smf 2011 annual report

CONTENTS ABOUT THE REPORT

ABOUT THE COVER

About San Miguel FoundationMessages40 years of SMF2011 highlightsSan Miguel CorporationSan Miguel Brewery Inc.San Miguel Pure Foods Co. Inc.San Miguel Yamamura Packaging Corp.SMC Global Power Holdings Corp.Ginebra San Miguel Inc.SMITS Inc.Bank of CommerceDisaster managementVolunteerismCommunicationsDonations & sponsorshipsMemberships & citationsBoard of TrusteesThe SMF teamFinancial reportFeature story

Our 2011 Annual Report covers flagship programs and community projects that the Foundation has implemented together with various operating businesses of the San Miguel Group.

In our effort to support environmental sustainability and minimize our own ecological footprint, we have produced a digital version of this report forwider distribution.

The full report can also be accessed online at our corporate website:www.sanmiguel.com.ph

The cover features the San Miguel-sponsored Gawad Kalinga Village inBrgy. Sta. Elena, Iligan. On December 2011, San Miguel Corporation gave a P550 million grant-the largest single CSR project in the country’s history-toward providing 5,000 homes for the thousands left homeless in the wake of Typhoon Sendong.

As our company continues to grow, the San Miguel Foundation is committed to empowering our communities to grow together with us. Sama-sama sa kaunlaran.

010204060812162024252627282930313132333436

San Miguel Foundation, Inc. is non-stock, non-profit organization registered with the Securities and Exchange Commission since 1972. The Foundation’s current thrust is community development, environmental stewardship, education, enterprise development and disaster management.

Now on our fifth decade as a foundation, we continue to support and invest in communities in which we operate by partnering with local community groups.

As the corporate social responsibility arm of the Philippines’ largest and most diversified conglomerate, our ability to have a positive impact on our country is huge. On the anniversary of our 40th year, we renew our commitment to do our utmost to help our parent company and its subsidiaries deliver on our social and environmental objectives. We will strive to ensure that good corporate citizenship is woven into the very fabric of San Miguel Corporation.

VISION

MISSIONWe envision a country wherein all Filipinos will be able to celebrate life in productive and self-reliant communities.

We are committed to empowering our communities by managing corporate social responsibility programs that harness the strengths ofSan Miguel’s operating businesses.

MESSAGE - SMC PRESIDENTAs one of the Philippines’ largest and most diversified corporations, with businesses in food and beverages, infrastructure, oil refining and marketing, power and energy, San Miguel Corporation is ideally placed to make a positive impact on the economy, the environment and society.

We consider it a privilege to have been able to play a role in projects that we believe can make a measurable difference in the lives of many. And in all cases we are happy to be given the opportunity to contribute in ways both big and small.

Coming from a position of strength, I believe, allows us to make contributions of the scale that we hope is reflective of the leadership position we hold in all the businesses that we are in. We have the benefit of being able to allocate resources to support everything from grassroots projects that aim to promote sustainability and self-sufficiency in communities, to larger projects that have the potential to significantly change the lives of thousands of our countrymen for the better.

Through all of this, the San Miguel Foundation has been instrumental in helping fulfill our company’s commitment to the improvement in the quality of life of our fellow Filipinos.

For 40 years now, the Foundation has been working tirelessly behind the scenes, and making sure that the results of our growth reaches and touches the people who have made us into what we are today: a stronger and more dynamic San Miguel with hopes of a better future for all.

SAN MIGUEL FOUNDATION2

President Benigno S. Aquino III joins Ramon S. Ang at the groundbreaking of the Habitat for Humanity community in Cagayan de Oro in January 2012.

For 17 years, I have had the very good fortune of belonging to an organization that has so much space in its heart to give. San Miguel Corporation embraces the idea that a culture based on core values of corporate social responsibility and malasakit not only helps the business, but also defines the role we can and should place in the context of the larger society.

As the nation’s leading conglomerate, people trust San Miguel to act responsibly and to do its share in uplifting the lives of the people it touches through its many products and services. Indeed, profit with honor is an integral part of what San Miguel stands for, and is what has made our company what it is today. From where I sit as executive director of the Foundation, I genuinely believe that the value our company puts on giving back is a major contributor to its success.

