CSR 7-11.docx

7- Eleven Company Profile

7-Eleven is the world’s largest convenience store chain operating, franchising and licensing more than 56,400 stores in 18 countries, of which nearly 10,500 are in North America. 7-Eleven also is one of the nation's largest independent gasoline retailers. Its company’s name was changed from The Southland Corporation to 7-Eleven, Inc. after approval by shareholders on April 28, 1999.

Founded in 1927 in Dallas, Texas, 7-Eleven pioneered the convenience store concept during its first years of operation as an ice company when its retail outlets began selling milk, bread and eggs as a convenience to guests.

The name 7-Eleven originated in 1946 when the stores were open from 7 a.m. to 11 p.m. Today, offering busy shoppers 24-hour convenience, seven days a week is the cornerstone of 7-Eleven's business. 7-Eleven focuses on meeting the needs of convenience-oriented guests by providing a broad selection of fresh, high-quality products and services at everyday fair prices, speedy transactions and a clean, friendly shopping environment.

Each store's selection of about 2,500 different products and services is tailored to meet the needs and preferences of local guests. Stores typically vary in size from 2,400 to 3,000 square feet and are most often located on corners for great visibility and easy access.

Well known for the Big Gulp® fountain soft drink, Big Bite® grill items, the Slurpee® beverage and its fresh-brewed coffee, 7-Eleven’s food service offerings bring guests a proprietary line of prepared-fresh-daily and daily delivered deli sandwiches, wraps, breakfast sandwiches and a wide assortment fruits, salads and baked goods.

7-Eleven offers consumers a number of convenient services designed to meet the specific needs of individual neighborhoods, including automated money orders, automatic teller machines, phone cards and, where available, lottery tickets.

The company operates, franchises and licenses approximately 8,600 stores in the U.S. and Canada. Of the close to 7,800 stores the company operates and franchises in the United States, more than 6,400 are franchised.

Outside of the U.S. and Canada, there are more than 47,800 7 Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, the Philippines, Indonesia, Norway, Sweden and Denmark. 7-Eleven has announced plans to open stores in the United Arab Emirates and Vietnam.

7-Eleven, Inc. is privately held and became a wholly owned subsidiary of Seven-Eleven Japan Co., Ltd. in Tokyo, Japan, and its affiliates on Nov. 9, 2005.

7-Eleven Organizational Chart

BOARD OF DIRECTORS

Jose T. PardoChairman of the Board &Independent Director

Nan-Bey LaiVice-Chairman & Director

Jose Victor P. PaternoPresident/CEO & Director

Jui-Tang ChenDirector

Chi-Chang LinDirector

Wen-Chi WuDirector

Lien-Tang HsiehDirector

Jorge L. Araneta

Director

Maria Cristina P. PaternoDirector

Antonio Jose U. Periquet, Jr.Independent Director

Michael B. ZalameaIndependent Director

CORPORATE OFFICERS

Chin-Yen KaoHonorary Chairman

Jose Victor P. PaternoPresident/CEO & Director

Jose T. PardoChairman of the Board & Independent Director

Nan-Bey LaiVice Chairman

Ping-Hung Chen          Treasurer/CFO & Vice President forFinance and Administration

Atty. Evelyn S. EnriquezCorporate Secretary

Business Interests

Conflict of Interest and Corporate Opportunities

1. Every employee should uphold the company’s interest at all times and integrate it with its own personal interest without prejudice to the former. Regardless of consanguinal or affinity relations, all shall adhere with the guidelines of the Company and act on the basis of the Company’s interest.

2. Avoid engagement, participation or involvement of oneself, directly or indirectly in any transaction, undertaking or business enterprise which should belong to the corporation, thereby obtaining profits which should refer to the company or otherwise causing prejudice to the corporation.

3. Avoid engaging in activities such as soliciting and accepting gifts and entertainment; and accepting cash or its equivalent from vendors, suppliers, contractors or any third party.

