JG Summit Holdings, Inc.

Financial Highlights (2012)

Over the past three years, JG Summit successfully executed strategic moves which cemented their dominance in the snack foods and ready-to-drink tea market, leading position in the domestic airline business, strong presence in commercial centers, hotels and office buildings, and the elevation of their market position in the telecommunications market with the acqusition of Digital Telecommunications Philippines, Inc. (Digitel) by Philippine Long Distance Telephone Company (PLDT). To achieve these, the Group has been very active in tapping new and additional funding from the capital markets which not only strengthens the Group’s balance sheet but also boosts the Group’s expansion plans, enabling us to ride with the country’s strong economic growth performance.

In 2010, the company unlocked the value of their airline business via an initial public offering (IPO). The public offering strengthened the balance sheet of Cebu Air Inc. (Cebu Pacific) and that of the parent company. With the IPO’s success, the airline company has become self-sufficient and no longer requires guarantees from the parent company for its borrowings. Cebu Pacific went ahead with its expansion program to a doubling of its fleet size from 41 at end Dec 2012 to 85 planes by 2021 (inclusive of six Airbus A330-300 for the long-haul trips). At present, the Cebu Pacific IPO continues to hold the record as the largest low cost carrier IPO in the world with gross proceeds of US$613 million.

With an optimistic outlook on the property sector, Robinsons Land Corporation (RLC) tapped the equity market for additional funding from its one share for every two shares held rights offering at PhP10.00 a share in April 2011. The rights offering raised a total of PhP13.65 billion in gross proceeds for the property company, which was used to increase its landbank by 206 hectares or 56% to 571 hectares on a net basis in December 2012.

In October 2011, it entered into a landmark PhP74.1 billion transaction with the acquisition of Digitel by PLDT, the country’s largest telecom company. Digitel was sold in exchange for an 8% stake in PLDT and US$600million in cash proceeds from the PLDT share option sale. A portion of the cash proceeds from the sale was used to prepay the US$300million syndicated loan of the parent company.

In June 2012, Universal Robina Corporation (URC) re-issued 120 million treasury shares at PhP62.00 a share, raising PhP7.4 billion in gross proceeds. The re-issuance of treasury shares boosted URC’s free float by 5.5%. A portion of the proceeds from the sale was used to fund the purchase of all the remaining 23% interest in URC International not owned by URC in August 2012. The purchase amounted to PhP7.2 billion, valuing the whole international business at PhP31.3 billion. The transaction was value accretive to the food company as it was purchased at a discount to URC’s market valuation at the time of the transaction. The transaction will enable URC to fully capture the earnings of one of its fastest growing business segments. URC also bought its fifth sugar mill from the company’s internally generated funds. The acquisition increased the company’s ranking to become the second largest sugar miller in the country.

From two overnight secondary share placements of JG Summit Holdings, Inc. (JGS), the parent company’s free float of its shares of stock in the Philippine Stock Exchange increased by 4.6% in 2012. A total of 315 million secondary shares were sold to a wider base of institutional investors, broken down into 100 million shares at PhP25.00 a share in February 2012 and 215 million at PhP32.00 a share in September of last year. This resulted to an expansion in the holding company’s average daily turnover at the Philippine Stock Exchange (PSE) by nearly six times to US$2.2 million from around US$380,000 in 2011, which assisted in the 57.1% increase in its stock price from PhP25.15 per share to PhP39.50 per share over a one year period.

