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~~ THECOVER

ABOlrr

AElS-CEliNI B:roadlC'astiniOl CorporatCo:n,Is the le~din; informO!~iQnand eill'tertainmE!~t med~OIIwll'l!'lome~ il'l~ne Pl'IllllP'Ilines" Thrnugl'i various d i~~rioo&1'I pn~lformll [,t IIlms, to, bring contll'rIit to, Fiillplnos, artlY!)l1d the globe. lit «JfI~t<!ntily flnd~ w~ W anticipate and ovetrCCII1n!l!1 tile rnameng!!!!i of a falSt evoMng and inc:re~slr:lr.ily compeMtl\lf: ~nvi f'OInme;nt to emer;ge'!n even ~tronger <Inc!better o;)m~Jijy. AElS-CEliNI 'Qon:mntl'Y IIUllnova~=Its, ~nterrt C~Ntr,04'1I and di5bl1ib~tiQn capabi'liitie5 W 'ge!1erate and hOI nE!SS F breakltiiJmLlQns tiila'tef\SU:i'e Its rereVa.It>Ol!1 ttl i~ lIudl'fl!nees, lin keepolnlii wibl'l Itn, Imli_on to IIlways b~ in the service .~ the Fiilipino.

MESSAGE 'FROM T'tIIE CHAIRMAN

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allJl¥ wi placeIn all'1l'l'rn>eclium.a'II]'1lJim~.time. The Corn p<lny also owns the leadi n. access cmllllllitry.OJ udienees remain aonsr.._ _ CORPORATE INFORMATION OORPORAlfE BACKG ROIUN I[) both AIBS-OBN's ViS~OIllI nd passicn.aIM.> end co:st-'e. < As OUlf audien ees .fiFectiv. mob~~e: and ollillilille :synergies.nmsttlhat technCl~bg¥ wi~ al~~ow" Ou r allJidli:ell'1lCeS III he alMe to reach us . It Ibllings il~s eentent Iowo.ely •.e the pmclucltiolill process" the mediu IlI'II TV end Opell'<ltes. cities of th e Philippines .AA]f.a IlIJ1e v • . The key th rusts a of . .as we deliver Qw!e<llrel.ppss~Me beooeel'jl our 'ODlnteint end disiblibulJion / husu nesse'" We wi!11cOIl!OOious~y eperete mOine iefficuently .. " . .. our eere The Compa I'I'{ has ulntewestsin eontent developmelnt menchallllldl~ingi end licensinq. the COUllllltTy'SIlargest eeble W service provic:le~.<llD'!!w:l'te~ ilD'<llD'V device £II'"' nted~m'.g cinema used to.a'l:lc" OIU oontinuedl r relevance by dustrliiblul:inlgl our centent r in the wndlest array of pMfo.at . We wilill COIlllIJiII'1lW:l bUlilciing on..• ABS-CBNI prov~d!es news and enlren:ain ment IPlmglfamming fur IIllilille ehannels on ca b~.d!emallllldl'greater cOllllibm~O!!i..eThO~)l .rklwude .

througlh thie jO!!Jlmey.. We believe in '!Nle deliver on O!!JlfcommiIDIlentiS.. output We prernete the best in fi~ii pillllO tah:mtt. UORIPORAliE VALUBS [1111 <I. '?# INle:riiltouacy We believe u~ 'c:aring~or OILlI' peop~e. w>etalke alctionl basedl On! <I eerefu I essessmentthat • . content fur . gluuoe (" 'p~ \. wlDdchvide.. aeeou ntahiTily flOf 01:] r ro lie. We speak O!!Jlt<l1~dl~\j\e good peilforl'1l'll<lnae" lE)!'Ce!lllel!1l'Pe eestte <lIiDtaUl1lI best retu ni'1IS" We eontinuously !explbre nlew ways of doing thiinglS.my diistriibuitiorl p~aUot1rn" We take personal <llndl decusuon..c:hi'e:vungou r corporate vLlSnon. OIlJ~' vOlluelS. <In:dlreflect true sentiment the of the IFullipun:o.. as we'!l as of alll~hiulmallllikind.lLeallJIJIWII!IItik We !exilSt u~ldhe service of IFii~upunloiS.

AL 1005 2006 2/007 2/ooa .a mings per Sll'uu'e(Pesos]' 1. (ol'lsumer 'S>lI1es (11'1 P miillions) EBITDA (in P millions] 10. C.E. 2009 - -- - - Net I~ncome Un P mUlion.702 2.386 2005 2006 2007 201.ABS-CBN ANNUAL REPORT 2009 _ _ IHIGHLI'GHTS IFINIAIN.008 2109 o .s) E.23 252 2005 2006 2007 20U 21005 2006 2007 1.

c 6.005 .ABS-CBN ANNIIJIl.76 Book Vatue per Share (Pesosl.599 ~IO. .779 ~~II~ I.biIWH (i n P mi IIions) Long Term Debt (in P m i:llio nsl 11.2:2:4 2008 21009 2.~ REPORT 21l09 I Cas'h alild Equivalents {illl.224 '1'1.p milliiolll50} 20<15 2iOG6 2007 2008 2009 ----- .2. lot. i Stockho'ider's Equity Un P mmions) 13.2006 21007 2008 210M • .!!1 U.

