2016 Annual Report - centurypacific.com.ph Pacific Food... · Think Healthy, Think Century Tuna...

New Ways to Nourish and Delight Everyone, Everyday, Everywhere

2016 Annual Report

Think Healthy, Think Century Tuna

Century Tuna is the leading canned tuna brand in the Philippines. It is your classic all-time, healthy meat, and a delicious indulgence at the same time. It has Omega 3 DHA that is good for the heart and mind. It is low in cholesterol and has no preservatives.

Sarap at Sustansya, Pinagsama Na!

Argentina, the number one brand in the canned meat market provides Filipino families with delicious and healthy products to enjoy. It has been in the market for more than 20 years now and continues to delight the entire family with products that fit their lifestyles.

Let’s get together with Swift!

Swift is one of the most trusted brands in the Philippines – known for its high quality and great tasting canned meat products that the whole family can enjoy and share together!

Sarap and Sulit

Trusted by many Filipinos for more than 30 years now, 555 stands for value laden benefits. 555 is committed to provide budget conscious consumers with high quality but affordable products, thus a constantly satisfying experience with every 555 product.

Mas creamy, mas masarap. Angel is Sulit Sarap.

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 dairy products that offer the creamy goodness of milk for more divine deliciousness at an affordable price.

It’s everybody’s milk!

Birch Tree is a trusted brand that nourished and built strong and healthy children for many generations. Its high-quality milk provides children with high levels of nutrients like calcium and zinc for them to perform well in their daily activities. Make Birch Tree the smart choice.

Table of Contents

About Century Pacific Food, Inc. 1Our Common Purpose 22016 At a Glance 4Our Business 6Our Business Segments 8Our Product Portfolio 10Message from the Founder 12President’s Report 16Business Review

Strengthening Foothold in the Philippines’ Shelf-Stable Markets 22

Passion to Produce World-Class Coconut Products 24Exploring New Channels,

Expanding Product Lineup 26Sustainability Report 28Shareholder Engagement 30Stock Information 32Corporate Governance 35Board of Directors 40Executive Officers 44Management’s Discussion and Analysis 46Statement of Management’s Responsibility

for Financial Statements 48Independent Auditors’ Report 49Financial Statements 54Contact Information IBC

About our Brands

2016 Annual Report 1

Century Pacific Food, Inc. (CNPF) is the largest canned food company in the Philippines.

The Company is engaged in the development, marketing, and distribution of processed fish, meat, dairy, and coconut under its own brands, as well as the brands of others.

It maintains market leadership locally in the canned fish and canned meat segments, while actively growing its presence in canned and powdered milk.

With an established track record in brand-building which now spans close to 40 years, it has developed a roster of household names which include Century Tuna, Argentina, 555, Angel, and Birch Tree.

The Company is also the Philippines’ leading exporter of original equipment manufacturer (OEM) tuna and coconut products.

2 Century Pacific Food, Inc.

Our Common PurposeCentury Pacific Food, Inc has a clear purpose - to nourish and delight everyone, everyday, everywhere.

Guided by Divine Providence, we will be the company of choice of every household and trade partner, valued for our brands and trusted for products that deliver quality, taste, convenience, and affordability.

We will be respected as a team of passionate, consumer-oriented, professional entrepreneurs committed to lead in delighting families in the Philippines, the region, and the world. Central to our achieving this vision are our six core values:

Respect for the IndividualWe show respect for and value all individuals, as we set aside differences and leverage on each other’s strengths. We respect every individual’s commitments and take personal accountability for delivering on our own.

TeamworkWe have the mindset of “we”, rather than “I”, sharing common ideals and embracing common goals. As a team, we have the confidence to accomplish results. As individuals, we know when it is appropriate to lead and when to follow.

Passion for ExcellenceWe have the will to win, to do better, and to do the best. Our persistence constantly raises the bar and challenges status quo. We are not satisfied with mediocrity and work on constant improvement to achieve the highest standards and “best in class”.

HumilityWe demonstrate openness by listening to others’ ideas, including those that are dissenting to our own. We actively seek feedback and know when to ask for help, recognizing that failures are important learning opportunities for us.

UnityWe put the team above division, function, and personal interests. We maximize our unified strength by involving others, combining resources, and consulting each one for his or her expertise.

‘Malasakit’We are responsible not just for ourselves, but for others as well. We act in a manner that manifests deep concern, care, and appreciation, at the same time championing the next generation of leaders who will carry on these same purpose and values.


2014• May: Initial Public Offering

(IPO) on the Philippine Stock Exchange

• November: Gregory Banzon, VP for Tuna, wins Agora Award for Marketing Excellence

• December: The Asset names Century Pacific’s IPO as Philippines’ Deal of the Year

2015• July: Century Tuna wins its 4th

Readers’ Digest Trusted Brand - Platinum award

2016• May: Debut on the MSCI Index• July: Century Tuna wins its 5th

Reader’s Digest Trusted Brand - Platinum award

• July: Recognized as Asia’s Marketing Company of the Year by Asia Marketing Federation

2017• February: Recognized as Best

Managed Philippine Small Cap Company by Asiamoney

• March: Debut on the FTSE Index

• March: Recognized as Best Philippine Mid-Cap Company by Finance Asia

Recent Milestones


NET INCOME MARGIN

9.4%RETURN ON EQUITY

23.2%OPERATING CASH

FLOW

P1.7B

REVENUE BY SEGMENT

25%OEM

75%Branded

28%Export

72%Philippines

REVENUES

2016

28,288

2015

23,325

2014

20,439

P28,288(in Php million)

NET INCOME

2,656

2016

1,934

2015

1,592

2014

(in Php million)

P2,656

ASSETS

2016

19,932

2015

16,782

2014

11,189

(in Php million)

P19,932

EQUITY

12,539

2016

10,347

2015

6,580

2014

(in Php million)

P12,539

NET GEARING

0.13xCASH DIVIDEND

P0.20

REVENUE BY GEOGRAPHY

+14%+21% +21%

+37%

+50%

+19%

+57%

+21%


Our revenue expansion was driven by a growing branded business and tuna OEM recoveryTotal revenues grew by 21% to Php28.3 billion as our branded businesses maintained their consistent double-digit growth trajectories given robust domestic consumption. In addition, we saw a recovery in demand for original equipment manufacturer (OEM) tuna exports in the second half of 2016. Finally, the consolidation of the acquired coconut business also provided a boost to our financials this year.

Product diversification strategy We remain a predominantly Philippine-based company with an increased export presence due mostly to our OEM businesses. Our OEM businesses account for 25% of sales, with the balance of 75% coming from branded. Within these segments, OEM has now expanded to include coconuts and branded has seen diversification away from marine. Taking advantage of subdued input prices We saw favorable input cost trends for most of 2016. Gains from better gross margins supported several brand-building and demand-generating activities, which were then complemented by enhanced distribution and product availability.

CNPF saw overall profitability improve with a 39% rise in gross profits and a 32% increase in operating income for the full-year 2016. This translated to gross and operating margins expanding by 387bps and 106bps, respectively. As a result, net income for 2016 grew by 37% year-on-year to Php2.66 billion, equivalent to a 9.4% net income margin, and an expansion of 110bps.

A balance sheet ready for growthOur asset and equity base have also increased to Php19.9 billion and Php12.5 billion respectively, following good earnings, acquisitions, and capital expenditures during the year. At the same time, we sustained our industry-leading return on equity, while keeping gearing ratios healthy to provide the financing flexibility needed for our growth plans moving forward. Finally, our cash flows saw marked improvement as we generated Php545 million in free cash flows for the year.Operating cash flows turned positive in 2016, a total of Php1.7 billion, which allowed us to fund capital expenditures totaling Php1.2 billion. This also allowed us to pay a dividend of Php0.20 per share for the second year in a row.

2016 At a GlanceSince its Initial Public Offering in 2014, Century Pacific has been consistently growing and delivering value for its shareholders. Similarly, 2016 was another strong year for the company in terms of financial results and performance.


Our Business

Number of Brands

18Number of

Business Segments

5Number of

Years in Operation

38Number of Branded Business Segments

3

#1in Philippine canned tuna

2016 CORNED MEAT MARKET SHARE

46%

18% 15%

CNPF Player 2 Player 3

Source: Nielsen

2016 CANNED TUNA MARKET SHARE

84%

15%

CNPF Player 2

Source: Nielsen

Number of Philippine Outlets Serviced by CNPF

271KNumber of Philippine

Outlets – Product Availability

760Kof all Philippine outlets -

Product Availability

66%

Century Pacific offers a multi-brand, multi-category product portfolio spread across its five key business segments - marine, meat, milk and mixes, tuna OEM, and coconut.

#1in Philippine canned meat

Globally, investing in a

worldwide sales and distribution

infrastructure

Countries Global Distribution

Network

58


We have dominant market leadership in the shelf-stable, canned food market in the PhilippinesCNPF dominates the canned tuna and canned meat categories locally, which are in turn the largest subcategories of canned food in the Philippines.

Canned food, especially those with more affordable prices, is a staple in Philippine households. These are convenient food items because no refrigeration is required and they are either ready-to-eat or need very little preparation. Affordability, convenience, ease of distribution, and cultural affinity are key reasons as to why the Philippines has the largest shelf-stable, canned food market in South East Asia.

Within this space, Century Pacific’s brands are the brands of choice for the Filipino consumer. Its established reputation provides a strong platform to grow categories and expand market shares through new products and line extensions. We have multiple brands and products catering to all consumersThe Company maintains a broad portfolio of products, brands, variants, and pack sizes that cater to all preferences and price points. This enables it to capture a larger share of consumers’ stomach and wallet.

Varying price points also allow CNPF to reach both price-conscious consumers as well as the upper-income markets that seek more premium options.

This expanding product portfolio also provides diversification benefits against concentration risk and input price exposures. We have a strong focus and an established process for marketing and product innovationCNPF has demonstrated strong innovative capabilities with an established track record of introducing products that address different needs. Such innovations not only ensure a robust pipeline of new and exciting products that engage the market, but also help address cost concerns when input prices go up.

It is the Company’s strong research and development capabilities which enable a steady stream of product launches and help improve profitability.

Through outstanding marketing campaigns, the Company is able to create with these products must-have and aspirational brands. Brand recognition is enhanced through active and targeted marketing and promotions. Intuitive and appealing ad-campaigns employing well-known celebrities are able to stand out and grab the attention of potential consumers. More recently, capitalizing on the desire for healthier lifestyles has been an important strategy for CNPF.

We have extensive market penetration and distribution in the Philippines, and a growing infrastructure globallyThe Company operates and manages one of the most extensive distribution networks across the Philippines. It currently services

271k outlets directly, with its products available in 760k outlets in the country. This represents approximately 66% of all points of sale domestically (source: Nielsen).

Its exposure to multiple channels and strong relationships with various customers allow it to maximize and optimize consumer reach.

This sales network is also supported by strategically located production facilities that are situated close to the sources of main raw materials.

Globally, CNPF has begun investing in a worldwide sales and distribution infrastructure that will also allow it to reach consumers from all over the world. Finally, we are a trusted partner for leading international customersCNPF has long-standing relationships with large international food manufacturers, initially just for tuna, but now for various coconut products as well.

The Company has developed a world-renowned reputation in the global community as reliable, consistent, and of high quality. Its customers include market leaders and international food companies in some of the most strictly regulated markets, a testament to CNPF’s stringent product quality and supply reliability processes.