We have always envisioned our foundation as one that walks with the people. We work hand in hand with our partners and stakeholders to develop and implement programs that we believe will create a profound and lasting impact on society.

Ultimately, we view the measure of our success not in terms of numbers and statistics, but in the heartfelt gratitude of individuals and families who now have access to better opportunities and can look forward to the prospect of a brighter future.

We hope this report will show how we’ve evolved and developed our corporate responsibility strategy over the last four decades. Along the way, we hope to highlight just some of the many ways that we are enriching our communities and other important areas where we are making a difference to the environment, our people and our partners.

We’re proud of how far we’ve come and even prouder still of where we’re going. With a commitment to doing good and doing well as the focus of everything we do, we’re looking forward to the next 40 years.

MESSAGE - SMF EXECUTIVE DIRECTOR

2011 ANNUAL REPORT 3

Camille Buenaventura travels throughout the Philippines to implement the Foundation’s many projects. Here she is with GK Executive Director Luis Oquiñena to review the development plans for our community in Iligan.

MILESTONES


1972San Miguel Foundation, Inc. is established and registered with the Securities and Exchange Commission (SEC)

1989SMC Agribusiness implements “Balikatan Pampamilya”

1996San Miguel Corporation becomes the first Philippine company to publish a public environmental report with the release of its “Environmental Update”

1999SMC becomes among the first companies in the country to participate in the Clean Air Campaign

2000The La Tondeña Foundation is folded into the San Miguel Foundation

2002“SMC Community Scholarship Program” is relaunched

Receives the Anvil Award of Excellence for “Tulong-Tulong sa Tullahan” and the Anvil Award of Merit for “Disteleria Bago, Inc. Community Development Program” from the Public Relations Society of the Philippines (PRSP)

2003SMC earns the top spot in a survey conducted by the Social Weather Station (SWS) as the Philippines’ most socially responsible company

2004Launches the “PET Recycling Awareness Campaign” in support of the Solid Waste Management Act

2005Receives the Agora Award for Outstanding Achievement in Advocacy Marketing from the Philippine Marketing Association

Receives an Anvil Award of Merit from PRSP for the “Doing Well, Doing Good” brochure

2006The New Zealand Agency for International Development (NZAID) donates P1 million for SMF’s “Mt. Tipolog-Tamugan Watershed Development Program”

Launches the first San Miguel Community Clinic at the Polo Brewery in Valenzuela City

Receives a Gold Quill Philippines Award of Merit from the International Association of Business Communicators (IABC) Philippines for “Hanapbuhay, Habang Buhay”


2007Launches the “Malusog na Katawan, Matalas na Isipan” supplemental feeding program

Rehabilitates three daycare centers in Albay, and establishes a livestock project from the proceeds of Monterey’s “Buy for Bicol” campaign

2008Distributes P20 million worth of relief goods to Romblon and Panay, provinces which were severely affected by Typhoon Frank

Launches the San Miguel Community Clinic at the Davao Brewery

2009Launches the San Miguel Community Center in Sumilao

Provides over P20 million worth of relief and rehabilitation efforts for the devastated areas affected by Typhoon Ondoy

2010Launches “Tulong-Tulong sa Tullahan II” in partnership with Departmant of Environment and Natural Resources (DENR) and Metro Manila Development Authority (MMDA)

Launches the San Miguel Community Clinic at the San Fernando Brewery

Receives the Philippine Quill Award of Merit from IABC Philippines for theSan Miguel Community Clinics

2011SMC commits P60 million to build 117 classrooms in partnership with Aklat, Gabay, Aruga tungo sa Pag-angat at Pag-asa (AGAPP)

SMC donates P50 million to the victims of the Japan earthquake and tsunami through the Philippine Red Cross

SMC commits P550 million to build 5,000 homes for the thousands of families left homeless by Typhoon Sendong

Receives the Quill Excellence Award from IABC Philippines for the San Miguel Community Clinics

Receives two Anvil Awards of Merit from PRSP for the San Miguel Community Clinics and “Tulong-tulong sa Tullahan II”

