MERCURY DRUG CORPORATION

I. Industry: Food and Drug Stores

II. Years of Existence: 1945 - Present (66 years)
III. Products and Services: Medicines, drug and medical equipments, personal
care items, basic household needs, cosmetics and other beauty products
IV. Vision & Mission
The company's mission is to continuously be the leading, trusted and caring
drugstore.
V. Organizational Design
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VI. Key Executives
Mercury Drug Corporation remains a privately held company. Leadership of the

company remains in the family: The company's president is Mariano Que's

daughter, Vivian Que-Ascona.

VII. Innovations/Technology

Mercury Drug introduced many "firsts" in the Philippine drugstore industry:

• 1948: Motorized customer delivery service

o Que began a drug delivery service, becoming the first to use motorized
vehicles for swifter delivery times.
• 1952: 17-hour, 7 days a week drugstore service
o Que expanded his store hours, introducing a 17-hour-per-day, seven-
days-per-week opening schedule.
• 1963: Self-service drugstore
o Part of the motivation behind the move came in recognition of a Filipino
tendency to auto-medicate their illnesses.
 • 1965: 24-hours, 7 days a week service
o By remaining open longer, Mercury Drug responded to its clients'
demands for increased access to pharmaceutical products. The new
opening schedule was expanded to 24 hours per day
• 1967: Computerized temperature-controlled central warehouse
o The company opened a centralized warehouse to serve its growing store
chain, introducing computer-guided temperature controls to safeguard
its products.
• 1969: Biological refrigerators to preserve life-saving medicines
o The company became the first to introduce biological refrigerators in its
stores. This permitted the company to assure the quality of its life-
saving medicines.
• 1976: Expansion throughout Luzon, Visayas and Mindanao.
o The company expanded beyond the Metro Manila market for the first
time, and over the next decades added locations in the Luzon, Visayas,
and Mindanao regions of the Philippines as well.

VIII. Company History

Mariano Que started his career working in a Manila drugstore in prewar Philippines.
There he came into contact with many medications, including the newly discovered
class of sulfa drugs, including sulfathiazole. These new drugs, developed by German
scientists in the early 1930s, were quickly hailed as new "miracle" drugs. Indeed, the
sulfa drugs enabled the treatment of many illnesses, such as pneumonia, gonorrhea,
and other bacterial infections, that previously had been difficult, if impossible, to
treat. Despite the fact that the sulfa drugs later were shown to have a number of
undesirable side effects (they formed deposits in the kidneys, and bacteria quickly
became resistant), they were credited with saving millions of lives around the world
through World War II.

The end of the war and the liberation of the Philippines by U.S. forces brought new
business opportunities in the country. During the occupation, supplies of medicines
had become scarce, and the immediate postwar period saw a surge in demand for
sulfa drugs, and sulfathiazole, considered by many to be a virtual cure-all. With most
of the country's businesses, including its pharmacies, destroyed during the war, much
of the country's trade shifted to its busy marketplaces. Mariano Que, inspired by the
new entrepreneurial spirit, used his drugstore experience to launch his own business.

At first, Que bought and sold medical vials and capsules. After he had generated
sufficient savings, however, he took PHP 100 (worth about $1.50 at the time) and
bought a bottle of sulfathiazole tablets. Que brought the sulfathiazole bottle to
Manila's busy Bambang market and sold the pills--in single doses. The method of
selling, known as "Tingi-tingi," became extremely popular in the poverty-stricken
Philippines, bringing life-saving medications within financial reach of many more
people than before.

Que invested his profits in purchasing more pills, and before long he had generated
enough revenue to buy a pushcart, which he filled with an expanding assortment of
pharmaceuticals. The unregulated nature of the country's drug market, especially its
pharmaceutical black market, led to abuses by sellers, who sometimes peddled fake or
dangerous formulations, or sold medications long out of date, often at extortionist
prices.

Que, however, built a reputation for the quality and freshness of his products, and
also for the fairness of his prices. Before too long, he had built up a steady clientele,
and in March 1945, Que opened his first store. Que named the Bambang-located store
Mercury Drug, after the Roman god and bearer of the caduceus, the symbol of the
medical profession.

At the beginning of the 1960s, the company was contacted by the Ayala Corporation,
which was building a shopping center in Makati. Ayala offered to lease space to
Mercury, in order to include drugstore services at the center. Mercury agreed, and
once again revealed its penchant for innovation, opening the country's first self-service
pharmacy in 1963. Two years later, Mercury opened its third drugstore, in Quiapo,
which became the company's flagship and set the model for its further development.

