Century Pacific Food Inc 2016 Annual Report PDF

2016 Annual Report
New Ways to
Nourish and
Delight Everyone,
Everyday,
Everywhere
Table of Contents About our Brands
About Century Pacific Food, Inc. 1 Think Healthy, Think Century Tuna
Our Common Purpose 2
2016 At a Glance 4 Century Tuna is the leading canned tuna brand in the
Our Business 6 Philippines. It is your classic all-time, healthy meat, and a
Our Business Segments 8 delicious indulgence at the same time. It has Omega 3 DHA
Our Product Portfolio 10 that is good for the heart and mind. It is low in cholesterol and
Message from the Founder 12 has no preservatives.
President’s Report 16
Business Review
Strengthening Foothold in the Sarap at Sustansya, Pinagsama Na!
Philippines’ Shelf-Stable Markets 22
Passion to Produce World-Class Argentina, the number one brand in the canned meat market
Coconut Products 24 provides Filipino families with delicious and healthy products
Exploring New Channels, to enjoy. It has been in the market for more than 20 years now
Expanding Product Lineup 26 and continues to delight the entire family with products that
Sustainability Report 28 fit their lifestyles.
Shareholder Engagement 30
Stock Information 32
Corporate Governance 35 Let’s get together with Swift!
Board of Directors 40
Executive Officers 44 Swift is one of the most trusted brands in the Philippines
Management’s Discussion and Analysis 46 – known for its high quality and great tasting canned meat
Statement of Management’s Responsibility products that the whole family can enjoy and share together!
for Financial Statements 48
Independent Auditors’ Report 49
Financial Statements 54 Sarap and Sulit
Contact Information IBC
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.
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.
2016 Annual Report 1

Our Common
Purpose
Century 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 Individual Passion for Excellence Unity

We show respect for and We have the will to win, We put the team above
value all individuals, as we to do better, and to do division, function, and
set aside differences and the best. Our persistence personal interests. We
leverage on each other’s constantly raises the bar maximize our unified
strengths. We respect every and challenges status quo. strength by involving others,
individual’s commitments We are not satisfied with combining resources, and
and take personal mediocrity and work on consulting each one for his
accountability for delivering constant improvement or her expertise.
on our own. to achieve the highest
standards and “best in class”. ‘Malasakit’
Teamwork We are responsible not just
We have the mindset Humility for ourselves, but for others
of “we”, rather than “I”, We demonstrate openness as well. We act in a manner
sharing common ideals and by listening to others’ ideas, that manifests deep concern,
embracing common goals. including those that are care, and appreciation, at
As a team, we have the dissenting to our own. We the same time championing
confidence to accomplish actively seek feedback and the next generation of
results. As individuals, we know when to ask for help, leaders who will carry on
know when it is appropriate recognizing that failures these same purpose and
to lead and when to follow. are important learning values.
opportunities for us.
2 Century Pacific Food, Inc.

Recent Milestones
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
2017
by Asia Marketing Federation • 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

REVENUES NET INCOME NET INCOME
(in Php million) (in Php million)
MARGIN
P28,288
+14%
+21%
28,288
P2,656
+21%
+37%
2,656 9.4%
1,934
20,439 23,325 1,592
RETURN ON EQUITY
2014 2015 2016 2014 2015 2016 23.2%

ASSETS EQUITY
(in Php million) (in Php million)
OPERATING CASH
P19,932 P12,539 FLOW
+50%
16,782
+19% 19,932
+57%
+21%
10,347
12,539
P1.7B
11,189 6,580
NET GEARING
2014
REVENUE BY
2015 2016 2014
REVENUE BY
2015 2016
0.13x
SEGMENT GEOGRAPHY
75% 72% CASH DIVIDEND
P0.20
Branded Philippines
25% 28%
OEM Export

2016 At a Glance
Since 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 revenue expansion was driven by a growing CNPF saw overall profitability improve with
branded business and tuna OEM recovery a 39% rise in gross profits and a 32% increase
Total revenues grew by 21% to Php28.3 billion in operating income for the full-year 2016.
as our branded businesses maintained their This translated to gross and operating margins
consistent double-digit growth trajectories expanding by 387bps and 106bps, respectively.
given robust domestic consumption. In As a result, net income for 2016 grew by 37%
addition, we saw a recovery in demand for year-on-year to Php2.66 billion, equivalent to
original equipment manufacturer (OEM) tuna a 9.4% net income margin, and an expansion of
exports in the second half of 2016. Finally, the 110bps.
consolidation of the acquired coconut business
also provided a boost to our financials this year. A balance sheet ready for growth
Our asset and equity base have also increased to
Product diversification strategy Php19.9 billion and Php12.5 billion respectively,
We remain a predominantly Philippine-based following good earnings, acquisitions, and
company with an increased export presence capital expenditures during the year. At the
due mostly to our OEM businesses. Our OEM same time, we sustained our industry-leading
businesses account for 25% of sales, with the return on equity, while keeping gearing ratios
balance of 75% coming from branded. Within healthy to provide the financing flexibility
these segments, OEM has now expanded needed for our growth plans moving forward.
to include coconuts and branded has seen
diversification away from marine. Finally, our cash flows saw marked
improvement as we generated Php545 million in
Taking advantage of subdued input prices free cash flows for the year.
We saw favorable input cost trends for most of Operating cash flows turned positive in 2016, a
2016. Gains from better gross margins supported total of Php1.7 billion, which allowed us to fund
several brand-building and demand-generating capital expenditures totaling Php1.2 billion. This
activities, which were then complemented by also allowed us to pay a dividend of Php0.20 per
enhanced distribution and product availability. share for the second year in a row.

Our Business
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.
38
Number of
5
Number of
3
Number of Branded
18
Number of Brands
1
Years in Operation Business Segments Business Segments
#
2016 CORNED MEAT 2016 CANNED TUNA
MARKET SHARE MARKET SHARE
1
46% 84%
in Philippine canned tuna
#
18% 15%
15%
CNPF Player 2 Player 3 CNPF Player 2

Source: Nielsen Source: Nielsen in Philippine canned meat
271K 760K 66%

Number of Philippine Number of Philippine of all Philippine outlets -
58
Countries
Outlets Serviced by CNPF Outlets – Product Product Availability Global Distribution
Availability Network
Globally,
investing in a
worldwide sales
and distribution
infrastructure

We have dominant market This expanding product portfolio 271k outlets directly, with its
leadership in the shelf-stable, also provides diversification products available in 760k outlets
canned food market in the benefits against concentration risk in the country. This represents
Philippines and input price exposures. approximately 66% of all points of
CNPF dominates the canned sale domestically (source: Nielsen).
tuna and canned meat categories We have a strong focus and an
locally, which are in turn the established process for marketing Its exposure to multiple
largest subcategories of canned and product innovation channels and strong
food in the Philippines. CNPF has demonstrated strong relationships with various
innovative capabilities with customers allow it to maximize
Canned food, especially those an established track record of and optimize consumer reach.
with more affordable prices, is a introducing products that address
staple in Philippine households. different needs. Such innovations This sales network is also
These are convenient food not only ensure a robust pipeline supported by strategically located
items because no refrigeration of new and exciting products that production facilities that are
is required and they are either engage the market, but also help situated close to the sources of
ready-to-eat or need very little address cost concerns when input main raw materials.
preparation. Affordability, prices go up.
convenience, ease of distribution, Globally, CNPF has begun
and cultural affinity are key It is the Company’s strong investing in a worldwide sales
reasons as to why the Philippines research and development and distribution infrastructure
has the largest shelf-stable, canned capabilities which enable a steady that will also allow it to reach
food market in South East Asia. stream of product launches and consumers from all over the world.
help improve profitability.
Within this space, Century Finally, we are a trusted partner
Pacific’s brands are the brands of Through outstanding marketing for leading international
choice for the Filipino consumer. campaigns, the Company is able to customers
Its established reputation create with these products must- CNPF has long-standing
provides a strong platform to have and aspirational brands. relationships with large
grow categories and expand Brand recognition is enhanced international food manufacturers,
market shares through new through active and targeted initially just for tuna, but now for
products and line extensions. marketing and promotions. various coconut products as well.
Intuitive and appealing ad-
We have multiple brands campaigns employing well- The Company has developed a
and products catering to all known celebrities are able to world-renowned reputation in
consumers stand out and grab the attention the global community as reliable,
The Company maintains a broad of potential consumers. More consistent, and of high quality. Its
portfolio of products, brands, recently, capitalizing on the desire customers include market leaders
variants, and pack sizes that for healthier lifestyles has been an and international food companies
cater to all preferences and price important strategy for CNPF. in some of the most strictly
points. This enables it to capture regulated markets, a testament to
a larger share of consumers’ We have extensive market CNPF’s stringent product quality
stomach and wallet. penetration and distribution in and supply reliability processes.
the Philippines, and a growing
Varying price points also allow infrastructure globally
CNPF to reach both price- The Company operates and
conscious consumers as well as the manages one of the most extensive
upper-income markets that seek distribution networks across the
more premium options. Philippines. It currently services

Our Business Segments
MARINE MEAT
Canned tuna, canned Highly popular brands in
sardine, and other seafood- corned beef, luncheon meat,
based products that captivate and Vienna sausage that
the Filipino consumer offer delicious taste and
with their high quality, affordability
health, convenience, and
affordability Numerous variants and pack
sizes to cater to varying
Championing health and consumer tastes and price
wellness via flagship brand points
‘Century Tuna’
2016 REVENUE
CONTRIBUTION
37% 27%
2016 REVENUE IN PHP 10.6B 7.5B
MANUFACTURING General Santos & Laguna, Calabarzon