2012SMC commits P50 million to build 110 classrooms in partnership with AGAPP

SMC is named Best in Strategic CSR by Alpha Southeast Asia magazine

Receives the Anvil Award of Merit from PRSP for the San Miguel Community Clinics

2011 HIGHLIGHTSJANUARY-MARCH

JULY-SEPTEMBER

HAPPY TUMMIESSMC employees raise P1.5 million to feed 500 children in Calauan, Laguna for six months

LEAGUE OF CORPORATE FOUNDATIONSCamille Buenaventura is elected President of the League of Corporate Foundations

ANVIL AWARDS OF MERITReceives two Anvil Awards of Merit for the Community Clinics & Tulong-Tulong sa Tullahan II projects

HANDOG LUSOGSMPFC’s Handog Lusog para sa Nutrisyon ng Nasyon feeds 1,058 children in 10 schools for six months

DONATION FOR JAPAN TSUNAMIDonates P50 million for Japan tsunami and earthquake victims through the Philippine Red Cross

TYPHOONS PEDRING & QUIEL RELIEFOver 400 SMC employees volunteer to provide relief assistance to 25,000 typhoon victims


APRIL-JUNE

OCTOBER-DECEMER

SOCIALIZED HOUSINGSMB commits 300 homes for 300 families of informal settlers in Valenzuela

QUILL EXCELLENCE AWARDReceives an Award of Excellence at the 10th Philippine Quill Awards for our community clinics

MEDICAL MISSION5,000 patients are given medical treatment during various medical missions in partnership with SMBI, SMPFC & SMYPC

TYPHOON SENDONG RELIEF & REHABSMC commits P550 million to provide 5,000 homes;employees raise P1.2 million to rehabilitate schools

AGAPPSMC commits P60 million to AGAPP to build over 100 classrooms all over the country

PAMASKONG HANDOGSMYPC employees host simultaneous Christmas parties and give gifts to over 1,000 individuals



Our Gawad Kalinga community in Brgy. Sta Elena, Iligan is rising. Soon, 2,000 families who were survivors of Typhoon Sendong will live in this safe, peaceful and productive community.

With so many of our countrymen struggling to hang on, and making tough choices between hunger, housing and health care for their families, poverty is a major development issue in our country.

The San Miguel Foundation works hard to break the cycle of poverty, developing and implementing programs that support self-suffi ciency, improve communities, and encourage entrepreneurship and fi nancial independence. In cases of extreme hardship, as in the aftermath of Typhoon Sendong, San Miguel has chosen to provide homes so that thousands of families can once again get back on their feet.

The San Miguel housing project will build 5,000 homes in Cagayan de Oro, Iligan and Negros Oriental. To ensure that our P550-million donation is effi ciently utilized, San Miguel Foundation chose to partner with Gawad Kalinga and Habitat for Humanity Philippines—two of the most respected international organizations in community development.

COMMUNITYDEVELOPMENT

275M 275M2,500 homes

Cagayan de Oro2,500 homesIligan & Negros Oriental

5,000 homesfor 5,000 families

P P55OMP


Ramon S. Ang lends a hand to the All Hands Volunteers, an international group helping build homes for survivors of Typhoon Sendong

Our Habitat for Humanity community in Cagayan de Oro, where 2,500 Typhoon Sendong survivor-families will soon live in safe and fl ood-free homes


One of our AGAPP Silid Pangarap buildings.Each building has two classrooms-cum-libraries.

The shortage of classrooms is a pressing problem in the Philippine public school system. With nationwide enrollment rising every year by an estimated million students from elementary through high school, there is a shortage of close to 70,000 classrooms throughout the country.

Through AGAPP (Aklat, Gabay, Aruga Tungo sa Pag-angat at Pag-asa), San Miguel Foundation has committed P60 million to build 117 classrooms with libraries, each called a Silid Pangarap.

SMF’s partnership with AGAPP also includes training educators in integrated early childhood education development. As education plays a key role in enabling the marginalized to take full advantage of the income-earning opportunitites available to them, our building of classrooms is an effective demand-side intervention for this sector.

