Monday, February 5, 2018

LT Group, Inc. (LTG)

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For the updated or exact information, you should check edge.pse.com.ph or their official website.


1. Company Information
Company Name
LT Group, Inc. (LTG)
Sector
Holding Firms
Incorporation Date
May 27, 1937
Subsector
Holding Firms
Number of employees
14,134
Board of Directors
Chairman/CEO: Lucio C. Tan, Director/COO: Michael G. Tan
Website / E-mail
www.ltg.com.ph / info@ltg.com.ph
2. Stock Information
Total Assets
880,495,311,000
Market Capitalization
196,949,277,779.80
Total Liabilities
691,301,755,000
Outstanding Shares
10,821,388,889
Retained Earnings
74,302,312,000
Listed Shares
10,821,388,889
Listing Date
Nov 07, 1947
Issued Shares
10,821,388,889
Board Lot
100
Free Float Level (%)
25.64%
Par Value
1.00
Foreign Ownership Limit
40%
3. Major Stock Holders (common shares)
TANGENT HOLDINGS CORP.
PCD NOMINEE CORPORATION (NON-FILIPINO)
PCD NOMINEE CORPORATION (FILIPINO)
DRAGON CASTLE HOLDINGS LIMITED
74.36%
14.00%
4.59%
1.83%
4. Company Descriptions and Business Development
Notes
1. Related companies: LTG, PNB
2. Other Tan Family led listed companies (MAC, PAL) are not under LTG.
3. JTI (Japan Tobacco International) recently acquired Mighty Corp., which offers Mighty and Marvels brands.
4. Govt. is now trying hard to stop cigarette smuggling.
5. Dr. Lucio C. Tan is the brother of Harry C. Tan. He is also the father of Lucio K. Tan, Jr. and Michael G. Tan and the father-in-law of Joseph T. Chua.
Carmen K. Tan is the wife of Lucio C. Tan, the mother of Lucio K. Tan, Jr. and the mother-in-law of Mr. Joseph T. Chua.
Overview
LT Group, Inc. (“LTG” or the “Company”) was incorporated on May 25, 1937. In 1999, the
Company acquired Twin Ace Holdings Corp., now known as Tanduay Distillers, Inc.(TDI), a producer of distilled spirits, through a share swap with Tangent Holdings Corporation (“Tangent”). On September 24, 2012, The company changed its corporate name from “Tanduay Holdings, Inc.” to “LT Group, Inc.”  LTG has expanded and diversified its investments to include the beverages, tobacco, property developments and banking businesses.

Business
Distilled Spirits The Company conducts its distilled spirits business through its 100%-owned subsidiary TDI. TDI is the third-largest distilled spirits producer in the Philippines according to Nielsen Philippines, with an approximate 24% share of the Philippine spirits market in 2016.
Beverages The Company conducts its beverage business through its 99.9%-owned subsidiary, Asia Brewery, Inc. (ABI). ABI is one of the Philippines’ leading beverage manufacturers, producing energy drinks, bottled water, and soymilk. The company conducts its alcoholic beverage business through ABI’s 50% stake in AB Heineken Philippines Inc.(ABHP)
Tobacco The Company conducts its tobacco business through its 99.6% ownership in Fortune Tobacco Corporation (FTC), which in turn owns 49.6% of PMFTC. PMFTC is the leading tobacco manufacturer and distributor in the Philippines with an estimated 71% market share in the year 2016.
Banking The Company conducts its banking business through Philippine National Bank (PNB). PNB is a universal bank currently listed in the Philippine Stock Exchange (PSE). The Company’s indirect ownership is approximately 56.47%. PNB is the Philippines’ fourth largest private commercial bank in terms of total assets in 2016.
Property Development The Company conducts its property development business through Paramount Landequities, Inc. and Saturn Holdings, Inc., with an effective indirect ownership of 99.6% in Eton Properties Philippines, Inc. (Eton). Eton has a diverse portfolio of property development projects in various areas throughout the Philippines, primarily in Metro Manila and surrounding areas, and access to the large land bank of the Tan Companies. Eton’s project portfolio mainly comprises residential real estate projects (including large-scale township projects. Eton also develops and leases out commercial properties to retail and BPO tenants.

Net Income contributions from each business segment in 2016
Banking
Distilled Spirits
Beverage
Tobacco
Property Development
7,344,112,000
898,192,000
1,755,217,000
2,581,412,000
388,029,000
56.64%
6.92%
13.53%
19.90%
2.99%

Business Development
In 2012, ABI partnered with Empresarial Pascual S. L. of spain to distribute yogurt products.
In 2016, AB Heineken Philippines Inc. (ABHP) is incorporated to manufacture, import and export non-alcoholic beer, malt-based beverages. ABHP also handles group’s alcoholic beverage business such as Colt 45, Tanduay Ice, Heineken and Tiger.

Subsidiaries / Associates / Affiliates / Joint Ventures
Tanduay Distillers, Inc. (TDI) has several subsidiaries such as Asian Alcohol Corporation (AAC, 95%), Absolut Distillers, Inc. (ADI, 96%), Tanduay Brands International, Inc. (TBI, 100%)
Asia Brewery, Incorporated (ABI) has several subsidiaries also. Waterich Resources Corporation (WRC) manufactures Absolute and Summit bottled water. Packageworld, Inc. (PWI) is for production and distribution of packaging materials for alcoholic and non-alcoholic beverages and bottled water. Interbev Philippines, Inc. (IPI) production and distribution of Cobra and Sunkist carbonated soft drinks. AB Nutribev Corp. (ABNC) is for manufacturing and trading of of dairy and soy milk-based beverages.
Fortune Tobacco Corporation (FTC)
Incorporated in 1965 to engage in cigarette manufacturing, selling, importing and exporting. Some of brands are Fortune, Champion and Hope. A JV company PMFTC, 49% owned by FTC, now produces FTC and Philip Morris’ Marlboro brands.
Philippine National Bank (PNB) It is a listed company. The details will be discussed in a separate section. PNB is the country’s first universal bank and the fourth largest private local commercial bank in terms of assets as of December 31, 2016.
Eton Properties Philippines, Inc. (ETON)
It has several subsidiaries for the real estate development business.

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