We have much to be proud of

Chairman and CEO, San Miguel Corp.
(Speech delivered at the SMC Annual Stockholders’ Meeting, 24 July 2007)

Last of two parts

Fellow stockholders, it’s an exciting time for your company. We are very much excited about our plans for the future and the results they will generate. And while wholesale reinvention will certainly present some very special challenges down the road, for the most part, the challenges at hand are incredibly energizing for all of us in the San Miguel Group.

There are times in business when faith is called for. But I am confident that this is not one of them. We have so many reasons to believe in our future. In the recent past, we have made our market-leading positions stronger. We have strengthened our business platforms to deliver the kind of financial growth and durability that our shareholders have every right to expect from us.

Before I close, I’d like to say a few words about corporate social responsibility. We take our role as one of the largest Philippine conglomerates very seriously.

While our primary obligation will always be to our shareowners, we strive to ensure that our obligations to our other stakeholders — consumers, employees, suppliers and the communities in which we operate — are fully discharged. Our social development projects carried out by the San Miguel Foundation are well-known, as is our adherence to corporate governance.

San Miguel was one of the first corporations in the Philippines to draft its own Code of Corporate Governance. The key watchwords for us have been transparency and accountability and to this end, we recently adopted a Code of Conduct that applies to all San Miguel employees. One of the mechanisms we have put in place will ensure that employees who report concerns about any aspect of the company’s performance and compliance are assured that their concerns are addressed at the appropriate level and that the employee is protected against any acts of retaliation.

With respect to the relationship between the board and management, our board has the ability to set its own agenda and is given full support by management in carrying out its fundamental role to oversee the company’s business strategy, personnel and compensation practices, and integrity issues.

Indeed, for San Miguel, good citizenship and good governance is about ensuring that our values are consistent. As we expand into new areas, we will continue to appreciate how our values and priorities apply to growing our business.

I would like to say a special thanks to the members of our board who have been supportive of our larger goals. I would like to thank our employees who have done what is expected of them and more and, like each of you, have stood by us as we reinvented this company. We look forward to your continued support.