P60M

(59 silid pangaraps)

117classrooms

BUILDINGCLASSROOMS


Camille Buenaventura, pictured here with AGAPP Chair Pinky Aquino-Abellada, cuts the ribbon for the ceremonial turn-over of one of our Silid Pangarap buildings

The interior of our Silid Pangarap at Sto. Niño Elementary School in Mariveles, Bataan


Our San Miguel Community Clinic at the compoundof the San Miguel San Fernando Brewery

Since 2006, the San Miguel Community Clinics have provided free quality health care services to indigent residents of San Miguel host communities. Implemented as the fl agship program of San Miguel Brewery, the clinics have aided barangay health centers in treating residents suffering from diabetes, tuberculosis and various cardiovascular diseases.

Our specialized Clinics in Valenzuela and San Fernando, Pampanga counts 430 graduated patients from Diabetes, TB and CVDs. Patients in our specialized clinics decreased by 37% from 2010, attributing to the increase in the number of healed patients. Our general service clinic in Sta. Cruz, Davao del Sur counts 2,240 graduated patients. Patients from the general service clinic increased by 53%, credited to the positive feedback from the patients themselves, which resulted in more residents seeking free health services from our clinic.

graduated patients graduated patients2,240 430

DAVAO VALENZUELA + SAN FERNANDO

SPECIALIZED CLINICSGENERAL CLINIC

SAN MIGUELCOMMUNITY CLINICS


The facilities of our Community Clinics are always well-maintained to provide the best service to our benefi ciaries

A patient availing of her free medical checkup at our Community Clinic

MALUSOG NA KATAWAN MATALAS NA ISIPAN TULONG-TULONG SA TULLAHAN II

SCHOLARSHIP REFORESTATION

Our supplemental feeding program, Malusog na Katawan Matalas na Isipan, reached 345 malnourished students in 8 public elementary schools.

Part of our commitment to disaster management is the dredging of Tullahan River. In partnership with MMDA, we collected 180,000 cu. m. of silt that blocked the fl ow of water. Our 2nd phase of dredging helped decrease the fl ooding in Valenzuela and Malabon.

SMB scholarships are granted to children of indigent families from the host barangays of our SMB plant facilities in San Fernando, Valenzuela, Mandaue, Bacolod and Davao. In 2011, we granted 27 scholarships. All 27 students also participated in our Scholars’ Conference, an annual gathering and capacity building program for all SMF scholars.

Our tree planting activities are always strategically planned to benefi t the environment and our communities. We planted a total of 59,000 trees in protected areas. In all of these areas, our partner local-farmer associations generated additional income from site maintenance and selling the yield of fruit-bearning trees.

345 students 180,000 cu. m. of silt

59,000 trees27 scholars


Students enjoying their meal at the launch of a supplemental feeding program MMDA representives clearing the Tullahan River waterway along the San Miguel Polo Brewery in Valenzuela

80 barangay officials

KAWANG GAWA MEDICAL MISSION

BARANGAY STRENGTHENING COMMUNITY DEVELOPMENT

Our livelihood program has benefitted 400 women in our host communities in Visayas and Mindanao. Chefs from the San Miguel Pure Foods Culinary Center educated the mothers on the proper way of cooking baked products from a a wok or kawa.

Aside from our Community Clinics, we continue to reach out to far-flung barangays that do not have immediate access to healthcare. Over 3,000 patients were served in nine different barangays acrossthe country.

Every barangay plays a major role in local development and nation-building. We work closely with the barangays that host our facilities and assist them to be better equipped in serving the communities. In 2011, 80 barangay officials from five barangays attended our Barangay Strengthening workshop.

In line with San Miguel Corporation’s commitment to community development, we also pledged to build 300 homes for the indigent families of Valenzuela.

400 participants 3,000+ patients

300 homes

9 medical missions

5 barangays


Mothers from our Kawang Gawa workshop learning to cook new products with the guidance of our San Miguel Pure Foods Culinary chef

At our Barangay Strengthening Workshop, Barangay Darong officials strenghthen their camaraderie in order to serve their community better as a unit


Employee-volunteers wholeheartedly participate in our feeding sessions

As the country’s largest food company, San Miguel Pure Foods is mindful of its role in addressing the issues of nutrition and food security. Apart from providing affordable and healthy food products, San Miguel Pure Foods is committed to improving the nutrition of Filipinos. The Food Group’s Handog Lusog para sa Nutrisyon ng Nasyon fl agship CSR program was borne out of this objective.