BRANDS AND PRODUCTS

• Argentina• Swift• Shanghai• 555• WoW! Ulam• Lucky 7• Hunt’s

• Century Tuna• Century Quality• 555 • Blue Bay• Fresca Tuna• Lucky 7• Kamayan

2016 REVENUE IN PHP 10.6B 7.5B

Canned tuna, canned sardine, and other seafood-based products that captivate the Filipino consumer with their high quality, health, convenience, and affordability

Championing health and wellness via flagship brand ‘Century Tuna’

Highly popular brands in corned beef, luncheon meat, and Vienna sausage that offer delicious taste and affordability

Numerous variants and pack sizes to cater to varying consumer tastes and price points

MANUFACTURING FACILITY

General Santos & Zamboanga City, Southern Mindanao

Laguna, Calabarzon

MEATMARINE

2016 REVENUE CONTRIBUTION 37% 27%


Our Business Segments


3.1B 4.3B 2.8B

• Birch Tree Full Cream • Birch Tree Fortified• Angel• Kaffe de Oro• Home Pride

• Frozen tuna loins• Pouched tuna• Canned tuna

• Aqua Coco• Coconut water • Desiccated coconut• Virgin coconut oil• Organic coconut flour

Condensed milk, evaporated milk, and all-purpose cream that are basic household necessities

On-going product innovation in powdered drinking milk to help take advantage of the imminent growth opportunity in dairy

Manufactures tuna products for many of the leading retail tuna brands around the world

A vital cog in overall business performance as excellence in cost efficiencies and compliance with stringent international food regulatory standards boost domestic competitiveness in Marine as well

Integrated coconut producer of high value, organic-certified and conventional coconut products for both export and domestic markets

Capitalizing on the global trend of organic, health, and wellness

Taguig, Metro Manila General Santos, Southern Mindanao

General Santos, Southern Mindanao

MILK AND MIXES COCONUTTUNA OEM

11% 15% 10%



Our Product PortfolioMEATMARINE

FEATURED PRODUCTSMARINE• Kamayan Sauteed Shrimp Paste 500g• 555 Fried Sardines with Tausi 155g• 555 Sardines in Tomato Sauce 155g and 425g• 555 Sardines (Hot) in Tomato Sauce 425g• 555 Sardines Spanish Style 155g• Century Tuna Flakes in Vegetable Oil Lite 180g• Century Tuna Chunks in Water 180g• Century Tuna Chili Corned Tuna 180g• Century Tuna Hot and Spicy 155g• 555 Tuna Afritada 155g

MEAT• Argentina Bacon Norte 100g• Argentina Vienna Sausage 260g• Shanghai Luncheon Meat 375g• Swift Premium Corned Beef 210g• Argentina Beef Loaf 170g• Argentina Corned Beef 150g• Hunt’s Pork and Beans 230g


Our Product PortfolioMILK COCONUT

MARINE, 135

MEAT, 68

MILK, 24 COCONUT, 3

CURRENT COMPANY PORTFOLIO

in number of SKUs

230

MILK• Birch Tree Full Cream Milk 1.8kg• Birch Tree Fortified Milk 300g and 33g• Angel Evaporated Liquid Milk 145mL and

410mL• Angel Sweetened Condensed Milk 380g• Angel Kremdensada 410mL

COCONUT• Aqua Coco Coconut Water 330mL


Message from the Founder



Continuing on Our Journey

Dear Fellow Shareholders,

It has been three years since the day our company went public, on May 6 of the year 2014. It continues to be a moment of pride and humility for me, as you expressed your confidence in our business, our brands, and our management team.

Today, I am grateful to you, our shareholders, because you continue to support us in our vision and plans for the future. There is many more to come!

First and foremost, it remains a very exciting time for our country as its economy continues to be one of the best performing in both the region and the world.

A bigger part of our population is now at working-age and low inflation has helped increase their purchasing power. Our hardworking OFWs abroad and BPO workers at home have also contributed substantially to our GDP growth.

These have presented many opportunities for our company to participate in the strong economic development of the Philippines. It is in this environment where we pursue relentlessly our mission to nourish and delight everyone, everyday, everywhere.

Today, over 100 million Filipino consumers support our products and our brands, so much so that they buy over 10 of our tin cans per year. To them, I give many, many thanks.



Second, our company has become an important part of the Filipino people’s “ulam” or daily meal. We are present in their dining tables almost every day as we consistently increase our share of the family’s food intake.

Our wish is that we continue to offer more varieties of these “ulam” to the delight of all those who have trusted our ability to manufacture nutritious, delicious and quality products for the last forty years.

From sardines, tuna, meat, and now milk and coconut, new markets and categories have always presented themselves to us. My firm belief is that they will continue to do so especially as Filipinos’ incomes rise and our abilities as a company increase.

I look forward to us providing Filipino families more great food products at reasonable prices for another century.

I look forward to us providing Filipino families more great

food products at reasonable prices for

another century.


Thirdly, I am happy to see that our countrymen’s love for our products has also brought them outside of the Philippines, to all corners of the world.

We are now present in North America, the Middle East, China, and Europe. This is only the beginning as we pursue an international growth strategy by investing in new systems and infrastructures abroad.

This will make it easier for Filipinos, wherever they may be, to enjoy our products and remind themselves of home.

We will also continue to serve our various international customers as their high quality and reliable supplier for the brands that they have built offshore. We have built enough scale and global competitiveness to participate in this worldwide arena. Three years ago, we were doing this just for tuna exports – a legacy business which I myself started in 1978.

Today, we have also emerged as one of the Philippines’ largest exporters of coconut water, taking advantage of the international demand for this

healthy food item, and now growing our presence in various other coconut products as well.

This makes me proud to say that the manufacturing prowess and capability of the Filipino is truly world class.

I have always said that my personal spirit and strong belief in the value of perseverance and hard work are a fundamental part of this company. To our employees, managers, and executives, it is your perseverance and hard work which brings this company’s united vision and mission to life. Do not forget that it is you who have brought Century Pacific to where it is today.

To our trade partners, long-time suppliers, and other stakeholders, I continue to wish for us the best of fortune as we grow in business together. Remember, our success is yours as well.

To our loyal consumers, who make the choice day in and day out to buy our offerings, may

we continue to be the company with the food products and brands of your choice.

Finally, to Divine Providence who has brought all of us here today and to whom we dedicate our mission, I am forever grateful. There is good reason for us to continue on this road and it is a purpose that I do not take lightly.

Life as a public company has not been easy. But today, with even more conviction than three years ago, I say the best is yet to come.

This is just the beginning for Century Pacific and we hope you continue on with us on our journey.

Sincerely,

RICARDO S. PO SR.Founder


President’s Report

Sustaining Momentum and Building for Long-Term Growth



The last two years have seen global upheavals in politics, finance, and commerce. Things we thought we would never see like Brexit, negative interest rates, and President Trump have come to pass. The rapid march of technology has brought innovations like self-driving cars, intelligent robots, and 3D printing from fiction to reality. It used to be that we preferred smaller and more portable phones. Now, I find my phone getting heavier and larger and never thought I’d be watching videos on my phone. My iPad has also almost replaced my laptop. Meanwhile, wars rage on, global temperatures continue to rise, and prices of commodities like oil, metals and milk have bottomed and bounced.

Here in the Philippines, change has also arrived. Our country saw a peaceful transition of power with a decisive mandate given to President Duterte. The new government immediately went to work - imposing law and order, challenging old alliances while forming new ones, espousing policies that promote inclusive growth, and investing in much-needed infrastructure.

NOTABLE ACHIEVEMENTS

• Consistently surpassed 10 to 15% annual growth target since Initial Public Offering in 2014

• All three mainstay business divisions of Marine, Meat, and Milk delivered robust results

• Invested in new businesses and used acquisitions to secure future options for growth

THE 3 M’s

• Marine: Executed on key themes of health, convenience, and value

• Meat: Continued with taste and competiveness proposition, while making inroads in the premium market

• Milk: Underpinned by innovation strategy to deliver mid-teens growth


ACQUISITIONS SINCE IPO

• Century Pacific Agricultural Ventures Inc. (2015) – Exposure to the fast growing, global market for various coconut products

• Kamayan for North America (2016) – An iconic shrimp paste brand recognized by large US-based Filipino community

• Century China (2016) – New channel for products while leveraging on Century’s existing brand equity in China

• Hunt’s for the Philippines (2017) – The market leader in Pork and Beans with a 30-year history locally


Even with the world in this constant state of flux, I continue to hold my firm belief in the Philippines as an attractive place to invest and build our food business. Our country benefits from a young population, a growing middle class, and a consumption-led economy that is relatively insulated from global ruptures.

In addition to OFW remittances and BPO revenues, our new government is also promising “a golden era” of infrastructure and further efforts to boost tourism. Headlines are filled with plans for roads, bridges, ports, and airports. The hospitality and gaming industries are producing record results from increased Chinese tourist arrivals.

From a baseline of 6% to 7% GDP growth, can these new economic drivers kick our economy into a higher gear?

We have consistently delivered robust resultsWith this backdrop, our Company strives to grow double the country’s GDP growth or about 10 to 15% per year, year-on-year. I am pleased to report that our management team has consistently delivered results better than these targets for the past two years.

CNPF ended 2015 with revenues of P23.32 billion and 2016 with a top line of P28.29 billion. These translated to revenue growth of 14% and 21% for the years 2015 and 2016, respectively. Commodity price tailwinds and productivity initiatives also helped expand margins over the same period resulting in after-tax profits of P1.93 billion and P2.66 billion or a growth of 21% and 37% for 2015 and 2016, respectively.

All three mainstay business divisions of Marine, Meat, and Milk contributed in delivering this performance. Marine, led by our brands such as Century, 555, and Fresca executed on the same key marketing themes of health, convenience, and value. In Meat, the team continued with its taste and price competitiveness proposition especially for the Argentina, Wow, and Lucky 7 brands. Swift continued to make inroads into the premium end of the market. The Milk division’s Angel and Birch Tree brands are underpinned by a strategy of innovation and value which have proven to be effective, delivering mid-teens growth in the last two years. Our legacy tuna OEM business meanwhile also benefitted from global trends towards health


and convenience, benefiting from a market recovery in the latter part of 2016.

We are Investing In New Businesses Our team used acquisitions as a way to expand and secure future options for growth. The most significant acquisition to date was our coconut business - Century Pacific Agricultural Ventures, Inc. This new addition to the portfolio gives our Company exposure to the fast growing market for healthy and natural coconut products in the US, Europe, and other markets for items like coconut water, organic virgin coconut oil, desiccated coconut, coconut flour, and coconut cream - just to name a few.

This coconut business almost doubled in size in 2016 with attractive opportunities still to come in the years ahead.

We also undertook a number of “bolt-on” acquisitions where we acquired relatively smaller, bite-sized businesses in categories that are related or adjacent to ours. We then integrated them into our supply chain, sales network, and distribution system resulting in synergies and providing us growth optionality.

2016 RESULTS

• Revenues: Php28.29b +21% Growth

• Net Income: Php2.66b +37% Growth 9.4% Net Margin

GROWTH TARGET

10 to 15%Revenues

Net IncomePer Year

2015 RESULTS

• Revenues: Php23.33 b +14% Growth

• Net Income: Php1.93b +21% Growth 8.3% Net Margin

The acquisition of the Kamayan brand in North America fits aptly this description. Kamayan is an iconic brand recognized by the large US-based Filipino community that is fairly sizable and possesses significant economic clout.

We also took control and consolidated into CNPF the Century China Group of Companies. We will leverage on the existing equity of the Century brand in China to grow the existing business and create a channel for our products into this massive market.

Our most recent acquisition was of the Hunt’s license for the Philippines. Hunt’s has a 30 year history in the Philippines and is a market leader in Pork and Beans category. It also has a foothold in Tomato and Spaghetti sauce.

I am excited by the potential each of these acquisitions present. Plans are in place for each of these businesses to return multiples over their acquisition cost. The challenge now is to execute. I hope to be able to report positive developments in future updates.

2014 to 2016

• Revenues: +18% Compounded annual growth rate

• Net Income: +29% Compounded annual growth rate


Continuing to Balance Business With Social ImpactWe continue to lean in to our various social responsibility and sustainability efforts. Our Vice President-General Manager for Tuna OEM, Teddy Kho, has just joined the global board of trustees for the International Seafood Sustainability Foundation. This will allow us to help shape long term global policy in seafood conservation.

Our investment in new cold storage capacity in General Santos was also the site of our first foray into renewable energy, with the plant partially powered by solar panels. The initial results have been encouraging and there are plans now to further scale this up.

The centerpiece of our community efforts is still the support given to the Century Pacific Group-RSPo Foundation’s feeding program which in 2016 served 4 million meals through numerous partnerships with schools and

like-minded NGOs. Since its inception, the foundation has served over 18 million meals to more than 200 thousand beneficiaries.

