DEL MONTE ANNUAL REPORT PACIFIC LIMITED FY2020 RING G SHA OOD H O Q M U E A M L I E T A Y L P S R O D U C E S H E E L R F U - T S L T A U B IC L R E G F A OO LE D AB SUSTAIN “Del Monte is a leader in the industry that cares GROWING QUALITY PRODUCE about the growers they work with.” Over a hundred years ago, Del Monte became Worzella and Sons, Inc one of the original plant-based companies dedicated to growing the highest quality produce. In the US, we have partnered with farming families for many generations, while in the Philippines, we have employees who have worked in the plantation for several generations as well. During the coronavirus pandemic, our growers continued to plant and harvest quality produce with utmost care from the farms. “Growers of Good” deliver health, wellness and nutrition to people’s homes, all the more important during these times. This is why our hardworking farmers continued to work among the frontliners during the lockdown. ENSURING SUSTAINABLE AGRICULTURAL PRACTICES Our quality produce starts with a planting material that is carefully cultivated and shared with our growers. Farmer know-how and expert care have been handed down and honed across generations. The majority of the produce we harvest are picked and packed within hours, locking in the freshness and nutrition as soon as possible. In the US, our growers have been farming fruits, vegetables and tomatoes for over a century, while in the Philippines, we have been cultivating pineapples for almost a hundred years, sustaining the productivity of our land through environmentally-friendly agricultural practices. The longevity of our productive farms is a testament to their sustainability. PRODUCING SHELF-STABLE PRODUCTS AMIDST THE LOCKDOWN While keeping stringent measures in place to protect the health and safety of our people, our Group continued to operate as an essential industry amidst the quarantine caused by the pandemic. Implementing our business continuity plan, our production facilities kept operating in order to meet surging consumer demand for long shelf-life and nutritious, culinary products as more people stayed at home. Our dedicated workforce were among the frontliners who continued working to make food available for people’s homes. PREPARING MEALS AT HOME Del Monte’s food products and popular recipes have been part of people’s meals for generations whether as a broth, a tomato culinary ingredient, a vegetable salad or side dish, a fruit baking ingredient, a fruit dessert or juice. The lockdown has made consumers stock their pantries with trusted brands like Del Monte, Contadina, S&W and College Inn which offer healthy, delicious, long shelf-life products, perfect companions for meal times at home as more people shelter in place. Amidst the coronavirus pandemic, we offer nutrition and help build people’s immunity. SHARING THE GOOD WITH OTHERS As good and responsible corporate citizens, we shared US$2 million worth of goods with Feeding America and various food banks in the US through our “Farm2Family” corporate giving programme in order to mitigate the hardships caused by the pandemic. In the Philippines, the Del Monte Foundation collaborated with over 220 organisations to provide healthy products to frontline workers, including healthcare workers in over 50 medical facilities, senior citizens, persons with disabilities and marginalised communities, including wage earners who lost their employment during the quarantine. As a food company, as “Growers of Good”, we recognise the importance of sharing the good with people in need, true to our vision – Nourishing Families. Enriching Lives. Every Day. CORPORATE PROFILE Dual listed on the Mainboards of The Group owns approximately the Singapore Exchange Securities 95% of a holding company that Trading Limited and the Philippine owns 50% of FieldFresh Foods Stock Exchange, Inc, Del Monte Private Limited in India (www. Pacific Limited (Bloomberg: DELM fieldfreshfoods.in). FieldFresh SP/ DELM PM), together with its markets Del Monte-branded subsidiaries (the “Group”), is a global packaged products in the domestic branded food and beverage company market and FieldFresh-branded that caters to today’s consumer fresh produce. The Group's partner needs for premium quality, healthy in FieldFresh India is the well- products. The Group innovates, respected Bharti Enterprises, which produces, markets and distributes its is one of the largest conglomerates products worldwide. in India. The Group is proud of its heritage DMPL’s USA subsidiary operates six brands - Del Monte, S&W, Contadina plants in the USA and two in Mexico, and College Inn – some of which while its Philippines subsidiary originated in the USA more than operates the world's largest fully- 100 years ago as premium quality integrated pineapple operation packaged food products. The with its 26,000-hectare pineapple Group has exclusive rights to plantation in the Philippines and a use the Del Monte trademarks