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ANNEX ''C'' R.G. Manabat & Co The KPMG Center, 9/F 6787 AyalaAvenue, Makati City Philippines 1226 Telephone +63 (2) 885 7000 Fax +63 (2) 894 1985 lnternet www.kpmg.com.ph Email [email protected] REPORT OF INDEPENDENT AUDITORS ON SUPPLEMENTARY INFORMATION The Board of Directors and Stockholders San MiguelCorporation No. 40 San MiguelAvenue Mandaluyong City We have audited, in accordance with Philippine Standards on Auditing, the consolidated financial statements of San Miguel Corporation (the Company) and Subsidiaries (the Group) as at December 31,2017 and 2016 and for each of the three years in the period ended December 31 , 2017 , and have issued our report thereon dated March 15, 2018. Our audits were made for the purpose of forming an opinion on the consolidated financial statements of the Group taken as a whole. The supplementary information included in the following accompanying additional components is the responsibility of the Group's management. Map of the Conglomerate Schedule of Philippine Financial Reporting Standards and lnterpretations Supplementary Schedules of Annex 68-E This supplementary information is presented for purposes of complying with the Securities Regulation Code Rule 68, As Amended, and is not a required part of the consolidated financial statements. Such supplementary information has been subjected to the auditing procedures applied in the audits of the consolidated financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the consolidated financialstatements taken as a whole. R.G. MANABAT & CO. NOEL A. BALADIAN@ Partner CPA License No. 106f66 SEC Accreditation No. 1473-A, Group A, valid untilApril 30, 2018 Tax ldentifi cation No. ?2 3-804-97 2 BIR Accreditation No. 08-001 987-33-2017 lssued September 5,2017; valid untilSeptember 4,2020 PTR No.6615125MD lssued January 3, 2018 at MakatiCity March 15,2018 Makati City, Metro Manila 3$'i*[ffJ,xl"$:lStfPRlilS$,1li,YliH,l,ii'*1',X.*,,',,0,0 lc Amditatioo No. F-2017I01GR, valid untilAugusl26, 2020 R.G.Manabat&Co.,aPhilippinsparlneEhipandamemberlimoflheKPMGnetmrkofindependent 8SP-SdedodExtemalAudlto6,CstogoryA,validtorgyea.auditp€riod membgr fims afriliated with KPMG lntemational Cooperative ("KPMG lntemational.), a Swiss entity. Q017 to2010l z;L) HF uit, rgH i I I tt zd .9 I t 3 6S .9 o s $ de e o r(, o I I E -6 e B $ Z1 Ic u UJ u a E Ur) U g u fi : E p 9o o I & dz 2 B U I 3 I o J T E E $ I .g 5 I = = c E 2 o tr u t r-'a 3 6 ! $ c g E o 3 d E E $ ! ! o ! E tr ts e tr gI o - F z z o 0 E l! FH E F xa o (,(J d t wz o o o. o- o i,;)x d (Jo gZu9 d E J E 6 g ijo lu E 2 I ) 6 .9 ;o (9 .i o- dJ- I o t e II o ! E F o, F o z F ! o o ! e a 2 u I o 8' i H ! € E F o E o tr s I L d* e E o ET I E otr I a 2 B 9U U s -r3ol .s 60 =F(i vt E !5 l{ tr 6 = E i!> ! r 9* c o E --S c =5zQ o ta f fi6 q l. Subsidiaries 1. San Miguel Brewery lnc. subsidiaries also include lconic Beverages, lnc. and Brewery Properties lnc. and subsidiary. 2. San Miguel Brewing lnternational Ltd. subsidiaries include San Miguel Brewery Hong Kong Limited and subsidiaries, PT. Delta Djakarta Tbk. and subsidiary, San Miguel (Baoding) Brewery Company Limited, San Miguel Brewery Vietnam Limited, San Miguel Beer (Thailand) Limited and San Miguel Marketing (Thailand) Limited. 3. Ginebra San Miguel lnc. subsidiaries include Distileria Bago, lnc., East Pacific Star Bottlers Phils lnc., Ginebra San Miguel lnternational, Ltd., GSM lnternational Holdings Limited, Global Beverage Holdings Limited and Siam Holdings Limited. 4. San Miguel Pure Foods Company lnc. subsidiaries include San Miguel Foods, lnc. and subsidiary, San Miguel Mills, lnc. and subsidiaries, The Purefoods-Hormel Company, lnc., Magnolia, lnc. and subsidiaries, San Miguel Super Coffeemix Co., lnc., PT San Miguel Pure Foods lndonesia and San Miguel Pure Foods lnternational, Limited and subsidiary, San Miguel Pure Foods lnvestment (BVl) Limited and subsidiary, San Miguel Pure Foods (VN) Co., Ltd., formerly San Miguel Hormel (VN) Co., Ltd. 5. San Miguel Yamamura Packaging lnternational Limited subsidiaries include San Miguel Yamamura Phu Tho Packaging Company Limited, Zhaoqing San Miguel Yamamura Glass Company Limited, Foshan San Miguel Yamamura Packaging Company Limited, San Miguel Yamamura Packaging and Printing Sdn. Bhd., San Miguel Yamamura Woven Products Sdn. Bhd., Packaging Research Centre Sdn. Bhd., San Miguel Yamamura Plastic Films Sdn. Bhd., San Miguel Yamamura Australasia Pty Ltd and subsidiaries including SMYC Pty Ltd (formerly Cospak Pty Ltd) and subsidiary, SMYV Pty Ltd, SMYB Pty Ltd, SMYP Pty Ltd, Cospak Limited and SMYBB Pty Ltd, and San MiguelYamamura Glass (Vietnam) Limited and subsidiary. 