FACILITY Zamboanga City, Southern
Mindanao
BRANDS AND • Century Tuna • Argentina

PRODUCTS • Century Quality • Swift
• 555 • Shanghai
• Blue Bay • 555
• Fresca Tuna • WoW! Ulam
• Lucky 7 • Lucky 7
• Kamayan • Hunt’s
MILK AND MIXES TUNA OEM COCONUT
Condensed milk, evaporated Manufactures tuna products Integrated coconut producer
milk, and all-purpose cream for many of the leading of high value, organic-
that are basic household retail tuna brands around certified and conventional
necessities the world coconut products for both
export and domestic markets
On-going product A vital cog in overall
innovation in powdered business performance as Capitalizing on the global
drinking milk to help take excellence in cost efficiencies trend of organic, health, and
advantage of the imminent and compliance with wellness
growth opportunity in dairy stringent international food
regulatory standards boost
domestic competitiveness in
Marine as well
11% 15% 10%

3.1B 4.3B 2.8B
Taguig, Metro Manila General Santos, Southern General Santos, Southern

Mindanao Mindanao
• Birch Tree Full Cream • Frozen tuna loins • Aqua Coco

• Birch Tree Fortified • Pouched tuna • Coconut water
• Angel • Canned tuna • Desiccated coconut
• Kaffe de Oro • Virgin coconut oil
• Home Pride • Organic coconut flour

Our Product Portfolio
MARINE MEAT
FEATURED PRODUCTS
MARINE MEAT
• Kamayan Sauteed Shrimp Paste 500g • Argentina Bacon Norte 100g
• 555 Fried Sardines with Tausi 155g • Argentina Vienna Sausage 260g
• 555 Sardines in Tomato Sauce 155g and 425g • Shanghai Luncheon Meat 375g
• 555 Sardines (Hot) in Tomato Sauce 425g • Swift Premium Corned Beef 210g
• 555 Sardines Spanish Style 155g • Argentina Beef Loaf 170g
• Century Tuna Flakes in Vegetable Oil Lite 180g • Argentina Corned Beef 150g
• Century Tuna Chunks in Water 180g • Hunt’s Pork and Beans 230g
• Century Tuna Chili Corned Tuna 180g
• Century Tuna Hot and Spicy 155g
• 555 Tuna Afritada 155g

MILK COCONUT
CURRENT COMPANY
MILK PORTFOLIO
• Birch Tree Full Cream Milk 1.8kg
• Birch Tree Fortified Milk 300g and 33g in number of SKUs
• Angel Evaporated Liquid Milk 145mL and
410mL COCONUT, 3
MILK, 24
• Angel Sweetened Condensed Milk 380g
230
• Angel Kremdensada 410mL
COCONUT MEAT, 68
• Aqua Coco Coconut Water 330mL
MARINE, 135

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
I look forward to us quality products for the last
forty years.
providing Filipino From sardines, tuna, meat, and

now milk and coconut, new
families more great markets and categories have
always presented themselves
food products at to us. My firm belief is that
they will continue to do so
reasonable prices for especially as Filipinos’ incomes

rise and our abilities as a
company increase.
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 healthy food item, and now we continue to be the company
our countrymen’s love for our growing our presence in various with the food products and
products has also brought them other coconut products as well. brands of your choice.
outside of the Philippines, to
all corners of the world. This makes me proud to say Finally, to Divine Providence
that the manufacturing prowess who has brought all of us
We are now present in North and capability of the Filipino is here today and to whom we
America, the Middle East, truly world class. dedicate our mission, I am
China, and Europe. This is only forever grateful. There is good
the beginning as we pursue an I have always said that my reason for us to continue on
international growth strategy personal spirit and strong belief this road and it is a purpose
by investing in new systems in the value of perseverance and that I do not take lightly.
and infrastructures abroad. hard work are a fundamental
part of this company. To Life as a public company has
This will make it easier for our employees, managers, not been easy. But today, with
Filipinos, wherever they may and executives, it is your even more conviction than
be, to enjoy our products and perseverance and hard work three years ago, I say the best is
remind themselves of home. which brings this company’s yet to come.
united vision and mission to
We will also continue to serve life. Do not forget that it is This is just the beginning for
our various international you who have brought Century Century Pacific and we hope
customers as their high Pacific to where it is today. you continue on with us on
quality and reliable supplier our journey.
for the brands that they To our trade partners, long-
have built offshore. We have time suppliers, and other
built enough scale and global stakeholders, I continue to wish Sincerely,
competitiveness to participate for us the best of fortune as
in this worldwide arena. we grow in business together.
Remember, our success is yours
Three years ago, we were doing as well.
this just for tuna exports – a RICARDO S. PO SR.
legacy business which I myself To our loyal consumers, who Founder
started in 1978. make the choice day in and day
out to buy our offerings, may
Today, we have also emerged
as one of the Philippines’
largest exporters of coconut
water, taking advantage of the
international demand for this

President’s Report
Sustaining
Momentum
and Building
for Long-Term
Growth
NOTABLE ACHIEVEMENTS
• Consistently surpassed 10 to 15% annual
growth target since Initial Public Offering
in 2014
The last two years have seen • All three mainstay business divisions of
global upheavals in politics, Marine, Meat, and Milk delivered robust
finance, and commerce. results
Things we thought we would • Invested in new businesses and used
never see like Brexit, negative acquisitions to secure future options for
interest rates, and President growth
Trump have come to pass. The
rapid march of technology
has brought innovations like
self-driving cars, intelligent THE 3 M’s
robots, and 3D printing from
fiction to reality. It used to • Marine: Executed on key themes of health,
be that we preferred smaller convenience, and value
and more portable phones. • Meat: Continued with taste and
Now, I find my phone getting competiveness proposition, while making
heavier and larger and never inroads in the premium market
thought I’d be watching videos • Milk: Underpinned by innovation strategy
on my phone. My iPad has also to deliver mid-teens growth
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. ACQUISITIONS SINCE IPO
Here in the Philippines, change • Century Pacific Agricultural Ventures
has also arrived. Our country Inc. (2015) – Exposure to the fast growing,
saw a peaceful transition of global market for various coconut
products
power with a decisive mandate
• Kamayan for North America (2016) – An
given to President Duterte. The
iconic shrimp paste brand recognized by
new government immediately large US-based Filipino community
went to work - imposing law • Century China (2016) – New channel for
and order, challenging old products while leveraging on Century’s
alliances while forming new existing brand equity in China
ones, espousing policies that • Hunt’s for the Philippines (2017) – The
promote inclusive growth, market leader in Pork and Beans with a
and investing in much-needed 30-year history locally
infrastructure.

Even with the world in CNPF ended 2015 with
this constant state of flux, revenues of P23.32 billion and
I continue to hold my firm 2016 with a top line of P28.29
belief in the Philippines as an billion. These translated to
attractive place to invest and revenue growth of 14% and 21%
build our food business. Our for the years 2015 and 2016,
country benefits from a young respectively. Commodity price
population, a growing middle tailwinds and productivity
class, and a consumption-led initiatives also helped expand
economy that is relatively margins over the same period
insulated from global ruptures. resulting in after-tax profits of
P1.93 billion and P2.66 billion
In addition to OFW remittances or a growth of 21% and 37% for
and BPO revenues, our new 2015 and 2016, respectively.
government is also promising “a
golden era” of infrastructure and All three mainstay business
further efforts to boost tourism. divisions of Marine, Meat, and
Headlines are filled with plans Milk contributed in delivering
for roads, bridges, ports, and this performance. Marine, led
airports. The hospitality and by our brands such as Century,
gaming industries are producing 555, and Fresca executed
record results from increased on the same key marketing
Chinese tourist arrivals. themes of health, convenience,
and value. In Meat, the team
From a baseline of 6% to 7% continued with its taste
GDP growth, can these new and price competitiveness
economic drivers kick our proposition especially for the
economy into a higher gear? Argentina, Wow, and Lucky
7 brands. Swift continued to
We have consistently delivered make inroads into the premium
robust results end of the market. The Milk
With this backdrop, our division’s Angel and Birch Tree
Company strives to grow brands are underpinned by
double the country’s GDP a strategy of innovation and
growth or about 10 to 15% per value which have proven to be
year, year-on-year. I am pleased effective, delivering mid-teens
to report that our management growth in the last two years.
team has consistently delivered Our legacy tuna OEM business
results better than these targets meanwhile also benefitted from
for the past two years. global trends towards health

and convenience, benefiting The acquisition of the Kamayan GROWTH TARGET
from a market recovery in the brand in North America fits
latter part of 2016.
We are Investing In New

aptly this description. Kamayan
is an iconic brand recognized
by the large US-based Filipino
10 to 15%
Businesses community that is fairly sizable Revenues
Our team used acquisitions and possesses significant Net Income
as a way to expand and secure economic clout. Per Year
future options for growth. The
most significant acquisition to We also took control and
date was our coconut business consolidated into CNPF the
- Century Pacific Agricultural Century China Group of 2015 RESULTS
Ventures, Inc. This new Companies. We will leverage
addition to the portfolio gives on the existing equity of the • Revenues: Php23.33 b
our Company exposure to the Century brand in China to +14% Growth
fast growing market for healthy grow the existing business • Net Income: Php1.93b
and natural coconut products and create a channel for our +21% Growth
in the US, Europe, and other products into this massive 8.3% Net Margin
markets for items like coconut market.
water, organic virgin coconut
oil, desiccated coconut, Our most recent acquisition
coconut flour, and coconut was of the Hunt’s license for
cream - just to name a few. the Philippines. Hunt’s has a 30 2016 RESULTS
year history in the Philippines
This coconut business almost and is a market leader in Pork • Revenues: Php28.29b
doubled in size in 2016 with and Beans category. It also +21% Growth
attractive opportunities still to has a foothold in Tomato and • Net Income: Php2.66b
come in the years ahead. Spaghetti sauce. +37% Growth
9.4% Net Margin
We also undertook a number of I am excited by the potential
“bolt-on” acquisitions where we each of these acquisitions
acquired relatively smaller, bite- present. Plans are in place for
sized businesses in categories each of these businesses to
that are related or adjacent return multiples over their 2014 to 2016
to ours. We then integrated acquisition cost. The challenge
them into our supply chain, now is to execute. I hope to • Revenues:
sales network, and distribution be able to report positive +18%
Compounded annual growth rate
system resulting in synergies developments in future
updates. • Net Income:
and providing us growth
optionality. +29%
Compounded annual growth rate

