EXECUTIVE SUMMARY:

Del Monte Philippines, Inc. (DMPI) is a leading producer, marketer of premium quality, and
distributor of healthy food and beverage products. Del Monte products, services, and packaging
of pineapples, tomato sauce, ready-to-drink juice, and canned and mixed fruit in the Philippines
has been operated for over 90 years. DMPI Corporation’s revenue in 2021 is estimated to reach
34, 464, 604 billion and their sales reached up to 34.5 billion with 8% from the prior year and
10% sales growth in the Philippines that accounted for P19.2 billion which is equivalent to 56%
of the total sales. The Investor and its affiliates have invested billions of US dollars in ASEAN
and Chinese consumer businesses, including the company’s technology and product consumer
corporation. Despite the challenges of the COVID-19 pandemic, the company management
aims to maintain the balance of its financial stability and its debt-equity to consider factors and
optimize its capital structure while adhering to the health standards set by the Government. With
a strong communication and management team, the company’s operation performed well and
Del Monte Corporation stated that “ Sustainability is not just a business strategy, it is essential
to our success. It is essential in strengthening our core! “

INTODUCTION

Del Monte Philippines, Inc.( DMPI) is best known for the good quality and flavor of its products
which are recognized as canned fruits and vegetables. It also produces other products that
provide consumers with a wide array of dietary preferences such as fruit juice, fruit cups,
sauces, snacks, and condiments. They are also operating on a global scale, and serving
markets across North America, Latin America, and Asia. Del Monte has expanded its business
through partnership, and market penetration that enables diversity of consumer demand and
establishes a strong market position. The company is committed to responsible sourcing
practices, ensuring the procurement of high-quality ingredients while prioritizing environmental
stewardship and nourishing families by providing delicious food and beverages that make eating
healthfully effortless - anytime and anywhere. This analysis may include a study understanding
how Del Monte Philippines, Inc. (DMPI) operates, together with an analysis of its Debt, Equity,
Investment, Risk, and Treasury Management, providing information on forecasting corporate
performance and allowing analysts to determine how the corporation manages its business to
improve its performance globally

COMPANY BACKGROUND

Del Monte Philippines, Inc. (DMPI) is a leading producer, distributor and marketer of premium
quality, healthy food and beverage products. It has been in operation in the Philippines for over
90 years and is the market leader in packaged pincapple and mixed fruit, canned and carton
ready-to-drink juices, tomato sauce and spaghetti sauce categories.DMPI has the rights to the
for the Philippines for processed products nder the well-knownS&W, Contadina and Today's.
DMPI's sales are in the balance in the international.Del Monte trademark products. It also sells
group brands of Close to two-thirds of Philippines and the market. DMPI operates a fully-
integrated pineapple operation with its 26,000- hectare pineapple plantation in Bukidnon,
Philippines, and a factory that is about an hour away from the plantation. It also operates a
frozen fruit processing facility in Bukidnon and a beverage bottling plant in Cabuyao, Laguna.It
is 87%-owned by Del Monte Pacific Limited, a company listed on the Singapore Exchange and
the Philippine Stock Exchange.

Vision
We nourish families by providing delicious food and beverages that make eating healthfully
effortless - anytime and anywhere. We build brands with quality products that are perfectly
wholesome and thoughtfully prepared.

Core Values
Championing Together
Healthy Familiess
Ownershıp with Integrty
Innovation
Commitment to Society &Environment
Excellence in Everything We Do

Debt Management:

Del Monte The strategic management of a corporation’s debt obligations is a component of debt
management. This includes choices regarding borrowing, loan terms, interest rates, and debt
composition. Del Monte attempts to manage debt levels and financial stability while effectively
fulfilling its financial responsibilities by examining its cash flow, evaluating its ability to service
debt, and optimizing debt arrangements.

Equity Management:
Concentrates on the effective distribution and use of its ownership interests. This includes tasks
like administering dividend payments, repurchasing shares, and issuing new shares. Del Monte
seeks to optimize its capital structure and increase shareholder value by taking into account
elements including financing requirements, profitability, and investor expectations.