Looking On To The FutureLooking at 2017, we expect to be challenged by higher commodity prices and a weaker Philippine peso, putting pressure on our margins. Our 2016 results were flattered by the bottoming of commodity prices. We plan to let margins normalize and give back some of that windfall to ensure we remain competitive and continue delivering value to our consumers. Last year, we also benefitted from election-related boosts to consumption and a one-time bump from the full-year consolidation of our coconuts business.

With these challenges in mind, this year, we are aiming to strike a balance between revenues and profitability, still targeting to deliver positive earnings growth. We also look forward to our recent investments in current and new businesses to continue

SOCIAL IMPACT

• Global board of trustees for the International Seafood Sustainability Foundation

• 4 million free meals served in 2016, a total of 18 million free meals since program’s inception

2017 OUTLOOK

• Challenges from higher commodity prices, pressure on margins

• Ensuring competitiveness and value proposition to the consumers

• Balancing revenues and profitability, still targeting to deliver positive earnings growth

• Continuing to look for opportunities with returns on equity at the current 20% level

• Strategic priorities to be centered around the Philippine branded food market


to achieve our aspiration of 10% to 15% annual growth.

Beyond this year and peering a little further into the future, we will continue to look for opportunities to deploy capital with the intention of achieving ROEs at the current 20% level, or at least the high teens. Our strategic priorities remain the same where I foresee the bulk of future investments to still be centered around the bedrock of our business - the Philippine branded food market.

In this environment of tectonic change, we are grateful to you, our shareholders, for your support, confidence and trust. We shall continue to work hard to deserve this trust and do what is for the long term benefit of our company and stakeholders.

CHRISTOPHER T. POPresident

We are aiming to strike a balance

between revenues and profitability, still targeting to deliver positive earnings

growth.


Strengthening Foothold in the Philippines’ Shelf-Stable Markets

Business Review

About the Philippines’ Shelf-Stable, Canned Food Market

• Century Pacific Food competes in the Philippine shelf-stable, canned food market which is composed mostly of canned fish, meat, and milk.

• The Philippine market for shelf-stable, canned food products is double that of the next biggest market which is Indonesia.

• Domestic consumption of these products is the largest within ASEAN and maintains its significant growth potential.



With robust macroeconomic fundamentals and a young and educated population, the Philippines’ economic growth in recent years has consistently outperformed majority of its peers throughout the world. 2016 saw the transition of power to a new administration with a promise to sustain this positive momentum through a more proactive approach of increased infrastructure spending, new tax reforms, and inclusive growth plans.

Low inflation and subdued interest rates have also supported an environment which is conducive for consumer spending.

It is in this space that Century Pacific operates its branded food businesses, which sustained their double-digit growth rates while focusing primarily on the Philippines. With strong consumer sentiment, the Company saw expanding category sizes among its main product lines, and stable, if not increasing share of these markets. With its flagship ‘Century Tuna’ brand as a champion for health and wellness domestically, the Company has also benefitted from a growing demand for affordably premium and healthy products brought about by Filipinos’ rising per capita incomes.

“It was just a platform of taste then. The health aspect came later and was an added layer to the message to help grow the brand,” says CNPF Vice President-General Manager for Tuna, Gregory Banzon.

To elevate the category from being just a canned fish product, Century Pacific educated consumers on the benefits of eating tuna alongside regular exercise and a healthy lifestyle. This is highlighted in the bi-annual staging of the country’s biggest model search, the Century Tuna Superbods Contest, which has been on-going since 2006.

Banzon added, “Today, Century Tuna is built on a brand equity of living a healthy and sexy lifestyle via the Superbod imagery.”

In canned meats, the Company was able to manage a cross-section of brands catering to premium, mid-income, and low-income segments through targeted marketing campaigns. Regional branding initiatives, alongside production of Halal variants, were also executed successfully to target consumers from all over the Philippines.

The Argentina brand has maintained its strong reputation for superior taste, quality, and a good source of protein. The WoW Ulam! brand on the other hand caters specifically to the low-income segment that looks for quick, affordable, and complete ready-to-eat meals that can be partnered with rice. Finally, with Swift Premium, Century Pacific is poised to cater to the higher taste and quality standards of a rapidly rising Philippine middle and upper income class segments.

In milk, a twin branding strategy is employed with Birch

Tree as the acquired heritage brand in powdered milk and Angel as the homemade flagship for canned milk.

Innovation has been the key to success in this segment as exemplified by a canned milk product that combines cream and condensed milk into one, driving growth in that category. At the same time, Century Pacific has made in-roads in powdered milk via improved distribution and availability and sustained brand activation for the iconic Birch Tree brand.

Truly, Century Pacific’s commitment to nourish and delight, its clear understanding of consumer wants and needs, and its capabilities to execute, have helped the Company consistently achieve its growth targets.

2017 will be a more challenging environment given rising costs and inflation. However, Century Pacific is optimistic that it can rely on its powerhouse brands, its scale, its manufacturing capabilities, and a management team with a track-record in delivering results to overcome the challenges that are in store in the coming years. The Company is one of the advocates of the Philippine growth story which it believes to continue to be healthy and robust. The fundamentals of Century Pacific’s business remain intact and it looks forward to likewise riding on the county’s positive fundamentals.



Passion to Produce

World-Class Coconut Products

Business Review



Consumers of today’s fast-paced world are becoming increasingly conscious of the importance of health and wellness. This global awareness has led to the growing demand for products promoting healthier lifestyles, especially those that are made from coconuts.

In late 2015, Century Pacific Food (CNPF) completed the acquisition of a 100% interest in Century Pacific Agricultural Ventures Inc (CPAVI), an integrated coconut producer of high-value organic certified and conventional products for both export and domestic markets. Its primary products include organic-certified and conventional coconut water, desiccated coconuts, organic virgin coconut oil, and organic coconut flour.

The acquisition of CPAVI by CNPF represented an exciting milestone for both companies. CPAVI has demonstrated consistent profitability over the years and is covered by multi-year agreements with major customers. It is also strategically located where coconut supply is abundant and sustainable. This in turn is in line with CNPF’s long-term goal of cementing itself as a leading player in growing food markets. Global food companies have seen an increased appetite to search for similar acquisition targets in this higher growth, health-conscious, and organic product categories.

“The global trend towards healthy and organic coconut products is rapidly increasing in developed economies like the US and Europe. This is an area where the Philippine industry has an advantage and can be globally competitive, with the Philippines as one of the top exporters of coconut products worldwide,” said CNPF President Christopher Po.

CPAVI’s operations also fits into CNPF’s core businesses, complementing the existing product portfolio by increasing the combined company’s “share of stomach” and leveraging on CNPF’s existing capabilities in the manufacture of low acid products.

Po added, “This new coconut business is a great addition to Century Pacific’s roster of products and is another leg to sustain and drive the company’s future growth.”

CPAVI first entered into coconut product manufacturing in 2013 initially as an original equipment manufacturer for retail packaged coconut water and a supplier of white copra to industrial users. To fully utilize the tree of life – coconuts – CPAVI has since expanded its product offerings to include:• Desiccated coconuts.

Shredded, pared, granulated, and dehydrated white meat of matured coconuts which have been packed to preserve their natural taste. Commonly used in baking as a filler, topping or ingredient.

• Organic virgin coconut oil. Using expeller-press process, virgin coconut oil products have a translucent color and mild coconut aroma and taste. Can be consumed as food supplement, for cooking, baking, and can also be applied topically.

Significant CPAVI Milestones• September 2012: Contract signing with a global leader in

branded coconut water• July to September 2013: Commercial production and first

export shipment of coconut water• May 2015: Commissioning and start-up of desiccated

coconut and virgin coconut oil plant• Dec 2015: Closing of acquisition by CNPF for Php4.5

billion

• Organic coconut flour. High in fiber and gluten-free, coconut flour comes from defatted dried coconut meat that is pulverized to very fine powder.

• Aqua Coco coconut water. CPAVI’s own brand for 100% pure coconut water packed in Tetra Prisma Pak. No added sugar, potassium-rich and low calorie.

It currently also has other coconut-based products under development.

CPAVI’s integrated production facility is located in the Southernmost part of the Philippines, in General Santos City, where it is in close proximity to the coconut raw material. These manufacturing facilities and their corresponding quality systems are compliant and certified by leading and reputable local and international agencies, including GMP, HACCP, BRC, Halal and Kosher.

These, among others, are a testament to CPAVI’s competent team of professionals and their uncompromising adherence to the highest standards. Consistent as well with Century Pacific’s vision of nourishing and delighting everyone, everyday, everywhere, CPAVI remains committed to continuous process, quality, and manufacturing improvements in this space as it looks forward to producing the best coconut products in the world.


Exploring New Channels, Expanding Product Lineup

Staying true to its commitment to nourish and delight everyone, everyday, everywhere, Century Pacific has embarked on a journey towards becoming a truly global Filipino food company. The past few years saw the Company expand its footprint, bringing its products closer to Filipinos wherever in the world they may be.

Today, the Company’s brands are made available in 58 countries globally. This has been made possible by strengthened sales and distribution in key markets globally.

Similarly, Century Pacific has also focused on expanding its product line-up with entries into new categories using brands that resonate strongly with Filipino consumers. Kamayan in shrimp paste

and Hunt’s in Pork & Beans are both welcome additions to the Company’s roster of household names.

These accretive acquisitions are also opportunities to extract a number of potential synergies. These include synergies in the supply chain, distribution, manufacturing, and marketing. Century Pacific also looks forward to leveraging on the track record and category leadership that have been built for these brands both locally and abroad.

Breaking Country BarriersCentury Pacific has been successfully marketing its key brands in North America, Middle East and Europe. Packaging has been specifically redesigned for products destined for global markets.

Business Review

Selected offshore advertising is also being made. The Argentina brand in particular has made in-roads in the international space, made stronger by a network of toll manufacturers in the U.S. A global sourcing strategy has enabled Century Pacific to effectively roll out products in different countries, passing the rigid regulatory requirements of each foreign market.

Leveraging on existing brand equity and sales infrastructure in ChinaFrom its humble beginnings in the Philippines where it has redefined and reshaped the canned tuna market, flagship brand Century Tuna is now among the leading brands in China, Vietnam, and the Middle East. In 2016, Century



Pacific further strengthened this foothold via the acquisition of the group of entities that currently distribute Century Tuna in China.

Since its entry into China during the early 1990’s, Century Tuna has grown its equity to become the number one retail canned tuna brand in the country. With this track record spanning more than 20 years, the Century China Group of Companies have built solid relationships with major retailers across the key cities of a market with more than one billion inhabitants.

Full control over these companies provides exciting opportunities with China’s canned food market estimated to be growing double-digits annually. Century Pacific, with its existing line-up of other brands and canned food products, also anticipates the distribution of these through established sales network.

Entering New Products CategoriesJoining Century Pacific’s lineup of powerhouse brands is Kamayan, one of the top brands in the U.S. for shrimp paste – a popular condiment in Philippine cuisine, locally known as bagoong.

This heritage Filipino brand has established a presence in the United States since first entering the market in the 1980’s. The brand is currently being sold in leading Asian food stores across the West and East coast, catering primarily to the large Filipino communities there.

Another welcome addition to Century Pacific’s expanding product portfolio is Hunt’s, one of the world’s foremost leaders in the field of tomato-based products. In May 2017, the Company announced the acquisition of the Philippine license for this iconic name, which is the country’s number one Pork & Beans brand with an 86% market share locally (source: Nielsen).

Under the deal, the Company purchased the rights to manufacture, sell, and distribute Hunt’s branded products in the Philippines from Hunt-Universal Robina Corporation, a 50-50 joint venture between locally listed Universal Robina Corporation (URC) and ConAgra Foods (ConAgra).

ConAgra, one of North America’s leading packaged food companies, will continue to own the Hunt’s

trademark which has a long heritage that spans more than 100 years globally.

Hunt’s entered the Philippines in 1984, initially with a one-product strategy through the launch of its iconic Pork & Beans product. Today, Hunt’s maintains an expanded portfolio which includes tomato-based spaghetti sauce, tomato sauce, and marinade sauce.