6. SMC Global Power Holdings Corp. subsidiaries also include San Miguel Electric Corp., SMC PowerGen lnc. and subsidiary, SMC Power Generation Corp., Albay Power and Energy Corp. and Limay Premiere Power Corp. 7. Petron Corporation subsidiaries include Petron Marketing Corporation, Petron Freeport Corporation, Petrogen lnsurance Corporation, Overseas Ventures lnsurance Corporation Ltd., Limay Energen Corporation, New Ventures Realty Corporation and subsidiaries, Petron Singapore Trading Pte., Ltd., Petron Global Limited, Petron Oil & Gas lnternational Sdn. Bhd. and subsidiaries including Petron Fuel lnternational Sdn. Bhd., Petron Oil (M) Sdn. Bhd. and Petron Malaysia Refining & Marketing Bhd. (collectively Petron Malaysia), Petron Finance (Labuan) Limited and Petrochemical Asia (HK) Limited and subsidiaries. 8. San Miguel Holdings Corp. subsidiaries include Optimal lnfrastructure Development, lnc., ULCOM Company lnc., Terramino Holdings, lnc. and subsidiary, Alloy Manila Toll Expressways Inc., SMC Mass Rail Transit 7 lnc. and Luzon Clean Water Development Corporation. g. Atlantic Aurum lnvestments B.V. subsidiaries include Atlantic Aurum lnvestments Philippines Corporation and subsidiaries including Stage 3 Connector Tollways Holding Corporation and subsidiary, Citra Central Expressway Corp. and Citra Metro Manila Tollways Corporation and subsidiary, Skyway O&M Corp., MTD Manila Expressways lnc. and subsidiaries, Alloy Manila Toll Expressways lnc., Manila Toll Expressway Systems lnc. and South Luzon Tollway Corporation. 10. Other Assets and lnvestments also include SMC Stock Transfer Service Corporation, ArchEn Technologies lnc., SMITS, lnc. and subsidiaries, Anchor lnsurance Brokerage Corporation and Davana Heights Development Corporation. tt. Co-Subsidiarv 11. Clariden Holdings, lnc. subsidiaries include V.l.L. Mines, lncorporated, Asia-Alliance Mining Resources Corp., Prima Lumina Gold Mining Corp., Excelon Asia Holding Corporation, New Manila Properties, lnc. and Philnico Holdings Limited and subsidiaries including Pacific Nickel Philippines, lnc., Philnico lndustrial Corporation and Philnico Processing Corp. (collectively the Philnico Group). R.G. Manabat & Co The KPMG Center, 9/F 6787 AyalaAvenue, Makati City Philippines 1226 Telephone +63 (2) 885 7000 Fax +63 (2) 894 1985 lnternet www.kpmg.com.Ph Email [email protected] REPORT OF INDEPENDENT AUDITORS ON SU PPLEMENTARY INFORMATION The Board of Directors and Stockholders San MiguelCorporation No.40 San MiguelAvenue Mandaluyong City We have audited, in accordance with Philippine Standards on Auditing, the separate financial statements of San Miguel Corporation (the Company), which comprise the separate statements of financial position as at December 31 ,2017 and 2016, and the separate statements of comprehensive income, separate statements of changes in equity and separate statements of cash flows for the years then ended, and have issued our report thereon dated March 15,2018. Our audits were made for the purpose of forming an opinion on the separate flnancial statements of the Company taken as a whole. The supplementary information included in the Reconciliation of Retained Earnings Available for Dividend Declaration is the responsibility of the Company's management. This supplementary information is presented for purposes of complying with the Securities Regulaiion Code iule 68, As Amended, and is not a required part of the separate financial stalements. Such supplementary information has been subjected to the auditing procedures applied in the audits oi the sepaiate financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the separate financial statements taken as a whole. R.G. MANABAT & CO. NOEL A. BALADIANG Partner CPA License No. 106166- SEC Accreditatien No. 1473-A, Group A, valid untilApril 2018 Tax ldentification No. 223-844-972 No. 08:001 987 -33-2017 BIR Accreditation t 2018 lssued September 5, 2017 ;valid until September 4, 2O2O ll PTR No.6615125MD lssued January 3, 2018 at Makati City n I r0rSI L'l eL(iil A l( ltl\' l)tr"51i March 15,2018 Makati City, Metro Manila :Efiffiffifi i:1,$tf PHilSli lli,Ylifl ,',ii, ioi*-*,,',,0,0 lC A@ditation No. F-2017lolGR, valid untilAugust 26, 2020 penoo KPMG network of independent BsP - soleded ExtemalAudito6' csteoory A' valid for 3-vear audn R.G. Manabat & co a Philippine partnership and a member tim of the ' ('KPMG a Swiss entitv (2017 to 2019) memoer fims atRriiieJ *iiii'*FrrrC tnt"rafi;nat cooperativ€ lntemational"), SAN MIGUEL CORPORATION No.40 San Miguel Avenue, Mandaluyong City RECONCILIATION OF RETAINED EARNINGS FOR DIVIDEND DECLARATION (ln Millions) Retained Earnings, January 1,2017 P151,032 Adjustments: (see adjustments in previous yeals reconciliation) (75,2291 Retained earnings as adjusted, January 1,2017 75,803 Add: Net income actually