About JG Summit Holdings

JG Summit Holdings, Inc. engages in branded consumer foods, agro-industrial and commodity food products, real property development, hotels, banking and financial services, telecommunications, petrochemicals, air transportation, and power generation businesses in the Philippines and internationally. The company and its subsidiaries (the Group), conducts business throughout the Philippines, but primarily in and around Metro Manila (where it is based) and in the regions of Visayas and Mindanao. The company also has branded foods business in the People’s Republic of China (PRC) and the ASEAN region and an interest in a property development in Singapore. BRANDED CONSUMER FOODS, AGRO-INDUSTRIAL AND COMMODITY FOOD PRODUCTS The company operates its food business through Universal Robina Corporation (URC), which operates as a branded food product company in the Philippines and has a presence in other Asian markets. URC is involved in a range of food-related businesses, including the manufacture and distribution of branded consumer foods, production of hogs and day-old chicks, manufacture of animal and fish feeds, glucose and veterinary compounds, flour milling and sugar milling and refining. URC offers snack foods, candies, chocolates, day-old chicks, and fish feeds. Principal Products or Services URC operates its food business through operating divisions and wholly or majority-owned subsidiaries that are organized into three core business segments: branded consumer foods, agro-industrial products and commodity food products. URC’s BCF division manufactures and distributes a mix of snack, chocolate, candy, biscuit, bakery, beverages, noodles and tomato-based-products. The manufacture, distribution, sales and marketing activities are carried out through URC’s BCF division, although URC conduct some of its branded consumer foods operations through its wholly-owned or majority-owned subsidiaries and joint venture companies (Hunt-URC and Nissin-URC). URC established Packaging division to engage in the manufacture of polypropylene films for packaging companies. URC also formed Food Service and Industrial Division that supply BCF products in bulk to certain institutions like hotels, restaurants and schools. In 2006, URC introduced carbonated and functional drinks (energy drink and fitness water) and operates PET bottle manufacturing plant to supply the packaging requirements of products in PET bottle format. The company operates its BCF business in other Asian markets primarily through its subsidiary, URC International and its subsidiaries in China: Tianjin Pacific Foods Manufacturing Co. Ltd., Shanghai Peggy Foods Co. Ltd., Xiamen-Tongan Pacific Foods Co. Ltd., Panyu Peggy Foods Co. Ltd. and URC Hongkong Co. Ltd. (formerly Hongkong Peggy Snack Foods Co. Ltd.); in Malaysia: URC Snack Foods (Malaysia) Sdn. Bhd. (formerly Pacific World Sdn. Bhd.) and Ricellent Sdn. Bhd.; in Thailand: URC (Thailand) Co. Ltd. (formerly Thai Peggy Foods Co. Ltd); in Singapore: URC Foods (Singapore) Pte. Ltd. and in Indonesia: PT URC Indonesia. URC’s agro-industrial products segment operates three divisions, which engage in hog and poultry farming (Robina Farms), the manufacture and distribution of animal feeds, glucose and soya products (Universal Corn Products), and the production and distribution of animal health products (Robichem). URC’s commodity food products segment engages in sugar milling and refining through its Sugar divisions URSUMCO, CARSUMCO and SONEDCO and recently acquired PASSI I and II sugar mills and flour milling and pasta manufacturing through URC Flour division. Sales and Marketing URC sells its branded food products primarily to supermarkets, as well as directly to top wholesales, convenience stores, large scale trading companies and independent business managers, which in turn sell its products to other small retailers and down line markets. Suppliers The company's primary supplier is CFC Clubhouse Property, Inc. URC purchases the parent stock for its layer chicks from ISA SAS in France (Hendrix Genetics) and from Hy-Line International in the United States under exclusive distribution agreements for the Philippines. URC purchases the grandparent stock for its broiler chicks from Hubbard ISA SAS in France. URC purchases a significant amount of the vitamins, minerals, antibiotics and other medications and nutritional products used for its day-old chicks business from its Robichem division. URC purchases vaccines from various suppliers, including Merial, Intervet Philippines, Inc. and Boehringer Ingelheim GmbH and Ceva. For its live hog business, the company purchases the feeds it requires from its Universal Corn Products division and the minerals and antibiotics for its hogs from its Robichem division. Competition The company's competitors in the market segments in which it competes include, in the Philippines, Liwayway Manufacturing Corp., Columbia Foods International, General Milling Corporation, Republic Biscuit Corporation, Suncrest Foods Inc., Del Monte Phil. Inc., Monde Nissin Corporation, Nestle Philippines Inc., San Miguel Pure Foods Company Inc. and Kraft Foods Inc., and internationally, Procter & Gamble, Effem Foods/Mars Inc., Lotte Group, Perfetti Van Melle Group, Mayora Inda PT, Calbee Group, Apollo Food, Frito-Lay, Nestle S.A., Cadbury Schweppes plc, Groupe Danone S.A. and Kraft Foods International. The company's principal competitors are STS Corp. and Math Agro for broiler chicks and Bounty Farms, Inc. for layer chicks. In the live