Handog Lusog is a six-month supplemental feeding program that has benefi tted 1,058 pre-elementary students in 10 public schools. As part of the program, chefs from the San Miguel Pure Foods Culinary Center also hold cooking demonstrations for parents, driving home the importance of a well-balanced diet in improving one’s health, wellbeing, and overall quality of life.

HANDOG LUSOGPARA SA NUTRISYON NG NASYON

1,058students

10public schools


Handog Lusog is SMPFC’s fl agship program

MEDICAL MISSION

SCHOLARSHIP

463 residents from our host communities received immediate medical attention. Our medical missions provide free health check ups, medicines and circumcision to individuals from our partner barangays

Scholarships are granted to children of indigent families from the barangays of our San Miguel Pure Foods facilities. In 2011, we granted 93 scholarships. Our scholars also participated in our Scholars’ Conference.

463 patients

93 scholars


Residents of Sumilao, Bukidnon receive quality health services from the Community Clinic and learn alternative means of livelihood from the Community Store

SUMILAO COMMUNITY CLINIC

SUMILAO COMMUNITY STORE

The Sumilao Community Clinic is a general service health facility. We treated over 3,000 patients from our farmer communities in a span of 12 months. More and more residents are visiting the clinic due to the positive feedback of treated patients.

Aside from providing employment opportunities to residents of the nearby barangays, our Sumilao facility also provides income-generating opportunities for the residents. Our Community Store, which is managed by the locals themselves, reported P184,000 in profits in 2011.

3,154 graduated patients

P184,000 profit


Children from our Sumilao community received gifts from San Miguel Pure Foods volunteers after the medical mission


SMYPC employees celebrate their 73rd anniversary at Elsie Gaches Village

San Miguel Yamamura Packaging Corp. is known for its strong tradition of employee volunteerism. Contributing to society, one community at a time, is a shared value across SMYPC where management and staff alike are one in service; ever quick to sign up and engage in meaningful action that can make an immeasurable difference to the lives of the less fortunate.

As a result, the Foundation’s fl agship program with SMYPC focuses on employee outreach activities.

Instead of organizing extravagant parties, SMYPC’s tradition is to celebrate anniversaries and Christmas parties at different outreach areas. In 2011, SMYPC celebrated its anniversary at Elsie Gaches Village in Muntinlupa. Christmas was also celebrated with partner communities; and in 2011, almost 100 employee-volunteers spread Christmas cheer in three different facilities—The Little Sisters of Assumption in Pasay; Jose Fabella Hospital in Manila; and San Pedro Daycare Center in Bustos, Bulacan. All in all, SMYPC’s corps of volunteers were able to reach out to 1,387 individuals, providing over P1 million worth of essential equipment to benefi ciaries.

COMMUNITYOUTREACH

1,387individuals

reachedP1M+

worth ofdonations


Mothers at Jose Fabella Hospital receiving San Miguel food packs for their Christmas Noche Buena

Kids from San Pedro Daycare Center enjoying the gifts they received from their SMYPC kuyas and ates

MALUSOG NA KATAWAN MATALAS NA ISIPAN

SCHOLARSHIP

Our supplemental feeding program, Malusog na Katawan Matalas na Isipan, reached 120 malnourished students in 3 public elementary schools.

SMYPC scholarships are granted to children of indigent families from the barangays of our SMYPC facilities. In 2011, we granted 4 scholarships. Our scholars also participated in our Scholars’ Conference.

120 scholars

4 scholars


SMYPC employees sharing their time and talents in our CSR projects

LIVELIHOOD

MEDICAL MISSION

Because our community in Brgy. Sasa, Davao city is near our local Church, we trained 30 women in candle-making as a way of helping them earn additional income.

1,250 residents from our host communities received immediatemedical attention. Our medical missions provided free health check-ups, medicines and circumcision to individuals from ourpartner barangays.