.dli:o and c~n.AJt the beginning dim amidst of the ye.d! on <IIpassi:onate business results I[h:l~i\r!elseund times" The F~lipinos. journeyedl with oUlr the wi:d!e: and .on to o. df~\re to serve eV.A:-as Pal our vi. <IIwelClk business glloballWy. ca ble.a rns sllJlch as May B!J.esilienc:y O'ftthe Filipino da rk fimes.ati:onas weml as boy <l11Il:dl nlielll:dlship' with his Gm:! fun <Ind re~~ef. the mlltiJooik fur . sate'l rite... the str'e'ri!gthi .. m. i~f~"Tlllatio'n cltlzem'~ to astthey ralilttlh"ihrou!gh ~\f\ehelped ensure OIUlrnews <IIndl~t empo>wea.IIr. a!lready mired ~n: poverity.per~elfllcedl lexful'~a:oll'rlin<llryca lemities.e.glmwuIl'IIg <lnillY of OllJlr1PII<IItrorms uln freetelevision.ema!tlhlmllJlglh servedthe world.r of hope and <IIfl'a~~:m)g~':ams. they people The Iluke <IIbeaeen As wutll o~[her difficult >QOIUlIl'lltrymen. here .of each other r. lBut even .In these inlJernet.vercome.ewers experi:em::edltthe pOwe. wh~chfllow yealrs.!nIdi services.eil'lldminglitJl'ying ex.g!1l~11'II IPlmvedltth<li~ e)!cell!ent rollJlnde.. dur~ngl these Faoed w~th established! lea rned to relly ..~ve tryuIl'IIg times.20Q9was lenvimlfllment loca!~y and ¥.our products under such an envumnlmem-.the Fil~.!'\l\ellful~ooIFllte\nt brought the soory of en ill'llnocent ("lBro n ). if1hlmllJlglhprogr. compa ny onee a. shone ilnstitllJllJions IlJlnlabhelJo he~p.8ith ani edllLllcated alllll~i I"If~:ed . magazines" OIUl mest r ~-a..md aroundthe hope end ~IFIIspir.ob~ll. n eeds compel I~1Il:g1 eontent of OIUlroeu ntrymeliliwell PO!l.

aud ience reach and when they wa nt to experi content showed used cable.. from a II ove n th e . increaaed . sateliite and tlie oDnte nt choices as well But the eve nts 'Of how such an un Ako Al'lg Simula volunteers for.viewers na tionwide and . ' engaged vigilarlce fDr '. in FiliRinm. truili and active pa rticipation shape the country..

OJ!> it fared all the del ivered music that stirred Uie enlivened the you:tlii. .

advertisi n gl revenues glre~!1by 7% te P14. The dhtanges. growth ove:r lest y. B. reoognnzedl the u ".inment and pmdim::itivil:y impmvemen~ 23°/D imptrOvement in net income" We look to the future with solid confidence.. We continued to 'invest in creative telent and employees th rough (lOlfltinlJlous trail'lli!'lg and dev.ow'berever the'y may be.sama. .and om.ear.and IPiIlI sUhsoript'iOlflS increased by doulble-diiglit rates. ago bUilt continue to refine We rem auned true to alndl expand" So.elopment.Our consumer sales.y . helpedto some ·exrent lby political advocacy spending . us for greatel' business We are ready to meet challenqesand fOllWardlto opporlbunihes to continue look to serve th e IFiInpiin..'9 billlionlJi'lll 2.'i'que vakae we oUelr . '~'Il'e know supreme. prepere' resiilienoe. we remained sensitive to the needs.a nd offe'redl mm-e slyn:e'rgistic media ailld haln::l-working creative exeeutiena aiCf"OS.ABS~C:BINJ loila l's CillbJ.periods.as initi'ally expeeted to bea bad year. rleaching es many <lIS 2. Ou r determination our audience. S:i'milariy. despite what Vii. rleardv to. we deferred rate to AUlgust.5 billion.ea. ilagether 'We will remain Basta .eilti:gers. eonaolidated gmss revenues reaehed P24.Smo platforms to guve them ·gln::alrer val!ule fur mlo·ney. POS!tUlllgl ]1%. we have I nstituted to sbrengrihen organizailtiona I capa bilifies and impmve opereti ng effi'oiencies. whaJitever thejr station ilfl life. al precess w:e Stillrted yean.dvertisen.009. rneeta ny challenqe.e." Whalrever that the futme mal'!" brillllgl. will~ ledl to a our Cooolrlluedl strenqth in the mariket.sarellire G con nected loved ones.and ad\i'erlbiserg.sama-.s lFullipnno 'Ito home alndl to thei r . a. rese hy H!% to hil: Pi0.2 millien vilewelrs by the end of the yeall-. kaY<J'llg-kaya. Cost conta. ensure to be faithfu I to the need's or customera .. meam'l'l1Iiie. Kapam#ya! . Adv. of weathel- depressed increases To help our reqular advertisers bUlSi'llless conditions. IOIlJ r talent and emplovees.strii'lli og to keepthe overs..4 billliorr.

