bearing debt amounted to P483 billion, while consolidated net debt is at P224.4 billion.
Total equity attributable to equity holders of the parent company increased to P240.5 billion
in 2014 from P237.7billion in 2013, primarily due to income during the year net of dividend
declarations. The company’s dividends to common and preferred shares amounted to P3.3
billion and P6.1 billion, respectively. On the other hand, non-controlling interest increased to
P149.0 billion in 2014 from P128.1 billion in 2013 with SMC Global Power’s issuance of
US $300 million undated subordinate capital securities, coupled with Petron’s issuance of
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P9.9billion preferred shares. The company’s current ratio improved to 1.52x by end-
December 2014 from 1.46x as of December 31,2013; while interest-bearing debt-to-equity
ratio was 1.24x and 1.23x as of end-2014 and 2013, respectively. Net-debt-to-EBITDA
ended at 2.36x, an improvement from 3.14x in 2013.
C. Effect
San Miguel Corporation operates food, beverage, packaging, power, fuel and oil,
infrastructure and telecommunications businesses. The Company produces beverages,
poultry, animal feed, meat, flour, dairy products, and glass and plastic packaging, generates
electricity, refines and markets petroleum products, builds infrastructure, and provides
telecommunications services. San Miguel Corporation affects all industry in the Philippines
from food to telecommunication services as said above and because of this The gross
domestic product of the Philippines grew by 6 percent year-on-year in the third quarter of
2015.The third-quarter GDP is an improvement from the 5.8-percent expansion in the second
quarter, and from 5.5 percent in the same quarter in 2014 as said in thestandard.com.ph. This
growth is because of teaming up with Telstra Corp. of Australia to build the Philippines’
third mobile broadband telecommunications network. Large amount of exports also of San
Miguel Corporation affects the GDP of Philippines, San Miguel Corp. is now having large
amount of exports because of their expansions throughout the region.
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CHAPTER V FIANCIAL ANALYSIS
Makati City, Metro Manila

SAN MIGUEL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
DECEMBER 31, 2014 AND 2013
(In Millions) Change Horizontal Change
2014 2013 2014 2013
ASSETS
Cash and cash equivalents 258,606 191,613 66,993 134.96% 100.00% 34.96265911
Trade and other 136,036 168,141 -32,105 80.91% 100.00% -19.09409365
receivables - net
Inventories 85,846 83,315 2,531 103.04% 100.00% 3.037868331
Current portion of 3,320 3,427 -107 96.88% 100.00% -3.122264371
biological assets - net
Prepaid expenses and 46,088 33,712 12,376 136.71% 100.00% 36.71096346
other current assets
Assets held for sale 529,896 480,208 49,688 110.35% 100.00% 10.34718289
Total Current Assets 9,339 8,798 541 106.15% 100.00% 6.149124801
Noncurrent Assets 539,235 489,006 50,229 110.27% 100.00% 10.27165311
Investments and advances 37,427 60,654 -23,227 61.71% 100.00% -38.29425924
- net
Available-for-sale 41,459 42,048 -589 98.60% 100.00% -1.400780061
financial assets
Property, plant and 453,961 425,832 28,129 106.61% 100.00% 6.605656691
equipment - net
Investment property – net 3,643 4,176 -533 87.24% 100.00% -12.76340996
Biological assets - net of 1,973 1,911 62 103.24% 100.00% 3.244374673
current portion
Goodwill - net 41,211 41,752 -541 98.70% 100.00% -1.295746312
Other intangible assets – 45,114 36,032 9,082 125.21% 100.00% 25.205373
net
Deferred tax assets 14,651 15,608 -957 93.87% 100.00% -6.13147104
Other noncurrent assets – 38,376 53,068 -14,692 72.31% 100.00% -27.68523404
net
Total Noncurrent Assets 677,815 681,081 -3,266 99.52% 100.00% -0.479531803
1,217,05 1,170,08 46,963 104.01% 100.00% 4.013633174
0 7
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Loans payable 180,059 143,226 36,833 125.72% 100.00% 25.71669948