4. Employees regardless of rank shall act with prudence and careful judgment in their relations with all vendors, suppliers, contractors, and to any third party providers. They shall not engage themselves in situation and activity that can compromise their position affecting impression on relations, casting doubts on integrity and judgment.

5. Uphold one’s integrity and that of the Company by following procedures in dealing with co-employees, government agencies, contractors and suppliers such that no employees must engage in rigging bids, nor use their power or position to manipulate/advance any agreement tainted with personal gains. The integrity of the company lies within its employees. Favors have no place in the business.

6. The Company’s interest shall reign supreme in all the business decisions and actions. Therefore any legitimate opportunities that might arise should be advanced for the company.

Products and Services

24 Hour Payment Express

Corporate Vision-Mission

SLURPEE

The original and best frozen beverage is only available at 7-Eleven. So when you need some refreshment, come in and get your hands on a Slurpee. There’s always a new flavour to try, or stick with traditional favourites Cola and Raspberry.

Gulp

The Big Gulp, Super Big Gulp, Double Gulp and Gulp are genetically engineered to quench even the most diabolical thirst. And if you fill it up in one of 7-Eleven refillable cups or mugs, you can quench your thirst even less. Plus it carries all your favorite flavors.

Siomai Hotdog

Stuffed Pandesal Siopao

Rice Meal Express Pinoy Rice Meal

Loading Services and Prepaid cards & Sim packs

Our Mission is to be Your Convenient Neighborhood Store.

At 7-Eleven, our purpose and mission is to make life a little easier for our guests by being where they need us, whenever they need us.

From sales associates to franchisees and managers, from fresh-sandwich makers to doughnut bakers, from daily-delivery drivers to department heads – all of us associated with 7-Eleven are here to ensure that we meet our store guests’ needs with fast, convenient and friendly service and the products they want while on the go.

Our Vision Is to Be the Best Retailer of Convenience.

Being the best at what we do means each 7-Eleven employee has a chance to brighten someone’s day and make life a little easier, whether it is service with a smile in the store or ensuring we have the freshest food available, day in and day out.

That means listening to our guests and changing to meet their changing needs. The products they wanted when we started were pretty simple – milk, eggs and bread. Those items are still available, but they also might include a fresh salad for lunch, chicken wings for a tailgate party, an imported bottle of wine, prepaid iTunes card or a Slurpee® drink in a cool, collectible cup. Whatever the need, we want to be the friendly, convenient, one-stop shop of choice.

Core Values

Customer focused

“We put our customers first.”

Teamwork

“We foster an environment of synergy to attain the goals of the organization through active participation and mutual respect.”

Integrity

“We are honest and trustworthy to our fellow employees, customers and business partners.”

Reliability

“We deliver what we promise.”

Data-driven

“We make decisions based on data."

Corporate Objectives

To empower individuals to lead their communities by elevating their standards of living from poverty.

To implement sustainable programs and projects that will provide opportunities to communities and individuals.

To promote community-spirit and involvement in socially-oriented causes. Promoting environmental awareness through our recycling programs and

supporting other environmental projects parallel with the Foundation's program. To provide programs that may create impact and sense of deeper purpose in the

lives of our employees and business partners. Encouraging the spirit of volunteerism to PSC employees and its stakeholders.

CSR philosophy

Philippine Seven Corporation (“PSC”) was registered with the Securities and Exchange Commission (“SEC”) on November 1982. It acquired from Southland Corporation (now Seven Eleven, Inc.) of Dallas, Texas the license to operate 7-Eleven stores in the Philippines in December 13, 1982. Operations commenced with the opening of its first store in February 29, 1984 at the corner of Kamias Road and EDSA Quezon City, Metro Manila. Considering the country’s economic condition at that time, the Company grew slowly in its first few years of existence.