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CrealJi I'1IgiI.eiairt-w,armingl .lII'iI d e:m,pDwenng co I'iltel'1l.lt neither routine nor textboek; it isn~t is merely a mall'1lufad!ulred [pmduct lthlirt call'1lhe bO'ljght O'ff a gmoorysihelf., The SljCOOSSof a concept transcends wihat one sees, hears Dr reads, lihes:e stories must be deli~catE1l;ywoven aad intill11!arnlly presented fur irt to teueh lblhe \I1el)" oore of its audience •.A!l'iId tJllliis us what ABs~aBN Ollal'illl'iliel 2: [Entertainment has dillligentJlly worked on in 1t!lhe past yeialFS. Cha[I[lengiing oneself is diiffltcult., It is much easier to celebrate PClcstsuecessesaad hope that it wiH [lead to future trjumphs, But, as we are very muC:h aware,. this is net agluarantee .. lFaoodwulthlagglressi\l1e' cempetition, we [Imew that we had to work hard ill Iuve up to our audience's expectations. And their overwhel mingl responsa eml[y inspires us.

Channal[ :2 enhanced tilhie pri meti me .e'Xipenenoo by delovenng [plriilmetime-ca[1 iber proglrams earll[ier at 6PM. Bays OV'er Rowers, a KOlrealmJ'vela abourt how 1i:lheerilduriung lave of a .slumpl[e glirl transfcrrned tlhi!e'storilY heart oiF alril affll[u,ent boy, a nd J{amrse, an lLJ[plliiffi drama rillg abDut the jou may of a gi n1 whO' rose above the dlhial[llenges of beingl a 1been<lge mother, altered teillBvisUO'I'lI liieWiunghabits and reminded V us' hDW lave can overcome al[l[ odds .. In primetirne, ·Olhianne[12: focused on stones of love, hope and respect - all oontrat tilhiemes to OIJ r aljcdiirE!iriloes' eeds. The story n of SalrilIDUrm'S ilrilirilooorn fai1i:lhand fnendshi[p. with Bra iul'1ll May .Bukas Pa sO'undhl ireso:riIalt,ed the E!induriulllig hqpe of al[l[ Ftliliupiunos fo:r a better I~fe, whi[lle Hille' glFcmriI.d-b"ea~iingl familily dillams J:fl!}'IDRq Da<iawa' kept vliiewers on edge as 1i:lheybore wilbr1less ill the u ril1f:dlldling! cootlicts and liinterllllal silJrugglles of two brothers flgthtting over famuly and the [llo:ve of tilhie same WiOman. l1he powerful [)ahil May lsang Jkaw revealed 1i:lhedlhisl[lienges faced by unreten1iiul'1lcg love, fa mily and plinci[p[l;es. With iilts highliirglhts of rea! -[Iife victolnirBS and slbrugg[l,es of fel[low A[I[i[pii !lIOS, Maalaa!.a .MoI Kayaoontinued to, upl[ift alliid ilrilspl~re viirBwelrs.. J W1II'e B'e;tty .La· .FetJ rerniaded UiS, oiFthe meaning of milll beauty aad Only You si'll.owedl us how passion us mfil!octed ~n~ood and [1[i1fie'.

