Ginebra San Miguel Inc

Welcome to the combined nine-month YTD 2025 results analyst briefing. I am Ian, and I will be your moderator for today. A few reminders before we begin. Number one, questions will be entertained only at the end of the presentation and only via the Q&A and raise hand features. Number two, If you opt to use the raise hand feature at the end of the presentation, we will unmute your microphone and you may ask questions to the panel directly. Number three, questions sent through the chat box will not be entertained. Number four, please be reminded that this webinar is recorded. Allow me now to introduce our panelists for this afternoon. We are joined here today by Ms. Monica Ang Mercado, San Miguel Food and Beverage Incorporated CFO. Ms. Jessica Tenorio, VP and Head of Corporate Financial Planning and Investor Relations. Mr. Eric Bell Lim, Petron Corporation Investor Relations Head. Ms. Tina Garcia, SMFB Investor Relations Head. Also joining us on Zoom, we have Mr. Brian Yu Villanueva, SMC's Chief Finance Officer, Mr. Joseph Ann Pineda, SMC's Treasurer, Mr. Paul Calzon, San Miguel Global Power Holdings Corp. CFO. Mr. Ferdinand Constantino, Advisor to SMC. Ms. Tatush Palabyab, SMC Chief Sustainability Advisor. Mr. Erwin Hernandez, AVP and Head of Business Development, Project and Financial Planning of SMC Infrastructure. We'd also like to acknowledge the presence of other key executives of the group who will be joining us in this call. I now turn you over to Ms. Cheska Tenorio to discuss the SMC Group's financials and operational results.

Good afternoon and welcome to San Miguel Corporation's combined nine months here today 2025 results analyst briefing. We're pleased to announce with pride that the San Miguel Corporation Group has demonstrated strong profitability and a resilient performance during the period. Before we begin further with the financial results of the company, we would like to first highlight a few key developments which we will be discussing in detail throughout this presentation. As a macro backdrop, the Philippine economy in the third quarter of the year recorded a 4% GDP growth, slower than previous quarters. GDP decelerated amid governance concerns over infrastructure spending and slower domestic demand despite a cumulative 75% VIPS rate cuts by the BSP so far this year. While GDP growth slowed down, SMC exhibited resilience, recording strong year-on-year performance for the third quarter of the year, compared even to the first two quarters of the year. The SMC group maintained strong profitability despite recording lower revenues, as the group worked towards margin expansion through cost disciplines, reduced material costs, and operational efficiencies. These results underscore the group's ability to navigate market headwinds and other external pressures to deliver resilient performance. The food, hard liquor, power, and infrastructure businesses delivered the biggest improvements. During the period as well, SMC has earned recognition for its sustainability efforts. This is for both environmental stewardship and social impact. SMC has integrated ESG impact assessments into its capital expenditure review process and conducted physical climate risk evaluations of key facilities to ensure long-term business resilience. Alongside our sustainability initiatives, we continue to prioritize efficiency, financial discipline, and key strategic actions allowing us to maintain growth momentum amid external challenges. Equally important beyond business performance and value creation, the group's long-term focus continues to center on nation building, food and energy security, and driving sustainable development. We remain committed to supporting the country's long-term growth by advancing critical infrastructure projects and expanding our energy portfolio to meet the increasing needs of our communities and industries. So that's basically our executive summary. So let's now turn to the group's respective earnings performance.

On the slide, you'll see SMC's results.