Century Pacific Food Inc.

The company owns a portfolio of well known trusted brands in the canned and processed fish,
canned meat and dairy and mixes business segments. These brands include Century Tuna,
555, Bluebay, Fresca, Argentina, Swift, Wow, Lucky 7, Angel Birch Tree, Kaffe De Oro and
Home Pride, many of which has established leading market positions locally and are growing
their presence abroad.
The company is also the Philippines largest exporter of private label original equipment
manufacturer (OEM) tuna products.
Century Pacific Food, Incs portfolio of well recognized brands has become associated with high
quality at affordable process. Building on this heritage and long standing connection with the
consumer, the Company aims to grow its business by leveraging on the brands strengths and
further growing its brand equity.
Key Brands
1. Century Tuna
Century Tuna is the leading canned tuna brand in the Philippines. It is your
classic all time, healthy meal. A delicious indulgence and ABS-olutely delicious!
2. Argentina
Argentina is the number brand in the canned meat market that provides Filipino
families with delicious and festive products to enjoy. It continues to delight the entire family with
products that fit their lifestyles.
3. 555
Trusted by many Filipinos for more than 30 years, 555 stands for value laden
benefits. 555 is committed to provide budget conscious consumers with high quality but
affordable products with a constantly satisfying experience.
Growing Brand Equity
1. Birch Tree Full Cream Milk
Birch Tree Full Cream Milk is made from 100% pure cows milk with no added
sugar and no added vegetable oil. Kids can enjoy the delicious full cream taste while mom enjoy
great savings.
2. Angel
A trusted partner of value=seeker moms as they experiment on new and exciting
ways of cooking, marinating, creaming and baking. Angel offers a variety of good quality
products loaded with the creamy goodness of milk for more divine deliciousness at an
affordable price.
3. Swift
Swift is one of the most trusted brands in the Philippines known for its high
quality and great tasting meat products that the whole family can enjoy and share together.
Company History
In 1978, Ricardo D. Po, Sr. envisioned Century Canning Corporation to be a
canning company focused mainly on the processing and exporting of tuna caught in the
Philippine waters. It took two years to build the maiden plant in Taguig, which eventually started

operations in March 1980. The first plant employed 11 workers and produced 20 kilos of tuna
per year.
By 1893, Century Canning Corporation had grown to be one of the largest
Philippine tuna canneries to the U.S, Europe and the rest of the world.
1983 also saw the Companys first foray into the branded food business with the
launch of a branded canned sardine product. Thus, the brand 555 was created and chosen for
its easy recall. In three years, the newcomer had made its way to the top four players in the
local canned sardine market, competing with established names that have been around since
World War II.
By 1986, with strong domestic distribution network already in place, Century
Canning Corporation made a bold move to introduce the sardine-loving Filipino consumer to the
healthy goodness of tuna. With this vision in mind, Ricardo S. Po, Sr. launched Centruy Tuna,
pioneering the Filipinos love for the new canned fish format.
Seeing another opportunity to grow with the rising purchasing power of the
Filipino consumer, Mr. Po decided to apply the discipline and cost consciousness of the food
processing industry to the meat processing business. Epitomizing the Companys value for
money proposition, Argentina Corned Beef was launched in 195 and quickly became the market
leader of its segment.
The late 1990s saw rapid expansion for the Century Canning Corporation. To
support this growth, Columbus Seafood Corporation was organized to operate the canned
sardine business from the newly built factory in Zamboanga. General Tuna Corporation was
also incorporated to continue the private label tuna export business out of a brand new tuna
plant in General Santos.
In 2001, in an attempt to diversify the Companys business portfolio, it launched
Angel as its first foray into the milk business. Shortly thereafter, it acquired Birch Tree Full
Cream Powdered Milk and relaunched the global brand in the Philippines.
The Company also acquired Kaffe de Oro (3-in-1 coffee) and Home Pride (soup
mix) diversifying into the new and growing food categories. In November 2012, to continue its
strategy of growing both organically and inorganically, the company acquired the Swift brand,
further expanding its presence in the Philippine meat category.
In October 2013, to streamline and rationalize the Groups operations, the
existing business operations were folded into the newly incorporated Century Pacific Food, Inc.
Century Pacific Food, Inc. debuted on the local stock market last May 6, 2014,
listing under the trading symbol CNPF.
Company Overview
From the very humble beginning as a private label export company, Century
Pacific Food, Inc. is today the largest canned food company in the Philippines. Over the years,
the dramatic growth of the business had been fueled by a shared vision to Nourish and Delight
Everyone, Everyday and Everywhere.
Currently, the company owns a portfolio of well known trusted brands in the
canned and processed fish, canned meat and dairy and mixes business segments. These
brands include Century Tuna, 555, Blue Bay, Fresca, Argentina, Swift, Wow, Lucky 7, Angel