Continuing to Balance like-minded NGOs. Since its
SOCIAL IMPACT Business With Social Impact inception, the foundation has
We continue to lean in to our served over 18 million meals
• Global board of trustees various social responsibility to more than 200 thousand
for the International and sustainability efforts. beneficiaries.
Seafood Sustainability Our Vice President-General
Foundation Manager for Tuna OEM, Looking On To The Future
• 4 million free meals Teddy Kho, has just joined Looking at 2017, we expect to be
served in 2016, a total of
the global board of trustees challenged by higher commodity
18 million free meals since
program’s inception
for the International Seafood prices and a weaker Philippine
Sustainability Foundation. This peso, putting pressure on our
will allow us to help shape long margins. Our 2016 results were
term global policy in seafood flattered by the bottoming of
conservation. commodity prices. We plan to
2017 OUTLOOK let margins normalize and give
Our investment in new cold back some of that windfall to
• Challenges from higher storage capacity in General ensure we remain competitive
commodity prices, Santos was also the site of and continue delivering value
pressure on margins our first foray into renewable to our consumers. Last year, we
• Ensuring competitiveness
energy, with the plant partially also benefitted from election-
and value proposition to
powered by solar panels. related boosts to consumption
the consumers
• Balancing revenues The initial results have been and a one-time bump from the
and profitability, still encouraging and there are plans full-year consolidation of our
targeting to deliver now to further scale this up. coconuts business.
positive earnings growth
• Continuing to look The centerpiece of our With these challenges in mind,
for opportunities with community efforts is still this year, we are aiming to strike
returns on equity at the the support given to the a balance between revenues and
current 20% level Century Pacific Group-RSPo profitability, still targeting to
• Strategic priorities to Foundation’s feeding program deliver positive earnings growth.
be centered around the which in 2016 served 4 million We also look forward to our
Philippine branded food
meals through numerous recent investments in current
market
partnerships with schools and and new businesses to continue

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
We are aiming to
at the current 20% level, or
at least the high teens. Our
strike a balance
strategic priorities remain
the same where I foresee the between revenues
and profitability, still
bulk of future investments
to still be centered around
the bedrock of our business -
the Philippine branded food
market.
targeting to deliver
In this environment positive earnings
of tectonic change, we
are grateful to you, our
shareholders, for your support,
growth.
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. PO
President

Business Review
Strengthening
Foothold in the
Philippines’
Shelf-Stable
Markets
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 To elevate the category from Tree as the acquired heritage
fundamentals and a young being just a canned fish product, brand in powdered milk and
and educated population, the Century Pacific educated Angel as the homemade flagship
Philippines’ economic growth consumers on the benefits of for canned milk.
in recent years has consistently eating tuna alongside regular
outperformed majority of its peers exercise and a healthy lifestyle. Innovation has been the key
throughout the world. 2016 saw This is highlighted in the bi- to success in this segment as
the transition of power to a new annual staging of the country’s exemplified by a canned milk
administration with a promise to biggest model search, the product that combines cream
sustain this positive momentum Century Tuna Superbods and condensed milk into one,
through a more proactive approach Contest, which has been on- driving growth in that category.
of increased infrastructure going since 2006. At the same time, Century
spending, new tax reforms, and Pacific has made in-roads in
inclusive growth plans. Banzon added, “Today, Century powdered milk via improved
Tuna is built on a brand equity of distribution and availability and
Low inflation and subdued living a healthy and sexy lifestyle sustained brand activation for
interest rates have also via the Superbod imagery.” the iconic Birch Tree brand.
supported an environment
which is conducive for In canned meats, the Company Truly, Century Pacific’s
consumer spending. was able to manage a cross- commitment to nourish and
section of brands catering to delight, its clear understanding of
It is in this space that Century premium, mid-income, and consumer wants and needs, and
Pacific operates its branded low-income segments through its capabilities to execute, have
food businesses, which sustained targeted marketing campaigns. helped the Company consistently
their double-digit growth Regional branding initiatives, achieve its growth targets.
rates while focusing primarily alongside production of Halal
on the Philippines. With variants, were also executed 2017 will be a more challenging
strong consumer sentiment, successfully to target consumers environment given rising costs
the Company saw expanding from all over the Philippines. and inflation. However, Century
category sizes among its main Pacific is optimistic that it can
product lines, and stable, if not The Argentina brand has rely on its powerhouse brands,
increasing share of these markets. maintained its strong reputation its scale, its manufacturing
With its flagship ‘Century Tuna’ for superior taste, quality, and capabilities, and a management
brand as a champion for health a good source of protein. The team with a track-record in
and wellness domestically, the WoW Ulam! brand on the delivering results to overcome
Company has also benefitted other hand caters specifically to the challenges that are in store in
from a growing demand for the low-income segment that the coming years.
affordably premium and healthy looks for quick, affordable, and
products brought about by complete ready-to-eat meals The Company is one of the
Filipinos’ rising per capita that can be partnered with rice. advocates of the Philippine
incomes. Finally, with Swift Premium, growth story which it believes
Century Pacific is poised to to continue to be healthy and
“It was just a platform of taste cater to the higher taste and robust. The fundamentals of
then. The health aspect came quality standards of a rapidly Century Pacific’s business
later and was an added layer rising Philippine middle and remain intact and it looks
to the message to help grow upper income class segments. forward to likewise riding on the
the brand,” says CNPF Vice county’s positive fundamentals.
President-General Manager for In milk, a twin branding
Tuna, Gregory Banzon. strategy is employed with Birch

Business Review
Passion to
Produce
World-Class
Coconut
Products

Consumers of today’s fast-paced CPAVI’s operations also fits • Organic coconut flour. High in
world are becoming increasingly into CNPF’s core businesses, fiber and gluten-free, coconut
conscious of the importance of complementing the existing flour comes from defatted dried
health and wellness. This global product portfolio by increasing coconut meat that is pulverized
awareness has led to the growing the combined company’s “share to very fine powder.
demand for products promoting of stomach” and leveraging on • Aqua Coco coconut water.
healthier lifestyles, especially those CNPF’s existing capabilities in the CPAVI’s own brand for 100%
that are made from coconuts. manufacture of low acid products. pure coconut water packed in
Tetra Prisma Pak. No added
In late 2015, Century Pacific Food Po added, “This new coconut sugar, potassium-rich and low
(CNPF) completed the acquisition business is a great addition calorie.
of a 100% interest in Century Pacific to Century Pacific’s roster of
Agricultural Ventures Inc (CPAVI), products and is another leg to It currently also has other coconut-
an integrated coconut producer of sustain and drive the company’s based products under development.
high-value organic certified and future growth.”
conventional products for both CPAVI’s integrated production
export and domestic markets. Its CPAVI first entered into coconut facility is located in the
primary products include organic- product manufacturing in 2013 Southernmost part of the
certified and conventional coconut initially as an original equipment Philippines, in General Santos
water, desiccated coconuts, organic manufacturer for retail packaged City, where it is in close proximity
virgin coconut oil, and organic coconut water and a supplier of to the coconut raw material. These
coconut flour. white copra to industrial users. manufacturing facilities and their
To fully utilize the tree of life corresponding quality systems
The acquisition of CPAVI by CNPF – coconuts – CPAVI has since are compliant and certified by
represented an exciting milestone expanded its product offerings to leading and reputable local and
for both companies. include: international agencies, including
• Desiccated coconuts. GMP, HACCP, BRC, Halal and
CPAVI has demonstrated Shredded, pared, granulated, Kosher.
consistent profitability over the and dehydrated white meat of
years and is covered by multi-year matured coconuts which have These, among others, are a
agreements with major customers. been packed to preserve their testament to CPAVI’s competent
It is also strategically located natural taste. Commonly used team of professionals and their
where coconut supply is abundant in baking as a filler, topping or uncompromising adherence to the
and sustainable. This in turn is in ingredient. highest standards. Consistent as
line with CNPF’s long-term goal • Organic virgin coconut oil. well with Century Pacific’s vision of
of cementing itself as a leading Using expeller-press process, nourishing and delighting everyone,
player in growing food markets. virgin coconut oil products everyday, everywhere, CPAVI
Global food companies have seen have a translucent color and remains committed to continuous
an increased appetite to search for mild coconut aroma and process, quality, and manufacturing
similar acquisition targets in this taste. Can be consumed as improvements in this space as it
higher growth, health-conscious, food supplement, for cooking, looks forward to producing the best
and organic product categories. baking, and can also be coconut products in the world.
applied topically.
“The global trend towards healthy
and organic coconut products is Significant CPAVI Milestones
rapidly increasing in developed
• September 2012: Contract signing with a global leader in
economies like the US and Europe.
This is an area where the Philippine branded coconut water
industry has an advantage and • July to September 2013: Commercial production and first
can be globally competitive, with export shipment of coconut water
the Philippines as one of the top • May 2015: Commissioning and start-up of desiccated
exporters of coconut products
worldwide,” said CNPF President
coconut and virgin coconut oil plant
Christopher Po. • Dec 2015: Closing of acquisition by CNPF for Php4.5
billion