In July 1988, PSC transferred the Philippine area license to operate 7-Eleven stores to its affiliate, Phil-Seven Properties Corporation (“PSPC”), together with some of its store properties. In exchange thereof, PSC received 47% of PSPC stock as payment. Concurrent with the transfer, PSC entered into a sublicensing agreement with PSPC to operate 7-Eleven stores in Metro Manila and suburbs. As part of PSPC’s main business, it acquired or leased commercial properties and constructed retail store buildings, leasing the buildings to PSC on long term basis together with most of the capital equipment used for store operations. In effect, PSC concentrated on managing its stores and effectively took the role of a pure retailer.

In May 1996, the stockholders of both PSC and PSPC approved the merger of the two companies to advance PSC group’s expansion. In October 30, 1996, SEC approved the merger and PSPC was then absorbed by PSC as the surviving entity. With the consolidation of the respective lines of business of PSC and PSPC, PSC’s retailing strengths were complemented by PSPC’s property and franchise holdings. Their management as a single entity enhanced operational efficiency and strengthened ability to raise capital for growth. PSC listed it shares (SEVN) in the Philippine Stock Exchange and had its initial public offering in February 04, 1998. The shares were offered at the price of P4.40 per share from its par value of P1.00 per share. In September 17, 1998, PSC established Convenience Distribution Inc. (“CDI’), a wholly owned subsidiary, to provide a centralized warehouse and distribution system to service its 7-Eleven stores.

With the effectivity of the Retail Trade Liberalization Act (R.A. 8762) on March 25, 2000, foreign entities were allowed to invest in an existing retail company subject to the requirements of the law. President Chain Store Corporation of Taiwan (PCSC), which is also the 7-Eleven licensee in Taiwan operating about 2,700 stores, purchased 119,575,008 common shares of PSC or 50.4% of PSC’s outstanding capital stock at the price of P8.30 per share. The purchase was made under a tender offer during October 9 to November 7, 2000 by President Chain Store (Labuan) Holdings, Ltd., a Malaysian investment holding company, wholly-owned by PCSC. The acquisition is meant to forge a strategic alliance which aims to provide PSC with technical support from PCSC in strengthening its organizational structure and operating

systems. This shall enable PSC to pursue store expansion plans on sound and profitable basis. A new affiliate, Store Sites Holdings Inc., was also established on November 9, 2000, as the entity to own land properties of the Company. These land properties are leased to PSC by SSHI. The Corporation’s area license to operate 7-Eleven Stores in the Philippines was renewed in August 2007 for another term of 20 years, renewable every 10 years. The Renewal Area License Agreement has been approved by and registered with the Intellectual Property Office as of September 25, 2007.

The Corporation initiated the establishment of PhilSeven Foundation Inc. (PFI) in October 2007 to support its corporate social responsibility programs. PFI was granted certificate of registration by DSWD last August 6, 2010.

The company had a manpower complement of 1,921 personnel, 655 of whom are regular employees, 301 contractual/probationary and 965 cooperative members to augment temporary needs during peak hours or season in the stores and the support services units. There is no existing labor union in the company and collective bargaining agreement. There is an Employees Council which communicates to management the employee concerns. There has been no strike or threat to strike from the employees for the past three years.

At year end, PSC is operating 551 stores, 211 of which are franchise stores, 130 stores are operated under a service agreement, and the remaining 210 are company-owned stores. The store franchise and service agreements have a minimum term of 5 years each, renewable for a similar term. The stores under franchise and service agreement are indicated in the store list provided in the discussion of Leases herein.

Currently, PSC considers three major competitors in maintaining its leadership in the Convenience Store (“C-Store”) Industry. There are a number of other small players including gas marts, but their store count and sales volume as a group by itself is not significant to be considered. PSC concluded in August 2009 a non-exclusive tie-up with Chevron Philippines Inc. and opened 25 7-Eleven Stores in certain identified Caltex gasoline stations. The Company continues to sustain its leadership by putting stores in strategic locations, carrying product assortment fit for such market.

CSR Business Model

Procurement Logistics Products & Services

PCSC offers a great variety of products and services. The company constantly improves the product portfolio to satisfy the daily needs of the general public. The company also responds to the market trend of fast fashion by launching the private brand of 7-SELECT. PCSC also engages in fresh food business to provide consumers with a convenient and reliable choice with food products without preservatives.