Investment Management:
Del Monte Corporation’s investment management
Entails the thoughtful distribution of its resources to different investment opportunities. This
includes choices on portfolio diversification, risk assessment, and performance evaluation as
well as asset allocation. Del Monte aims to maximize returns while minimizing risks and
optimizing its investment portfolio for long-term growth and profitability through rigorous
analysis, research, and thoughtful decision-making.
.

RISK MANAGEMENT

Risk
Branded and Non-branded Business
Specific Risks
The Del Monte brand not merely in terms of domestic consumption but in a global perspective
both the branded and non-branded business in the market are influenced by numerous
variables such as rivalry or competition, inventory adoption, the dynamic trends in the market,
as well as production extension and the threats posed business partners.
Risk Management
✓DMPI should expand the product range and markets thus improving the core sector.
✓Abrupt diversion to exclusive packaged goods with a focus on creativity, human wellbeing,
comfort, competition, and market appeal.
✓The company should spread the use of altemative packaging formats for drinks and packaged
fruits.
✓Divergence of markets and customers by expanded dissemination of innovative platforms.
✓Reinforcement of marketing techniques such as consumer advertising: and
✓Strengthening of working ties with trading partners.

Risk
Access to Land
Specific Risk
Policy amendments that are contingent impacting the coverage or execution of the agricultural
reform by the government program, as well as the disposal of public lands owned by
government- owned and managed companies, will have an effect on current contracts with
landowners.
Risk Management
✓The entity should be aware and vigilant to any future laws affecting the extent or execution of
the government's agrarian reform policy may have an effect on the Del Monte Employees'
Cooperative's contract.

Risk
Foreign Currency and Inflation
Specific Risk
In the normal course of business, the Company enters into transactions denominated in various
foreign currencies. As a result, the Company is subject to transactions and translation
exposures resulting from currency exchange fluctuations, especially between the Philippine
Peso and US Dollar.
Risk Management
✓The company should use natural hedging to minimize risk that helps the management to avoid
the downside. It also helps the company to endure challenging market conditions. A natural
hedge is a risk- mitigation approach that involves investing in assets whose output is negatively
correlated due to a natural or intrinsic process.
✓the organization should minimize the effects of cost increases by closely managing its total
cost structure and implementing productivity- enhancing and cost- management strategies, In its
industry consumer changes, the firm should take inflation into account.

Risk
Credit Risk
Specific Risk
The company sells its products through major distributors and buyers in various geographical
regions. The Company also has significant levels of receivables due from related parties.
Risk Management
✓The company should implement credit management containing credit policy and specific
requirements that will ensure payments of the obligations of their distributors and buyers. A
formation of credit committee may be performed.
✓Management should monitor the outstanding trade receivables from time to time especially
those transactions with related parties to prevent bad debts.

Risk
Cash and Interest Rate Management
Specific Risk
The company's cash balances are placed with reputable global and major Philippine banks and
financial institutions.
The company manages its interest income by placing the cash balances with varying maturities
and interest rate terms. Thus. includes investing the Company's temporary excess liquidity in
short-term, low-risk securities from time- to-time.
Risk Management
✔ To ensure that the company will be financed continuously and to improve its cash flows,
loans and trade credit offerings may be applied.
✓Leasing arrangements can be an option for the financing of the company.
✓The company should obtain the most favorable interest rate that will lessen its exposure to
foreign currency enter to derivative contract regarding the purchase of pineapples which is the
main ingredient on their product to mitigate the risk of price changes in the market.
✓The company should study what is happening in Thailand and the factors that influence the
supply in order for the business to formulate strategies and procedure on how to effectively
responseto the existing risk.
Risk
Tax
Specific Risk
The Company may lose certain tax incentives should it fail to comply with the conditions for the
tax incentive.
Risk Management
✓The company should ensure that they comply with the specific conditions pertaining to tax
incentive.
✓Rules and regulations must also be followed by the company.