Accounts payable and 121,844 117,257 4,587 103.91% 100.00% 3.911919971
accrued expenses
Finance lease liabilities - 16,219 15,654 565 103.61% 100.00% 3.609301137
current portion
Income and other taxes 13,303 13,058 245 101.88% 100.00% 1.876244448
payable
Dividends payable 3,134 3,544 -410 88.43% 100.00% -11.56884876
Current maturities of long- 19,852 42,807 -22,955 46.38% 100.00% -53.62440722
term debt - net of debt issue
costs
Total Current Liabilities 354,411 335,546 18,865 105.62% 100.00% 5.622179969
0 #DIV/0!
Noncurrent Liabilities 0 #DIV/0!
Long-term debt - net of 283,136 264,690 18,446 106.97% 100.00% 6.968907023
current maturities and debt
issue costs
Deferred tax liabilities 7,820 11,061 -3,241 70.70% 100.00% -29.30114818
Finance lease liabilities - net 170,111 179,394 -9,283 94.83% 100.00% -5.174643522
of current portion
Other noncurrent liabilities 12,091 13,619 -1,528 88.78% 100.00% -11.21961965
Total Noncurrent Liabilities 473,158 468,764 4,394 100.94% 100.00% 0.937358671
Equity Attributable to
Equity Holders of the
Parent Company
Capital stock - common 16,415 16,414 1 100.01% 100.00% 0.00609236
Capital stock - preferred 10,187 10,187 0 100.00% 100.00% 0
Additional paid-in capital 178,101 178,085 16 100.01% 100.00% 0.008984474
Revaluation increment 761 764 -3 99.61% 100.00% -0.392670157
Reserve for retirement plan -1,115 862 -1,977 -129.35% 100.00% -229.350348
Cumulative translation 4,251 4,863 -612 87.42% 100.00% -12.58482418
adjustments
Retained earnings: 52,088 28,230 23,858 184.51% 100.00% 84.51292951
Appropriated 119,655 138,256 -18,601 86.55% 100.00% -13.45402731
Unappropriated -139,881 -139,954 73 99.95% 100.00% -0.052159995
Treasury stock 240,462 237,707 2,755 101.16% 100.00% 1.158989849
Non-controlling Interests 149,019 128,070 20,949 116.36% 100.00% 16.35746076
Total Equity 389,481 365,777 23,704 106.48% 100.00% 6.480451204
1,217,050 1,170,087 46,963 104.01% 100.00% 4.013633174
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Equity 0
Equity Attributable to 0
Parent Company
Capital stock - common 16,415 16,414 1 100.01% 100.00% 0.00609236
Capital stock - preferred 10,187 10,187 0 100.00% 100.00% 0
Additional paid-in capital 178,101 178,085 16 100.01% 100.00% 0.008984474
Revaluation increment 761 764 -3 99.61% 100.00% -0.392670157
Reserve for retirement plan -1,115 862 -1,977 -129.35% 100.00% -229.350348
Cumulative translation 4,251 4,863 -612 87.42% 100.00% -12.58482418
adjustments
Retained earnings: 52,088 28,230 23,858 184.51% 100.00% 84.51292951
Appropriated 119,655 138,256 -18,601 86.55% 100.00% -13.45402731
Unappropriated -139,881 -139,954 73 99.95% 100.00% -0.052159995
Treasury stock 240,462 237,707 2,755 101.16% 100.00% 1.158989849
Non-controlling Interests 149,019 128,070 20,949 116.36% 100.00% 16.35746076
Total Equity 389,481 365,777 23,704 106.48% 100.00% 6.480451204
1,217,050 1,170,087 46,963 104.01% 100.00% 4.013633174
Table 4
** The loans payable increases by 25.72% which is acceptable because their cash and cash
equivalents also increases by 34.96%
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A. VERTICAL ANALYSIS
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SAN MIGUEL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
DECEMBER 31, 2014 AND 2013 Vertical
(In Millions)
2013 2014 2013
ASSETS
258,606
Cash and cash 136,036 191,613 0.212485929 0.163759618
equivalents
Trade and other 85,846 168,141 0.111775194 0.143699571
receivables - net
Inventories 3,320 83,315 0.070536132 0.071204107
Current portion of 46,088 3,427 0.002727908 0.002928842
biological assets - net
Prepaid expenses and 529,896 33,712 0.037868617 0.028811533
other current assets
Assets held for sale 9,339 480,208 0.43539378 0.410403671
Total Current Assets 539,235 8,798 0.007673473 0.007519099
Noncurrent Assets 37,427 489,006 0.443067253 0.41792277
Investments and 41,459 60,654 0.030752229 0.051837171
advances - net
Available-for-sale 453,961 42,048 0.034065158 0.035935789
financial assets
Property, plant and 3,643 425,832 0.373001109 0.363931913
equipment - net
Investment property – 1,973 4,176 0.002993303 0.003568965
net
Biological assets - net 41,211 1,911 0.001621133 0.001633212
of current portion
Goodwill - net 45,114 41,752 0.033861386 0.035682817
Other intangible assets 14,651 36,032 0.037068321 0.030794291