factory that is about an hour’s drive for packaged products in the away. It also operates a frozen fruit United States, South America, the processing facility and a beverage Philippines, Indian subcontinent bottling plant in the Philippines. For more information, and Myanmar, while it owns S&W please scan QR Code to access DMPL’s website globally except for Australia and DMPL and its subsidiaries are not New Zealand. The Group owns affiliated with the other Del Monte Del Monte, Del Monte Quality and Shield in the Contadina and College Inn companies in the world, including Colour are principal registered trademarks of the Group for packaged food and beverage trademarks in various countries. Fresh Del Monte Produce Inc, Del products in the USA, South America, Philippines, Monte Canada, Del Monte Asia Pte Myanmar and Indian subcontinent territories. DMPL’s USA subsidiary, Del Ltd and these companies' affiliates. The Group owns the S&W trademarks worldwide except for Australia and New Monte Foods, Inc (DMFI) (www. Zealand. The Group’s other trademarks include, delmontefoods.com), owns other DMPL is 71%-owned by NutriAsia among other trademarks in various jurisdictions, Contadina, College Inn, Orchard Select, Fruit trademarks such as Orchard Select, Pacific Ltd and Bluebell Group Refreshers, Veggieful and Bubble Fruit in the Fruit Refreshers, Veggieful and Holdings Limited, which are USA, and Today’s, Fiesta, 202, Fit ‘n Right, Heart Smart, Bone Smart and Quick ‘n Easy in the Bubble Fruit while DMPL’s Philippine beneficially-owned by the Campos Philippines. The Group’s vision – Nourishing subsidiary, Del Monte Philippines, family of the Philippines. A subsidiary Families. Enriching Lives. Every Day. - is also Inc (www.delmontephil.com), has of the NutriAsia Group is the market registered as a trademark in the USA. the trademark rights to Del Monte, leader in the liquid condiments, Today’s, Fiesta, 202, Fit ‘n Right, Heart specialty sauces and cooking oil Smart, Bone Smart and Quick ‘n Easy market in the Philippines. in the Philippines. www.delmontepacific.com The Group sells packaged fruit, www.delmontefoods.com vegetable and tomato, sauces, www.delmonte.com condiments, pasta, broth, stock, www.swpremiumfood.com juices and frozen pineapple, under www.contadina.com various brands and also sells fresh www.collegeinn.com pineapples under the S&W brand. www.delmontephil.com www.lifegetsbetter.ph www.fieldfreshfoods.in 4 DEL MONTE PACIFIC LIMITED | ANNUAL REPORT FY2020 Growers of Good for healthier produce, healthier people and a healthier planet. Our products have been part of people’s meals at home for generations. Our plant-based, shelf-stable food comes from our quality produce sustainably grown in farms, providing health and wellness behind trusted brands. As a food company, we are addressing people’s nutritional needs. Nourishing Families. Enriching Lives. Every Day. CONTENTS 4 31 92 Corporate Profile USA Claims to Fame Investor Relations 6 32 96 Vision and Values Products Directors’ Statement 7 36 100 Strategy Asia Claims to Fame Independent Auditors’ Report 8 38 107 Key Brands and Brand Ownership Awards Financial Statements 9 42 267 130 Years Heritage Operating and Financial Review Statistics of Shareholdings 10 49 271 Five-Year Summary Quarterly Results Interested Person Transactions 11 57 IBC FY2020 Highlights Share Price and Calendar Corporate Information 12 58 Letter to Shareholders Business Outlook 16 60 Board of Directors Risk Management 22 66 Senior Management Sustainability 26 73 Innovation Corporate Governance DEL MONTE PACIFIC LIMITED | ANNUAL REPORT FY2020 5 OUR VISION Nourishing Families. Enriching Lives. Every Day. We nourish families by providing delicious food and beverages that make eating healthfully effortless – anytime and anywhere. We build brands with quality products that are perfectly wholesome and thoughtfully prepared. OUR CORE VALUES Commitment Excellence in Championing Healthy Ownership Innovation to Society and Everything Together Families with Integrity Environment We Do To champion We choose to grow We choose to We choose to We choose We choose to together is our healthy families. embody ownership innovate. We to make a be excellent in choice. Del Monte We strengthen with integrity. Del constantly rethink, commitment to everything we succeeds because family bonds of Monte is under explore, and society and the do. No matter we see ourselves as our consumers our care – we create to produce environment. We how large or one team. We each and enable our hold ourselves only the fresh, are responsible for small a task is, work to our unique employees to build accountable. We groundbreaking the big role we play we understand strengths and better lives for their see how our work and pioneering in safeguarding the value of play a part in the families. At the helps achieve Del ideas for our our world’s future. executing each group’s collective heart of who we Monte’s vision.