30 participants

1,250 patients


Children in Calauan were given surprise gifts by SMYPC after the launch of the feeding program

In partnership with SMC Global Power, we launched the fi rst Mobile Clinic of the San Miguel Group. The 4-in-1 multipurpose clinic holds X-Ray, consultation, laboratory and dental facilities. The SMC Global Power Mobile Clinic will serve the communities and customers of SMC Global Power and its subsidiaries, San Miguel Electric Corp., San Miguel Energy Corp., South Premier Power Corp. and Strategic Power Devt. Corp.

Employee volunteers of SMC Global Power planted 1,000 narra seedlings in Brgy. Tinucan, Tanay, Rizal.

Scholarships were awarded to 17 engineering students in Batangas State University and Pangasinan State University. After graduation, these students will be employable in our power facilities.

1 mobile clinic

1,000 trees

17 scholars

4-in-1 x-ray, consultation, laboratory, dental


The SMC Global Power Mobile Clinic, began providing free health services in 2012

SMC Global Power employees braved the mountains of Tanay to launch their fi rst CSR activity

MOBILE CLINIC

REFORESTATION

SCHOLARSHIP

300 residents of Brgy. Tebag, the host community of our GSMI plant, received free dental and medical check-ups.

We granted 6 scholarships to out-of-school youth from our host communities in Sta. Barbara, Pangasinan and Cabuyao, Laguna. The students are enrolled in TESDA-accredited courses that would enable them to work in their local GSMI plant in thefuture.300+ patients6 scholars


Residents of our host community in Sta. Barbara, Pangasinan benefi tted from free medical checkups and medicines The out-of-school youth of our host barangays receiving their free TESDA scholarships

MEDICAL MISSION SCHOLARSHIP

In line with SMITS’ thrust as San Miguel’s IT company, we granted IT scholarships to fi ve students in Mandaluyong City. 5 scholars


SMF and SMITS partner to award IT scholarships to Mandaluyong’s out-of-school youth

SCHOLARSHIP

In celebration of International Volunteers Day, Bank of Commerce employees came together to build homes for the indigent families of Valenzuela. Almost 200 BOC employees from the head offi ce and various branches helped build 32 houses in Disiplina Village.

Bank of Commerce also supported the Happy Tummies project by sponsoring 50 children. Each child will be fed one solid meal a day for 60 days.

32 homes

50 children


Bank of Commerce employees celebrated International Volunteers Day by building and painting homes for the indigent families of Valenzuala

COMMUNITY BUILD

HAPPY TUMMIES

As one of the drivers of our country’s progress, we recognize our responsibility to help our fellow Filipinos in times of calamity. San Miguel is always first in line to respond to the needs of our countrymen in challenging times, providing essential food, safety, comfort and lifesaving care.

Our nationwide business network allows us to act quickly and deploy assistance almost immediately. Beyond our relief efforts, San Miguel is also committed to rebuilding the lives of calamity victims through housing and other rehabilitation projects.

In 2011, we provided over P600 million in relief and rehabilitation efforts to areas affected by Typhoons Egay, Falcon, Pedring, Quiel and Sendong. Following the earthquake and tsunami in Japan, San Miguel donated P50 million through the Philippine Red Cross.

DISASTER MANAGEMENT

P600M+


San Miguel employees quickly mobilized to provide food and water to disaster-stricken communities

Volunteerism has always been a part of the San Miguel culture. Guided by our core values of social responsibility and malasakit, San Miguel employees go out of their way to actively participate in the Foundation’s activities.

Several factors foster our culture of volunteerism: top management support and an enabling environment that allows employees to participate in activities where they can share their time and skills. With so many activities in so many areas lined up throughout the year, employees have a myriad of opportunities to get involved.

San Miguel’s spirit of volunteerism was at its shining best in the aftermath of Typhoon Sendong. Luzon-based employees were able to pool over P1.2 million in cash and more than 5,000 kilosof clothing and blankets. The cash donation went toward rebuilding four public schools inCagayan de Oro and Iligan.