- net
Deferred tax assets 38,376 15,608 0.012038125 0.013339179
Other noncurrent assets 677,815 53,068 0.031531983 0.045353892
- net
Total Noncurrent 1,217,05 681,081 0.556932747 0.58207723
Assets 0
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1,217,05 1,170,087
0
Loans payable 180,059 143,226 0.147947085 0.122406283
Accounts payable and 121,844 117,257 0.100114211 0.100212206
accrued expenses
Finance lease liabilities - 16,219 15,654 0.013326486 0.013378492
current portion
Income and other taxes 13,303 13,058 0.010930529 0.011159854
payable
Dividends payable 3,134 3,544 0.002575079 0.003028835
Current maturities of 19,852 42,807 0.016311573 0.036584459
long-term debt - net of
debt issue costs
Total Current Liabilities 354,411 335,546 0.291204963 0.286770129
0 0
Noncurrent Liabilities 0 0
Long-term debt - net of 283,136 264,690 0.232641223 0.226213948
current maturities and
debt issue costs
Deferred tax liabilities 7,820 11,061 0.006425373 0.009453143
Finance lease liabilities - 170,111 179,394 0.139773222 0.153316805
net of current portion
Other noncurrent 12,091 13,619 0.009934678 0.011639305
liabilities
Total Noncurrent 473,158 468,764 0.388774496 0.400623202
Liabilities
Equity Attributable to
Parent Company
Capital stock - common 16,415 16,414 0.013487531 0.014028017
Capital stock - preferred 10,187 10,187 0.00837024 0.00870619
Additional paid-in 178,101 178,085 0.146338277 0.152198084
capital
Revaluation increment 761 764 0.000625282 0.000652943
Reserve for retirement -1,115 862 -0.00091615 0.000736697
plan
Cumulative translation 4,251 4,863 0.003492872 0.004156101
adjustments
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Retained earnings: 52,088 28,230 0.04279857 0.024126411

Appropriated 119,655 138,256 0.098315599 0.118158735
Unappropriated -139,881 -139,954 -0.114934473 -0.119609909
Treasury stock 240,462 237,707 0.197577749 0.20315327
Non-controlling 149,019 128,070 0.122442792 0.1094534
Interests
Total Equity 389,481 365,777 0.320020541 0.312606669
1,217,050 1,170,087 1 1
Equity 0 0
Equity Attributable to 0 0
Parent Company
Capital stock - common 16,415 16,414 0.013487531 0.014028017
Capital stock - preferred 10,187 10,187 0.00837024 0.00870619
Additional paid-in 178,101 178,085 0.146338277 0.152198084
capital
Revaluation increment 761 764 0.000625282 0.000652943
Reserve for retirement -1,115 862 -0.00091615 0.000736697
plan
Cumulative translation 4,251 4,863 0.003492872 0.004156101
adjustments
Retained earnings: 52,088 28,230 0.04279857 0.024126411
Appropriated 119,655 138,256 0.098315599 0.118158735
Unappropriated -139,881 -139,954 -0.114934473 -0.119609909
Treasury stock 240,462 237,707 0.197577749 0.20315327
Non-controlling 149,019 128,070 0.122442792 0.1094534
Interests
Total Equity 389,481 365,777 0.320020541 0.312606669
1,217,050 1,170,087 1 1
Table 5
** Non-current assets have the large portion in SMC’s assets because it has 55.61%. Even in
their liabilities the long term debt and non-current liabilities got the large portion.
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Valuation Ratios
Company Industry Sector

P/E Ratio 169.32 540.74 149.41
Beta 0.42 1.35 1.03
Price to Sales 0.26 1.19 20.42

Price to Book 0.81 2.94 1.57
Price to Tangible Book 2.92 2.99 3.48
Price to Cash Flow 3.38 16.70 9.93
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25
20
15
Company
10 industry
sector
0
Beta Price to Sales Price to Book Price to Price to Cash
(TTM) (MRQ) Tangible Book Flow (TTM)
(MRQ)
Figure 4
Valuation Ratios
Investing in San Miguel Corporation has less risk than its Industry and sector (Beta), and its
P/E Ratio is much undervalue against its industry but over value in its sector as shown above,
so investing in SMC is cheaper when you are comparing it to its industry but expensive when
it comes to its sector but has less risk than the two.
Financial Strength
Company industry sector

Quick Ratio 1.15 0.84 1.33
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San Beda College
Current Ratio 1.38 1.01 1.61