Business Review
Exploring
New Channels,
Expanding
Product Lineup
Staying true to its commitment and Hunt’s in Pork & Beans Selected offshore advertising is
to nourish and delight are both welcome additions also being made.
everyone, everyday, everywhere, to the Company’s roster of
Century Pacific has embarked household names. The Argentina brand in
on a journey towards becoming particular has made in-roads in
a truly global Filipino food These accretive acquisitions are the international space, made
company. The past few years also opportunities to extract a stronger by a network of toll
saw the Company expand its number of potential synergies. manufacturers in the U.S. A
footprint, bringing its products These include synergies in the global sourcing strategy has
closer to Filipinos wherever in supply chain, distribution, enabled Century Pacific to
the world they may be. manufacturing, and marketing. effectively roll out products in
Century Pacific also looks different countries, passing the
Today, the Company’s brands forward to leveraging on the rigid regulatory requirements
are made available in 58 track record and category of each foreign market.
countries globally. This has been leadership that have been built
made possible by strengthened for these brands both locally Leveraging on existing brand
sales and distribution in key and abroad. equity and sales infrastructure
markets globally. in China
Breaking Country Barriers From its humble beginnings
Similarly, Century Pacific has Century Pacific has been in the Philippines where it has
also focused on expanding its successfully marketing its key redefined and reshaped the
product line-up with entries brands in North America, canned tuna market, flagship
into new categories using Middle East and Europe. brand Century Tuna is now
brands that resonate strongly Packaging has been specifically among the leading brands
with Filipino consumers. redesigned for products in China, Vietnam, and the
Kamayan in shrimp paste destined for global markets. Middle East. In 2016, Century

Pacific further strengthened This heritage Filipino brand trademark which has a long
this foothold via the acquisition has established a presence in heritage that spans more than
of the group of entities that the United States since first 100 years globally.
currently distribute Century entering the market in the
Tuna in China. 1980’s. The brand is currently Hunt’s entered the
being sold in leading Asian Philippines in 1984, initially
Since its entry into China food stores across the West with a one-product strategy
during the early 1990’s, Century and East coast, catering through the launch of its
Tuna has grown its equity primarily to the large Filipino iconic Pork & Beans product.
to become the number one communities there. Today, Hunt’s maintains an
retail canned tuna brand in expanded portfolio which
the country. With this track Another welcome addition to includes tomato-based
record spanning more than Century Pacific’s expanding spaghetti sauce, tomato
20 years, the Century China product portfolio is Hunt’s, sauce, and marinade sauce.
Group of Companies have built one of the world’s foremost
solid relationships with major leaders in the field of tomato- “Hunt’s was the first joint
retailers across the key cities of based products. In May 2017, venture brand of URC in
a market with more than one the Company announced the partnership with ConAgra and
billion inhabitants. acquisition of the Philippine together we have built a strong
license for this iconic name, grocery category in pork &
Full control over these which is the country’s number beans and sauces,” said URC’s
companies provides exciting one Pork & Beans brand with President and Chief Executive
opportunities with China’s an 86% market share locally Officer Lance Gokongwei.
canned food market estimated (source: Nielsen).
to be growing double-digits He added, “We have recently
annually. Century Pacific, Under the deal, the Company conducted a strategic review
with its existing line-up of purchased the rights to of our portfolio and have
other brands and canned food manufacture, sell, and shifted our focus to our core
products, also anticipates the distribute Hunt’s branded categories, namely snackfoods
distribution of these through products in the Philippines and beverages, which are geared
established sales network. from Hunt-Universal Robina towards convenience and on-
Corporation, a 50-50 joint the-go occasions. Given this
Entering New Products venture between locally listed shift, URC and ConAgra have
Categories Universal Robina Corporation decided to spin off Hunt’s to
Joining Century Pacific’s (URC) and ConAgra Foods Century Pacific as we believe
lineup of powerhouse brands (ConAgra). that their strength in the
is Kamayan, one of the top grocery category can further
brands in the U.S. for shrimp ConAgra, one of North add value and take the brand
paste – a popular condiment America’s leading packaged to new levels of growth in the
in Philippine cuisine, locally food companies, will years to come.”
known as bagoong. continue to own the Hunt’s

Sustainability
Report
Century Pacific remains a committed member of global initiatives that
address sustainability issues, particularly those involving tuna supply.
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/).
Our Other Partners

Western and Central Pacific Fisheries Bureau of Fisheries and Aquatic Resources Earth Island Institute/Dolphin Safe Tuna
Commission Government Agency responsible Earth Island Institute has been a hub
Seeks to address problems in the for the development, improvement, for grassroots campaigns dedicated
management of high seas fisheries management and conversation of to conserving, preserving, and
resulting from: the Philippines' fisheries and aquatic restoring the ecosystems on which our
• unregulated fishing resources civilization depends.
• over capitalization
• excessive fleet capacity Marine Stewardship Council World Wildlife Fund
• vessel re-flagging to escape • International non-profit • The world's leading conservation
controls organization established to address organization for more than 50
• insufficiently selective gear the problem of unsustainable years
• unreliable databases fishing and safeguard seafood • Works in 100 countries and is
• insufficient multilateral supplies for the future. supported by 1.2million members
cooperation • Works with scientists, fisheries, in the United States and close to
seafood producers and brands to 5million members globally.
promote sustainable fishing and • Combines global reach with a
safeguard seafood supplies for the foundation in science
future. • 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 Grade

Tuna Regional Fisheries All purchases must be from vessels listed on the authorized vessel Fully compliant
Management Organizations record of the RFMO governing the ocean area in which the tuna
(RFMO) Authorized Vessel was caught, at the time of the fishing trip, so long as the vessel is of
Record a size subject to listing in the RFMO authorized vessel record.
RFMO Participation All purchases must be from vessels flagged to a member or Fully compliant
cooperating non-member of RFMO relevant to fishing area.
Product Traceability Demonstrate ability to trace products from can code or sales Fully compliant
invoice to vessel and trip
Quarterly Data Submission Send information to RFMO scientific bodies for each quarter by Fully compliant
to RFMO the last day of the following calendar quarter
Shark Finning Policy Establish and publish policy prohibiting shark finning Fully compliant
Prohibition of Transactions Refrain from transactions with vessels that have shark finned Fully compliant
with Shark Finning Vessels within two years of the product purchase date
Prohibition of Transactions No transactions with companies that do not have a public policy Fully compliant
with Companies without a prohibiting shark finning
Public Policy
Large-scale Pelagic Driftnets No transactions with vessels using large-scale pelagic driftnets Fully compliant
Full Retention of Tunas All purse seine caught tuna retained onboard, except those unfit Fully compliant
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.
Skippers Best Practices Unless exempt, skipper has attended an ISSF Skippers Workshop Fully compliant
in person, has viewed the Skippers Workshop video online, or has
reviewed the Skippers Guidebook.
Unique VesseI Identifies All purchases must be from vessels with an IMO-UVI number if Fully compliant
(UVI)- International the vessel is capable of being registered by IMO
Maritime Organization
(IMO)
Purse Seine Unique Vessel All purse seine vessels with which the company transacts in tuna, Fully compliant
Identifiers and which are not able to receive an IMO UVI NUMBER, must
have a TUVI issued by CLAV or ISSF.
Observer Coverage Evidence of 100% observer coverage (human or electronic) on Fully compliant
large-scale purse seine vessels unless exempt or prevented by force
majeure.
Transhipment No transactions in tuna where transportation included Fully compliant
transhipment, except when exempt.
Illegal, Unreported, and No transactions with vessels on any tuna RFMO IUU vessel list. Fully compliant
Unregulated (IUU) Fishing
IUU Product Response No IUU purchases. If IUU found, company must withdraw these Fully compliant
products from the market place.
Transaction Ban for Large Demonstrate that all purchases from large-scale purse seine vessels Fully compliant
Scale Purse Seine Vessels not are from vessels actively fishing for tuna as of December 31, 2012,
Actively Fishing for Tuna as and listed on the ISSF Record of Large-Scale Purse Seine Vessels.
of 12/31/2012
Purchases from ProActive For fishing trips beginning on or after January 1, 2016, source Fully compliant
Vessel Register (PVR) 100%of skipjack, yellowfin, and bigeye tuna caught by large-scale
Vessels purse seine vessels from vessels registered in the PVR

Shareholder
Engagement
Century Pacific
creates long-term
value by establishing
strong and sustainable
relationships with our
shareholders.

Why we engage? How we engage? Stock Highlights
The objective of our Investor • One-on-one meetings with Since its initial listing on the
Relations team is to build a investors, bankers, and Philippine Stock Exchange in
full and fair valuation of the creditors May 6, 2014, CNPF’s market
Company’s stock. It aims to • Onshore and offshore investor capitalization has more than
understand and respond to conferences doubled as of May 2017. From
evolving market expectations, • Conference calls on quarterly end 2015, market capitalization
working closely with investors to financial results grew by approximately 50% to
reinforce and build on business’ • Regular engagement with $1.2 billion in May 2017 from $0.8
fundamentals. At the same time, brokers and analysts billion in December 2015.
the team supports the Company’s • Non-deal roadshows to key
overall strategic directions by financial market centres Liquidity has likewise improved,
ensuring access to a wide array • Press releases with average value traded
of capital market instruments • Selected manufacturing site quadrupling to $0.9 million
and using information flow as an visits during the first five months of
opportunity to obtain new ideas • Regulatory and formal 2017 from $0.2 million in 2015.
and identify global best practices. reporting requirements
• Use of corporate website
29 8 11 2
Investor Conferences Manufacturing Site Visits Number of Active Non Deal Roadshows
2015 and 2016 2015 and 2016 Sell-Side Coverage 2015 and 2016
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.