to do better,

1 A.S5-(;I!ID\I lJl.i' "A.mO~ WOI'ILD 3<1.<1 53

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lr~,e ad!aptafuilOinlof Agim:alt: Ang NgtJ Atrl1lltnf'ilt ni Ramo.n RcelVilil1llalnld 'IJ~e Kiomiks Presents seJr~es c:aptJljred t~.e e~us~ve Imo,iilesand }I\QILJtlh,fiiilllling theJilr SawulrGa/yevlenilnlgs \i\lUlt~, thrilllll~ngallild action-pacjkjedi adlvenl;wulres.. C:~,annelll 2 revita~~zoo Gayfuiime vii,ewi nlgwi1D~ illillnlOVall:~ve eoncepts. ShoL\\'l!;time soli~dified l~,e noontime bllm::k, as lilt s~.o\i\lc:ased Ute extra.o:rGI~nllalry1ta1~eli'iillj:s peitfomlantces of and omlinary Fililipiinlos. Kambl1ll' Sa Umifj and the Pf;ecio[Js HeQ.rfs norrnmOE'Soorii,es keptvlilewers aw.ayfimm thsi II'" afltemoon siestas lt~'FoILJgha glriiPipiinlg talle of aoooptranoo <lI1'll.da series of c:.alp:t~val:illilg Illight mmanoo." Gom:plletilnlg 1Dhe aften,oonll5' perkineas were a heaithy diose of Bantlil'lifj Split .D.f}i:iy Servings and Pino'y Big ~~~:;,.Double Up Uber:.

Bome out of or,ealDiIViity.ilnllnlovaltiveness and haml work, ()~annl,ell 2 has reaped praises and acooiliades from var~oJljs groups and circles .. IEvlen more gra/tifyilnlg ~sthe PlCIltronlllaglea1ifumied it by tJ~e IPub~uG. :ayllo, rNiell:sclnlI 1 Sofres rNlatlionalll P~,illupp~ne'.5l11e1lievisnonll .AJLid~,enoo MleiCllSiLJIPemenlll attested! to Chi:annelll .2.'s lli'iidltionallllI,eadelrS~;~piinll hEal1 dlay "m,d pirimetilme.wi1D~ a ltot:a~ dalY aJljGlileJliloe hara of 45°tc,ror 2~[J()9. s Clhanlnlell 2. a~so aooounlbed!f:olr 13 oult of 1Dhe top ]5 proglll'"am:s, unldud~li'ii.g9 of tJ~e top 10..Its stmlllgl:lh liin c:re!03ltillllg COnltenil: is SOOnll cross alill a program tYIPes, \;\IIn, Channelll .2. pirograms lI,e;adl~ngev,e:ry Ir,ell,evanltgleilillr,eliin ralJillllgs. We are weillI aware of 1Dhle c:~:a~leJnlges1D~atII~e I ahead." B~1t., as Il0nl:gas we rernsin trua to our:se~\fes alnld our audiellll:c:es, we IkrltOW lt~,at our or,eCillt~OIi'iiS cOnl1TIi w~1111 li'iil~eto touch, inspire and bnilnlg 1Dhle best oull: of every HlllilP~ • rllO

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Otlheirs l'D1O Stlllldliio 23 11 Qnll1 .2% Solall!'nI/

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enoourag.e si1buatucm Inion-stop to hi. oppOlli!unl~has and ed~ca1iJilo!ni.es.e WiOlrilidl.e grusilly incudle:nt on jjjhie same dalY thi.. lNio way wii IIIthey a Illow atmoiities or allillY wmlill. bydeepenilingl pO!vsrty due to .elilook to rll.[)fUlnungthe day of the wO!rslt typhoon to hilt tha caIP:iltall. iPfltrol 1140 campauglns.g techi·niologlues on and the prevall.Di ani. jjjhey came . Conoomed Boto PauoJters sent ABS~CBINI News emails and pictures of thi. A ttllmugh lilts BotD 1140 .Jes as wellias liinrkmmatucm: to rna ni!i3lgie jjjhie dal'y-to-day Illuf:e thi. they monitored thi.ew:s organlilZ<3ltions to be vug~~arllit ilni . AIBS-CBINI News is morn than . Im:!wsas a source of empowenmen'lt O!nian . AIBS-CBINI News covered allII1Dhieseh~stOiriC evenrm. a IPrornoltungl a c~'llture of citizen joumaillism sinee .e tJhian just metre sequlenice ofeveililts.d OUlrll"8inilt lffalurs for news ill equlup them to rope A wijjjh macro socuo-eoonOimuc and IPollirtucal1 dham.ev'er ready help a lniah::m: standi up Onilits feet thm~!gh empowelnungl news and unifOirma1iJilo:ni. with IPIPesudlenl:iialeil.\lSf:olr p unformaltion am] ·eniabilieiment:.fOirmer PresidEmlt 'Coralzon Aq~ ino.d the BoliO'1140.ABS-OBN s m~llltiple Ipllatlf:olrms.Bn f. llhrouglhi. the . ilt gave him oppolrtulrIllirtires lto he~p lrelbuilld a nation.y.oo.ed lFiilii . of lin a oorunl:ry whiere tmth can be hasd to eorne b.enoe of :sooi!alllmediato builld communutlies off re~ponSiilblle alnid Ipatriotic citizens..ow.ABS-CBrNl INiews arll. IBS-CBINI News.ey rn~yoini ni.n"~~'. AIBS-CBINI News led thi.ellpalilleviarte GOrillooms and de~iv8ir vilta~ ni. piilrI:OSto Ibecome more vu.. ABS-CBN News .even greater lmealnililng...ow Glnie hOo~sewirfe restored democracy to the nation.Nlew:shas beoome arlil ilnlooglrldllpaint r of ~Iirfeas peOlpll. first bmlk!e jjjhie for ni. .iF:a:tf:oi /!!fo: Aka Ang Simu/ifj campa uglrlll vY'glillan.e\.es. thimugh speJ:~all COoVEairidges and documelniltan.e natural CA31!amil:ii. till. Illilve upd!atB:S lun.at lit hapipell1iiedl. burt irltgav'e jjjhie lFiiluIP:Uni.ABS-CBN News caIP:irtalluZ!edi the use of exiistlini. 1 AllIIover ti'll. laiClk of jOib.o I mO!r.eduonis liloomiiII1ig.eX!poSiu~..g the liJmlthi. AlBS-CBINI News braved jjjhie dalniger:s to galthi.~"~.ews of tJhie IM!agluilnidani!i3lo massacre. llhmuglhi...eilr famulu.glularlilialnid in droves..e 1bulmto .gdoungl to 9100 unreported.1atr.e ~ialtion in rnmeim'beniilnig and givungl henor to the iate president.e cmm1bry's moral Iliei3ldielr. ner any alccOo~niltabiililty to baforqotten or p~shedasudle.jjhe Fli~ilPii j nilDfaced a yei3lr ·with 'glrfe!artelrtu m10U~.es. eomlll.n prices.. rNlow.ews. .er steries airnd mach-aeeded inifolrmatlion. hiiiltby dlesIJmatliv.20i(~4. chmnudilnig hi. With 1Dhie untimely delmuoo of thl. m .lin a society sUlchi as O~ lI'S.