LT Debt to Equity 205.77 36.69 25.42
Total Debt to Equity 295.46 50.49 33.38
1.8 350
1.6
300
1.4
250
1.2
200
1
Company Company
0.8 150
industry industry
0.6 sector 100 sector
0.4 50
0.2
0
0 LT Debt to Total Debt
Quick Ratio Current Ratio Equity to Equity
(MRQ) (MRQ) (MRQ) (MRQ)
Figure 5
Financial Strength
SMC’s Quick ratio is greater than its industry, mainly because SMC has larger Assets than its
Liability. This shows that SMC can pay its liabilities without having any problems. It is the same
on its Current ratio they are greater than their industry.
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San Beda College
Profitability Ratios

Gross Margin 18.67 16.37 24.82
EBITD Margin 15.06 -- --
Operating Margin 9.76 6.57 5.96
Net Profit Margin 3.48 5.33 -1.45
30
25
20
15 Company
industry
10 sector
0
Gross Margin (TTM) EBITD Margin (TTM) Operating Margin Net Profit Margin
(TTM) (TTM)
-5
Figure 6
Profitability Ratios
Profitability Ratios of SMC compared to industry and sector in overvalue except its
net profit margin, but this show that they earn more than its sector and industry. In Net Profit
Margin it is under value in industry but overvalue against it sector, this explains that its
industry has a great competition against each other.
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San Beda College
Efficiency

Receivable Turnover (TTM) 5.55 4.46 6.14
Inventory Turnover (TTM) 6.67 11.64 9.45
Asset Turnover (TTM) 0.56 0.91 0.71
14
12
10
8 Company
industry
6
sector
0
Receivable Turnover (TTM) Inventory Turnover (TTM) Asset Turnover (TTM)
Figure 7
Efficiency
San Miguel Corporation’s Receivable turnover is overvalued against to its industry

but not that undervalue in its sector, this shows that SMC can collect their Receivables
efficiently and effectively on time. In Inventory Turnover of SMC, they are undervalued by
35

San Beda College
their industry and sector. This shows that they are slow in selling and replacing their
inventory over a period of time also in their Asset Turnover.
Dividends

Dividend Yield 1.83 1.91 4.63
Payout Ratio(TTM) 305.77 134.38 46.96
San Miguel Corporation’s Dividend yield is undervalue against its industry and sector
this means that they don’t compensate well their investors in term of its dividends against
their industry and sector. In Payout Ratio this gives us a look that SMC gives more dividends
than its industry and sector.
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CHAPTER VI
ESTIMATES
A. DIVIDEND PER SHARE and EARNINGS PER SHARE FORECAST
Figure 8
37

San Beda College
Figure 9 © THE FINANCIAL TIMES LTD 2016

Based on a yearly basis, the continuous growth in dividends per share remained flat
while earnings per share excluding extraordinary items fell by 73.13 %. Additionally when
measured on a five year annualized basis, both dividend per share and earnings per share
growth ranked the highest relative to its industry peers.
B. NET INCOME
Figure 10
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San Beda College
Figure 11
Figure 12 © THE FINANCIAL TIMES LTD 2016
San Miguel Corp had their net income fall 61.39 % from 38.05bn to 14.69bn despite a
4.64% increase in revenues from 747.72bn to 782.43bn. An increase in the cost of goods sold
as a percentage of sales from 84.47% to 85.58% was a component in the falling net income
despite rising revenues.
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C. PRICE TARGET
The estimated price target is Php76.77 given the fact that SMC expects its revenues to
reach $50 billion by 2018 as it acquires new businesses and expands existing ones. This is
nearly 3 times what San Miguel made in 2011, when it ended the year with $17.5 billion in
revenues. The researchers expects that SMC’s price target will increase because of their
target expansion and business acquisition. Although there was downfall issues such as the
price today of SMC fell from 76.60 to 77.30 and the failed joint venture of San Miguel and
Telstra, the strong foundation of SMC will lift their losses into gains again in a certain period
of time.
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CHAPTER VII
TECHNICAL ANALYSIS
MACD (Moving Average Convergence Divergence)

 As stated in the graph below, as of April 1, 2016 the MACD is at -6.54. Negativity means
bearish, it is a signal to buy shares from SMC.
Figure 13
RSI (Relative Strength Index)