Stock
Information
Stock Exchange Beneficial ownership of substantial stockholders
Century Pacific Food Inc. is listed on the as of the same date is as follows:
Philippine Stock Exchange’s (PSE) main board • Century Pacific Group – 68.7%
with the ticker symbol “CNPF”. • Arran Investment, an affiliate of Singapore
sovereign wealth fund GIC – 10.4%
Annual Stockholders’ Meeting
The Company’s annual stockholders’ meeting is Individual Po family members own significant
held every 30th of June. indirect stakes in the Company through Century
Pacific Group.
Share Capital
CNPF’s authorised capital as of end 2016 was Public Float
Php6 billion consisting of 6 billion ordinary The Company’s public float as of December 31,
shares with a par value of Php1.00. The number 2016 was 20.9%.
of issued, outstanding, and listed shares as of the
same period was 3,541,028,895. Dividend History
The Company declared cash dividends last June
Based on the closing price of Php16.18, 30, 2015 in the amount of Php0.20 per share,
the Company’s market capitalization was consisting of a regular dividend of Php0.10 and
Php57,293,847,521.10 as of December 31, 2016. a special dividend of Php0.10. The total payout
represented 28% of previous year’s net income.
Ownership Information
The top 3 shareholders on record as of end 2016 A cash dividend declaration was made again
are as follows: last June 15, 2016 in the amount of Php0.20 per
• Century Pacific Group, a privately held share, representing as well a regular dividend of
holding company, wholly owned by the Po Php0.10 and a special dividend of Php0.10. The
Family – 63.0% total payout represented 24% of previous year’s
• PCD Nominee (Non-Filipino) – 21.7% net income.
• PCD Nominee (Filipino) – 15.3%
Finally, on June 3, 2016, the Company declared a
50% stock dividend issuing half a share for every
one share held.

Other Stock Issuances
Apart from the stock dividend above, a total of
4,056,100 common shares were issued pursuant
P17.70
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

Stock Price as of June 2, 2017
under the current ESPP, a total of 4,213,145
93%
shares remain unissued and have yet to be
subscribed to by the Company’s employees.
Information Disclosures
CNPF strictly follows the requirements
imposed by Philippine Securities and Exchange Return since IPO
Commission, as well as rules for companies Adjusted for 50% stock dividend
traded on the PSE, in its information disclosure
25%
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 52-Week Return
information about Century Pacific are available Adjusted for 50% stock dividend
on these sites:
• www.edge.pse.com.ph/companyPage/
stockData.do?cmpy_id=652
• www.centurypacific.com.ph
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
Governance
As 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).
BOARD MATTERS Composition

The Board of Directors (Board) is primarily responsible • 7 directors (3 executive, 2 non-executive, and 2
for the governance of the Company and its compliance independent) with diverse backgrounds and work
with the principles of good corporate governance. experience
It is the duty of the Board to promote the rights
of stockholders, to be transparent and fair in said • Ricardo S. Po, Sr. is the father of Ricardo Gabriel T.
promotion, and to minimize costs and administrative Po, Christopher T. Po, Teodoro Alexander T. Po and
impediments to the stockholders’ meaningful Leonardo Arthur T. Po.
participation.
• None of the independent directors own more than
The Board also ensures that independent views and .01% of the Company’s capital stock
perspectives are taken into account in its decision-
making process. The Board consists of both executive • Although the roles of Chairman of the Board and
and non-executive directors (which include independent CEO/President are held by the same person, the
directors), so no one can dominate the decision-making Board ensures independent views and perspectives
process. are taken into account in its decision making
process. Also, Fernan Victor P. Lukban has been
It is the Board’s primary purpose to foster the long- elected as Lead Independent Director to lead the
term success of the Company and secure its sustainable Board in case of conflict of interests.
competitiveness and profitability, in the best interest of
the Company, its shareholders, and other stakeholders.
Title and Type Name Date of Most No. of Years Served Direct or Indirect Attendance to 2016
Recent Election as of end 2016 Ownership in Board Meetings
Company as of end
2016
Chairman Emeritus Ricardo S. Po, Sr. June 30, 2016 3.5 years nil 100%
(non-executive)
Chairman (executive) Christopher T. Po June 30, 2016 3.5 years 22.8% 100%
Co-Vice Chairman Ricardo Gabriel T. Po June 30, 2016 3.5 years nil 100%
(non-executive)
Co-Vice Chairman Teodoro Alexander T. Po June 30, 2016 3.5 years 22.8% 100%
(executive)
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 COMMITTEES Related Party Transaction (RPT) Committee
Corporate Governance Committee The RPT Committee is tasked with reviewing all
material related party transactions of the Company
The Corporate Governance Committee oversees the and ensures that appropriate disclosure is made, and/
implementation of the corporate governance framework or information is provided to regulating and supervising
and periodically reviews the framework to ensure that authorities relating to the company’s RPT exposures,
it remains appropriate in light of material changes to and policies on conflicts of interest or potential conflicts
of interest.
the corporation’s size, complexity and business strategy,
as well as its business and regulatory environments. It Audit Committee
also determines the nomination and election process
for the Company’s directors and shall establish a formal The Audit Committee is responsible for assisting its
and transparent procedure to develop a policy for Board in its fiduciary responsibilities by providing an
determining the remuneration of directors and officers. independent and objective assurance to its management
and shareholders of the continuous improvement of
Board Risk Oversight Committee its risk management systems, business operations, and
proper safeguarding and use of its resources and assets.
The Board Risk Oversight Committee is responsible
for the oversight of the Company’s Enterprise Risk It is composed of 3 non-executive directors, the
Management system to ensure its functionality majority of whom, including the Chairman, are
and effectiveness. It provides oversight over independent. All members also have the relevant
Management’s activities in managing credit, market, background, knowledge and skills in the areas of
liquidity, operational, legal and other risk exposures accounting, auditing and finance.
of the Company.
CORPORATE GOVERNANCE BOARD RISK OVERSIGHT RELATED PARTY TRANSAC- AUDIT COMMITTEE
TION COMMITTEE
COMMITTEE 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 occur, disclosure must be done to the immediate
supervisor and/or Human Resources Head.
Internal Audit is an independent and objective
assurance and consulting activity that assists the (ii) Conduct of Business and Fair Dealings. Business
Company by bringing a systematic and disciplined is dictated by free competition - no monopoly, no
approach to evaluate and improve the effectiveness of price manipulation. Price is dictated by supply and
the organization’s governance, risk management, and demand. Employees are required to comply with
internal control. fair trade practices.
The Audit Committee oversees Internal Audit and (iii) Receipt of gifts from third parties. All employees
identifies the reporting line of the Internal Auditor are prohibited from accepting gifts based on the no
to enable him to properly fulfil his duties and gift policy of the Company.
responsibilities. The Audit Committee then approves
the Internal Audit Charter, which formally defines the (iv) Compliance with Laws & Regulations. All
role of Internal Audit, the audit plan, and oversees the employees, in the conduct of business, are obliged
implementation. Annually, a review of the adequacy to comply with all relevant laws and regulations.
of internal controls is undertaken, whereas specific (v) Respect for Trade Secrets/Use of Non-public
risk management processes and findings are reviewed Information. All employees are required to sign
quarterly. The Audit Committee also reviews and and adhere to a confidentiality agreement. All
monitors Management’s responsiveness to the Internal employees are prohibited from disclosing or
Auditor’s findings and recommendations. using to their own advantage any non-public
Specifically, the Company’s Internal Audit assists the information.
Audit Committee in its governance and oversight (vi) Use of Company Funds, Assets and Information.
functions to ensure: All employees are required to act as responsible
1. Reliability and integrity of financial and operating custodians of all company funds, assets, and
information. information. As such all are required to protect
and preserve company assets.
2. Compliance with policies, plans, procedures, laws
and regulations. (vii) Employment & Labor Laws & Policies. The
Company complies with all existing employment
3. Safeguard of assets. and labor laws and policies.
4. Resources are economically and efficiently used. (viii) Disciplinary action. Disciplinary actions are meted
only after due process. The Company has a Code of
5. Results of operations and programs are consistent Conduct that serves as a guide for the employees’
with established objectives, goals and plans. behavior.
The Internal Audit Department reports administratively (ix) Whistle Blower. The Company has a whistle
to the President and CEO, but functionally to the Audit blower policy that provides an avenue for
Committee, which has oversight functions over the employees to report misconduct of fellow
Corporation’s internal and external auditors. It is the employees, including their superiors, while
Audit Committee which recommends the appointment protecting the employee’s identity and welfare.
and/or grounds for approval of the internal audit head
or Chief Audit Executive. It is also the Audit Committee (x) Conflict Resolution. The Company provides a
which recommends to the Board the appointment, work environment that is conducive to friendly
reappointment, removal, and fees of the External resolution of disagreement. Superiors should
Auditor. promote amicable settlement of conflicts.
The Audit Committee then makes certain that both All employees are provided a copy of the Code of Ethics
auditors are given unrestricted access to all records, as part of the pre-employment process. Employees
properties and personnel to enable them to perform are required to confirm in writing agreement and
their respective audit functions. compliance with the Company’s Code of Ethics. The
Company conducts regular orientation for new hires and
CODE OF BUSINESS CONDUCT AND re-orientation to old hires periodically.
ETHICS A Business Ethics Committee (composed of Corporate
The company’s policies on business conduct or ethics HR, Corporate Controllership & Corporate Internal
affecting directors, senior management and employees Audit) is formed to conduct investigation on non-
are as follows: compliances and recommend appropriate disciplinary
actions.
(i) Conflict of Interest. All employees, irrespective
of rank should always act on the best interest Finally, all employees are encouraged to report any
of the company. All conflict of interest shall be breaches of this Code through the Whistle Blower Policy
avoided and prohibited. In the event such will of the Company.