VOLUNTEERISM

P1.2M5,000kilos

cash

clothes & blankets

TYPHOON SENDONGEMPLOYEE DONATIONS


Volunteers of San Miguel Brewery cleaning the shores of Talisay City PBA players and vetarans regularly conduct free basketball clinics Volunteerism is catching in San Miguel

Our main business at San Miguel Foundation is to share the prosperity and success of the San Miguel Group with our communities and society at large. We represent San Miguel’s commitment to building productive and self-sustaining communities; and that is why it is essential for us to share our achievements with our 17,000-strong workforce and the various communities we serve.

The following are the communication tools for our internal and external stakeholders:SMC SHARES: Our quarterly e-newsletter sent to all SMC employees via e-mail.KAUNLARAN & E-KAUNLARAN: SMC’s official bi-monthly newsletter in print and digital formats. The printed Kaunlaran is distributed to our head office, plants and facilities.EXCHANGE: Our intranet website functions as an online magazineand a corporate social media platform.CC:TV: On every floor at the San Miguel Head Office, digital signs showcase our recent activities.EMAIL UPDATES: News on the foundation is also e-mailed separately to our employees. E-mail notifications have proven effective in calling for donations and volunteers for our activities.SOCIAL MEDIA: Our Facebook and Twitter accounts provide updates to our internal and external stakeholders.

COMMUNICATIONS


Aside from our flagship programs and community projects, we are very fortunate to have been able to reach out to more groups that need assistance. In 2011, we were able to support the operations and advocacies of the following groups:

Department of Social Welfare and Development (DSWD); Philippine Red Cross; Philippine General Hospital; the Local Government Units of Bulacan, Cabiao, Floridablanca, Guagua, Ibahay, Malabon, Malay, Marikina, Nabas, Quezon City and Valenzuela; AHON Foundation; Bayan Akayin sa Abot-Tanaw; and A-Ha! Learning Center

As one of the most established corporate foundations in the country, we value collaboration and are eager to share our experiences with other CSR organizations. As such, the San Miguel Foundation is an active member of the League of Corporate Foundations, Philippine Business for Social Progress, Corporate Network for Disaster Response and International Association of Business Communicators Philippines. We are also certified by the Philippine Council for NGO Certification.

In 2011, we were awarded with the prestigious Excellence Award at the 10th Philippine Quill Awards and the merit award at the 13th Anvil Awards. Both were citations for our success in contributing significantly to our host communities through our San Miguel Community Clinics. Our Tulong-Tulong para sa Tullahan II also received an award of merit at the Anvil Awards.

DONATIONS & SPONSORSHIPS

MEMBERSHIPS & CITATIONS


SMF and SMB were bestowed an Award of Excellence at the 10th Philippine Quill Awards

CHAIRMANFerdinand K. ConstantinoChief Finance Officer & TreasurerSan Miguel Corporation

TRUSTEEFrancisco S. Alejo IIIPresidentSan Miguel Pure Foods Company, Inc.

TRUSTEEElenita D. GoVice President & General ManagerSMC Global Power Holdings Corporation

TRUSTEERoberto N. HuangPresidentSan Miguel Brewery Inc.

TRUSTEEAtty. Virgilio S. JacintoCorporate Secretary & General CounselSan Miguel Corporation

CHAIRMANFerdinand K. Constantino

CORPORATE SECRETARYAtty. Virgilio S. Jacinto

ASSISTANT CORPORATE SECRETARYAtty. Mary Rose S. Tan

TREASURERBella O. Navarra

EXECUTIVE DIRECTORCamille B. Buenaventura

BOARD OF TRUSTEES OFFICERS


TRUSTEEKin G. LichaucoHeadSan Miguel Corporation - Corporate Affairs Office

TRUSTEEMa. Cristina M. MenorcaHeadSan Miguel Corporation - Corporate Human Resources

TRUSTEEFerdinand A. TumpalanPresidentSan Miguel Yamamura Packaging Group

EXTERNAL TRUSTEEAtty. Donna Z. GasgoniaProfessorDe la Salle University - LipaCentro Escolar UniversityPhilippine Women’s University

PROGRAM SPECIALISTSKen B. RestonJennifer Esmale-Rodriguez

EXECUTIVE DIRECTORCamille B. Buenaventura

PROGRAM OFFICERSRona Mei Y. TanchicoBem F. Olaguera

THE SMF TEAM


FINANCIAL REPORT


Years Ended December 312011 2010

ASSETSCurrent AssetsCash and cash equivalents P27,414,418 P24,430,760Receivables 2,862,011 1,665,453Prepaid expenses and other current assets 262,293 111,181 Total Current Assets 30,538,722 26,207,394