“Hunt’s was the first joint venture brand of URC in partnership with ConAgra and together we have built a strong grocery category in pork & beans and sauces,” said URC’s President and Chief Executive Officer Lance Gokongwei.

He added, “We have recently conducted a strategic review of our portfolio and have shifted our focus to our core categories, namely snackfoods and beverages, which are geared towards convenience and on-the-go occasions. Given this shift, URC and ConAgra have decided to spin off Hunt’s to Century Pacific as we believe that their strength in the grocery category can further add value and take the brand to new levels of growth in the years to come.”



Sustainability Report

In particular, its ongoing membership in the International Seafood Sustainability Foundation (ISSF), through wholly-owned subsidiary General Tuna Corporation, requires strict compliance to all ISSF conservation measures. ISSF engages MRAG Americas to conduct an audit of this performance against conservation measures and commitments in force since 2015.

MRAG’s latest audit showed General Tuna Corporation as fully compliant with all measures. A summary of the 2016 ISSF Final Compliance Report of General Tuna Corporation is presented here. The Company’s full compliance audit results as reported by MRAG are available on the ISSF website (http://iss-foundation.org/).

Century Pacific remains a committed member of global initiatives that address sustainability issues, particularly those involving tuna supply.

Our Other Partners

Western and Central Pacific Fisheries CommissionSeeks to address problems in the management of high seas fisheries resulting from:• unregulated fishing• over capitalization• excessive fleet capacity• vessel re-flagging to escape

controls• insufficiently selective gear• unreliable databases• insufficient multilateral

cooperation

Bureau of Fisheries and Aquatic ResourcesGovernment Agency responsible for the development, improvement, management and conversation of the Philippines' fisheries and aquatic resources

Marine Stewardship Council• International non-profit

organization established to address the problem of unsustainable fishing and safeguard seafood supplies for the future.

• Works with scientists, fisheries, seafood producers and brands to promote sustainable fishing and safeguard seafood supplies for the future.

Earth Island Institute/Dolphin Safe TunaEarth Island Institute has been a hub for grassroots campaigns dedicated to conserving, preserving, and restoring the ecosystems on which our civilization depends.

World Wildlife Fund• The world's leading conservation

organization for more than 50 years

• Works in 100 countries and is supported by 1.2million members in the United States and close to 5million members globally.

• Combines global reach with a foundation in science

• Ensures the delivery of innovative solutions that meet the needs of both people and nature.


2016 ISSF Final Compliance Report of General Tuna Corporation

Conservation Measure Guidance Current GradeTuna Regional Fisheries Management Organizations (RFMO) Authorized Vessel Record

All purchases must be from vessels listed on the authorized vessel record of the RFMO governing the ocean area in which the tuna was caught, at the time of the fishing trip, so long as the vessel is of a size subject to listing in the RFMO authorized vessel record.

Fully compliant

RFMO Participation All purchases must be from vessels flagged to a member or cooperating non-member of RFMO relevant to fishing area.

Fully compliant

Product Traceability Demonstrate ability to trace products from can code or sales invoice to vessel and trip

Fully compliant

Quarterly Data Submission to RFMO

Send information to RFMO scientific bodies for each quarter by the last day of the following calendar quarter

Fully compliant

Shark Finning Policy Establish and publish policy prohibiting shark finning Fully compliantProhibition of Transactions with Shark Finning Vessels

Refrain from transactions with vessels that have shark finned within two years of the product purchase date

Fully compliant

Prohibition of Transactions with Companies without a Public Policy

No transactions with companies that do not have a public policy prohibiting shark finning

Fully compliant

Large-scale Pelagic Driftnets No transactions with vessels using large-scale pelagic driftnets Fully compliantFull Retention of Tunas All purse seine caught tuna retained onboard, except those unfit

for human consumption as defined, or when in the final set of a trip, there is insufficient well space to accommodate all fish caught in that set.

Fully compliant

Skippers Best Practices Unless exempt, skipper has attended an ISSF Skippers Workshop in person, has viewed the Skippers Workshop video online, or has reviewed the Skippers Guidebook.

Fully compliant

Unique VesseI Identifies (UVI)- International Maritime Organization (IMO)

All purchases must be from vessels with an IMO-UVI number if the vessel is capable of being registered by IMO

Fully compliant

Purse Seine Unique Vessel Identifiers

All purse seine vessels with which the company transacts in tuna, and which are not able to receive an IMO UVI NUMBER, must have a TUVI issued by CLAV or ISSF.

Fully compliant

Observer Coverage Evidence of 100% observer coverage (human or electronic) on large-scale purse seine vessels unless exempt or prevented by force majeure.

Fully compliant

Transhipment No transactions in tuna where transportation included transhipment, except when exempt.

Fully compliant

Illegal, Unreported, and Unregulated (IUU) Fishing

No transactions with vessels on any tuna RFMO IUU vessel list. Fully compliant

IUU Product Response No IUU purchases. If IUU found, company must withdraw these products from the market place.

Fully compliant

Transaction Ban for Large Scale Purse Seine Vessels not Actively Fishing for Tuna as of 12/31/2012

Demonstrate that all purchases from large-scale purse seine vessels are from vessels actively fishing for tuna as of December 31, 2012, and listed on the ISSF Record of Large-Scale Purse Seine Vessels.

Fully compliant

Purchases from ProActive Vessel Register (PVR) Vessels

For fishing trips beginning on or after January 1, 2016, source 100%of skipjack, yellowfin, and bigeye tuna caught by large-scale purse seine vessels from vessels registered in the PVR

Fully compliant


Shareholder Engagement

Century Pacific creates long-term

value by establishing strong and sustainable relationships with our

shareholders.


Milestones• Asiamoney Philippines’ Best Managed Company, Small Cap 2016 A leading financial

publication in Asia Pacific gave recognition to CNPF for its “clarity of strategy and adept use of marketing” after surveying over 180 chief investment officers, portfolio managers and research analysts across Asia

• Finance Asia Philippines’ Best Company, Mid Cap 2016 FinanceAsia covers investment banking, capital markets and strategic corporate finance with more than 180 portfolio managers and buy-side analysts from around the world evaluating listed companies in Asia

• MSCI Philippine Small Cap Index, May 2016 CNPF has seen its weighting increase since its debut on the highly-tracked Philippine small-cap index last May 2016. MSCI is one of the leading providers of stock market indices and investment decision tools to investors worldwide

• FTSE Index Small Cap and AllCap – Asia Pacific, March 2017 Inclusion to the FTSE Global Equity Index Series is the result of a semi-annual review on more than 7,400 securities in 47 different countries. FTSE Indexes serve as performance benchmarks and aid in the creation of a broad range of financial products, including index tracking funds, derivatives, and Exchange Traded Funds.

Non Deal Roadshows2015 and 2016

2Manufacturing Site Visits

2015 and 2016

8Investor Conferences

2015 and 2016

29Number of Active Sell-Side Coverage

11

Why we engage?The objective of our Investor Relations team is to build a full and fair valuation of the Company’s stock. It aims to understand and respond to evolving market expectations, working closely with investors to reinforce and build on business’ fundamentals. At the same time, the team supports the Company’s overall strategic directions by ensuring access to a wide array of capital market instruments and using information flow as an opportunity to obtain new ideas and identify global best practices.

How we engage?• One-on-one meetings with

investors, bankers, and creditors

• Onshore and offshore investor conferences

• Conference calls on quarterly financial results

• Regular engagement with brokers and analysts

• Non-deal roadshows to key financial market centres

• Press releases• Selected manufacturing site

visits • Regulatory and formal

reporting requirements• Use of corporate website

Stock HighlightsSince its initial listing on the Philippine Stock Exchange in May 6, 2014, CNPF’s market capitalization has more than doubled as of May 2017. From end 2015, market capitalization grew by approximately 50% to $1.2 billion in May 2017 from $0.8 billion in December 2015.

Liquidity has likewise improved, with average value traded quadrupling to $0.9 million during the first five months of 2017 from $0.2 million in 2015.


Stock Information Stock ExchangeCentury Pacific Food Inc. is listed on the Philippine Stock Exchange’s (PSE) main board with the ticker symbol “CNPF”.

Annual Stockholders’ MeetingThe Company’s annual stockholders’ meeting is held every 30th of June.

Share CapitalCNPF’s authorised capital as of end 2016 was Php6 billion consisting of 6 billion ordinary shares with a par value of Php1.00. The number of issued, outstanding, and listed shares as of the same period was 3,541,028,895.

Based on the closing price of Php16.18, the Company’s market capitalization was Php57,293,847,521.10 as of December 31, 2016.

Ownership InformationThe top 3 shareholders on record as of end 2016 are as follows:• Century Pacific Group, a privately held

holding company, wholly owned by the Po Family – 63.0%

• PCD Nominee (Non-Filipino) – 21.7%• PCD Nominee (Filipino) – 15.3%

Beneficial ownership of substantial stockholders as of the same date is as follows:• Century Pacific Group – 68.7%• Arran Investment, an affiliate of Singapore

sovereign wealth fund GIC – 10.4%

Individual Po family members own significant indirect stakes in the Company through Century Pacific Group.

Public FloatThe Company’s public float as of December 31, 2016 was 20.9%.

Dividend HistoryThe Company declared cash dividends last June 30, 2015 in the amount of Php0.20 per share, consisting of a regular dividend of Php0.10 and a special dividend of Php0.10. The total payout represented 28% of previous year’s net income.

A cash dividend declaration was made again last June 15, 2016 in the amount of Php0.20 per share, representing as well a regular dividend of Php0.10 and a special dividend of Php0.10. The total payout represented 24% of previous year’s net income.

Finally, on June 3, 2016, the Company declared a 50% stock dividend issuing half a share for every one share held.


Other Stock IssuancesApart from the stock dividend above, a total of 4,056,100 common shares were issued pursuant to the Company’s Employee Stock Purchase Plan (ESPP), including 1,229,700 common shares which were issued in 2017.

Out of the 8,269,245 available for subscription under the current ESPP, a total of 4,213,145 shares remain unissued and have yet to be subscribed to by the Company’s employees.

Information DisclosuresCNPF strictly follows the requirements imposed by Philippine Securities and Exchange Commission, as well as rules for companies traded on the PSE, in its information disclosure and filings. The Company publicly discloses all required information to shareholders and investors in a timely manner through the corporate website and CNPF’s official disclosure page on the PSE online portal. Up to date information about Century Pacific are available on these sites: • www.edge.pse.com.ph/companyPage/

stockData.do?cmpy_id=652• www.centurypacific.com.ph

Return since IPOAdjusted for 50% stock dividend

93%Stock Price as of June 2, 2017

P17.70

52-Week ReturnAdjusted for 50% stock dividend

25%


It is the duty of the Board to promote the rights of stockholders, to be

transparent and fair in promoting the stockholders’ rights, and to minimize costs and administrative impediments

to the stockholders’ meaningful participation.


Corporate GovernanceAs a publicly listed company in the Philippines, CNPF is covered by corporate governance rules and regulations of the Philippines Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE).

Composition

• 7 directors (3 executive, 2 non-executive, and 2 independent) with diverse backgrounds and work experience

• Ricardo S. Po, Sr. is the father of Ricardo Gabriel T. Po, Christopher T. Po, Teodoro Alexander T. Po and Leonardo Arthur T. Po.

• None of the independent directors own more than .01% of the Company’s capital stock

• Although the roles of Chairman of the Board and CEO/President are held by the same person, the Board ensures independent views and perspectives are taken into account in its decision making process. Also, Fernan Victor P. Lukban has been elected as Lead Independent Director to lead the Board in case of conflict of interests.