PCSC has the most comprehensive logistic system supported by the group affiliates to supply the inventory for all stores. To ensure the freshness and time effectiveness, we have established five logistic sub-systems of room temperature, refrigeration, freezing, fresh food and publication. The design of the sub-systems is based on product categories and characteristics to meet their specific requirements.

It is our commitment to offer a convenient, reliable and joyful shopping experience to our customers at 7-ELEVEN stores. During the past 35 years, the innovative products and services offered by PCSC has created a new lifestyle for the general public. Looking into the future, we expect to promote a more sustainable lifestyle based on the mutual trust we have with our customers and continue to play the role as a great good neighbor.

CSR Programs and Beneficiaries

I. Supplemental Feeding Program

Supplemental Feeding is about provision of healthy and nutritious food to the moderately and severely (non-medical) underweight children to serve as an immediate and direct interventions to improve their nutritional status and to prevent any permanent physical and mental retardation.

This program has four (4) components:

1. Educate the children and their parents on the importance of eating healthy and nutritious food and develop the families nurturing capabilities through various program media.

2. Improve nutritional status of the target beneficiaries who are underweight pre-school children ages 1-6 years old.

3. Mobilize access of beneficiaries and their families to resources present within the community (LGU, Private sectors and other NGOs) to serve as mechanisms for sustainability.

4. Encourage volunteerism among PSC employees through active involvement and participation in the program.

II. Medical Mission

This program aims to deliver medical assistance through minor operation, dental and general check-up and provision of free medicines to underserved communitites and areas where it is most needed the implementation phase for this program is year round with a quota of two (2) missions a year.

a. MEDICAL MISSION IN THE CITY OF PARANAQUE

To cap off the year 2012, PFI (PhilSeven Foundation, Inc.) held a Medical Mission last December 9, 2012 in the City of Paranaque in partnership with its Local Government through its Department of Social Welfare Office. The City of Paranaque has been a beneficiary of other PFI programs and services such as, “Balik-Eskwela”, a school supply distribution for 1,000 indigent students and Supplementary Feeding Programs matched with Livelihood Skills Training for one year that started last June 2012.

Historically, 7-Eleven’s 2nd store was located within the City of Paranaque. At present, 7-Eleven has more than 800 stores and still expanding, PFI chose to partner with the City of Paranaque as a way of giving back to the community and to its loyal customers.A total of 948 indigent patients were given free medical check-up, complete set of prescribed medicines and multivitamins. A number of volunteer doctors and medical students from University of Sto Tomas - Zeta Beta Mu Fraternity and UP-PGH - Mu Zigma Phi Fraternity come together to share a common cause and help others. Among the specialist doctors were Pediatricians, Opthalmologist, Family and Internal Medicine and a Geriatrics doctor all provided their professional services for free.Medicines and vitamins were purchased by PFI to Erickagen, Inc. owner of Generika Drugstore who sold it at a very low price as part of their CSR (Corporate Social Responsibility) activity, they also brought along pharmacist, nurses and volunteers to help in the dispensing of medicines.The event was attended by Paranaque City Mayor Jun Bernabe, Vice Mayor Gus Tambunting, Councilor Benjo Bernabe and Social Welfare Head Mr. Dean Calleja together with PSC Operations Division Manager and PFI Trustee, Ms. Liwayway Fernandez, PSC HRAD Manager and PFI Mancom Chairperson, Ms. Violeta Apolinario, PSC Business Development Division Manager and PFI Trustee Mr. Francis Medina and PSC Employees Council, PSC Employee-volunteers from HR, Operations-Support, Finance and BDD.

III. "Balik-Eskwela" Project

This program identifies a public school or daycare center as target beneficiaries where students will be provided with school bags and school materials for the beginning of the school year.