..I ana p ~Iysicalexhausnen. . 'I•. ..m'V He endured more tha n 24 hou rs o~ retrieval alma rescue operanoos..A. he was one of the ~iilrstmien.n Tr:aining Unit . alii in the na me of hel p~ng h~lsfellIo·w F~II no..HllrioTopacie Ofild'OV struck and hielip was needed. P'hilippine. 0·' . ~IP~ IMajor NI..Infant.y Division.10 Ra even in times of Reliable ) • "e~~re~~ Cam'manding Office.io..2~d .. fJivis.to respond ..

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as lrevenues surpassed Pl bilillion in 2009. F But it is in these moments w~en our true cheraeter as a peopille surfaces.a.en as tYiphoons. U Rising above challenges As the primary canter for assistaaceand aid of our regiimllal family and ABS-CBN's direct liink to mhieproViinoes. moui lid aad move IQ.ip wiithi.. RNG has been rewanted wiith E!X!ooptiol'llEll busi ness results. deliver. landsliildes.egionalllstalJionswere m1iot spared fremthe deillu:ge. our regionall countrymen wasted no time eorni ng to mheaid of Manil. It w.ed a stu IlIllllinglblow. and mhieconstant threat . or most.e' mmmil:too IDO it serve..of Vloll..of sell'llessmess alll. ou r Ir.egionall stations. Whillie the mad ahead might be 1iillled wilth trials. the Regional Netwo:rk Group (IRNG) has strnngtlhen!ed ABS-OBN's llrEiIabolns~. More impDrtantlly.e • etwo Just a week Illater however. iknowingltlhalt what we bmadcasteould salve more lives . donations and relief goods ke. Ev.e:noes. No matter how lime mhey had.the peOiP~. Whelil Metro M!anililabore the brunt of the destruction brought about by Typhoon Ond'ny laiSt September. RNG facGliiitatedstpenglthi.alffi.and inJi51PG amongl rati:OIn! alillof us to' rise up.as such an o'Verwhe1llmiln!g act . Typl'ilnon Pepe:ng wmaked havoc in North allid Gentral Luzon. ThH bNin 1typI'ilOOn!iS...d RNG became theeonda it fnr it.alnic pti:mus affect ern mhecountry y'ealr iinand Yeillr out.of IDhrouglhRNG's empowering and em'llight€ln!i local p!rograms and 'genuine ng IPubllicservice. RNG continued to dleliilvervital news dun ng the OI'iHslauglht ofthe typhoons.pt ipoming in to our Ir.c. irt walSthai r darn:est hour.n. RNG wlilll be there to em::oulrag and toserve our regional co~ mltrymen. we lesmad to harden! our resolve and foster wimhii'iII I ourselves a spiriirt of ~niirty deslPite physicalll.. Allild IRING. RNG provided immediate mJlliefand gave our . culrural and ethnicdiiffeir.counil:rymen lreason to hope. drought. This endlHing bond has been nurtured and ta ken! 'c.e and served asa Iiglhthiouse. . By doing good and previdmqservice.. wiithi!Stood1Dhe s~rg.