Title and Type Name Date of Most Recent Election

No. of Years Served as of end 2016

Direct or Indirect Ownership in

Company as of end 2016

Attendance to 2016 Board Meetings

Chairman Emeritus (non-executive)

Ricardo S. Po, Sr. June 30, 2016 3.5 years nil 100%

Chairman (executive) Christopher T. Po June 30, 2016 3.5 years 22.8% 100%

Co-Vice Chairman (non-executive)

Ricardo Gabriel T. Po June 30, 2016 3.5 years nil 100%

Co-Vice Chairman (executive)

Teodoro Alexander T. Po June 30, 2016 3.5 years 22.8% 100%

Member (executive) Leonardo Arthur T. Po June 30, 2016 3.5 years 22.8% 100%

Member (independent) Johnip G. Cua June 30, 2016 3.5 years nil 100%

Member (independent) Fernan Victor P. Lukban June 30, 2016 3.5 years nil 94%

BOARD MATTERS

The Board of Directors (Board) is primarily responsible for the governance of the Company and its compliance with the principles of good corporate governance. It is the duty of the Board to promote the rights of stockholders, to be transparent and fair in said promotion, and to minimize costs and administrative impediments to the stockholders’ meaningful participation.

The Board also ensures that independent views and perspectives are taken into account in its decision-making process. The Board consists of both executive and non-executive directors (which include independent directors), so no one can dominate the decision-making process.

It is the Board’s primary purpose to foster the long-term success of the Company and secure its sustainable competitiveness and profitability, in the best interest of the Company, its shareholders, and other stakeholders.


BOARD COMMITTEES

Corporate Governance Committee

The Corporate Governance Committee oversees the implementation of the corporate governance framework and periodically reviews the framework to ensure that it remains appropriate in light of material changes to the corporation’s size, complexity and business strategy, as well as its business and regulatory environments. It also determines the nomination and election process for the Company’s directors and shall establish a formal and transparent procedure to develop a policy for determining the remuneration of directors and officers.

Board Risk Oversight Committee

The Board Risk Oversight Committee is responsible for the oversight of the Company’s Enterprise Risk Management system to ensure its functionality and effectiveness. It provides oversight over Management’s activities in managing credit, market, liquidity, operational, legal and other risk exposures of the Company.

Related Party Transaction (RPT) Committee

The RPT Committee is tasked with reviewing all material related party transactions of the Company and ensures that appropriate disclosure is made, and/or information is provided to regulating and supervising authorities relating to the company’s RPT exposures, and policies on conflicts of interest or potential conflicts of interest.

Audit Committee

The Audit Committee is responsible for assisting its Board in its fiduciary responsibilities by providing an independent and objective assurance to its management and shareholders of the continuous improvement of its risk management systems, business operations, and proper safeguarding and use of its resources and assets.

It is composed of 3 non-executive directors, the majority of whom, including the Chairman, are independent. All members also have the relevant background, knowledge and skills in the areas of accounting, auditing and finance.

CORPORATE GOVERNANCE

COMMITTEE

BOARD RISK OVERSIGHT

COMMITTEE

RELATED PARTY TRANSAC-TION COMMITTEE

AUDIT COMMITTEE

Fernan Victor P. Lukban – Chairman Johnip G. Cua – Chairman Fernan Victor P. Lukban – Chairman Fernan Victor P. Lukban – Chairman

Johnip G. Cua Fernan Victor P. Lukban Johnip G. Cua Johnip G. Cua

Leonardo Arthur T. Po Leonardo Arthur T. Po Ricardo Gabriel T. Po Ricardo Gabriel T. Po

Note: Board committe composition effective March 2017


INTERNAL AUDIT AND CONTROL

Internal Audit is an independent and objective assurance and consulting activity that assists the Company by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the organization’s governance, risk management, and internal control.

The Audit Committee oversees Internal Audit and identifies the reporting line of the Internal Auditor to enable him to properly fulfil his duties and responsibilities. The Audit Committee then approves the Internal Audit Charter, which formally defines the role of Internal Audit, the audit plan, and oversees the implementation. Annually, a review of the adequacy of internal controls is undertaken, whereas specific risk management processes and findings are reviewed quarterly. The Audit Committee also reviews and monitors Management’s responsiveness to the Internal Auditor’s findings and recommendations.

Specifically, the Company’s Internal Audit assists the Audit Committee in its governance and oversight functions to ensure:

1. Reliability and integrity of financial and operating information.

2. Compliance with policies, plans, procedures, laws and regulations.

3. Safeguard of assets.

4. Resources are economically and efficiently used.

5. Results of operations and programs are consistent with established objectives, goals and plans.

The Internal Audit Department reports administratively to the President and CEO, but functionally to the Audit Committee, which has oversight functions over the Corporation’s internal and external auditors. It is the Audit Committee which recommends the appointment and/or grounds for approval of the internal audit head or Chief Audit Executive. It is also the Audit Committee which recommends to the Board the appointment, reappointment, removal, and fees of the External Auditor.

The Audit Committee then makes certain that both auditors are given unrestricted access to all records, properties and personnel to enable them to perform their respective audit functions.

CODE OF BUSINESS CONDUCT AND ETHICSThe company’s policies on business conduct or ethics affecting directors, senior management and employees are as follows:

(i) Conflict of Interest. All employees, irrespective of rank should always act on the best interest of the company. All conflict of interest shall be avoided and prohibited. In the event such will

occur, disclosure must be done to the immediate supervisor and/or Human Resources Head.

(ii) Conduct of Business and Fair Dealings. Business is dictated by free competition - no monopoly, no price manipulation. Price is dictated by supply and demand. Employees are required to comply with fair trade practices.

(iii) Receipt of gifts from third parties. All employees are prohibited from accepting gifts based on the no gift policy of the Company.

(iv) Compliance with Laws & Regulations. All employees, in the conduct of business, are obliged to comply with all relevant laws and regulations.

(v) Respect for Trade Secrets/Use of Non-public Information. All employees are required to sign and adhere to a confidentiality agreement. All employees are prohibited from disclosing or using to their own advantage any non-public information.

(vi) Use of Company Funds, Assets and Information. All employees are required to act as responsible custodians of all company funds, assets, and information. As such all are required to protect and preserve company assets.

(vii) Employment & Labor Laws & Policies. The Company complies with all existing employment and labor laws and policies.

(viii) Disciplinary action. Disciplinary actions are meted only after due process. The Company has a Code of Conduct that serves as a guide for the employees’ behavior.

(ix) Whistle Blower. The Company has a whistle blower policy that provides an avenue for employees to report misconduct of fellow employees, including their superiors, while protecting the employee’s identity and welfare.

(x) Conflict Resolution. The Company provides a work environment that is conducive to friendly resolution of disagreement. Superiors should promote amicable settlement of conflicts.

All employees are provided a copy of the Code of Ethics as part of the pre-employment process. Employees are required to confirm in writing agreement and compliance with the Company’s Code of Ethics. The Company conducts regular orientation for new hires and re-orientation to old hires periodically.

A Business Ethics Committee (composed of Corporate HR, Corporate Controllership & Corporate Internal Audit) is formed to conduct investigation on non-compliances and recommend appropriate disciplinary actions.

Finally, all employees are encouraged to report any breaches of this Code through the Whistle Blower Policy of the Company.


RISK MANAGEMENTThe Company aims to identify, measure, analyze, monitor, and control all forms of risks that would affect the Company. These include:

(i) CNPF’s financial performance may be materially and adversely affected by fluctuations in prices or disruption in the supply of key raw materials.

Aside from actively monitoring raw material availability and prices, it has been CNPF’s policy to maintain a network of specialty ingredient suppliers that develop new ingredient substitutes to mitigate raw materials disruption of supply.

(ii) Actual or alleged contamination or deterioration of, or safety concerns about, CNPF’s food products or similar products produced by third parties could give rise to product liability claims and harm CNPF’s reputation.

CNPF invests in quality control systems, procedures and organization that span the entire supply chain to ensure product safety. All of CNPF’s manufacturing facilities comply with BFAD regulations and a significant majority of CNPF’s products are manufactured from factories that are compliant with HACCP regulations. HACCP is an internationally recognized system of food safety and contamination prevention.

(iii) CNPF relies on key suppliers for certain raw materials and the failure by such suppliers to adhere to and perform contractual obligations may adversely affect CNPF’s business and results of operations.

CNPF has a policy of maintaining a sufficient inventory of key materials. In addition, the Company maintains a network of suppliers for most critical materials to allow for sourcing flexibility.

(iv) CNPF is exposed to the credit risks of its customers, and delays or defaults in payment by its customers could have a material adverse effect on CNPF’s financial condition, results of operations and liquidity.

Before extending credit, CNPF conducts a systematic credit investigation of its customers. The Company also has a policy of requiring security or collateral, in the form of bank guarantees and letters of credit, from certain customers.

(v) Any infringement or failure to protect CNPF’s trademarks and proprietary rights could materially and adversely affect its business.

CNPF’s licensed brands are registered and kept current in all applicable jurisdictions. While instances of trademark infringement have been immaterial in the past, the Company will not

hesitate to prosecute any cases of trademark infringement in the future.

(vi) CNPF may be subject to labor unrest, slowdowns and increased wage costs.

CNPF manages these risks by adopting policies to ensure a healthy working environment for its employees that are at minimum in compliance with national and local laws and regulations.

(vii) CNPF’s existing insurance policies and self-insurance measures may not be sufficient to cover the full extent of any losses.

CNPF conducts a quarterly review to ensure that all insurable assets of the Company are adequately covered at the right valuation.

(viii) CNPF’s businesses and operations are substantially dependent upon key executives.

To mitigate the risk of departing key managers, the Company’s succession planning process has identified members of management that can temporarily assume additional responsibilities arising from departing managers until suitable successors can be recruited.

(ix) CNPF is effectively controlled by the Po family and their interests may differ from the interests of other minority shareholders. CNPF observes the provisions of the Corporation Code relating to interested directors and officers. Related Party Transactions are covered by individual agreements ensuring that they are arms-length and are disclosed regularly to all shareholders, the SEC, and the PSE. Any Related Party Transaction shall be reported to the RPT Committee, which shall review the material facts and either approve, disapprove or ratify such transactions.

The risks outlined above are not exhaustive and instead identify only those that are key and principal to the business. The Board and Management devote significant time and attention to those risks that have high impact and high probability.

ROLE OF STAKEHOLDERSCustomers

The Company’s success depends largely upon consumers’ perception of the quality of its products and stringent policies and procedures are in place to uphold customers’ welfare.

Our People

The Company promotes a culture of recognition and value for key and high performing employees who demonstrate excellence at the workplace.


Suppliers

The Company’s Supplier Accreditation Policy ensures that the Company’s suppliers and contractors are qualified to meet its commitments to the Company by letting them undergo accreditation and orientation on Company policies.

Environment

The Company supports and adheres to global regulations and management initiatives to ensure the long-term sustainability and conservation of our seafood resources. CNPF works closely with responsible Regional Fisheries Management Organizations, Government Agencies, environmental advocates, and peers in the industry to ensure compliance with global policies and consequently protect the ocean stocks for future generations.

Creditors & Investors

The Investor Relations group regularly communicates essential, accurate, and up-to-date information with the investment community and its creditors. The Investor Relations Office makes publicly available essential investor information primarily through Philippine Stock Exchange disclosures.

The Company also abides with its financial and legal commitments to creditors.

Community

The Company, through its Corporate Social Responsibility arm, gives back to the community via various programs such as educational scholarships, poverty alleviation, and helping the less privileged.

CORPORATE SOCIAL RESPONSIBILITY INITIATIVESThe Company’s mission extends to those who are most in need. In 2010, the Century Pacific Group formed the RSPo Foundation to give back to the community at large by providing aid to the poor and hungry children, the deserving student, and other charitable and humanitarian causes, most especially the protection of our environment.

The following are the initiatives undertaken by the Company through its corporate social responsibility arm, Century Pacific Group-RSPo Foundation Inc.

