PSE Circular for Brokers No. 206-00

January 28, 2000 PSE CIRCULAR FOR BROKERS NO. 206-00 January 27, 2000 SMC EARNS P6.02 BILLION IN '99 In the regular San Miguel Corporation Board of Directors meeting on January 27, 2000, preliminary results for 1999 were discussed. The results indicated that for the year 1999. San Miguel Group registered a consolidated net income of P6.02 billion. Excluding one-off items in 1998, the recurring net income in 1999 is 82% higher than the previous year's P3.31 billion. Earnings before interest taxes, depreciation and amortization (EBITDA) reached P12.5 billion, 6% better than 1998. Earnings per share before one-off items is P2.67 against the 1998 level of P1.47. Operating income for 1999 reached P6.7 billion, a 63% increase over the previous year's P4.1 billion. Operating margins likewise increased by 70% from 1998's 6.14% to 10.41%. These improvements were driven by lower production costs, lower overhead expenses and the price increase in beer and liquor in the 2nd quarter. Consolidated net sales for 1999 amounted to P75.6 billion. This is slightly lower than that of 1998 due to the 56% decline in volume of the coconut oil business on account of the limited copra supply. Coconut oil revenues dropped from P4.5 billion in 1998 to P2.3 billion in 1999. cdll