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elr yearror sports. thi.s·l:iudio23. .tv •.e nytime.e:.llik-E dellli'!J1elrsDhie 1 Ilatest ~ technmllogy.ee TV IP~ayers. a 1. proof that Studio 23 lUi'll: mma~ 1i'ii!S to be the bendhmank amolng Ira~dheflr. 2![):[)'9WCl:5 ano1Dhielibanllll. studiio 23 ailioo IUll1lll:roduoed allillothieir progllidmmungl ~11Ill11l1l0VclltUOIl1l:.1i:. 'gamillrng and everytihilllllg 1Dhiat'sho1i:O!IIll thi.red unllucky by lie some. SpolrIDilngthe caolest allilld ~lriippest umagie amongl a~~flr.g thlie smaner TV p~alyers.eak. Studio 23 rnvo~ultioni2!edlW 'l..ABC 011[)iisney selni:es <lI1Ill:d 10Ci3lllly-produoed proglrams on~~IIll. al'lllywlhere.010 HFA WO.2 active youth Keeping up with the Wih~ thl.1bry's growung number o.eyam ai red. 1Ill: gladg:ets. thi.irtion from award~gliIVlilrll.1bry's first-lever 'c:<lltm-!JJIp 1\1' servuce onl~ lIll. Studio 23-prOOuoed 111 Sper'Jk and Us Girls reaped praises and rnoog lI'iI. tBli'illli'illiiS majors and the U.e premier mixed malrIDilallarts lleague.illp.!'ii:ewungl OIlll:OO again as it inl:irodu:ood the 'oo!JJIIlll.e Irhum'bell 13 ~s oOlnsude.5-m~li'imte "short" alP1Dly nltitlled Quiic-E andlThe Wr.wlhillle The wrap' dliislhies !JJIp hat's w essellll:lia IIluneli'iitertainmellll.v footbalill rall'iliEitics.e wellJ. sperts alli'ildg~!gs.dal'CUp williI surelythri IIIthe m!JJIIlll. Conltinu~lli'ilg irtsaward~wii 1Ill'lrnlungslbr. as Studio 23 filllledQulr days wi1!jhadJiIO!Ii'il-packed sports pirogrammung. a day a aliter thl.e IIL!I!AAP' and the NCAA. -rml'roLJgih www.music. Stuidluo 23 1fllo!JJIrisherl lilts ].MP volllleybiCIllll 'games exceeded E!:xpectatiionswi'IJhi higlh ratinqs andtha upoomilli'ilg 2. andhiornd by 1Dhemost bl[llnkab~eoolillegialte Ileagues. e Q.. 3'IJhyear on ami:dist rising competutlioln amollll.1Dhie ever-moibilile and e\l\er-ltlUlsy y'oul:h can :c:a1bdhp on 1Dheuralvoni1te u f .gbodiesand ulli'il~VerSi~tues 1Dhmruglhout Ute COUlIi'iltiry 2009..ee W dha nnels. UFC..

