1. Investment Fact Sheet: San Miguel Corporation PHP Cumulative Preferred Shares Due 2019 Callable 2014 Description of Product Issuer: San Miguel Corporation (SMC) is a food, beverage and packaging company established in 1890 initially as a single-product brewery. SMC has over 100 facilities in the Philippines, Southeast Asia, and China. SMC's extensive product portfolio includes beer, hard liquor, carbonated and non-carbonated non-alcoholic beverages, processed and packaged food products, meat, poultry, dairy products and a number of packaging products. SMC's flagship product, San Miguel Beer, is among the world's largest selling beers. From its original cerveza, SMC now owns a wide range of popular beverage brands and products that extends from beer to hard liquor, soft drinks, bottled water, powdered juice and juice drinks. The company's food operations involve poultry and livestock operations, the production and marketing of fresh, ready-to-cook and processed meats as well as milk, butter, cheese, margarine, ice cream, flour and flour-based products, snack foods, coffee, cooking oil, and animal and aquatic feeds. Through the partnerships it has forged with major international companies, SMC has gained access to the latest technologies and expertise. SMC's strategic partnerships with international companies include Nihon Yamamura Glass Company, Ltd., Hormel Foods Corporation of the United States, and Kirin Holdings Co. Ltd., one of the largest beer manufacturing companies in Japan. Form: PHP-Denominated Cumulative Preferred Shares Issue Size: PHP 10 Billion Tenor: Perpetual Dividend Rate: 8.00%; If not called on the 5 th Year, Step-Up to 10Y PDST-F + 300 bps Call Option: Starts at the end of the 3 rd Year and every quarter thereafter Dividend Frequency: Quarterly Taxation: Individuals –> 10% Dividend Tax; Corporations -> Tax Exempt Arrangers: BDO Capital Timetable: Deadline December 8, Settlement December 11 Trust Vehicle: T14 DT Key Benefits to Clients Preferred Shares have no voting rights but carry priority over Common Shares in the payment of dividends and upon liquidation. Cumulative Preferred Shares is a type of preferred shares where any dividend not paid by the company for a quarter accumulates until all are paid. However, the company’s board of directors must declare a dividend first before holders of the preferred shares have any right to the dividend. As an investment instrument, the preferred shares represent a way to diversify a client’s portfolio over traditional PHP- denominated bonds, notes and time deposits. It provides a pick- up over the yield of long-term deposits of banks. Suitable for clients who have a long-term investment view for PHP capital appreciation and are willing to take on company performance risk of the preferred shares issuer, in exchange for higher yields than traditional deposit products, given current and future global market conditions. For more information, pls contact: Fortune S. Ybiernas 848-6300 ext 181 Julian B. Favila 848-6300 ext 179 EJ A. Qua Hiansen 848-6300 ext 306 Investment Idea