 The RSI for April 1, 2016 is at 54.42, this figure is less than the Moving Average of 82.13.
When the RSI is less than the Moving Average it is a signal to buy.
Figure 14
Bollinger Bands
 As you can see, on the latter part of the graph, lines are contracted, it means the price is less
volatile. Moreover, a signal to buy or hold shares of SMC.
Figure 15
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CHAPTER VII
RECOMMENDATION
We strongly recommend to hold your shares and add-up more to your current number
of shares for the foreseeable near future (short-term) and future (long-term). Despite San
Miguel Corporation (SMC) is one of the best performing PSE Index (PSEI) stocks, January-
March 2016 it is quite “unpredictable”. SMC’s performance during the first quarter of 2016
sums up our recommendation. We observed that their chart is going upward, it is on its peak.
As of April 8, 2016 the price of SMC stock is at Php. 76.75. Moreover, 52week-high of SMC
is at 79.20 when the current price is close to the 52week high it is an excellent sign for their
investors because in quite some time the price of SMC will rise up.
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BIBLIOGRAPHY
http://www.ltg.com.ph/
http://www.jgsummit.com.ph/
http://www.reuters.com/finance/stocks/financialHighlights?symbol=SMC.PS
http://www.sanmiguel.com.ph/
http://quotes.wsj.com/PH/XPHS/SMC/advanced-chart
http://quotes.wsj.com/PH/SMC/company-people
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APPENDICES
Valuation Ratio
1. Sales Per Share – Sales Discount & Revenues / Shares Outstanding
782,434
26,600
= 24.41
2. Book Value Per Share – Total Shareholder Equity – Preferred Equity / Total Outstanding
Share
389,481 - 10,187
26,602
= 14.26
3. Cash Flow Per Share Ratio – Operating Cash Flow – Preferred Dividends / Common Shares
Outstanding
29,417 - 10,187
16,415
= 1.17
Dividend Ratio
1. Payout Ratio – Annual Dividend / Earnings per Share
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San Beda College
1.06
3.61
= 0.29
2. Dividend Yield – Most Recent Full Year Dividend / Current Share Price
1.06
77.50
=0.01
Liquidity Ratio
2014 2013
1. Quick Ratio 453,389 495,691
354,411 385,546
=1.15 =1.81
2. Current Ratio 539,235 489,006

354,411 335,546
=1.38 =1.46
3. Long Term Debt to Equity 283,136 364,590

26,602 26,602
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=205.77 =9.95
4. Total Debt to Equity 827,569 804310

389,481 365,777
=295.46 =2.20
BETA = 0.42
Profitability Ratio
1. Gross Margin
Net Sales – Cost of Goods Sold 782,434 – 669,641 748,241 – 631,856
Net Sales 782,434 748,241
=14.42 =15.53
2. Operating Margin
Net Profit 5,640,000,000 846,000,000
Revenue 13,353,678,988 10,244,546,754
=9.76 =9.76
3. Net Profit Margin

Net Profit x 100 48,132 50,728
Net Sales 782,434 748,241
=3.48 =4.27
EBT Margin 645,576 567,354

4,169,836 7,921,233
=15.06 =7.28
Efficiency
1. Receivable Turnover
Net Credit Sales 107,748,000

Average Accounts Receivables 20,540,800
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San Beda College
=5.55
2. Inventory Turnover
Sales 593,470,000
Inventory 85,846,000
=6.67
3. Asset Turnover
Sales 593,470,000
Total Assets 539,235,000
=0.56
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Curriculum Vitae
52

San Beda College
MICHELLE ANN B. ACTA

490-A San Rafael St., San Miguel, Manila
Michelle_Acta@yahoo.com
09051879756
Objectives
To seek a challenging and worthwhile career in a dynamic and stable workplace with
opportunities for personal and professional development and advancement.
Highlights of Qualifications
 Outstanding leadership attributes

 Hardworking and responsible to any given task
 Excellent communication skills
 Adaptable to different working environment
 Exceptional academic performance
 Can easily work with groups
 Excellent presentation and interpersonal skills
Education
San Beda College, Mendiola, Manila

Bachelor of Science in Business Administration
Major in Financial Management
AY. 2013-Present
 External Vice President of Junior Financial Management
Association
2016-2017
 External Linkages Committee, Sophomore Batch Council
2014-2015
 Member of San Beda Junior Financial Management Association
2013-2016
 Leadership Award
AY 2013-2014
53

San Beda College
 Dean’s Lister
AY 2013-2014
Santa Maria Academy, Santa Maria, Laguna

 Graduated with Academic distinction
Escuela de San Lorenzo Ruiz, Paranaque City
Skills, and Personality
 Excellent presentation and interpersonal skills.