A. BALIK-ESKWELANG HANDOG PROJECT IN PARAÑAQUE AND PASAY CITY

For the year 2012 PFI partners with two more cities

in NCR. Parañaque and Pasay City were chosen as beneficiary for the “Balik-Eskwela” Project, a total of 1,000 Grade 1 and 2 students in Parañaque City and 1,000 day care students in Pasay City received school bags and school materials which they can use for the whole school year.

The said project was done in coordination with both the LGU’s Office of the Mayor and its Social Welfare Department. The event was held last June 30, 2012 at Parañaque Sports Complex attended by Parañaque City Mayor Jun Bernabe, Councilors Benjo Bernabe and Rico Golez and Pque. Social Welfare Head Mr. Dean Calleja. 7-Eleven Division Managers and PFI Board of Trustees, Ms. Liwayway Fernandez, Ms. Violeta Apolinario and Mr. Francis Medina. A number of employee-volunteers came from Finance and HR.

P’que. City Mayor Jun Bernabe gave his speech and formally accepted the partnership with PhilSeven Foundation, Inc. in support of their welfare programs particularly on education, and health and nutrition programs for children. He also mentioned that he is also looking forward to seeing more 7-Eleven stores in Parañaque since this is where the 2nd store was built and learned that it is still operational at present.

July 27, 2012 when the event happened in Malibay Gym attended by Pasay City Mayor Antonino Calixto, Congresswoman Imelda Calixto-Rubiano and Pasay DWSD Head Ms. Rosalinda Orrubia together with Ms. Violeta Apolinario and employee volunteers from HR and PSC Council.

Pasay City Mayor Antonino Calixto and Congresswoman Imelda Calixto-Rubiano both expressed their gratitude for choosing Pasay City as a beneficiary of PFI for its “Balik-Eskwela” project.

The “Balik-Eskwela” Project was meant to augment the local governments’ welfare project in providing basic school supplies to indigent students and serve as immediate help for their schooling.

B. Disaster/Calamity Relief Operation

This is a regular standby program of the Foundation to provide relief and/or rehabilitation services to victims of natural and man-made

disaster/calamities and social disorganization to affected areas through resource mobilization, relief distribution and networking with other agencies.

A. Habagat Relief Operations Dec 2, 2012, 3:15 PM by Phil Seven Foundation.The second half of the year heralds the wet season. We are no strangers to typhoons and torrential rain showers, but last August was quite different. No storm signal was raised, only the ever present southwest monsoon or “hanging habagat.” But the amount of precipitation was such that it was comparable to typhoon Ondoy in October 2009.It rained incessantly for several days. Water levels rose, the floods came as they always do during this season. It came to a point where homes had to be abandoned, families had to seek elsewhere for shelter and livelihood had to be left behind.Evacuation centers were filled to the rafter with hundreds and later on thousands of affected families. Food was fast becoming scarce. Everyone had to step up to bring aid and basic needs to these people. Philseven Foundation Inc., (PFI) together with PhilSeven Corporation (PSC) repack relief goods to bring aid to this people in need. PFI also teamed up with DSWD National Resource Operation Center by providing meals thrice a day for their volunteers mostly from Phil. Air Force, PNP, students, religious and civilians who also helped pack relief goods.

A total of 4,792 relief packs were distributed to different cities in Metro Manila. A good portion of the said relief was sent to the City of Manila. Manila was among the hardest hit by the flooding. 3,200 relief packs were distributed in Sta. Mesa and Baseco, Tondo by Manila City Mayor Alfredo Lim together with his officials and volunteers from 7-11 employees this happened last August 16 and 17. 600 relief packs went to Caloocan City, 500 relief to San Mateo, Rizal. And 492 relief packs were distributed to 7-11 employees who were affected by said natural calamity.

Our efforts may not seem much compared to the devastation caused by the nameless deluge. But let us always remember that a little help goes a long way. We must not shy upon extending whatever help we can give especially to those most in need. There will never be a shortage of people who need help. Let us emulate the example of those volunteers who toiled night and day

notwithstanding fatigue and bad weather all for the sake of helping others. And we have a perfect word for it: “malasakit.”