Birch Tree, Kaffe De Oro and Home Pride, many of which has established leading market
positions locally and are growing their presence abroad.
Under these brands, Century Pacific Food, Inc. offers a wide range of products
that cater to an expanding number of consumers from every walk of life. An infrastructure of
efficient and cost competitive manufacturing facilities, together with world-class research and
development capabilities, allow the Company to serve the various needs of its customers.
Century Pacific Food, Inc also remains to be the Philippines largest exporter of
private label original equipment manufacturer (OEM) tuna products which started more than 35
years ago.
As a result of the steadfast commitment to provide quality food at affordable
process, the Company has won a number of industry, consumer and marketing awards. These
include Agora Awards Marketing Company of the Year (2011), Trusted Brand Award by
Readers Digest for Centruy Tuna and Argentina Corned Beef (2011, 2012,2013) and the Agora
Awards Marketing Professional of the Year (2014).
The companys public listing last May 2014 (PSE: CNPF) was also awarded Deal
of the Year by the prestigious The Asset magazine (2014).

Companys 3Ms Marine, Meat & Milk

CNPFs business operations are divided into four main business segments:
canned and processed fish, private label tuna export, canned and process meat and dairy &
mixes. These four units are categorized under the Companys 3Ms Marine, Meat and Milk.

Marine
The canned and processed fish segment is the Companys largest business
segment. It produces and markets a mix of tuna, sardine and other fish and seafood based
products under the Century Tuna, 555, Blue Bay, Fresca and Lucky 7 brands. The tuna export
segment produces private-label tuna for overseas markets including North America, Europe,
Asia, Australia and Middle East.
Meat
The canned meat segment is the second largest segment that produces corned
beef, luncheon meat and other meat based products which are sold under the Argentina, Swift
and Wow brands.
Milk and Others
The milk and other segment is composed of products such as evaporated milk,
condensed milk, full cream powdered milk and all purpose creams under the Angel and Birch
Tree brands. Coffee is under the Kaffe de Oro brand and mixes under the Home Pride brands.
Sales and Distribution
Serving as the backbone of all four business units is one of the most extensive
distribution network across the Philippines. As of December 31, 2014, the Companys coverage
consists of 270,000 points of sales, comprising of national retail chains, traditional sari-sari
stores, wet markets, wholesalers and regional supermarkets.
To cover these accounts, Century Pacific Food, Inc. employs its sales force, 80%
of whom are field based. It also works closely with 39 distributors who each service traditional
trade outlets in specific geographic areas around the country. Finally, the Company operates
nine distribution centers, allowing it to deliver and respond quickly to changes in customer
demand.
Manufacturing
The Companys extensive distribution network is supported by its strategically
located production facilities.
Plant

Location

Tuna
Meat
Sardine
Sardine
Dairy and Mixes

General Santos
Laguna
Zamboanga
Cavite
Taguig

Highlights
1. Strong Profit Growth due to sustained margin expansion
114% year-on-year increase in net income from 2013-2014
A 26% gross profit margin, an 11% EBIT margin as of end 2014
CNPF doubled net income margins in 2014 largely due to declining process of
main cost
components
2. Good Brand Performance given favourable macro conditions and the declining price of fish

A 24% revenue growth for the branded business but a 29% decline for provate
label tuna export
Branded revenues accounted for a larger portion of sales given the sustained
strength of
local consumption
80% of revenues from the branded businesses and 78% of sales coming from
the
Philippines
3. Healthy Balance Sheet post repayment of debt
No interest-bearing as of end 2014
A current ratio of 2.11 x Total Liabilities of Equity of 0.41x
4. Revenue growth largely due to branded business
Driven primarily by volumes

Strong volume growth due to the impact of strong Philippine purchasing power, successful
CNPF marketing campaigns, and the expansion of the Companys distribution network.
Canned Fish continues to be main revenue contributor
CNPF leads the category with 87% market share of Canned Tuna sub-segment
But Canned Meat and Dairy showing faster growth
CNPFs smaller business allow for the growth via increasing market share.
Private label revenues decline as fish process decline
A cost plus business with the top line pricing benchmarked against the main raw material
5. Higher margins and better profitability
Steady decline in costs through 2014
Decrease in cost mainly due to lower fish process year-on-year
Other cost items including packaging and ingredients also saw slight reductions