Mercury Drug began building out its network of drugstores, staying close to the Manila
market for much of the early 1970s. The company also began branching out beyond
pharmaceutical sales. A significant early purchase was that of Medical Center Drug
Corporation (MCDC). Founded in 1946, MCDC focused on sales of pharmaceutical
supplies, equipment, and basic surgical instruments.

The purchase of MCDC, complementary to its existing drugstore business, led Mercury
Drug to change its structure. In 1972, Que created the Mercury Group of Companies,
Inc., which in turn oversaw Mercury Drug and MCDC. Both companies remained
independent of the other; in 1980, MCDC changed its name, to Medical Center Trading
Corporation (MCTC), in order to highlight its difference from Mercury Drug. MCTC then
grew into the Philippines' leading importer and distributor of medical, hospital,
laboratory, and related equipment, with branches throughout the Metro Manila and
surrounding region.

MCTC was not the only venture by Que (who was joined by daughter Vivian Que-
Ascona, later president of Mercury Drug) to expand beyond his drugstore empire. The
introduction of the convenience store concept in the Philippines in the early 1980s
represented both a new source of competition for Mercury Drug and a new
opportunity. Mercury developed its own convenience format in response to the growth
of competitors such as 7-11. Typically located next to its drugstores, the Mercury Drug
Superstores expanded the company's range of goods beyond drugs and into wider
consumer categories, such as beauty and personal care products, fast-foods, and the
like.

Separately, the Que family added other interests, including the Q*10 convenience
store format and the Tropical Hut fast-food restaurant chain. Nonetheless, Mercury
Drug Corporation remained the focus of the family's holdings.

Mercury Drug's growth was impressive: By 1995, the company operated more than 270
stores. Less than ten years later, Mercury had expanded its number of branches to
more than 450, giving it a near monopoly grip on the country's drug sales. By 2004,
Mercury controlled as much as 60 percent of all drug sales in the Philippines.

Ironically, Mercury's dominant position led the group, which had achieved its early
growth based on its low prices, to be criticized for what many considered as its
restrictively high prices. Indeed, as some critics pointed out, similar drugs could be
purchased in India and other markets for as much as one-third the price Mercury Drug
charged.

In the early 2000s, the government began taking action to force the Philippines' drug
industry, including Mercury Drug, to lower prices on many life-saving medicines. As
part of that effort, the country's Trade and Industry and Health departments began
encouraging the parallel importation of pharmaceutical generics from India, which had
earned worldwide recognition for the quality of its generic equivalents.

In 2004, the government stepped up its pressure. In September of the year, the
government passed legislation expanding drug discounts for the country's senior
citizens. The country's smaller independent drugstore owners protested the decision,
in part because it was expected to serve only to increase Mercury's dominance over
the market--as the country's largest retailer of pharmaceutical products, Mercury was
easily able to negotiate discounted prices from its supplies. Also in that year,
President Arroyo established the lowering of drug prices as one of the government's
priorities.

In December 2004, the Filipino government announced a new plan to break what some
were calling Mercury's "oligopoly" on the country's retail market. The Philippine
International Trading Corp. (PICT), owned and run by the Filipino government,
announced its intention to organize up to 300 of the country's independent pharmacies
into a new network of privately owned and operated drugstores, dubbed "Botika ng
Bayan." The new network would then sell drugs, sourced by PICT directly from drug
companies, at prices as much as six times less expensive than "market"--i.e.,
Mercury's--rates.

Despite these pressures, Mercury Drug Corporation remained a fixture on the

Philippines pharmacy market. The company also remained one of the Philippines'
largest corporations, ranking in eighth place among the country's largest corporations
and third place among the corporations in the high-quality services/products bracket.
Mercury Drug appeared to have discovered its own "miracle drug" for success.
CHEVRON PHILIPPINES,INC.

I. Industry: Petroleum Refining

II. Years of Existence: 1917 - Present (94 years)
III. Products and Services: Chevron markets a full range of petroleum products in
the Philippines under the Caltex brand name, including Caltex gasolines and diesel
with Techron®, kerosene, jet fuel, and fuel oil. Chevron also markets Caltex
Havoline® and Delo® engine oils, along with other lubricating oils and greases.
IV. Vision & Mission

Mission:

"Our Company's foundation is built on our Values, which distinguish us and

guide our actions. We conduct our business in a socially responsible and ethical
manner. We respect the law, support universal human rights, protect the
environment, and benefit the communities where we work."