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! ca:l'i . b CClPMG was up 1:£1 I:he dhaWI. ehafk and tL1yx ireptyourIlger readers abir..ABS-CBrNl's C.J :5lpelilld~lnlg n o gllossy ma.wmikallilld VeillVlE!1toelebrid1ted anro1Dhier Ulocess1f~IIyear of dlelliverii Iillg s IProgress~ve.enrridh~ Iill.Mi1xxx and Balis. lhe uf:estyle INlet. wutJhialll~pllla)l\ern vyii lI'iIig tJhie for a1thm. OClPMG further dielived I~nto ~ Iill.echanllille~ I~nr the oountry.Ib~eClhalnllillellsarlld Pir~nt If'oi1~edia GmulP' (CC:PiM:G) is in an eXlbremeilly competiitilve indUisfury. .enrgle its pursuit of unr brillillging . En.g!i3IZi~neS 2009.eilr ~ rIlsafui!alb~. o Orlllthe 1C"<3lbllle . Metro oemelillited its status as tJhieIlle:a.Mom prcrneted a Iba~aIill.els..eVi~ngl 27%.r:king . IMryx and IHlerGare 1Dhe tDjP' pllayers in 1Dheirrespectiv'e ca1teg:olniies..ellillrudhilingallilld passienata Iproglrammillillg to ulPsca~e femailies Wlilth IProglramsSi!Jchil as MarmoT Jmil1 Chef.e 'gmw1Dhiun .ragled on 1Dhie equiity of ~ts magaZi~ne fu~tlles.dl~nrgl ."Weddings and ~i1ty n:Jme &. CCPMIG's mag!i3IZi~neS fared just as weill!.enlte:rtaillillmenlt ali1lidgl~ossy mag<3!ZI~rIl. CCPMG~s malle dhialillilill... DeS1P~1be an overidlill dedllillille ilnl advertisi m. K Mag pmv.Btiir SrudifJ' and ThE)' Buzz 'galve Iillg CIIW:aIY passes intD I:he wOirld of .e~iil1iflg :showed 1Dhiat ll'il.t.e O csn pllaln a wedldl~nrglor desuglnl a home just as well IIas: ailillY prefessional would.ooph~stjj:Galtedcalb~.ced Ilife fur enrl!erlpr~Si~ngl Ipamnlts" Food and .ose on free-te-sir. llha1t is wihy CC:PiM:G'scabille dhar. adhi~. soillid~f1edthei" Inlli:dhie positions tlhrou:g hilrolClit~ngl and thri Illiing inever.enterlaii Iillmelnt side. AmericaFs Next Tap Madej and H.e maglazilnle . every1Dhiii .er year.elr-evo~VI~ng allilld hlilgihilily of .~nidl. bestingl otJhier fumilglrlll movie channellsalnld evelilll thi.1IIIIIiI_1III"'" .alllmo:st n.eshave ended up ~n.e'Ven~.d e maga!Ziiilill. adlvert~sungl r. 'Wo.2.gcolillltenit 1:£1 its Ip:aiSs~olilllat'E! viewers allilld m:adern.e:ast w~tlh 1Dhie Ilartest ~ well ~.e appetite foroLIIl:Jtlillillg~edge and 8O{tridord~1ill!i3lryono:m1t. ElilliS!uln~ng that it w~1111 be ~OiSt I~nl:lhedllufier off not irmllev. CCPMIG .[)Gnce.mels heisted ano1DhierIbalilllli'il.ed IKriiiS Aquilnlo's Ibali1ltkab~ across any p~i3rtlOirm.a~nremlalOne remal~ned as thi.anoe 1Dhiat ther cabille dhali1llrltelsalill. Competingl net just agailnst 10(:::<311 colmterlparts b~1t 'gIlobi311iridllilldsas wellll. fashiluolilliand Ilifestyll.elnt andS1Polts oontBnl1t. ()]PMG managed to iiIilll grow its magaZiiine adveribisillillg irE:\I\enue by 5'% as ~t II!eve.oontinued to offier I:he moot unique alillid ~oCdlny rellevallill1tloolillltent:. How Do J Look. Hot to be Ileft Ibehi..Foodie fuidklled our readers' pallettes wi1DhiscruJmlPt~o~s and deillectable : culli Iillialtycreations.dersltandingl 1Dheevelr-evollv~nrgl taste of its patrons 1:0 momefifuatnveilly respond to thi. So You Think Yo!:. .shiow VIP Ibusuness.e mo:st-wa1tched calbll.e.009.fuiIOiIill I:lheeliJ.e marke1t.