Initiative Beneficiary

KAIN PO Feeding Program

Flagship initiative of Century Pacific Group-RSPo Foundation

Public School Children & Communities nationwide

Century Pacific Group – Employees Children Scholarship Program

Century Pacific Food, Inc. Employees’ Children

Support to DepEd Kariton Klassroom Program in providing better access to basic education

Out-of-School Youths in Quezon City

Support to University of Asia & the Pacific’s TOLOSA WORK CAMP in Typhoon Yolanda rehabilitation initiatives

Students from Doña Brigida Elementary School

Support to PROJECT GIVE in Botolan, Zambales

Outreach activity and medical mission

Aeta Community of Botolan, Zambales

Support to RAMADAN – Feeding & Food Aid Program of IDCP Halal

Muslim Residents of Taguig City

Relief Donation for the affected families due to Typhoon Lawin

Affected families from North Luzon


RICARDO S. PO, SR., Chairman Emeritus of the Company (first elected October 28, 2013), is the founder and chairman of Century Pacific Food, Inc.(“CNPF”). A self-made entrepreneur, he started his professional career as a journalist, then moved on to advertising where he started and managed Cathprom Advertising Co., and later became a stock broker. He founded the Century Group in 1978 when he started CNPF and led its growth to become one of the largest canned food companies in the Philippines. Mr. Po, Sr. was awarded Masters in Business Administration by the University of Santo Tomas in 2006.

Board of Directors


2016 Annual Report 412016 Annual Report 41

CHRISTOPHER T. PO (first elected October 28, 2013) was re-elected Chairman, President, and Chief Executive Officer of the Company on June 30, 2016. He concurrently serves as Chief Executive Officer of CNPF, Chairman and Chief Executive Officer of the Century Pacific Group, and as the Chairman of Shakey’s Pizza Asia Ventures Inc. Prior to joining CNPF, he was Managing Director for Guggenheim Partners, a US financial services firm, where he was in charge of the firm’s Hong Kong office. Previously, he was a Management Consultant at McKinsey and Company, working with companies in the Asian region. He also worked as the Head of Corporate Planning for JG Summit Holdings, a Philippine-based conglomerate with interests in food, real estate, telecom, airlines, and retail. He graduated summa cum laude from Wharton School and College of Engineering of the University of Pennsylvania with dual degrees in Economics (finance concentration) and applied science (systems engineering) in 1991. He holds a Masters degree in Business Administration from the Harvard University Graduate School of Business Administration. Mr. Christopher Po is a member of the Board of Directors of Arthaland Corporation and is a member of the Board of Trustees of WWF-Philippines, as well as the Wharton Penn Alumni Club of the Philippines. He is also the President of the CPG-RSPo Foundation.

RICARDO GABRIEL T. PO (first elected October 28, 2013) was re-elected Vice Chairman of the Company on June 30, 2016. He served as the Executive Vice President and Chief Operating Officer of CNPF from 1990-2006 and became the Vice Chairman of its board of directors in 2006. He graduated magna cum laude from Boston University with a Bachelor of Science degree in Business Management in 1990. He also took the Executive Program (Owner-President Management Program) at Harvard Business School in 2000. He is also a Member of the Board of Directors and serves on the Executive Committee of Arthaland Corporation, a property developer listed on the PSE, and as the Vice Chairman of Shakey’s Pizza Asia Ventures Inc., the Philippines’ leading fast casual restaurant chain, also listed on the PSE.


TEODORO ALEXANDER T. PO (first elected October 28, 2013) was re-elected Vice Chairman, Executive Vice President, and Chief Operating Officer of the Company on June 30, 2016. He is also the Vice Chairman of Shakey’s Pizza Asia Ventures Inc. Since 1990, Mr. Teodoro Po has held various positions in CNPF. He graduated summa cum laude from Boston University with a Bachelor of Science degree in Manufacturing Engineering in 1990. He also completed the Executive Education Program (Owner/ President Management Program) at Harvard Business School.

LEONARDO ARTHUR T. PO (first elected October 28, 2013) was re-elected as a Director and Treasurer of the Company on June 30, 2016. He is concurrently Executive Vice President and Treasurer of Arthaland Corporation and Director and Treasurer of Shakey’s Pizza Asia Ventures Inc. Mr. Leonardo Po graduated magna cum laude from Boston University with a degree in Business Administration and has extensive and solid business development experience in the consumer marketing, finance and operations of fast moving consumer goods, food service, quick-service restaurants and real estate development.


2016 Annual Report 432016 Annual Report 43

JOHNIP G. CUA (first elected October 28, 2013) was re-elected as an Independent Director of the Company on June 30, 2016 and has extensive experience in the consumer goods and marketing industries. Mr. Cua served as the President and General Manager of Procter & Gamble Philippines from 1995-2006. Prior to that, Mr. Cua held a number of positions at Procter & Gamble, including Manager of Product Development and Project Supply at Procter & Gamble Taiwan and Category Manager of Procter & Gamble Philippines. Mr. Cua currently serves as the Chairman of Xavier School, Inc., as Chairman and President of Taibrews Corporation and as a member of the boards of directors of various corporations, including BDO Private Bank, PAL Holdings, Inc., MacroAsia Corporation and STI Education Systems Holdings, Inc. Among others. Mr. Cua has received a number of awards, including the Agora Awards’ Outstanding Achievement in Marketing Management (1998) and Procter & Gamble Global Marketing Organization’s Passionate Leadership Award (2006). Mr. Cua holds a Bachelor of Science degree in Chemical Engineering from the University of the Philippines.

FERNAN VICTOR P. LUKBAN (first elected October 28, 2013) was re-elected as an Independent Director of the Company on June 30, 2016. He is a well-recognized consultant in family business, strategy, entrepreneurship and governance. Mr. Lukban holds undergraduate degrees in Engineering (Mechanical and Industrial from De La Salle University, Manila) and graduate degrees in Economics (MSc in Industrial Economics from the Center for Research & Communication, now University of Asia & the Pacific) and in business (MBA from IESE, Barcelona, Spain). He spent much of his early professional years in academia, helping establish the University of Asia & the Pacific where he currently participates as a consultant, mentor and guest lecturer. He is a founding fellow of the Institute of Corporate Directors and an International Fellow of the Australian Institute of Company Directors. He also serves as a Director of Central Azucarera de Tarlac and as an Independent Director of Shakey’s Pizza Asia Ventures Inc.


MANUEL GONZALEZ (first elected October 28, 2013) was re-elected as Corporate Secretary and Compliance Officer of the Company on June 30, 2016. He is also a Senior Partner in the Martinez Vergara Gonzalez & Serrano Law Office since 2006 up to the present. Atty. Gonzalez was formerly a partner with the Picazo Buyco Tan Fider & Santos Law Office until 2006. Atty. Gonzalez has been involved in corporate practice and has extensive experience in securities, banking and finance law. Atty. Gonzalez serves as Director and Corporate Secretary to many corporations including companies in the Century Pacific Group since 1995, Nomura Securities Philippines since 2006 and ADP Philippines, Inc. since 2010. Atty. Gonzalez graduated with honors and obtained a Bachelor of Arts degree in Political Science and Economics from New York University and he has also received a Bachelor of Laws from the University of the Philippines, College of Law.

GWYNETH ONG was elected as Assistant Corporate Secretary of the Company on March 6, 2017. Atty. Ong is a Partner at Martinez Vergara Gonzalez and Serrano Law Office from 2015 up to the present, with extensive experience in a broad range of securities and capital market transactions. She graduated with a Bachelor of Science degree in Management major in Legal Management from the Ateneo de Manila University and a Bachelor of Laws degree from the University of the Philippines.

OSCAR POBRE (first elected October 28, 2013) was re-appointed as Chief Financial Officer of the Company on June 30, 2016. He is also the Company’s Chief Information Officer and Chief Risk Officer. He first joined CNPF as Director for Finance and Controllership Group in August 1994. Prior to CNPF, Mr. Pobre had 17 years of experience in finance, starting as Assistant Analyst with the Manila Electric Company. He progressed with his career to be Division Chief for Subsidiary Operations Comptrollership Group for Human Settlements Development Corporation, Finance Manager for Commander Drug Corporation, Budget & Cost Department Manager for Dole Philippines, Inc., Corporate Planning Manager for RFM Corporation, and Corporate Controller for Cosmos Bottling Corporation. Mr. Pobre graduated from the Ateneo de Manila University with a Bachelor of Science degree in Business Management and holds a Master in Business Management degree from the Asian Institute of Management.

GREGORY BANZON (first elected October 28, 2013) was re-appointed as the Vice President – General Manager (Marine, Branded Tuna Division) of the Company on June 30, 2016. He served three years as the General Manager and Business Unit Head at the Century Group. Prior to the Century Group, Mr. Banzon had 22 years of experience in various general management, marketing and sales roles including Vice President – Marketing of Johnson & Johnson ASEAN, Country General Manager of Johnson & Johnson Indonesia, and General Manager at RFM. Mr. Banzon graduated from De La Salle University with a Bachelors degree in Commerce (Marketing).

EDWIN RAYMOND AFRICA (first elected April 1, 2014) was re-appointed as Vice President – General Manager (Milk and Mixes) on June 30, 2016. Prior to joining the Company, Mr. Africa had 23 years of experience in various marketing, advertising and brand management roles at Pepsico – Malaysia/Singapore from 2006-2012, Pepsico Asia Pacific from 2004 to 2005, Proctor & Gamble Asia from 1998 to 2001, Proctor & Gamble Taiwan from 1996 to 1998 and Proctor & Gamble Philippines from 1991 to 1996. Mr. Africa graduated from Ateneo de Manila University in 1991 with a degree in Bachelor of Science in Management Engineering.

Executive Officers


REX AGARRADO (first elected October 28, 2013) was re-appointed as Vice President – General Manager (Meat) of the Company on June 30, 2016. He joined the Century Group in 1998 and served seven years as General Manager. Prior to the Century Group, Mr. Agarrado had 18 years of experience in various technical and manufacturing roles at San Miguel, RFM, Quaker and California Manufacturing Corporation. He also serves as Director of the Philippine Association of Meat Processors, Inc., for which he was previously President. Mr. Agarrado graduated from the University of Philippines Los Baños with a Bachelor of Science in Food Technology and he completed the Management Development Program from the Asian Institute of Management.

TEDDY KHO (first elected October 28, 2013) was re-appointed as Vice President – General Manager (Marine-Tuna OEM) of the Company on June 30, 2016. Prior to CNPF, Mr. Kho had 21 years of experience in various management, operations and technical roles including President and General Manager of San Miguel Foods Vietnam and Plant Manager of San Miguel Hoecheong. Mr. Kho graduated from Adamson University with a Bachelor of Science in Chemical Engineering and completed the Management Development Program from the Asian Institute of Management.

RONALD AGONCILLO (first elected October 28, 2013) was re-appointed as Vice President – Head of Sales, Trade Marketing and Demand Planning of the Company on June 30, 2016. He joined the Century Group in 2008 and served four years as Head of Sales Division. Prior to the Century Group, he had eight years of experience in sales management roles at National Sales and Cadbury. He also has experience in various customer development roles at Unilever Indonesia and Philippines and engineering and logistics roles at 3M, Shell and San Miguel. Mr. Agoncillo graduated from De La Salle University with a Bachelor of Science in Industrial Management Engineering.

CEZAR CRUZ, JR. (first elected October 28, 2013) ) was re-appointed as Vice President – General Manager (Marine, Sardines Division) of the Company on June 30, 2016. He joined the Century Group in 2006 and served 3 years as Business Development Manager for the Fishmeal Operation of the company and thereafter taking on the VP-General Manager position for the Sardine Division in 2010. Prior to the Century Group, he had 29 years of experience in various technical, operations and business development roles at San Miguel and RFM. He currently serves as the President of the Sardine Association of the Philippines. Mr. Cruz Jr. graduated from the University of the Philippines with a Bachelor of Science in Electrical Engineering and is a Licensed Professional Electrical Engineer.