RISK MANAGEMENT hesitate to prosecute any cases of trademark
infringement in the future.
The Company aims to identify, measure, analyze,
monitor, and control all forms of risks that would affect (vi) CNPF may be subject to labor unrest, slowdowns
the Company. These include: and increased wage costs.
(i) CNPF’s financial performance may be materially CNPF manages these risks by adopting policies
and adversely affected by fluctuations in prices or to ensure a healthy working environment for its
disruption in the supply of key raw materials. employees that are at minimum in compliance
with national and local laws and regulations.
Aside from actively monitoring raw material
availability and prices, it has been CNPF’s policy (vii) CNPF’s existing insurance policies and self-
to maintain a network of specialty ingredient insurance measures may not be sufficient to cover
suppliers that develop new ingredient substitutes the full extent of any losses.
to mitigate raw materials disruption of supply.
CNPF conducts a quarterly review to ensure that
(ii) Actual or alleged contamination or deterioration all insurable assets of the Company are adequately
of, or safety concerns about, CNPF’s food products covered at the right valuation.
or similar products produced by third parties
could give rise to product liability claims and harm (viii) CNPF’s businesses and operations are substantially
CNPF’s reputation. dependent upon key executives.
CNPF invests in quality control systems, To mitigate the risk of departing key managers,
procedures and organization that span the entire the Company’s succession planning process has
supply chain to ensure product safety. All of identified members of management that can
CNPF’s manufacturing facilities comply with temporarily assume additional responsibilities
BFAD regulations and a significant majority of arising from departing managers until suitable
CNPF’s products are manufactured from factories successors can be recruited.
that are compliant with HACCP regulations. (ix) CNPF is effectively controlled by the Po family
HACCP is an internationally recognized system of and their interests may differ from the interests of
food safety and contamination prevention. other minority shareholders.
(iii) CNPF relies on key suppliers for certain raw
materials and the failure by such suppliers to CNPF observes the provisions of the Corporation
adhere to and perform contractual obligations may Code relating to interested directors and officers.
adversely affect CNPF’s business and results of Related Party Transactions are covered by
operations. individual agreements ensuring that they are
arms-length and are disclosed regularly to all
CNPF has a policy of maintaining a sufficient shareholders, the SEC, and the PSE. Any Related
inventory of key materials. In addition, the Party Transaction shall be reported to the RPT
Company maintains a network of suppliers for Committee, which shall review the material facts
most critical materials to allow for sourcing and either approve, disapprove or ratify such
flexibility. transactions.
(iv) CNPF is exposed to the credit risks of its The risks outlined above are not exhaustive and instead
customers, and delays or defaults in payment by its identify only those that are key and principal to the
customers could have a material adverse effect on business. The Board and Management devote significant
CNPF’s financial condition, results of operations time and attention to those risks that have high impact
and liquidity. and high probability.
Before extending credit, CNPF conducts a

systematic credit investigation of its customers.
The Company also has a policy of requiring ROLE OF STAKEHOLDERS
security or collateral, in the form of bank
guarantees and letters of credit, from certain Customers
customers. The Company’s success depends largely upon consumers’
(v) Any infringement or failure to protect CNPF’s perception of the quality of its products and stringent
trademarks and proprietary rights could materially policies and procedures are in place to uphold customers’
and adversely affect its business. welfare.
CNPF’s licensed brands are registered and kept Our People

current in all applicable jurisdictions. While The Company promotes a culture of recognition and
instances of trademark infringement have been value for key and high performing employees who
immaterial in the past, the Company will not demonstrate excellence at the workplace.

Suppliers CORPORATE SOCIAL
The Company’s Supplier Accreditation Policy ensures RESPONSIBILITY INITIATIVES
that the Company’s suppliers and contractors are The Company’s mission extends to those who are most
qualified to meet its commitments to the Company by in need. In 2010, the Century Pacific Group formed
letting them undergo accreditation and orientation on the RSPo Foundation to give back to the community
Company policies. at large by providing aid to the poor and hungry
Environment children, the deserving student, and other charitable and
humanitarian causes, most especially the protection of
The Company supports and adheres to global regulations our environment.
and management initiatives to ensure the long-term
sustainability and conservation of our seafood resources. The following are the initiatives undertaken by the
CNPF works closely with responsible Regional Fisheries Company through its corporate social responsibility
Management Organizations, Government Agencies, arm, Century Pacific Group-RSPo Foundation Inc.
environmental advocates, and peers in the industry to
ensure compliance with global policies and consequently Initiative Beneficiary
protect the ocean stocks for future generations. KAIN PO Feeding Program Public School Children &
Communities nationwide
Creditors & Investors Flagship initiative of Century
Pacific Group-RSPo Foundation
The Investor Relations group regularly communicates Century Pacific Group – Century Pacific Food, Inc.
essential, accurate, and up-to-date information with the Employees Children Scholarship Employees’ Children
Program
investment community and its creditors. The Investor
Relations Office makes publicly available essential Support to DepEd Kariton Out-of-School Youths in
Klassroom Program in providing Quezon City
investor information primarily through Philippine Stock better access to basic education
Exchange disclosures.
Support to University of Asia & Students from Doña Brigida
The Company also abides with its financial and legal the Pacific’s TOLOSA WORK Elementary School
CAMP in Typhoon Yolanda
commitments to creditors. rehabilitation initiatives
Community Support to PROJECT GIVE in Aeta Community of Botolan,
Botolan, Zambales Zambales
The Company, through its Corporate Social Outreach activity and medical
Responsibility arm, gives back to the community via mission
various programs such as educational scholarships, Support to RAMADAN – Muslim Residents of Taguig
poverty alleviation, and helping the less privileged. Feeding & Food Aid Program of City
IDCP Halal
Relief Donation for the affected Affected families from North

families due to Typhoon Lawin Luzon

Board
of Directors
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.

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.

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.

Executive
Officers
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.

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
Key Balance Sheet Items Consolidated Statement of Financial Position
in PHP mill 2015 2016 Change YoY As of December 31, 2016, the Company’s total
Total Assets 16,782 19,932 19% assets increased to Php19.93 billion compared
Notes Payable – Current 2,250 671 -70% to the Php16.78 billion at of end 2015. Property,
Long-Term Loan 0 1,634 - plant and equipment, net registered at Php3.95
Total Equity 10,347 12,539 21% billion. Capital expenditures totalled to Php1.2
BVPS (PHP/sh) 3.09 3.54 15% billion, consisting mainly of new equipment
Return on Equity (%) 22.8 23.2 +2% and additional plant capacity at the different
Current Ratio (x) 1.68 2.26 35% manufacturing facilities of the Company.
Net Gearing (x) 0.15 0.13 -13%
Total equity grew to Php12.54 billion from

Key Profit & Loss Items Php10.35 billion at the end of 2015 coming
in PHP mill 2015 2016 Change YoY mainly from the Company’s generated net
Net Revenues 23,325 28,288 21% income during the year. Book value per share
Operating Income 2,732 3,613 32% (BVPS) increased by 15% to Php3.54 compared
Net Income 1,934 2,656 37% to the Php3.09 2015 BVPS adjusted for the 50%
Net Income (organic, 1,934 2,420 25% stock dividend declared mid-2016.
excluding coconut
acquisition)
Total liabilities also increased to Php7.39
EPS (PHP/sh) 0.58 0.75 30%
Operating Margin (%) 11.7 12.8 +1.1pps
billion from Php6.44 billion, but with interest-
Net Income Margin (%) 8.3 9.4 +1.1pps
bearing debts holding steady year-on-year at
Net Income Margin 8.3% 9.5% +1.2pps
Php2.30 billion. All of the Company’s debt is
(organic, excluding denominated in Philippine pesos, with 29%
coconut acquisition) revolving and 71% long term with fixed interest
rates.
Key Cash Flow Metrics
in PHP mill 2015 2016 Change YoY
Debt-to-equity ratio is healthy at 0.59x. Total
Operating Cash Flow (698) 1,715 -
debt to equity net of cash is likewise stable at
Ending Cash 722 696 -4%
0.53x. Interest-bearing debt over equity was
Free Cash Flow (1,765) 545 -
a minimal 0.18x. The Company also remains
Working Capital 5,655 6,753 19%
Cash Conversion Cycle 100 dd 103 dd +3 dd
very liquid with a current ratio of 2.26x, an
improvement versus the 1.68x last year with the
Note: 2015 per share figures adjusted for 50% stock dividend declared
in 2016
refinancing of some short-term debt.

Consolidated Statements of CNPF’s consolidated operating income for 2016
Comprehensive Income reached Php3.61 billion or a 12.8% operating
Consolidated net revenue totalled Php28.29 income-to-sales ratio, versus last year’s Php2.73
billion which represents a 21% growth billion or 11.7%.
versus Php23.33 billion a year ago. Revenue
performance can be attributed to the double- This resulted to a consolidated net income
digit increase in the Company’s branded sales, a after tax of Php2.66 billion, 37% higher than
recovery in tuna OEM, and consolidation of the the Php1.93 billion reported in 2015. Basic and
acquired coconut business. diluted earnings per share (EPS) also increased
by 30% to Php0.75 per share compared to the
In 2016, CNPF’s cost of sales, consisting mainly Php0.58 2015 EPS adjusted for the 50% stock
of raw material and packaging costs, grew by dividend declared in mid-2016.
15%, less than the % increase in revenues due to
subdued raw material prices during most part of Consolidated Statements of Cash Flows
the year. Cash as of end 2016 amounted to Php696
million. Operating activities registered a Php1.72
As a result, CNPF’s consolidated gross profit billion total inflow, with operating cash more
for the year amounted to Php8.61 billion versus than enough to cover changes in working
Php6.20 billion in 2015. This represents a gross capital. Net cash used in investing and financing
profit margin of 30.4% or an improvement of activities amounted to Php1.26 billion and
3.9ppts over 26.6% in 2015. Php483 million, respectively.
CNPF’s total operating expense, which is The cash conversion cycle marginally increased
comprised of selling, distribution, marketing to 103 days from 100 days a year ago. As of
and administrative expenses, reached Php5.22 end 2016, accounts receivable, inventory, and
billion for 2016. This represents an 18.4% cost- payable days stood at 51, 140, and 88 respectively.
to-sales ratio, an increase versus 15.1% last year Working capital increased to Php6.75 billion
as strategic demand generation and brand- from Php5.66 billion due to elevated inventory
building initiatives contributed to higher opex levels to protect margins and manage costs.
relative to sales. 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. Po
Chairman of the Board/ Chief Executive Officer
Oscar A. Pobre
Chief 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 thereon