Vision:

"At the heart of The Chevron Way is our vision …to be the global energy
company most admired for its people, partnership and performance."

V. Organizational Design
--
VI. Key Executives
--
VII. Innovations/Technology
• In 1954, Caltex inaugurated the Batangas Refinery at San Pascual, the
first petroleum refinery in the Philippines. In 2003, this refinery was
converted into a finished-import terminal, with a storage capacity of at
least 2.5 million barrels.
• Chevron runs a network of 862 service stations in the Philippines. In
2008, we introduced Caltex E10 with Techron®, an ethanol-blended
gasoline, to the Philippine market. In 2009, Caltex Diesel with TechronD
 was introduced into the Philippine market as well as newly formulated
DELO® and Havoline® products.

VIII. Company History

Caltex gained its foothold in the Philippines in 1917 when Texas Company (as Texaco
was then known) began marketing the products in the Philippines through a local
distributor, Wise and Co. Four years later, Texaco (Philippines) was formally
established and opened its office in Binondo, Manila. Eleven years later, its Pandacan
warehouse depot was converted into a key distribution terminal to bring products by
barge to nearby provinces.

By 1936, Texaco joined forces with the Standard Oil Company (California) to form
Caltex (Philippines) Inc. On the same year, Caltex improved its position dramatically—
it increased its capitalization from an initial PHP 2 million to PHP 200 million—
transferred to a new office, and opened depots and service stations nationwide,
making it the country’s number one oil company.

But three years of plunder and neglect during the Second World War wreaked havoc on
the company’s facilities. The Pandacan Terminal was destroyed and the Caltex
network of depots and service stations were rendered inoperative. After the
Liberation, Caltex was able to rebuild and reestablish its distribution and service
station facilities.

In 1951, the construction of a Caltex Refinery in San Pascual, Batangas began on a 125-
hectare lot. No less than then Philippine President Ramon Magsaysay was present when
the US$60-million Caltex refinery was inaugurated in 1954, becoming the first
petroleum refinery in the Philippines. On the same year, Caltex affiliates California
Asiatic Oil and Texaco Overseas Petroleum explored the Cagayan Valley for oil
deposits. In 1956, Caltex moved its main offices into its own building on Padre Faura
Street in Ermita, Manila.

The roaring 1960s were marked with a series of milestones that helped Caltex
reestablish itself as the country’s premier oil company. The year 1960 saw Caltex
introducing Boron gasoline to meet technical advances of automotive engineering. By
1961, Caltex had 2,400 employees and four major installations operating five depots in
Luzon, 12 in the Visayas region, and three in Davao. The following year, the Caltex
Refinery was already supplying 50% of the country’s national consumption for
petroleum products. In 1969, two 108-kilometer pipelines were built from Batangas to
Manila that provided a more economical and reliable means of transporting oil
products from the Caltex Refinery.

The Seventies saw the company on an energy search in the country. Caltex began
searching Palawan for oil in 1972. Two years later, it built and opened the Philippines’
first island wharf and storage complex in its Batangas refinery complex to handle
deliveries from very large crude carriers (VLCCs). A VLCC can deliver 300,000 tons of
crude, which provided at the time about 10 days of the nation’s crude oil needs. In an
effort to help the national government’s total energy program, Caltex spearheaded
geothermal exploration in Kalinga Apayao and studies on alternative energy sources in
1977.

Among the company’s milestones in the 1980s was Caltex’s acquisition of Mobil
Philippines’ marketing network, including 500 stations and several depots. It also
launched its revolutionary CX-3 gasoline with deposit-control polybutene amine
additive in 1982.

The 1990s heralded more progress for Caltex’s operations in the Philippines. By 1994,
Caltex had the most number of depots and the largest retail network in the country. It
upgraded the refinery to 72,000 BPD capacity. Havoline Formula 3 motor oil was
introduced.

The first Star Mart outlet in Sucat, Parañaque, was opened to the public in 1995,
marking Caltex’s foray into convenience retailing. The familiar red star Caltex logo
was given a new look and the color of deep ocean green was added to the new Caltex
logo that was launched in 1996.

The dawn of the new millennium ushered in the merger of Caltex’s two parent
companies to form ChevronTexaco—the second-largest US-based energy company and
the fifth largest in the world, based on market capitalization. Currently celebrating its
125th anniversary, ChevronTexaco employs more than 50,000 working in
approximately 180 countries around the world, producing and transporting crude oil
and natural gas, and marketing and distributing fuels and other energy products. Its
associated brands are sold in approximately 30 countries across Asia-Pacific, southern
Africa and east Africa.