NOEL TEMPONGKO, JR., (first elected January 21, 2016) was re-appointed as Vice President - General Manager (Integrated Coconut Operations) of the Company on June 30, 2016. He served as the General Manager of The Pacific Meat Company, Inc. (Refrigerated Meats business of Century Pacific Group) for two years. Prior to that, he had over 25 years of experience in various general management and sales management roles in both fast-moving consumer goods companies (The Purefoods-Hormel Company Inc., Frabelle Corporation, Magnolia, Inc.) and business-to-business companies such San Miguel Pure Foods - Great Food Solutions and San Miguel Packaging Products. He graduated with a B.S. Industrial Engineering degree from the University of the Philippines and is a recipient of the distinguished alumnus award from the UP Alumni Engineers. He also took up advanced management courses from the Asian Institute of Management and has MBA units from UP. He is currently a member of the Management Association of the Philippines. EMERSON VILLARANTE (first elected October 28, 2013) was re-appointed as Vice President – Human Resources and Corporate Affairs of the Company on June 30, 2016. He served seven years as Head of Human Resources and Organizational Development at the Century Group. Prior to the Century Group, he held various roles in human resources management including Vice President of Human Resources for Bechtel and Alan. Mr. Villarante graduated from the University of Santo Tomas with a Bachelor of Arts in Behavioral Science and holds a Masters in Management from the Asian Institute of Management.

GENEVIEVE YU was appointed as Compliance Officer of the Company on March 6, 2017. She served as the Assistant Corporate Secretary of the Company from June 30, 2015 until her current appointment. She graduated with a Bachelor of Arts degree in Political Science from the Ateneo de Manila University and has a Juris Doctor degree from the Ateneo de Manila University School of Law. Atty. Yu has been involved in the practice of corporate and intellectual property laws.


Management’s Discussion and Analysis

Consolidated Statement of Financial PositionAs of December 31, 2016, the Company’s total assets increased to Php19.93 billion compared to the Php16.78 billion at of end 2015. Property, plant and equipment, net registered at Php3.95 billion. Capital expenditures totalled to Php1.2 billion, consisting mainly of new equipment and additional plant capacity at the different manufacturing facilities of the Company.

Total equity grew to Php12.54 billion from Php10.35 billion at the end of 2015 coming mainly from the Company’s generated net income during the year. Book value per share (BVPS) increased by 15% to Php3.54 compared to the Php3.09 2015 BVPS adjusted for the 50% stock dividend declared mid-2016.

Total liabilities also increased to Php7.39 billion from Php6.44 billion, but with interest-bearing debts holding steady year-on-year at Php2.30 billion. All of the Company’s debt is denominated in Philippine pesos, with 29% revolving and 71% long term with fixed interest rates.

Debt-to-equity ratio is healthy at 0.59x. Total debt to equity net of cash is likewise stable at 0.53x. Interest-bearing debt over equity was a minimal 0.18x. The Company also remains very liquid with a current ratio of 2.26x, an improvement versus the 1.68x last year with the refinancing of some short-term debt.

Key Balance Sheet Items

in PHP mill 2015 2016 Change YoYTotal Assets 16,782 19,932 19%

Notes Payable – Current 2,250 671 -70%

Long-Term Loan 0 1,634 -

Total Equity 10,347 12,539 21%

BVPS (PHP/sh) 3.09 3.54 15%

Return on Equity (%) 22.8 23.2 +2%

Current Ratio (x) 1.68 2.26 35%

Net Gearing (x) 0.15 0.13 -13%

Key Profit & Loss Items

in PHP mill 2015 2016 Change YoYNet Revenues 23,325 28,288 21%

Operating Income 2,732 3,613 32%

Net Income 1,934 2,656 37%

Net Income (organic, excluding coconut acquisition)

1,934 2,420 25%

EPS (PHP/sh) 0.58 0.75 30%

Operating Margin (%) 11.7 12.8 +1.1pps

Net Income Margin (%) 8.3 9.4 +1.1pps

Net Income Margin (organic, excluding coconut acquisition)

8.3% 9.5% +1.2pps

Key Cash Flow Metrics in PHP mill 2015 2016 Change YoYOperating Cash Flow (698) 1,715 -

Ending Cash 722 696 -4%

Free Cash Flow (1,765) 545 -

Working Capital 5,655 6,753 19%

Cash Conversion Cycle 100 dd 103 dd +3 dd

Note: 2015 per share figures adjusted for 50% stock dividend declared in 2016


Management’s Discussion and Analysis

Consolidated Statements of Comprehensive IncomeConsolidated net revenue totalled Php28.29 billion which represents a 21% growth versus Php23.33 billion a year ago. Revenue performance can be attributed to the double-digit increase in the Company’s branded sales, a recovery in tuna OEM, and consolidation of the acquired coconut business.

In 2016, CNPF’s cost of sales, consisting mainly of raw material and packaging costs, grew by 15%, less than the % increase in revenues due to subdued raw material prices during most part of the year.

As a result, CNPF’s consolidated gross profit for the year amounted to Php8.61 billion versus Php6.20 billion in 2015. This represents a gross profit margin of 30.4% or an improvement of 3.9ppts over 26.6% in 2015.

CNPF’s total operating expense, which is comprised of selling, distribution, marketing and administrative expenses, reached Php5.22 billion for 2016. This represents an 18.4% cost-to-sales ratio, an increase versus 15.1% last year as strategic demand generation and brand-building initiatives contributed to higher opex relative to sales.

CNPF’s consolidated operating income for 2016 reached Php3.61 billion or a 12.8% operating income-to-sales ratio, versus last year’s Php2.73 billion or 11.7%.

This resulted to a consolidated net income after tax of Php2.66 billion, 37% higher than the Php1.93 billion reported in 2015. Basic and diluted earnings per share (EPS) also increased by 30% to Php0.75 per share compared to the Php0.58 2015 EPS adjusted for the 50% stock dividend declared in mid-2016.

Consolidated Statements of Cash FlowsCash as of end 2016 amounted to Php696 million. Operating activities registered a Php1.72 billion total inflow, with operating cash more than enough to cover changes in working capital. Net cash used in investing and financing activities amounted to Php1.26 billion and Php483 million, respectively.

The cash conversion cycle marginally increased to 103 days from 100 days a year ago. As of end 2016, accounts receivable, inventory, and payable days stood at 51, 140, and 88 respectively. Working capital increased to Php6.75 billion from Php5.66 billion due to elevated inventory levels to protect margins and manage costs. Improvements in receivable and payable days were primarily due to continued process enhancement and efficiencies.


STATEMENT OF MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL STATEMENTS

The Management of Century Pacific Food, Inc. (the “Company”) is responsible for the preparation and fair presentation of the financial statements including the schedules attached therein, for the years ended December 31, 2016, 2015, and 2014, in accordance with the prescribed financial reporting framework indicated therein, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is responsible for overseeing the Company’s financial reporting process. The Board of Directors reviews and approves the financial statements including the schedules attached therein, and submits the same to the stockholders.

Navarro Amper & Co., the independent auditor appointed by the stockholders, has audited the financial statements of the Company in accordance with Philippine Standards on Auditing, and in its report to the stockholders, has expressed its opinion on the fairness of presentation upon completion of such audit.

Christopher T. PoChairman of the Board/ Chief Executive Officer

Oscar A. PobreChief Financial Officer

Signed this 15th day of March, 2017.


INDEPENDENT AUDITORS’ REPORT

To the Stockholders and the Board of Directors

CENTURY PACIFIC FOOD, INC.

(A Subsidiary of Century Pacific Group, Inc.)

7TH Floor, Centerpoint Building, Julia Vargas St., Ortigas Center

Pasig City, Metro Manila

Opinion

We have audited the consolidated financial statements of Century Pacific Food, Inc. and Subsidiaries (the “Group”) which comprise the consolidated statements of financial position as at December 31, 2016 and 2015, and the consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the years ended December 31, 2016, 2015 and 2014, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Group as at December 31, 2016 and 2015, and of its financial performance, and cash flows for the years ended December 31, 2016, 2015 and 2014, in accordance with Philippine Financial Reporting Standards (PFRSs).

Basis for Opinion

We conducted our audits in accordance with Philippines Standards on Auditing (PSAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Ethics for Professional Accountants in the Philippines (Code of Ethics), together with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We identified the following key audit matters:

Key Audit Matters Our audit performed and responses thereonAcquisition of Cindena Resources Limited (CRL), Century (Shanghai) Trading Co. Ltd. (CST) and Century International (China) Co. Ltd. (CIC) On December 28, 2016, the Group acquired 100% interest in CRL, CST, CIC (collectively, “Century China Group of Companies”). The total consideration paid is P127.33 million.

In accordance with PFRS 3, Business Combinations, the Group must recognize identifiable assets acquired and liabilities assumed at fair value at acquisition dates. The difference of the purchase price over the determined fair values is to be recognized as either goodwill or gain on bargain purchase.

Accounting for these acquisitions involve Management’s judgment and estimations for the determination of the purchase price allocation, including the fair values of the assets acquired and liabilities assumed at acquisition date.

The Group’s disclosures of the business combination and the fair values of the assets acquired and liabilities assumed at acquisition date are set out in Notes 5, 6 and 13 to the consolidated financial statements.

Our audit procedures included:

• For each of the acquisitions, we performed detailed understanding and review of the substance of transactions by obtaining a thorough understanding of terms and conditions stipulated in the share purchase agreements, equity transfer agreements, minutes of board of directors meeting on the approval of the acquisitions and other relevant information;

• We reviewed the reconciliation of the purchase price to the proof of payment and purchase price allocation prepared by the Group’s Management;

• We evaluated the accounting treatment for the acquisitions used by the Management and tested all material accounting entries recorded in connection with the acquisitions to determine whether the financial accounting and reporting thereof were appropriate;

• We assessed the competency of the Group’s external appraiser in relation to the valuation report used by the Group’s management to determine the fair values of the assets acquired and liabilities assumed at acquisition date;

• We challenged the assumptions, methodologies, data and external valuation reports used by the Group to determine the fair values of the assets acquired and liabilities assumed at acquisition dates; and

• We reviewed the difference of the purchase price over the determined fair values and assessed the reasonableness of the recognized goodwill as prepared by the Management.

Based on our audit procedures, we noted that the purchase price allocation and accounting treatment for acquisitions are appropriate and have been performed in accordance with PFRS 3, Business Combinations, including the disclosures thereon. We also noted that Management’s assumptions, methodologies, data and external valuation report considered and applied in the purchase price allocation in arriving at the fair values of the assets acquired and liabilities assumed, including the fair values of identified intangible assets and the resulting goodwill, are considered reasonable.


Key Audit Matters Our audit performed and responses thereonGoodwill ImpairmentGoodwill has been recognized in the consolidated statements of financial position resulting from acquisitions of the Group. Under PFRS, the Group is required to annually test the goodwill for impairment. This annual impairment test was significant to our audit because the aggregate balance of goodwill amounting to P2.95 billion is material to the consolidated financial statements and represents 14.81% of the consolidated total assets of the Group as at December 31, 2016.

Under PFRS 3 and PAS 36, the Group is required to annually test the goodwill for impairment. Management conducts annual impairment test to assess the recoverability of the carrying values of goodwill. This annual impairment test involves a number of key sensitive judgments made in determining the inputs used in the assessment process.

The carrying values of goodwill as at December 31, 2016 are disclosed in Note 13 to the consolidated financial statements.

Our audit procedures were focused on performing a detailed understanding of the Management’s assessment process and challenging the key sensitive judgments applied as follows:

• We reviewed the Group’s position on the impairment of goodwill, including information about the Group’s project plan, business outlook, revenue potential and market penetration assessment of the subsidiaries to which the goodwill relates to; and

• We assessed and challenged the reasonableness of the Group’s position on the impairment of goodwill including consideration of various factors such as historical business performance, current year developments, current risk evaluations, business plans, outlook, revenue potential and other market considerations.

Based on our audit procedures, we have noted that the Group’s assessment and the judgments used are reasonable.

Key Audit Matters

Our audit performed and responses thereon

Inventory Valuation and Obsolescence

In accordance with PAS 2, Inventories, the Group is required to recognize inventories at the lower of cost and net realizable value. As at December 31, 2016, the Group held total inventories of P7.53 billion which represents 37.77% of its consolidated total assets.

The Group’s provisioning methodology for inventory losses is dependent on the type of inventory. For each type of inventory, the estimated provision for inventory loss is determined based on the results of physical inspection, Group management’s evaluation and patterned historical information.

This is a key audit matter as the Group is in a food manufacturing business and the inventories in various business segments require different judgments in determining inventory losses and write downs.

The Group’s disclosures regarding its inventories are set out in Notes 6 and 11 to the consolidated financial statements.