 Excellent communication skills both verbally and written.
Seminars and Workshop Attended
September 2015 “One Convergence: Taking the Road to Financial Heights
CSJL
August 2015 Industry Fair 2015: Career Management 101
San Beda College
January 2014 FOREX 101: Understanding the Basics of Currency Trading,
54

San Beda College
San Beda College
November 2013 JFINMA Company Tour 2013: Enhancing One’s Knowledge through Deutsche
Knowledge Services
Deutsche Bank
August 2013 ASEAN Summit 2013
Palacio de Manila
REFERENCES:
Ms. Jacqui Moreno

Financial Management Department Chairperson
San Beda College
Mr. Gary M. Galang

Moderator, JFINMA
San Beda College
55

San Beda College
CUENCO, JOHN ALFRED BEGOSA

Blk 11 Lot 37 V.Mapast.Katarungan Village, Brgy. Poblacion, Muntinlupa City
Home: 945-3202 | Cell: 0(936) 3449-764
alfred_cuenco@yahoo.com
Objective:To obtain a job within my chosen field that will challenge me and allow
me to use my education, skills and experiences in a way that is mutually beneficial to
both myself and my employer and allow for future growth and advancement.
Education
Tertiary (2012-2017)
 San Beda College- Mendiola, Manila
Bachelor of Science in Business Administration major in Financial Management
- Member of Junior Financial Management Organization
Secondary (2005-2009)
 Southernside Montessori School- Muntinlupa City
- CAT Captain (2008 – 2009)
- Member of Muntinlupa Junior Rescue Team (2008 – present)
Primary (1999-2005)
 Southernside Montessori School- Muntinlupa City
Skills
 Office operation skills with proficient use of Microsoft Office (Microsoft Word, Excel,
PowerPoint)
 Ability to work with zero to minimum supervision
 Ability to work in a fast paced environment
 Ability to work individually and as a collaborative team member
 Refined planning and organizational skills that balance work, team support and ad-hoc
responsibilities in a timely and professional manner
56

San Beda College
Personal Information
Age : 19 Civil Status: Single
Height : 5’5” Birthday : November 29, 1996
Weight : 64 kg Citizenship : Filipino
Gender : Male Religion : Catholic
SEMINARS ATTENDED
 Attended the seminar “W.I.N the Battles of Life: Warriors who live in the moment
and never give up” on 14th of October in the year 2015 at San Beda College,
Manila
 Attended the seminar “The ASEAN Economic Community 2015 National

Congress” on 2nd of October in the year 2013 at Palacio de Maynila
Reference/s
Prof. Jackqui Moreno CPA, MBA
Chairperson, Financial Management
San Beda College Manila
Contact# 735-6011
Prof. Arman Diaz

Lecturer in Mathematics
Southernside Montessori School
Contact# 8088193
Prof.Cyr Laurel
Lecturer in Accounting
Southernside Montessori School
Contact# 8088193
Blk 11 lot 37 V. Mapa St. Katarungan Village | Muntinlupa City |

Mobile: (0936)3449764 | E-mail: alfred_cuenco@yahoo.com
57

San Beda College
DE VILLA, RENZ B.
B.S. Business Administration Major in Financial Management
I. CAREER OBJECTIVE
To obtain an entry-level position in your company that utilizes the

achievements, skills, strategic thinking, and leadership abilities that enable me to
consistently exceed earning goals under less than ideal economic conditions.
II. ACADEMIC INFORMATION
A. Education
2013 – Present San Beda College - Manila
E. Mendiola St., San Miguel, Manila
B.S.B.A. Major in Financial Management
2009 - 2012 Mater Carmeli School

Sacred Heart Village
Novaliches, Quezon City
High School
2008 - 2009 Our Lady of Guadalupe Minor Seminary

Guadalupe Viejo, Makati City
High School
2002 – 2008 TandangSora Elementary School

Banlat Rd. Quezon City
Elemetary School
B. Skills Summary
 Strong analytical and numerical skills

 Accounting knowledge
 Sense of Leadership
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San Beda College
 Able to express strong relationships

 Excellent communication and writing skills
 Excellent time and project management skills
C. Seminars/Trainings Attended
 Industry Fair 2015: Career Management 101

August 20, 2015
San Beda College, Manila
 JCFAP Financial Literacy Caravan
September 19, 2015
Colegio de San Juan de Letran
 Forex 101: Understanding the Basics of Currency Trading
January 22, 2014
 Bring Out the Wolf in You: A Stock Trading Seminar
July 31, 2014
 Battle of the Wolves: Stock Trading Game
Aug.7- Sept. 25, 2014
San Beda College
D. Honors/Awards/Certifications Received
 Sports Awardee for Volleyball, Mater Carmeli School, 2012