Acquisition 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 Our audit procedures included:
100% interest in CRL, CST, CIC (collectively,
“Century China Group of Companies”). The total • For each of the acquisitions, we performed detailed
consideration paid is P127.33 million. understanding and review of the substance of transactions by
obtaining a thorough understanding of terms and conditions
In accordance with PFRS 3, Business Combinations, stipulated in the share purchase agreements, equity transfer
the Group must recognize identifiable assets agreements, minutes of board of directors meeting on the
acquired and liabilities assumed at fair value at approval of the acquisitions and other relevant information;
acquisition dates. The difference of the purchase
price over the determined fair values is to be • We reviewed the reconciliation of the purchase price to the
recognized as either goodwill or gain on bargain proof of payment and purchase price allocation prepared by
purchase. the Group’s Management;
Accounting for these acquisitions involve • We evaluated the accounting treatment for the acquisitions
Management’s judgment and estimations for the used by the Management and tested all material accounting
determination of the purchase price allocation, entries recorded in connection with the acquisitions to
including the fair values of the assets acquired and determine whether the financial accounting and reporting
liabilities assumed at acquisition date. thereof were appropriate;
The Group’s disclosures of the business combination • We assessed the competency of the Group’s external
and the fair values of the assets acquired and appraiser in relation to the valuation report used by the
liabilities assumed at acquisition date are set out Group’s management to determine the fair values of the
in Notes 5, 6 and 13 to the consolidated financial assets acquired and liabilities assumed at acquisition date;
statements.
• 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 thereon
Goodwill Impairment
Goodwill has been recognized in the consolidated Our audit procedures were focused on performing a
statements of financial position resulting from detailed understanding of the Management’s assessment
acquisitions of the Group. Under PFRS, the Group is process and challenging the key sensitive judgments applied
required to annually test the goodwill for impairment. as follows:
This annual impairment test was significant to our audit
because the aggregate balance of goodwill amounting to • We reviewed the Group’s position on the impairment
P2.95 billion is material to the consolidated financial of goodwill, including information about the Group’s
statements and represents 14.81% of the consolidated project plan, business outlook, revenue potential and
total assets of the Group as at December 31, 2016. market penetration assessment of the subsidiaries to
which the goodwill relates to; and
Under PFRS 3 and PAS 36, the Group is required to
annually test the goodwill for impairment. Management • We assessed and challenged the reasonableness of
conducts annual impairment test to assess the the Group’s position on the impairment of goodwill
recoverability of the carrying values of goodwill. This including consideration of various factors such
annual impairment test involves a number of key as historical business performance, current year
sensitive judgments made in determining the inputs used developments, current risk evaluations, business
in the assessment process. plans, outlook, revenue potential and other market
considerations.
The carrying values of goodwill as at
December 31, 2016 are disclosed in Note 13 to the Based on our audit procedures, we have noted that
consolidated financial statements. the Group’s assessment and the judgments used are
reasonable.
Our audit performed and responses thereon

Key Audit Matters
Inventory Valuation and Obsolescence
In accordance with PAS 2, Inventories, the Our audit approach included both controls testing and
Group is required to recognize inventories at substantive procedures as follows:
the lower of cost and net realizable value. As at
December 31, 2016, the Group held total inventories of • We tested the design and implementation of controls
P7.53 billion which represents 37.77% of its consolidated and the operating effectiveness of controls associated
total assets. with existence and conditions of inventories by
attending a number of inventory counts throughout
The Group’s provisioning methodology for inventory the year in all significant locations (including
losses is dependent on the type of inventory. For each type warehouses, depots, production plants and cold
of inventory, the estimated provision for inventory loss is storage rooms);
determined based on the results of physical inspection,
Group management’s evaluation and patterned historical • We obtained a detailed understanding of the
information. Group’s inventory provisioning policy, with specific
consideration given to aged inventories, damaged
This is a key audit matter as the Group is in a food goods and slow moving items;
manufacturing business and the inventories in various
business segments require different judgments in • We reviewed reasonableness of inventory
determining inventory losses and write downs. provisioning with reference to historical
information, inventory write-offs during the year in
relation to stock loss or other inventory adjustments
The Group’s disclosures regarding its inventories are as prepared by Management;
set out in Notes 6 and 11 to the consolidated financial
statements. • 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 As part of an audit in accordance with PSAs, we exercise
Auditors’ Report Thereon professional judgment and maintain professional skepticism
throughout the audit. We also:
Management is responsible for the other information. The
other information comprises the information included in • Identify and assess the risks of material misstatement of
the Securities and Exchange Commission (SEC) Form 20-IS the consolidated financial statements, whether due to fraud
(Definitive Information Statement), SEC Form 17-A and Annual or error, design and perform audit procedures responsive
Report for the year ended December 31, 2016, but does not to those risks, and obtain audit evidence that is sufficient
include the consolidated financial statements and our auditor’s and appropriate to provide a basis for our opinion. The
report thereon. The SEC Form 20-IS (Definitive Information risk of not detecting a material misstatement resulting
Statement), SEC Form 17-A and Annual Report for the year from fraud is higher than for one resulting from error, as
ended December 31, 2016 are expected to be available to us after fraud may involve collusion, forgery, intentional omissions,
the date of this auditors’ report.
misrepresentations, or the override of internal control.
Our opinion on the consolidated financial statements does not • Obtain an understanding of internal control relevant
cover these other information and we do not express any form to the audit in order to design audit procedures that are
of assurance conclusion thereon. appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Group’s
internal control.
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 • Evaluate the appropriateness of accounting policies used
so, consider whether the other information is materially and the reasonableness of accounting estimates and related
inconsistent with the consolidated financial statements or with disclosures made by Management.
our knowledge obtained in the audit, or otherwise appears to be
materially misstated. • 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
Responsibilities of Management and Those Charged with Governance related to events or conditions that may cast significant
for the Consolidated Financial Statements doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are
Management is responsible for the preparation and fair required to draw attention in our auditor’s report to the
presentation of these consolidated financial statements in related disclosures in the consolidated financial statements
accordance with PFRSs, and for such internal control as or, if such disclosures are inadequate, to modify our
Management determines is necessary to enable the preparation opinion. Our conclusions are based on the audit evidence
of consolidated financial statements that are free from material obtained up to the date of our auditor’s report. However,
misstatement, whether due to fraud or error. future events or conditions may cause the Group to cease to
continue as a going concern.
In preparing the consolidated financial statements, Management
is responsible for assessing the Group’s ability to continue as a • Evaluate the overall presentation, structure and content of the
going concern, disclosing, as applicable, matters related to going consolidated financial statements, including the disclosures,
concern and using the going concern basis of accounting unless and whether the consolidated financial statements represent
Management either intends to liquidate the Group or to cease the underlying transactions and events in a manner that
operations, or has no realistic alternative but to do so. achieves fair presentation.
Those charged with governance are responsible for overseeing the • Obtain sufficient appropriate audit evidence regarding the
Group’s financial reporting process. financial information of the entities or business activities
within the Group to express an opinion on the consolidated
Auditors’ Responsibilities for the Audit of the Consolidated Financial financial statements. We are responsible for the direction,
Statements supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
Our objectives are to obtain reasonable assurance about whether
the consolidated financial statements as a whole are free from We communicate with those charged with
material misstatement, whether due to fraud or error, and to governance regarding, among other matters,
issue an auditor’s report that includes our opinion. Reasonable the planned scope and timing of the audit and significant audit
assurance is a high level of assurance, but is not a guarantee that findings, including any significant deficiencies in internal
an audit conducted in accordance with PSAs will always detect control that we identify during our audit.
a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually We also provide those charged with governance with a statement
or in the aggregate, they could reasonably be expected to that we have complied with relevant ethical requirements
influence the economic decisions of users taken on the basis of regarding independence, and to communicate with them all
these consolidated financial statements. 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 Navarro Amper & Co. has acted as
significance in the audit of the consolidated financial statements
of the current period and are therefore the key audit matters. CNPF’s external auditor since January
We describe these matters in our auditor’s report unless law 2014. Since then, CNPF has not had any
or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a material disagreements on accounting
matter should not be communicated in our report because the and financial disclosures with its current
adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication. external auditor. The current audit
partner for CNPF has served as such since
The engagement partner on the audit resulting
in this independent auditor’s report is January 2016.
Mr. Bonifacio F. Lumacang, Jr.
Navarro Amper & Co. has neither
shareholdings in CNPF nor any right,
Navarro Amper & Co. whether legally enforceable or not, to
BOA Registration No. 0004, valid from December 4, 2015 to nominate persons or to subscribe for
December 31, 2018
the securities of CNPF. It also does not
SEC Accreditation No. 0001-FR-4, issued on January 7, 2016; effective
until January 6, 2019, Group A receive any direct or indirect interest in
TIN 005299331
CNPF or its securities (including options,
warrants or rights thereto).
By:
Audit fees for 2016 amounted to
Php3,993,000.00 and no non-audit related
fees were paid.
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