Risk
Operation
Specific Risk
The Company may losecertain tax incentives shouldit fail to comply with thevconditions for the
tax incentive. As a multinational integrated producer of packaged and fresh fruit products, the
Company's earnings are inextricably related to a range of other risk factors, including general
economic and market conditions, adjustments in business strategy or growth plans, foreign
business activities, production efficiencies, input costs and availability, logistics and
transportation facilities, litigious counterparties, insurgent activities and changes in government
regulations, including, without limitation of environmental regulation. Due to COVID 19, the
operation is affected in many ways (1) employee present in the production and company
(2)Bdelivery of the product (3) high price of raw materials such pineapple.
Risk Management
✓A long-term strategicnstrategy and annual operating plan are developed and implemented by
the company, which is backed up by a business continuity plan, risk management, and a
corporate sustainability program.
✓The company should also pursue work practices and capital programs that increase
productivity and reliability.
✓The Company has enhanced security initiatives and improved stakeholder relations in the
communities where it operates in the Philippines to handl security threats in its operating units.
✓The company should rely on the minimum health standards, they should implement skeletal
workforce to prevent employee layof.
✓(2) The business should be aware to the needed requirements on how they enter specific area
to transport properly without incurring delays.
✓(3) The company should expect these circumstances since the demand of beverages
are high. The company should properly canvass supplier on how the can obtain raw material in
low price yet high quality pineapple. Also since there is a expectation to the high cost of
ingredients, they should properly conduct their budget allocation in order to finance all area of
the company.

Risk
Environmental Risks
Specific Risk
The output of the plantation is subject to certain riskfactors relating to weather conditions,
catastrophes, crop yields, contract growers and service providers' performance, and leasehold
arrangements.
There is no assurance that natural catastrophes or climate change will no materially disrupt the
Company's business operations in the future, or that the Company is fully capable to deal with
these situations with respect to all the damages and economic losses resulting from these risks.
In its 2018 fiscal year, the Company experienced the end of ElI Nino and the start of La Nina
weather phenomenon in certain areas of its operation. This affected crop yield.
The drought in southern Philippines impacted the pincapple supply in the first semester of
FY2018.
Risk Management
✓The organization s hould establish and maintain a long-term strategy as well as an
ongoing operating schedule, which are followed up with a contingency plan and risk reduction
steps.
✓To prevent these events, the Company should have emergency relief and corporate continuity
policies in place, as well as services and measures to mitigate the impacts of El Ninos and La
Ninas.
✓Plantings should be undertaken in different locations to reduce tonnage loss and towing units
have been supplemented to maintain crop continuity during wet weather, in order to manage the
effects from excessive rains and floods. In addition, the
✓Company may collaborates with insurance agents to determine liability tolerance and, cost-
effective, provide sufficient insurance coverage.

Risk
Cyber Security
Specific Risk
The increasing global incidence of cyber-attacks on Company servers andwebsites
demonstrates the need to strengthen and improve security of the Company's systems.
Cyber-attacks can disıpt operations such as exploiting weaknesses network devices and
servers, comupting information and stealing confident ial data which can lead to financial losses.
Risk Management
✓Engaging to a third party to primarily audit its security of the system and mitigate such
information risks.
✓Adopting best practices to be for its network security, Designing and Implementation of
security control in every area of the network.

Risk
Company Assets
Specific Risk
The Company assets are exposed to various risks relating to the assets of, and
the possible liabilities from, its operations.
Risk Management
✓Company assets should be insured to mitigate such risks relating to its operation.
✓ Engaging audit procedures from its operation to identify such risks.

Risk
Compliance
Specific Risk
Changes in legislation and government regulations affecting the business may affect the
operations, strategies and profitability of the Company.
Risk Management
✓Establish compliance programs that aims to ensure and monitor the Company's compliance to
the laws and regulations of the governing body.
✓Closely monitoring of the changes in the legislation and the governnent regulations from time
to time that might affect the company including the environment aspects.
✓ Compliance as its main agenda.

Treasury Management Analysis:

Analysis of Del Monte Corporation’s Treasury

Focus is placed on streamlining financial processes, managing financial risk, and managing
cash and liquidity. This encompasses practices like working capital management, cash pooling,
hedging techniques, and capital allocation optimization. Del Monte seeks to increase its
financial stability, lower costs, and boost overall operational effectiveness through effective cash
flow management, working capital optimization, and the application of risk mitigation methods

References:
https://www.delmontephil.com
https://www.delmontephil.com/hubfs/corporate-governance/enterprise-risk-management/DMPI-
Risk-Management-as-of-May-2018.pdf