 St. Cecilia Awardee for Music, Mater Carmeli School, 2012
59

San Beda College
 Secretary General, Bedan Business Spectrum Federation, San Beda College,

2015
E. Extra Curricular Activities
 Member, Junior Financial Management Association (JFINMA)

 Member, Bedan Business Spectrum Federation (BBSF)
 Member, Bedan Mathematics Circle (BMC)
 Member, The Bedan Volunteers
 Member, Junior Confederation of Finance Associations of the
Philippines(JCFAP)
 Member, United Nations Educational, Scientific and Cultural Organization
(UNESCO) Youth Club of San Beda
For Reference:
Ms. Jacqui Moreno Mr. Gary Galang
Chairperson JFINMA-SBC
JFINMA-SBC
60

San Beda College
DARIENNE KATE M. FERNANDO

312 JP Rizal St. Makinabang, Baliuag, Bulacan
09327709614
dariennefernando@yahoo.com.ph
February 9, 1997
OBJECTIVE: To be able to contribute outstanding skills and abilities

as a financial analyst to help to the growth and
development of the company
STRENGTHS:
 Corporate financial skills and knowledge
Ability to compile, verify, analyze, interpret and disseminate critical

financial data. Skilled in Microsoft Office (Word, Excel, PowerPoint).
 Communication and leadership skills
Communicates effectively to build relationships both internally and

externally, develop strategic partnerships, and provide advice in decision
making regarding financial management.
EDUCATION: San Beda College

BSBA Financial Management
Tertiary
2013 to present
Mendiola, Manila
St. Mary’s College of Baliuag
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San Beda College
Secondary
2009 – 2013
Baliuag, Bulacan
St. Mark College

Primary
2003-2008
Baliuag, Bulacan
ORGANIZATIONAL INVOLVEMENT:
Junior Financial Management Association

2013 to present Member
SEMINARS/TRAININGS ATTENDED:
 JFINMA Company Tour 2013: Enhancing One’s

Knowledge through Deutsche Knowledge Services
Deutsche Bank
November 2013
 FOREX 101: Understanding the Basics of Currency

Trading
San Beda College
January 2014

San Beda College
August 2015
62

San Beda College
 One Convergence: Taking the Road to Financial

Heights
Colegio de San Juan de Letran
September 2015
References:
Mr. Gary Galang

BSBA Financial Management Moderator
Ms. Jacqui Moreno CPA
BSBA Financial Management Department Chair
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San Beda College
JAMES, NARSON KARLO
Career Objective
A challenging career opportunity in the field of finance where my knowledge and skills may be
applied and further developed to add value to the company. Wherein I will learn and excel in
finance operation processes. A job that provides me a scope for growth in the finance vertical.
Educational Background
MATAAS NA KAHOY ELEMENTARY SCHOOL (PRIMARY)2002-2008
Mataas Na Kahoy, Alicia, Isabela
LA SALETTE OF SAN MATEO (SECONDARY) 2008-2012

Barangay 1, San Mateo, Isabela
UNIVERSITY OF SANTO TOMAS (TERTIARY) 2012-2013
Espana St., Sampaloc, Manila
SAN BEDA COLLEGE – MANILA (TERTIARY) 2013-PRESENT

Mendiola St., San Miguel, Manila
Organizational Affiliation
JCFAP (JUNIOR CONFEDERATION OF FINANCE ASSOCIATION) 2013-PRESENT
MEMBER
JFinMa (JUNIOR FINANCIAL MANAGEMENT) 2013-PRESENT

MEMBER
ECHOES (OFFICIAL YEARBOOK OF THE SBC-M) 2015-PRESENT

MARKETING STAFF
Skills
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San Beda College
 Sound Knowledge about Management and Accounting

 Proficient in MS Office
 Good Interpersonal Skills
 Ability to Adapt in New Environment
 Highly motivated to be a leader on group works
 Versed in Photography
SEMINARS ATTENDED
• ASEAN Summit 2013
Palacio de Manila August 2013
• FOREX 101: Understanding the Basics of Currency Trading
San Beda College January 2014
• Industry Fair 2015: Career Management 101
San Beda College August 2015
• “One Convergence: Taking the Road to Financial Heights
CSJL September 2015
JAMES,
NARSON KARLO C.
Applicant
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San Beda College
Leon Felix Teofilo T. Morte