Our audit approach included both controls testing and substantive procedures as follows:

• We tested the design and implementation of controls and the operating effectiveness of controls associated with existence and conditions of inventories by attending a number of inventory counts throughout the year in all significant locations (including warehouses, depots, production plants and cold storage rooms);

• We obtained a detailed understanding of the Group’s inventory provisioning policy, with specific consideration given to aged inventories, damaged goods and slow moving items;

• We reviewed reasonableness of inventory provisioning with reference to historical information, inventory write-offs during the year in relation to stock loss or other inventory adjustments as prepared by Management;

• We tested the accuracy and completeness of aging of inventories; and

• We also evaluated and challenged management’s judgments applied in determining the values of provision for inventory losses.

Based on the results of our audit work, the provisions for inventory losses are within an acceptable range.


Information Other than the Consolidated Financial Statements and Auditors’ Report Thereon

Management is responsible for the other information. The other information comprises the information included in the Securities and Exchange Commission (SEC) Form 20-IS (Definitive Information Statement), SEC Form 17-A and Annual Report for the year ended December 31, 2016, but does not include the consolidated financial statements and our auditor’s report thereon. The SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and Annual Report for the year ended December 31, 2016 are expected to be available to us after the date of this auditors’ report.

Our opinion on the consolidated financial statements does not cover these other information and we do not express any form of assurance conclusion thereon.

In connection with our audits of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or with our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with PFRSs, and for such internal control as Management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, Management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with PSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with PSAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.

• Conclude on the appropriateness of Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.


From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Mr. Bonifacio F. Lumacang, Jr.

Navarro Amper & Co.

BOA Registration No. 0004, valid from December 4, 2015 to December 31, 2018

SEC Accreditation No. 0001-FR-4, issued on January 7, 2016; effective until January 6, 2019, Group A

TIN 005299331

By:

Bonifacio F. Lumacang, Jr.Partner

CPA License No. 0098090

SEC A.N. 0526-AR-3, issued on April 21, 2016; effective until April 21, 2019, Group A

TIN 170035681

BIR A.N. 08-002552-18-2015, issued on February 6, 2015; effective until February 5, 2018

PTR No. A-3264646, issued on January 5, 2017, Taguig City

Taguig City, Philippines

March 17, 2017

Navarro Amper & Co. has acted as CNPF’s external auditor since January 2014. Since then, CNPF has not had any material disagreements on accounting and financial disclosures with its current external auditor. The current audit partner for CNPF has served as such since January 2016.

Navarro Amper & Co. has neither shareholdings in CNPF nor any right, whether legally enforceable or not, to nominate persons or to subscribe for the securities of CNPF. It also does not receive any direct or indirect interest in CNPF or its securities (including options, warrants or rights thereto).

Audit fees for 2016 amounted to Php3,993,000.00 and no non-audit related fees were paid.


Consolidated Statements of Financial PositionDecember 31

2016 2015ASSETSCurrent AssetsCash and cash equivalents P695,627,006 P722,164,343Trade and other receivables – net 3,954,507,265 3,592,691,726Due from related parties 91,119,638 41,369,475Held-to-maturity investments 12,890,266 14,686,601Inventories – net 7,528,824,781 5,925,978,924Biological assets 34,817,782 31,429,135Prepayments and other current assets – net 439,785,766 218,683,647 Total Current Assets 12,757,572,504 10,547,003,851Non-current AssetsProperty, plant and equipment – net 3,945,425,348 3,133,942,196Intangible assets 3,053,757,483 2,955,325,199Deferred tax assets 118,001,892 81,725,977Held-to-maturity investments – net of current portion - 13,108,859Other non-current assets 57,435,661 50,842,437 Total Non-current Assets 7,174,620,384 6,234,944,668

P19,932,192,888 P16,781,948,519LIABILITIES AND EQUITYCurrent LiabilitiesTrade and other payables P4,729,866,256 P3,863,970,207Borrowings 670,500,000 2,250,000,000Income tax payable 148,631,288 146,533,363Due to related parties 89,994,184 13,979,192 Total Current Liabilities 5,638,991,728 6,274,482,762Non-Current Liabilities Borrowings – net of current portion 1,633,500,000 -Retirement benefit obligation 118,327,684 157,039,771Deferred tax liabilities 2,547,668 3,594,077 Total Non-current Liabilities 1,754,375,352 160,633,848

7,393,367,080 6,435,116,610EquityShare capital 3,541,028,895 2,360,685,933Share premium 4,911,986,439 4,911,986,439Share-based compensation reserve 5,262,360 5,262,360Other reserves 30,628,942 30,628,942Currency translation adjustment 34,922,860 48,506,727Retained earnings 4,014,996,312 2,989,761,508

12,538,825,808 10,346,831,909P19,932,192,888 P16,781,948,519


Consolidated Statements of Comprehensive IncomeFor the Years Ended December 31

2016 2015 2014Net Revenues P28,287,788,370 P23,324,528,579 P20,438,555,008Cost of Goods Sold 19,677,984,326 17,128,162,072 15,063,993,046Gross Profit 8,609,804,044 6,196,366,507 5,374,561,962Other Income 272,039,674 100,151,771 190,857,007

8,881,843,718 6,296,518,278 5,565,418,969Operating Expenses 5,217,647,358 3,529,030,226 3,272,303,364Other Expenses 51,334,489 35,942,100 39,579,720Finance Costs 77,427,650 1,158,333 15,287,944

5,346,409,497 3,566,130,659 3,327,171,028Profit Before Tax 3,535,434,221 2,730,387,619 2,238,247,941Income Tax Expense 879,838,159 796,712,841 646,657,589Profit for the Year 2,655,596,062 1,933,674,778 1,591,590,352Other Comprehensive Income (Loss)Item that will be reclassified subsequently to profit or loss Currency translation adjustments (13,583,867) 29,029,136 5,169,350Item that will not be reclassified subsequently to profit or loss Remeasurement gains (losses) on retirement benefit obligation – net of tax

22,118,897 (24,203,701) (64,363,876)

8,535,030 4,825,435 (59,194,526)Total Comprehensive income P2,664,131,092 P1,938,500,213 P1,532,395,826Basic and Diluted Earnings Per Share P0.7500 P0.8664 P0.7600


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Consolidated Statements of Cash Flows

For the Years Ended December 312016 2015 2014

Cash Flows from Operating ActivitiesProfit before tax P3,535,434,221 P2,730,387,619 P2,238,247,941

Adjustments for:

Depreciation 359,353,532 152,384,578 152,749,348

Doubtful accounts expense 94,097,956 5,587,422 30,307,633

Finance costs 77,427,650 1,158,333 15,287,944

Retirement benefit expense 34,255,249 57,822,016 18,082,852

Loss on inventory obsolescence 18,970,008 17,913,363 71,192,497

Loss on decline in value of inventories 6,841,777 3,715,224 -

Loss on impairment of input VAT 5,418,732 13,024,320 -

Loss (Gain) from sale of scrap – net (4,177,398) - -

Unrealized foreign exchange loss (gain) – net (5,081,326) 11,108,137 (453,092)

Loss (Gain) on disposal of property, plant and equipment – net

(5,211,839) 3,553,569 (309,965)

Interest income (5,854,099) (7,629,931) (9,165,276)

Reversal of allowance of inventory (6,183,465) - -

Writeoff of accruals (70,256,049) - -

Provisions - 7,848,982 -

Share-based compensation expense - 1,885,376 3,376,984

Loss on transfer of retirement benefit obligation - - 15,995,809

Operating cash flows before working capital changes 4,035,034,949 2,998,759,008 2,535,312,675

Decrease (Increase) in:

Trade and other receivables (313,388,493) (780,105,806) (1,560,162,076)

Due from related parties (49,750,163) 171,287,279 (903,510,354)

Inventories (1,547,872,103) (536,715,353) (3,663,378,540)

Biological assets (3,388,647) 6,049,054 (37,478,189)

Prepayments and other current assets - net (225,333,538) 1,076,670 24,566,061

Other noncurrent assets (6,593,224) 98,540,100 (78,780,545)

Increase (Decrease) in:

Trade and other payables 807,943,333 (404,642,243) 4,008,737,891

Due to related parties (20,959,272) (1,378,295,461) 500,522,724

Exchange differences on translating operating assets and liabilities

- (65,863,032) 1,547,465

Cash generated from operations 2,675,692,842 110,090,216 827,377,112

Contribution to the retirement fund (41,368,897) (30,621,903) (30,554,623)

Income tax paid (924,302,005) (783,033,128) (534,697,793)

Interest received 5,248,905 6,057,020 -

Net cash from (used in) operating activities 1,715,270,845 (697,507,795) 262,124,696


For the Years Ended December 312016 2015 2014

Cash Flows from Investing ActivitiesAcquisitions of subsidiaries (net of cash acquired) (11,176,770) (3,371,395,587) -

Acquisitions of property, plant and equiment (1,558,923,826) (1,067,965,095) (539,736,460)

Acquisitions of intangible assets (61,474,788) - -

Proceeds from sale of property, plant and equipment 357,931,434 364,478,128 4,886,800

Maturities (Acquisition) of HTM investments 14,300,000 151,410,000 (182,831,824)

Interest income received 605,194 2,825,759 11,330,709

Net cash used in investing activities (1,258,738,756) (3,920,646,795) (706,350,775)Cash Flows from Financing ActivitiesProceeds from issuance of share capital - 2,272,313,358 3,500,359,014

Proceeds from borrowings 1,544,000,000 2,250,000,000 -

Dividends paid (472,137,193) (446,204,321) -

Repayments of borrowings (1,490,000,000) - (2,214,600,002)

Finance costs paid (64,932,233) - (15,287,944)

Net cash from (used) in financing activities (483,069,426) 4,076,109,037 1,270,471,068Net Increase (Decrease) in Cash and Cash Equivalents (26,537,337) (542,045,553) 826,244,989Cash and Cash Equivalents, Beginning 722,164,343 1,264,209,896 437,964,907

Cash and Cash Equivalents, Ending P695,627,006 P722,164,343 P1,264,209,896

Consolidated Statements of Cash Flows (continued)

Disclaimer: The independent auditor’s report covers the Company’s full set of financial statements, including the notes which are not presented here. The Company’s complete set of financial statements, including the notes, are made available to all stockholders through the definitive information statement for the annual stockholders’ meeting on June 30, 2017. A copy of the full financial statements may likewise be downloaded through the Company’s website (www.centurypacific.com.ph).

CORPORATE OFFICES5F, 7F, 8F & 19F Centerpoint BuildingJulia Vargas corner Garnet RoadOrtigas Business Center, Pasig CityMetro Manila, Philippines 1605Tel: + (632) 633-8555www.centurypacific.com.ph

Head of Investor RelationsMs. Giovanna [email protected]

MARINE: TUNANational HighwayBrgy. Tambler, General Santos CitySouth Cotabato, Philippines 9500Tel: + (6383) 380-7461

MARINE: SARDINESPurok 1, Dumagsa, Talisayan, Zamboanga CityZamboanga del Norte, Philippines 7000Tel: + (6362) 991-8177

MEATLot 7, Blk 7 LIIP AvenueLaguna International Industrial ParkMamplasan, Biñan, Laguna, Philippines 4024 Tel: + (632) 520-9177

STOCK TRANSFER AGENTBDO – Trust and Investments Group15/F South Tower, BDO Corporate Center7899 Makati Avenue, Makati City, PhilippinesTel: + (632) [email protected]

MILK & MIXES32 Arturo Drive, BagumbayanTaguig City, Philippines 1607 Tel: + (632) 776-3331

COCONUTSNational HighwayBrgy. Tambler, General Santos CitySouth Cotabato, Philippines 9500Tel: + (6383) 552-1831

Contact Information


5F, 7F, 8F & 19F Centerpoint BuildingJulia Vargas corner Garnet Road

Ortigas Business Center, Pasig CityMetro Manila, Philippines 1605

Tel: + (632) 633-8555www.centurypacific.com.ph

Century Pacific Food Inc is committed to sustainable and responsible environmental practices. This 2016 annual report

is printed using 100% recycled eco-friendly paper.

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