Noncurrent AssetsProperty and equipment 9,621,301 10,649,627Financial asset measured at fair value through profit or loss 100,919,520 16,189,173

Total Noncurrent Assets 110,540,821 26,838,800

P141,079,543 P53,046,194

LIABILITIES AND FUND BALANCECurrent LiabilitiesAccrued expenses and other current liabilities P10,866,594 P9,398,693 Fund Balance 130,212,949 43,647,501

P141,079,543 P53,046,194

Statements of Assets, Liabilites & Fund Balance


2011 2010RECEIPTS/INCOMEDonations P68,606,134 P102,588,843Changes in fair value of financial asset measured at fair value through profit or loss 84,730,347 5,396,391

Interest - net of financial tax 546,274 564,785Other income 786,506 -

154,669,261 108,550,019

EXPENSESGrants 59,474,247 97,551,012Administrative expenses 8,629,566 7,129,173

68,103,813 104,680,185

EXCESS OF RECEIPTS OVER EXPENSES P86,565,448 P3,869,834

2011 2010BALANCE AT BEGINNING OF THE YEAR P43,647,501 P39,777,667Excess of receipts over expenses for the year 86,565,448 3,869,834BALANCE AT END OF YEAR P130,212,949 P43,647,501

Statements of Receipts & Expenses

Statements of Changes inFund Balance


There was a time when the future seemed uncertain for Shane Lyn David-Sicat. The eldest daughter of a laborer father and housewife mother, she had graduated with academic accolades at the Pampanga National High School. However, with two younger siblings needing to complete their secondary education, Shane had nearly accepted the fact that she had to become a working student in order to continue with her education.

She found out about the scholarship opportunity from San Miguel through the office of her

FEATURED STORYbarangay, after which she quickly completed the necessary requirements. It was not long before she found out that she had become part of the lucky circle of only five scholarsfrom her community to be accepted in theSan Miguel Foundation’s Community Scholarship Program.

The program provides children of underprivileged families access to quality education in order to enhance their chances for social mobility. The grant includes full tuition in either a two-year, technical-vocational course, or a two-and-a half-month TESDA-accredited training course; as well as allowance to cover the purchase of books and their daily expenses.

“Iba po talaga yung pakiramdam nang papasok ka na lang at hindi mo na kailangang isipin kung saan manggaling ang pang-gastos,” recalls Shane. “Masayang-masaya po yung parents ko nung nalaman nila, kasi hindi na nila ako kailangang problemahin.”

Shane qualified for a two-year course in Food Technology at the Don Honorio Ventura College of Arts and Trade in Bacolor, Pampanga. Soon after she graduated, she was hired by the local branch of patisserie

chain French Baker. Today she is a cashier at the San Fernando, Pampanga outlet of pizza retailer Yellow Cab, and has been awarded as Employee of the Year in 2009 for her exceptional performance and leadership.

The goal of SMF’s entire Education program isto support and empower children living inSan Miguel host communities. Ultimately, the mission is to increase their chances in havinga better life.

“Malaki po talaga pasasalamat ko sa San Miguel dahil sa pagkakataong nabigay sa akin,” says Shane. “I consider myself verylucky because the Foundation took a chance on me.”

While it may seem like San Miguel is changing the life of just one or a handful of people; in the end, the merit of San Miguel Foundation’s efforts can be seen in the number of sustainable communities created with the help of these same individuals, these scholars, who now have the physical, mental and moral capacity to strengthen, rebuild, and ultimately give back to their community. The value of all of these contributions is difficult to measure—and for one Shane Lyn David-Sicat, virtually priceless.

Shane Lyn David-SicatSan Miguel Scholar

SAN MIGUEL CORPORATION40 San Miguel Avenue, Mandaluyong City1550 Metro Manila, Philippines

Landline: +63 02 632-3303Fax: +63 02 632-3594

facebook.com/sanmiguelfoundationwww.sanmiguel.com.ph

smf 2011 annual report

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