Company Profile

JG Summit Holdings, Inc. (JGS), which is controlled by the Gokongwei Family, was incorporated in November 1990 as the holding company for a group of companies with substantial business interests in branded consumer foods, agro-industrial and commodity food products, property development and hotel management, telecommunications, air transportation, petrochemicals, and international capital and financial services,. In addition, JGS has business interests in other sectors, including power generation and insurance. The Company conducts its businesses throughout the Philippines, but primarily in and around Metro Manila and in the regions of Visayas and Mindanao. JGS, through its subsidiaries, also have branded foods businesses in the People's Republic of China and the ASEAN region, including an interest in a property development company in Singapore. JGS' subsidiaries and affiliates include JG Summit Petrochemical Corp., CP Air Holdings Inc., Bauang Private Power Corporation, Universal Robina Corporation, Robinsons Land Corporation, Robinsons Bank Corp., JG Summit (Cayman), JG Summit Philippines Ltd., JG Summit Capital Services Corporation, JG Summit Limited, ExpressHoldings, Inc., and Unicon Insurance Brokers. On March 29, 2011, the Company executed a sale and purchase agreement with Philippine Long Distance Telephone Company for the sale of its investments in shares of stock in Digital Telecommunications Philippines, Inc.

The business of JG Summit started in 1957 when Universal Corn Products, Inc. (now Universal Robina Corporation) was established to operate a cornstarch plant in Manila. Since then, JG Summit has pioneered breakthroughs, broadened its enterprise and stayed at the forefront in every phase of the country's rise to development - the entrepreneur, who invested in agribusiness and the manufacture of feeds and prime food commodities; the visionary, who channeled resources and expanded into financial services, textile and property, all backbones of a growing economy; the captain of industry, who invested in power, telecommunications, petrochemicals, cement, and air transportation, all requisites for industrialization; the innovator, who continually provides value and fun in snacking; and the new regional multinational, who has embraced the challenge of global competitiveness with zeal.

JG Summit has six (6) core businesses: branded consumer, agro-industrial and commodity food products through Universal Robina Corporation; real estate and property development through Robinsons Land Corporation and United Industrial Corporation (in Singapore); telecommunications through Philippine Long Distance Telephone Company; petrochemicals through JG Summit Petrochemicals Corporation and JG Summit Olefins Corporation; air transportation services through Cebu Air, Inc.; and financial services through Robinsons Bank Corporation.

JG Summit's place in Philippine business has for its cornerstone a business portfolio of market leaders, a solid financial position, a formidable management team, and a vision of leading the country to global competitiveness and making life better for every Filipino.  

            Board of Directors:

1.   John L. Gokongwei, Jr.

2.   James L. Go

3.   Lance Y. Gokongwei

4.   Lily G. Ngochua

5.   Johnson Robin G. Go, Jr.

6.   Patrick Henry C. Go

7.   Robina Y. Gokongwei- Pe

8.   Gabriel C. Singson

9.   Ricardo J. Romulo

10.    Cornelio T. Peralta

11.     Jose T. Pardo

FINANCIAL HIGHLIGHTS
JGS - JG Summit Holdings, Inc.
	2012	2011	2010	2009	2008
Earnings Summary
Earnings Summary
Net Income Excl. Nonrecurring Items	13.53B	8.40B	15.36B	7.68B	-693.67M
Net Income	13.53B	21.51B	16.32B	8.55B	-693.67M
EBT	20.73B	13.17B	18.79B	9.10B	-3.30B
Balance Sheet Accounts
Cash	19.70B	33.90B	42.11B	18.47B	7.16B
Trade Receivables	10.59B	9.22B	12.04B	13.48B	14.33B
Accounts Receivable	16.32B	13.42B	15.69B	18.15B	18.34B
Current Assets	94.10B	99.53B	102.43B	76.12B	67.92B
Investments	77.25B	75.53B	30.43B	29.06B	25.66B
Total Assets	340.30B	313.63B	326.32B	277.88B	250.89B
Accounts Payable	10.30B	8.27B	8.45B	8.46B	8.71B
Current Liabilities	85.73B	65.01B	63.49B	59.46B	65.92B
Short-term Borrowings	38.95B	32.71B	25.95B	19.17B	30.05B
Long-term Borrowings	42.13B	57.90B	87.05B	92.54B	72.02B
Total Borrowings	81.08B	90.61B	113.01B	111.70B	102.08B
Forex Liabilities	50.43B	57.87B	78.04B	80.05B	87.07B
Total Liabilities	141.37B	133.24B	176.86B	172.99B	158.22B
Shareholders' Funds	155.27B	141.28B	117.57B	83.16B	72.91B
Income Statement Accounts
Total Revenues	141.54B	141.40B	112.81B	98.99B	102.96B
Equity Earnings	2.01B	2.22B	2.77B	3.09B	2.39B
Operating Expenses	21.73B	19.11B	17.30B	16.27B	22.71B
Depreciation	8.57B	7.97B	11.66B	10.45B	8.85B
Interest Expense	4.12B	5.36B	5.53B	5.63B	6.03B
Taxes Paid	2.83B	1.96B	1.61B	1.29B	-321.83M
Other Financial Information
Net Working Capital	8.37B	34.52B	38.94B	16.65B	1.99B
Net Debt (Net Cash)	61.38B	56.71B	70.90B	93.23B	94.92B
Enterprise Value	338.56B	233.20B	208.44B	139.54B	106.85B