hog market, URC’s principal competitors are San Miguel Corp. (Monterey) and Foremost Farms, Inc. In the commercial animal feed market, URC’s principal competitors are B-Meg and Purina Philippines, Inc. In the animal health products market, the company's principal competitors are Pfizer, Inc., Univet Pharmaceuticals Ltd., and Merial Limited, a company jointly owned by Merk and Co., Inc. and Aventis S. A. PROPERTY DEVELOPMENT AND HOTEL MANAGEMENT The company, through Robinsons Land Corporation (RLC), operates as a real estate developer in the Philippines. It develops, owns and operates commercial real estate projects (principally shopping malls, high-rise office buildings and hotels). It also develops residential real estate projects for sale (principally residential condominiums, middle-cost to upscale residential developments and low-and-middle cost lots and houses in its subdivision developments). Products or Services RLC has four business divisions: Commercial Centers, High-Rise Buildings, Housing and Land Development, and Hotels. Commercial Centers RLC’s Commercial Center Division develops, leases, and manages shopping malls throughout the Philippines. It operates 19 shopping malls; comprising six malls in Metro Manila and 13 malls in other urban areas throughout the Philippines, with a gross floor area of approximately 1.3 million square meters. High-Rise Buildings RLC’s High-Rise Buildings Division develops office buildings for lease and middle-cost to upscale residential developments for sale. This business division focuses on the construction of office towers and residential condominium projects. The high-rise buildings division includes non-high-rise mid-range to high-end residential developments. Housing and Land Development RLC’s Housing and Land Development Division develops and sells low and middle-cost residential lots and houses aimed predominantly at the lower to middle-income market sector. As of September 30, 2007, RLC’s housing and land development division had 26 ongoing projects, of which four had been completed, while ten had been substantially sold. Hotels RLC’s hotel division owns and operates hotels within Metro Manila and Cebu City. RLC’s hotels division has a portfolio of three hotels and an apartelle, a small serviced apartment building. Competition The company's competitors include SM Prime/Shoemart and Ayala Land Inc. TELECOMMUNICATIONS The company, through its subsidiary Digital Telecommunications Phils, Inc. (DIGITEL), provides voice and data services through wireless and wireline technology in the Philippine telecommunications industry. Through 694 regional and local exchanges, DIGITEL telephones are available in 281 towns and cities throughout Luzon. As of December 31, 2007, DIGITEL had a total of 658,228 installed lines and 460,793 working lines. Products or Services DIGITEL’s voice products and services include the provisioning of local call, national and international toll services, improved through its suite of value added services, payphones and prepaid phone cards via Digikard & DGMax brands. DIGITEL CHOICE PLANS are business and residential telephone subscription packages. These subscription plans provide unlimited local calls at very affordable fixed basic monthly fee. These CHOICE plans come in metered and non-metered services with national and international calls. MANGo or Mobility Access Network for the Man on the Go is a wireless Internet-ready landline service. DIGIKARD is DIGITEL’s pre-paid phone card that gives subscriber access to phone, fax, and Internet from any DIGITEL postpaid and prepaid landline phone, including payphones. DGMAX IDD Prepaid Card is another prepaid service of DIGITEL that allows international call either through DIGITEL’s postpaid lines, prepaid lines or payphones. IP-VPN or Virtual Private Network is DIGITEL’s wide-area multi-service network based on Multi-Protocol Label Switching (MPLS) technology. This provides customers with the technology to access private information on their corporate network over DIGITEL’S Internet Protocol enabled network or over a shared public infrastructure, such as the Internet. DIA or Dedicated Internet Access is DIGITEL’s service that provides the Internet bandwidth requirements of corporations and Business Process Outsourcing (BPO) companies, particularly the Call Center industry. DIGITEL’s Wireless Communications Services (WCS) represents cellular telecommunications services that allows subscriber to make and receive domestic long distance and international long distance calls to and from any place within the coverage area. Customers At the retail level, DIGITEL provides local metered service, as well as domestic and international long distance services to individual wireline and wireless subscribers both for outbound and inbound calls. It also provides Data Communications to business subscribers and Internet Services to both business and residential customers. At the wholesale level, other telephone companies and private enterprises utilize DIGITEL’s inter-exchange and IGF facilities. It primarily serves companies in the manufacturing, trading, banking, utilities, hotel and real estate sectors. Suppliers The company's suppliers include the likes of ERICSSON, ALCATEL, ZTE, Fujitsu, Huawei, Logica CMG, Tekelec and Ceragon Network. Competition DIGITEL faces competition from Philippine Long Distance Telephone Co., Smart Telecommunications, Bayantel and Globe. AIR TRANSPORTATION The company, through its subsidiary CP Air Holdings Inc., which operates under the