Consolidated Statements of Financial Position
December 31
2016 2015
ASSETS
Current Assets
Cash and cash equivalents P695,627,006 P722,164,343
Trade and other receivables – net 3,954,507,265 3,592,691,726
Due from related parties 91,119,638 41,369,475
Held-to-maturity investments 12,890,266 14,686,601
Inventories – net 7,528,824,781 5,925,978,924
Biological assets 34,817,782 31,429,135
Prepayments and other current assets – net 439,785,766 218,683,647
Total Current Assets 12,757,572,504 10,547,003,851
Non-current Assets
Property, plant and equipment – net 3,945,425,348 3,133,942,196
Intangible assets 3,053,757,483 2,955,325,199
Deferred tax assets 118,001,892 81,725,977
Held-to-maturity investments – net of current portion - 13,108,859
Other 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 P16,781,948,519
LIABILITIES AND EQUITY
Current Liabilities
Trade and other payables P4,729,866,256 P3,863,970,207
Borrowings 670,500,000 2,250,000,000
Income tax payable 148,631,288 146,533,363
Due to related parties 89,994,184 13,979,192
Total Current Liabilities 5,638,991,728 6,274,482,762
Non-Current Liabilities
Borrowings – net of current portion 1,633,500,000 -
Retirement benefit obligation 118,327,684 157,039,771
Deferred tax liabilities 2,547,668 3,594,077
Total Non-current Liabilities 1,754,375,352 160,633,848
7,393,367,080 6,435,116,610
Equity
Share capital 3,541,028,895 2,360,685,933
Share premium 4,911,986,439 4,911,986,439
Share-based compensation reserve 5,262,360 5,262,360
Other reserves 30,628,942 30,628,942
Currency translation adjustment 34,922,860 48,506,727
Retained earnings 4,014,996,312 2,989,761,508
12,538,825,808 10,346,831,909
P19,932,192,888 P16,781,948,519

Consolidated Statements of Comprehensive Income
For the Years Ended December 31
2016 2015 2014
Net Revenues P28,287,788,370 P23,324,528,579 P20,438,555,008
Cost of Goods Sold 19,677,984,326 17,128,162,072 15,063,993,046
Gross Profit 8,609,804,044 6,196,366,507 5,374,561,962
Other Income 272,039,674 100,151,771 190,857,007
8,881,843,718 6,296,518,278 5,565,418,969
Operating Expenses 5,217,647,358 3,529,030,226 3,272,303,364
Other Expenses 51,334,489 35,942,100 39,579,720
Finance Costs 77,427,650 1,158,333 15,287,944
5,346,409,497 3,566,130,659 3,327,171,028
Profit Before Tax 3,535,434,221 2,730,387,619 2,238,247,941
Income Tax Expense 879,838,159 796,712,841 646,657,589
Profit for the Year 2,655,596,062 1,933,674,778 1,591,590,352
Other Comprehensive Income (Loss)
Item that will be reclassified subsequently to profit
or loss
Currency translation adjustments (13,583,867) 29,029,136 5,169,350
Item that will not be reclassified subsequently to
profit or loss
Remeasurement gains (losses) on retirement 22,118,897 (24,203,701) (64,363,876)
benefit obligation – net of tax
8,535,030 4,825,435 (59,194,526)
Total Comprehensive income P2,664,131,092 P1,938,500,213 P1,532,395,826
Basic and Diluted Earnings Per Share P0.7500 P0.8664 P0.7600

Consolidated Statements of Changes In Equity
For the Years Ended December 31, 2016, 2015 and 2014
Share Share Share-based Other Currency Retained Total
Capital Premium Compensation Reserves Translation Earnings
Reserve Adjustment (Deficit)
Balance, January 1, 2014 P1,500,000,000 P- P- P30,628,942 P14,308,241 (P731,724) P1,544,205,459

Profit for the year - - - - - 1,591,590,352 1,591,590,352
Other comprehensive income (loss):
Currency translation adjustment - - - - 5,169,350 - 5,169,350
Remeasurement of retirement benefit obligation – net of tax - - - - - (64,363,876) (64,363,876)
Total Comprehensive Income - - - - 5,169,350 1,527,226,476 1,532,395,826
Transaction with owners:
Issuance of share capital 729,654,404 2,751,905,610 - - - - 3,481,560,014
Subscription of capital stock 1,367,200 17,431,800 - - - - 18,799,000
Equity-settled share-based compensation – net of tax - - 3,376,984 - - - 3,376,984
Balance, December 31, 2014 2,231,021,604 2,769,337,410 3,376,984 30,628,942 19,477,591 1,526,494,752 6,580,337,283
Currency translation adjustment - - - - 29,029,136 - 29,029,136
Remeasurement of retirement benefit obligation – net of tax - - - - - (24,203,701) (24,203,701)
Total Comprehensive Income - - - - 29,029,136 1,909,471,077 1,938,500,213
Issuance of share capital 129,664,329 2,142,649,029 - - - - 2,272,313,358
Cash dividends - - - - - (446,204,321) (446,204,321)
Equity-settled share-based compensation – net of tax - - 1,885,376 - - - 1,885,376
Currency translation adjustment - - - - (13,583,867) - (13,583,867)
Remeasurement of retirement benefit obligation – net of tax - - - - - 22,118,897 22,118,897
Total Comprehensive Income - - - - (13,583,867) 2,677,714,959 2,664,131,092
Stock dividends 1,180,342,962 - - - - (1,180,342,962) -
Cash dividends - - - - - (472,137,193) (472,137,193)
Consolidated Statements of Cash Flows

2016 2015 2014
Cash Flows from Operating Activities
Profit 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 (5,211,839) 3,553,569 (309,965)
– net
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 - (65,863,032) 1,547,465
liabilities
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

Consolidated Statements of Cash Flows (continued)

2016 2015 2014
Cash Flows from Investing Activities
Acquisitions 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 Activities
Proceeds 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 1,270,471,068
Net Increase (Decrease) in Cash and Cash Equivalents (26,537,337) (542,045,553) 826,244,989
Cash 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
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).

Contact Information
CORPORATE OFFICES STOCK TRANSFER AGENT
5F, 7F, 8F & 19F Centerpoint Building BDO – Trust and Investments Group
Julia Vargas corner Garnet Road 15/F South Tower, BDO Corporate Center
Ortigas Business Center, Pasig City 7899 Makati Avenue, Makati City,
Metro Manila, Philippines 1605 Philippines
Tel: + (632) 633-8555 Tel: + (632) 878-4963
www.centurypacific.com.ph bdo-stock-transfer@bdo.com.ph
Head of Investor Relations

Ms. Giovanna Vera
investorrelations@centurypacific.com.ph
MARINE: TUNA MILK & MIXES

National Highway 32 Arturo Drive, Bagumbayan
Brgy. Tambler, General Santos City Taguig City, Philippines 1607
South Cotabato, Philippines 9500 Tel: + (632) 776-3331
Tel: + (6383) 380-7461
COCONUTS
MARINE: SARDINES National Highway
Purok 1, Dumagsa, Talisayan, Zamboanga City Brgy. Tambler, General Santos City
Zamboanga del Norte, Philippines 7000 South Cotabato, Philippines 9500
Tel: + (6362) 991-8177 Tel: + (6383) 552-1831
MEAT
Lot 7, Blk 7 LIIP Avenue
Laguna International Industrial Park
Mamplasan, Biñan, Laguna, Philippines 4024
Tel: + (632) 520-9177
5F, 7F, 8F & 19F Centerpoint Building
Julia Vargas corner Garnet Road
Ortigas Business Center, Pasig City
Metro Manila, Philippines 1605
Tel: + (632) 633-8555
www.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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2016 Annual Report

Mas creamy, mas masarap. Angel is Sulit Sarap.

A trusted partner of value-seeker Moms as they experiment on

It’s everybody’s milk!

Birch Tree is a trusted brand that nourished and built strong

With an established track record in brand-building which now spans close

The Company is also the Philippines’ leading exporter of original equipment

2016 Annual Report 1

We will be respected as a team of passionate, consumer-oriented, professional entrepreneurs

Respect for the Individual Passion for Excellence Unity

2 Century Pacific Food, Inc.

2016 Annual Report 3

2014 2015 2016 2014 2015 2016 23.2%

4 Century Pacific Food, Inc.

2016 Annual Report 5

CNPF Player 2 Player 3 CNPF Player 2

271K 760K 66%

6 Century Pacific Food, Inc.

2016 Annual Report 7

MANUFACTURING General Santos & Laguna, Calabarzon

BRANDS AND • Century Tuna • Argentina

11% 15% 10%

Taguig, Metro Manila General Santos, Southern General Santos, Southern

• Birch Tree Full Cream • Frozen tuna loins • Aqua Coco

2016 Annual Report 9

10 Century Pacific Food, Inc.

2016 Annual Report 11

12 Century Pacific Food, Inc.

Today, I am grateful to you, our shareholders, because you continue to support us in

2016 Annual Report 13

Our wish is that we continue

providing Filipino From sardines, tuna, meat, and

reasonable prices for especially as Filipinos’ incomes

14 Century Pacific Food, Inc.

2016 Annual Report 15

2016 Annual Report 17

18 Century Pacific Food, Inc.

We are Investing In New

2016 Annual Report 19

20 Century Pacific Food, Inc.

Beyond this year and peering

2016 Annual Report 21

About the Philippines’ Shelf-Stable, Canned Food Market

22 Century Pacific Food, Inc.

2016 Annual Report 23

24 Century Pacific Food, Inc.

2016 Annual Report 25

26 Century Pacific Food, Inc.

2016 Annual Report 27

In particular, its ongoing membership in the International Seafood Sustainability Foundation

Our Other Partners

28 Century Pacific Food, Inc.

Conservation Measure Guidance Current Grade

2016 Annual Report 29

30 Century Pacific Food, Inc.

2016 Annual Report 31

32 Century Pacific Food, Inc.

Out of the 8,269,245 available for subscription

34 Century Pacific Food, Inc.

BOARD MATTERS Composition

2016 Annual Report 35

Note: Board committe composition effective March 2017

36 Century Pacific Food, Inc.