As its more recent accomplishment, Caltex operates a world-class finished product

import terminal in Batangas with a storage capacity of roughly 2.7 million barrels.

This 2006, in line with the change in its parent company’s name from ChevronTexaco
Corporation to Chevron Corporation, Caltex (Philippines), Inc. will now be known as
Chevron Philippines Inc. Despite the change, the commitment that the company has
shown the local market for the past 89 years will remain the same and the customer-
facing Caltex brand and logo will be unchanged at service stations and retail outlets.

MALAYAN INTEGRATED INDUSTRIES CORP.

I. Industry: Real Estate

II. Years of Existence: --
III. Products and Services: --
IV. Vision & Mission --
V. Organizational Design
--
VI. Key Executives --
PABLO C. VILLABER
Owner

VII. Innovations/Technology --
VIII. Company History --
TEAM ENERGY CORPORATION

I. Industry: Power and Energy

II. Years of Existence: 1996 - Present (15 years)
III. Products and Services: Supply power and generate electricity for the
community
IV. Vision & Mission

Vision:

To become the leading and most respected company among IPPs in Asia Pacific.

Mission:

We are TeaM Energy, the Nation’s growth partner.

We generate and supply reliable and affordable energy to uplift lives and
promote the sustainable development of the country while creating value for
our stakeholders.
We are committed and empowered to achieve cost effective, safe and
environmentally-sound operations, using superior technology.

V. Organizational Design
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VI. Key Executives
Mr. Federico E. Puno
Chief Executive Officer and President
Age: 63

Ms. Joy Rivera-Guanlao

Environmental Management Officer

Satoru Harada
Executive Vice President for Business Dev’t and Corporate Affairs

Greggy Romualdez
Senior Manager for External Affairs
VII. Innovations/Technology
TeaM Energy received an award from Department of Environment and Natural
Resources (DENR) for the sound waste management programs adopted by TeaM
Energy’s Pagbilao Power Station at the first Zero Basura Olympics (ZBO) for
Business. Spearheaded by Earth Day Network Philippines, Inc., ZBO works
towards zero waste in the Philippines, in support of the Ecological Solid Waste
Management Act of 2000. The project encourages the business sector to apply
environmentally beneficial practices and incorporate the 3Rs (Reduce, Re-Use
& Recycle) in their day-to-day operations.
TeaM Energy Corp. plans to undertake construction of hydroelectric plants that
will generate a total of 15 (MWs) megawatts in Benguet. Puno said TeaM Energy
planned to expand the Pagbilao coal plant by another 400 MW and the Sual coal
plant by another 600 MW. We are committed and empowered to achieve cost
effective, safe and environmentally-sound operations, using superior
technology.

VIII. Company History

TeaM Energy, a partnership between noted Japanese firms Tokyo Electric Power
Company and Marubeni Corporation, is one of the largest independent power
producers in the Philippines, with over 2 ,000 megawatts (MW) of installed generating
capacity. The company was founded in 1996 and is based in Pasay City, the
Philippines. We are committed to working with the Philippine government in
addressing the country's energy needs towards promoting sustainable economic growth
and development. We own and operate two clean coal facilities, namely the 735 MW
Pagbilao Power Station in, the province of Quezon, and the 1,200 MW Sual Power
Station in the province of Pangasinan. We also own a 20% stake in the 1,200 MW
natural gas-fired plant in Ilijan, Batangas. We are dedicated to the people we serve
and empower our local communities through improvements in education, health,
infrastructure, livelihood and environmental protection. Our Sual and Pagbilao plants
are both ISO 14001-certified, and we have consistently complied with, and exceeded
the environmental standards set by the Department of Environment and Natural
Resources and the World Bank, making our operations truly world-class. As
environmental stewards, we take the lead in implementing programs that promote the
ecological conservation and development of our host communities through various
initiatives that aim to not only protect, but nurture our country’s natural resources.
Our flagship corporate social responsibility program, Project Beacon (Barangay
Electrification Assistance for Countryside Development) which began in 2001 has
energized over 1,000 far-flung villages all over the country. This has improved the
lives of over a million Filipinos. The project, undertaken at a cost of over Php 1 billion
was done in partnership with the Department of Energy, National Electrification
Administration and various local government units. In a rapidly changing world, we
remain unwavering in our commitment to create value for our shareholders, uplift
lives, and empower the Filipino.