Incurred various savings from distribution and logistics, supplemented by price increases
across branded products and categories
Better reliance on brands and increased internal margin targets
Sustained income growth in private label despite a decline in revenues
Increased profitability targets with a focus on higher margin products
Key highlights
7% overall increase in revenues. 19.02 B and 20.4B
62% overall increase in gross profit. 3.3B and 5.38B
114% year-on-year increase in net income. 744M and 1.59B
11B Total Assets
26% Return on Shareholder Equity
6.6B Total Equity
14% Return on Assets
42.39B Market Capitalization as of May 29,2015
Marine Canned and Processed Fish
The canned and processed fish segment is Century Pacific Food, Inc.s largest
business segment. Its products in its segment, mainly a mixed of canned tuna, canned sardine,

and other fish and seafood-based products, are well known and well established in the
Philippine market. They are sold under the highly popular and trusted brands of Century Tuna,
555, Blue Bay, Fresca and Lucky 7.
For years, the Companys product offerings have captivated the Filipino
consumers with their high quality, health, convenience and affordability. In 2014, it maintained
market leadership with 87% of the canned tuna market with an unparalleled product range of
145 tuna SKUs and 37 sardine SKUs. An annual revenue for the canned and processed fish
segment totaled P8.07 billion in 2014.
Overall market outlook for the canned and seafood fish segment remains bright.
Favorable macro-economic fundamentals, low inflation, rising household incomes, plus an
expanding population are expected to sustain growth in canned and preserved food
consumption, including fish and seafood products.
Business Review of Marine Segment

P8.07B revenue from the canned and processed fish segment

P4.1B Net sales from tuna export business segment
182 canned fish SKUs
87% Philippine market share in canned tuna products

Century Pacific Food, Inc expects to keep its competitive advantages In growing
canned and processed fish market. New product introduction with robust marketing and
distribution support, multi-tiered product pricing approaches, backed up with cost efficiency
programs are key strategic thrusts to seize the rising market opportunities. Further cementing its
market leadership management expects to continue to outperform the market with double digit
revenue and profit growth in 2015.
Raw material sourcing and manufacturing efficiency are among the key
approaches to maintaining cost advantages over competitors. Strong relationships with
traditional fish suppliers, traders, cold storage service providers and prudent forward supply
booking have worked well in sustaining a competitive operating cost structure.
Century Pacific Food. Incs tuna production facility is located in General Santos
City in Southern Mindanao, close to the rich tuna fishing grounds of the Western Pacific Ocean
and waters between Southern Philippines and Indonesia. Only good quality tuna raw materials
are used to produce high quality tasting products.

Marine Tuna Export

The tuna export business segment is operated by General Tuna Corporation, a

wholly owned subsidiary of Century Pacific Food, Inc. It is mainly engaged in the export of
provate label original equipment manufacturer (OEM) tuna products to various customer
accounts in North America, Europe, Middle East, Australia, Asia and Japan. Its major customers
include many of the leading retail tuna brands around the world.
In 2014, General Tuna Corporation was the Philippines leading exporter of
canned and processed tuna, according to the data from the Philippine Bureau of Customs. It
has a 32% share of total Philippine tuna exports with full year export revenues totaling P4.10B.
It accounts for 20% of the CNPFs annual revenue.
The tuna export business segment remains a vital cog in Century Pacific Food,
Incs continues to boost the competitiveness of domestic tuna business. The tuna export
business demands compliance with stringent international food regulatory standards, aside from
excellence in cost efficiencies, for it to survive the tough competition in the global tuna market.
The rest of the Companys businesses benefit as well as CNPF management apply its learning
from competing on the basis of product quality discipline and cost consciousness in the market
place.
The future continues to look favorable for the global canned tuna market. While
overall global demand growth and fish supply trends will likely follow the 2014 pattern, demand
for Philippine tuna export is seen to rise in certain markets such as the United States, Europe
and Japan. Management expects sustained tuna export revenues and volumes. Plant capacity
expansion and additional cost storage facilities will be pursued adjacent to the tuna
manufacturing facility in General Santos City in order to assure the market supply. Long
standing relationships with major export accounts across the globe and its excellent reputation
as a reliable and competitive exporter of high quality tuna products will remain key factors in
driving sales. Extra efforts will also be made to maximize opportunities from the European
market arising from the newly granted preferential tax benefits covering Philippine-made
products exported to Europe.

Business Review on Meat Segment

Based on AC Nielsen data as of December 2014, Century Pacific Food, Inc.
continues