trade name Cebu Pacific Air (CEB), provides scheduled air travel services targeted to air travel passengers in the Philippines. As of December 31, 2007, CEB flies to 12 international (Bangkok, Guangzhou, Hong Kong, Incheon, Jakarta, Kuala Lumpur, Macau, Pusan, Shanghai, Singapore, Taipei, and Xiamen) and 20 domestic destinations ( Bacolod, Butuan, Cagayan de Oro, Cebu, Clark, Cotabato, Davao, Dipolog, Dumaguete, General Santos, Iloilo, Kalibo, Laoag, Legaspi, Manila, Puerto Princesa, Roxas, Tacloban, Tagbilaran and Zamboanga). CEB operates its domestic flights out of two bases, the Manila Domestic Passenger Terminal located in Pasay City, Metro Manila and the Mactan-Cebu International Airport (MCIA) located in Lapu-lapu City, which forms part of Metropolitan Cebu. International flights are operated out of two bases, the Ninoy Aquino International Airport located in Pasay City, Metro Manila and MCIA. As of December 31, 2007, CEB operated a fleet of 15 aircraft, ten of which are Airbus A319-111 and five of which are Airbus A320-214. Products or Services Passenger Services CEB provides air transportation services in the Philippines. CEB also offers promotional fares, which are introduced in connection with extraordinary events, such as the introduction of services to a new route or an effort to stimulate travel on a particular route. Other products being offered include: Fun Shop – CEB’s on-board shop, which offers sale of merchandise items. Fun Tours – CEB’s tour package brand that offers roundtrip airfares, hotel accommodation, airport transfers and optional tours to passengers. Hotels Plus – CEB’s online hotel product to complement the online booking service. Passengers who would like to book hotel accommodations are redirected to the Website of OctopusTravel.com (Hong Kong) Ltd. Europcar – CEB’s inland transport service for self-driven and chauffeur-driven vehicles for domestic destinations. This is in partnership with the European car rental firm, Europcar. TravelSure – CEB’s insurance product, which offers personal accident and emergency medical treatment insurance coverage for guests traveling in the Philippines or in Asia. This is in partnership with Malayan Insurance Company. Go! Mastercard – CEB’s co-branded credit card operated in partnership with Robinsons Retail Group and is issued by Metrobank Card Corporation. Cargo Services CEB provides airport-to-airport cargo services on all of its domestic and international routes. In addition, it accepts cargo packages from domestic points (via Manila) for shipment to overseas destinations through its airline partners Gulf Air, Continental Airlines, Qatar Airways, Saudi Arabian Airlines and Emirates. Other Services- Joint Venture To service its customers, CEB enters into various service agreements, including the formation of the joint venture company with SIA Engineering Co., Ltd. (SIAEC), which formed Aviation Partnership (Philippines) Corporation. SIAEC handles the maintenance services required by the airline. Other agreements include the outsourcing of baggage handling services and groundhandling services. It has also entered into agreements with global reservations and distribution systems. Competition CEB’s main competitors in the Philippines include Philippine Airlines (PAL), Air Philippines, Zest Air, and Southeast Asian Airlines. CEB also faces competition internationally with regional airlines and regional operating in the Philippines, which include Tiger Airways, JetStar Asia Airways and AirAsia. PETROCHEMICALS The company holds 82% interest in JGS Petrochemicals and its joint venture partner in the project, Marubeni Corporation of Japan, holds the remaining 18%. Its primary purpose is to engage in, operate, conduct, maintain, manage and carry on the business of manufacturing, dealing and marketing of polyethylene and polypropylene and related petrochemical products or by-products, in their forms, varieties and stages of production and preparation, or of article or commodity consisting of, or partly consisting of petrochemicals. JGSPC manufactures polypropylene and polyethylene. Customers The company sells its products to internal and external parties. Internal parties include the Packaging Division of URC while external parties include Calypso, San Miguel Corporation, Shell Phils. and other customers. Suppliers The company's suppliers include Marubeni Corporation and Mitsui & Co. Ltd. Competition The company's local competitors include Petrocorp and Bataan Petrochemical Corporation. INTERNATIONAL CAPITAL AND OTHER FINANCIAL SERVICES The company’s international capital and other financial services consist of its thrift banking operations, foreign exchange and securities dealing operations and offshore financial subsidiaries. Principal Products or Services As of December 31, 2007, the Bank operated through approximately 41 branches and 68 ATMs. It provides a range of traditional banking services, such as savings, current and time deposits, treasury products, unit investment trust funds and other traditional trust products, foreign-currency denominated deposits, commercial loans, housing, car, personal and jewelry loans, among others. OTHER BUSINESS INTERESTS The company's businesses include power generation, through its 20% interest in First Private Power Corporation, whose 93.25%-owned subsidiary, owns and operates a 215 megawatts diesel-fired power plant in Bauang, La Union; packaging materials; insurance brokering; and securities investments. History JG Summit Holdings, Inc. was founded in 1990.