#928 Manila North Road, Calvario, Meycauayan City
09175565309
(044) 769-4344
Summary of Qualifications
 Computer literate and knowledgeable in Microsoft Office (Word, Excel
and Powerpoint)
 A fluent English and Filipino Communicator
 Can adjust to new environment and can work under pressure
 Has profound leadership skills and can work alone or in group
 Sociable and willing to learn and experience new things
Educational Background
BSBA in Financial Management
College of Arts and Sciences
San Beda College, Mendiola, Manila
Pre-Dentistry
College of Arts and Sciences
University of the East, Recto, Manila
High School Diploma

St. Mary’s College of Meycauayan, Inc. Meycauayan, Bulacan
Work Experience
Credit and Collection Trainee, NTY Children’s Camp
 Issue Official receipt during collection period
 Coordinates with disbursement regarding payment check availability
 Record Collection and turnover of collected checks
Award, Achievements and Recognition

 Dean’s List for A.Y. 2015 - 2016 1st Semester, College of Arts and
Sciences, San Beda College
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San Beda College
 Gold Medalist in Computer Quiz Bee, St. Mary’s College of Meycauayan

 Leadership Award, CAT-1 Unit, St. Mary’s College of Meycauyaan
Extra-curricular Activities
Class secretary for A.Y. 2014-2015, Section CFM, College of Arts and
Sciences
 Manages the record of the class
 Disseminates information from the professor to the class
Student Athlete (Basketball), St. Mary’s College of Meycauayan
Student Affiliations
Member, Junior Financial Management Association
Member, Bedan Mathematician Circle
Seminars
 San Beda STG II: Entering the Lion’s Den
 Leading the youth towards the path of Financial Literary
Personal Information
Date of Birth: February 12, 1996
Civil Status: Single
Nationality: Filipino
Religion: Roman Catholic
References:
Ms. Jacqui Moreno

Financial Management Department Chairperson
San Beda College
Mr. Gary M. Galang

Moderator, JFINMA
San Beda College
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San Beda College
68

Capital Markets SMC Final

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Capital Markets SMC Final

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BFM07 – Capital Markets

DEPARTMENT OF FINANCIAL MANAGEMENT

SAN MIGUEL CORPORATION

An Investment Research submitted

Acta, Michelle Ann B.

DEPARTMENT OF FINANCIAL MANAGEMENT

EXECUTIVE SUMMARY ...................................................................................... 5

CHAPTER I – COMPANY PROFILE ........................................................................................ 7

CHAPTER II – BUSINESS OVERVIEW ............................................................... 11

CHAPTER III - INDUSTRY ANALYSIS ............................................................... 16

CHAPTER IV - ECONOMIC ANALYSIS ............................................................. 21

CHAPTER V - FINANCIAL ANALYSIS ............................................................... 25

DEPARTMENT OF FINANCIAL MANAGEMENT

CHAPTER VI - ESTIMATES ............................................................................... 37

CHAPTER VII - TECHNICAL ANALYSIS ........................................................... 41

CHAPTER VII - RECOMMENDATION…………………………………………42

DEPARTMENT OF FINANCIAL MANAGEMENT

List of Tables and Figures

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

B. Board of Director and Management

BOD and Officers Officers

DEPARTMENT OF FINANCIAL MANAGEMENT

C. Top Ownership and Holders

4. Canada Pension Plan 1,743,000 0.07% -752,000 0.00% 03/31/15

DEPARTMENT OF FINANCIAL MANAGEMENT

D. Top Institutional Shareholders

3. Canada Pension Plan

DEPARTMENT OF FINANCIAL MANAGEMENT

A. Business Description (Industry and Sector)

B. Major Products and Services

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

 San Miguel Holdings Corp.

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

Anchor Insurance Brokerage Corp.

DEPARTMENT OF FINANCIAL MANAGEMENT

Based on Total Assets

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

Based on Net Sales (Amounts In Millions)

DEPARTMENT OF FINANCIAL MANAGEMENT

Top two competitors of San Miguel Corporation in the Philippines are:

 JG Summit Holdings, Inc. is one of the leading conglomerates in the Philippines,

 LT Group Inc is a diversified investment company that engages in beverages,

 Food and Drug Administration (FDA)

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

San Miguel Corporation’s consolidated total assets as of December 2014 amounted to

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

CHAPTER V FIANCIAL ANALYSIS

Makati City, Metro Manila

DEPARTMENT OF FINANCIAL MANAGEMENT

Loans payable 180,059 143,226 36,833 125.72% 100.00% 25.71669948

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

DEPARTMENT OF FINANCIAL MANAGEMENT

Other intangible assets 14,651 36,032 0.037068321 0.030794291