COMPANY VALUATION
JGS - JG Summit Holdings, Inc.
	2012	2011	2010	2009	2008
Year End
Yr End Price	39.50	25.15	19.60	6.60	1.70
Fiscal Yr End Price	39.50	25.15	19.60	6.60	1.70
Highlights
Earnings (Excl. Nonrecurring Items)	13,533	8,401.06	15,359	7,679.85	(693.67)
Sales	130,049	121,035	102,657	90,846	96,679
Book Value	155,265	141,283	117,569	83,158	72,912
Cash	19,698	33,895	42,110	18,474	7,157.80
Cash Flow	22,101	29,486	27,982	18,996	8,152.47
Free Cash Flow	35,832	24,357	(2,868.34)	(9,485.57)	(8,645.15)
Per Share Data
Earnings per Share	2.01	1.25	2.28	1.13	(0.1021)
Sales Per Share	19.30	17.96	15.23	13.37	14.22
Book Value Per Share	23.04	20.96	17.44	12.23	10.73
Cash Per Share	2.92	5.03	6.25	2.72	1.05
Cash Flow Per Share	3.28	4.38	4.15	2.79	1.20
Free Cash Flow Per Share	5.32	3.61	(0.43)	(1.40)	(1.27)
Price Ratios
Price to Earnings	19.68	20.18	8.60	5.84	(16.66)
Price to Sales	2.05	1.40	1.29	0.49	0.1195
Price to Book Value	1.71	1.20	1.12	0.54	0.1585
Price to Cash	13.51	5.00	3.14	2.43	1.61
Price to Cash Flow	12.05	5.75	4.72	2.36	1.42
Price to Free Cash Flow	7.43	6.96	(46.05)	(4.73)	(1.34)
PEG Ratio	0.32	(0.45)	0.0846	(0.0048)	0.1544
Dividend Info
Dividends per Share	0.1600	0.0800	0.0500	0.0300	0.0300
Dividend Yield (%)	0.41	0.32	0.26	0.45	1.76
Dividend Payout (%)	0.0797	0.0642	0.0219	0.0266	(0.29)
Shares Info
Market Capitalization	277,179	176,482	137,537	46,313	11,929
Outstanding Shares	6,739.53	6,739.53	6,739.53	6,797.19	6,797.19
Total Number of Shares	6,739.53	6,739.53	6,739.53	6,797.19	6,797.19
Authorized Capital	12,851	12,851	12,851	12,851	12,851
Par Value	1.00	1.00	1.00	1.00	1.00

Technical Anaylsis:

Source:  Bloomberg

          JG Summit advanced 1,752% from March 19, 2009. That time, its stock was priced at P2.70. So, if you invested P10,000 on March 19, 2009, that money will become P187,371.80 as of May 1, 2014.

Price:  50.6/share (as of May 1, 2014)

Market Cap:   355,070 million (as of May 1, 2014)

Address:  43/F Robinsons-Equitable Tower ADB Ave. corner Poveda Road, Pasig City

Web site:  www.jgsummit.com.ph