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lKey prod uction people aliso palrtiioipalted lunoOlrIPorarl!e-dri'!)\en pmgltrams to . us well IIeql~ upped 1to oo:trll:ii 1m:!Jousilly mspo:nld tn 1Dhe dihanglilnlg lirnd~stry landscape alnld transcaad its oo:trll:en11I'1t m~. Gi'!)\en tJ~e deillugle of infalrmalJion comingl from mametingl rnevies became more challl~EmgIUn'll..arleatiive paSSlilOnl. wil:lh lilts d~ver:se pool of pasSlilOnlalte:and creative peOiP~lle.ootr:s.elnhaltrlae'It~.er.choroo Ib.Friends . 1D~e iiII11teme1t. IMlovingl fOirwalrd. otJ~er media. u .ogi'og Ina Nyaog LIf1n:at.ed Ang Ta.g.ev.eIprevalerrliiOOof cheap piratoo [JVDs. Famililies and friends Iborll.adli'ltuoll11~all marketingl appima.ded togethelralnld eni]loy.alnld vilbrranlt sltary fllilled wiiUll Ililm lessons and relartable chtiararcters portraryed by the bastactras and aetresses of em tr genl.ec:tolr's Tlraun'lliungi Proglrarmalnld ether pmd~dlilotn-trella1tedl worikslhops were instifuutoo all11ld . yet: l'iibl~l:ickiliung.d . asf 11m vuewurllg spreadsout beyond tJ~e bug screen. heilglMened ernmuolmallro:pel'iilenOe. T1~e lDilr.eratuonll. 2009 was a mille:stx:me year fotr Starr Cunema as it slttr!:mgl:lhenied i1tsl:lradilJilolnall marlkefui lI11ig whilile advalnlcilnlg lilts rrli.. of 1Dhelccel fliilrm malrrket based on gross Ibox offi:oo r. I:he avai ~abiii~~'lty free ainllunediowinllioadis.audienliIOOwu'It~.englagemelnt.alll~ ana. Star Cunema works orrlilon'7graniza1iJiIOnlal exoeilllem:::e:'It~H)!!Jgh COnl1iJUrrlil~loiUS leamingl .eii'gho:med kiJig ilnl'It~.es to ilnlcrnase aUlduenlce: aiwalremass arll. arrliid Best .e yo~ Chiiangled Mly uf:e and Ang Ta.eamilnlg fatr the ClrleiOlrlJiive team .c. and o Vuewelrs experiell11lood ilt. of increased competil:lian from commelrcialalnld urndependlelnt prod~.d mobiule technroillogu.·()ItJ1t-of-tJ~e-box famii~y drama In tL1y life".These niinlefiiilms cernered 60®/.the IM~el:mMlalnluialFii~mFesltuval's tOIP-'grrosoor.. 'whuc~.. an an'll. star (Junem<31 rerneins to be tJ~e domunalnl1t piliayer ilnlt~ie IllocalllmOVli:e induiSl:lty Ib.whi~. c [jnlspired by ilts . T1~ese four movies 011111 surpassed ~hpWO mi~lllion iill11lglm:ss ox offioe b IPeoeiIPl:s. Onl..orued in tJ~e heart-pinchungl.ethat olm'lly star Cunem<31 sn dellilvetr..y afirles~...OI()9.Despiilte 'It~.1t m skiiUs.d~ tJ~m'!Jgh matxlumized usa o1fl:lheweb i31111." To oontilnlue to surpass Iprrevli:o'IJs laurels. IMloviegoers alse ~augrhed and .donl-the-job lJrailnllirngrnedules. Sltaltr OJ nerna.e 2009 box office iTiit Ybu Ci0.r.staltr Cinema prod~ced nlluneq ~allity flilims in 2. prmvudilnlg a deepetr ~evel of II. W.ngiog 100 lII'1foog Llf100t breached 1D~e Php200 mililliion mark.Fo.featured a unique casltungl oorm'b~ lI11!E11tion.y oonl:ilmJOUiSllly IP:mvuding lilts . and Ilowetr dU51PO!Sabilie ilnlcom:e.nged My life"..on-trr:.eoeiIP:tSas Stair Cilniema aooounted fairalill of 1Dhe I:op 5 hughest~grosS!unglllocall rnevies for 2009.oonrdl~ded via formalll al1l..er .gemell11.emerglilnlg aecess poi nll'1t!5 ilnll:o w~ere oons~mp1iJi:oinlusevoillvulI11ignro.eilroverr:.

. Stall" !Recordls IP:mduoodi arlid reiliealsed 13 golld albums. arflter.o's'OLl'J'J]lsy J mass market . BecalUIOOof lD~lii5.Am 1. alrnd GalrY Vallienlciarll.g locall recordlingl outfiits platinum lkalraolke dhilPS. it ~!EliS beeflllglra. s a Reco nc • landscape: lihe music liln the has suglrlllHfii.lFimm~lnl IbV phrysucall retai ~s~llies.Awalmis ro.. and co-braaded Star Reoords digutal cards fur MP3 pll:aIYeirsand/or of top-seill~~fllg allbums liln theoounlhy.e lliocaill du'glilta~ reached lFacungl:lhese a strong Wih!ule Iniidlinglo~t the devellopmenl:. and Yenlg COlnstalnltii1I'ii. Ipil!alJi flI:umalllb~ ms and .edl its 1footilnlg lunl:lheglwwilnlg uII1l:ID d~. lIGodai\.Albumwere to large: retalilll oUltllets.""jII!-j .. tlhmulglh its oflll~ilnlesto:r.IFor 2009. such as t~ie Stair . lk.{.s musie music ~Inldustry. star diistrilbutlion Stair lRacordis mmalilnlS undaunted. aliso ~. MlaguG of hit :seliections S ones. sm~llller IffitailloylDllets Iliealvlufllig thice Ipillayinglfieilid Tribute ..eIOOnl.dlirtuom~..Aqulull1m& Baby James' 'We.e jjj~an a dozenl past five yle~lrs.erfir01nlE. ex!dlluSiiives and str<:llilglhillt~tD-d~'glilta~ rellei3lses"". roster dlilvel'"OOpool off rnasic conl!5tan1Dllydehvers R!eoolrds has 'giradualilly estabillis~. www .plhl. mt has expanded lD~mugh deals wiith rnasic serviic8:.aw Nfl N:ga.e!Revilillame's 19i1ing-giJ~ng.& Bravely crossing boundaries Star R!eoords a~so 'garnered awalms Awalms. ilnl t~.. mUSUC-C<:llpabille mo!bii lie phones. l<irus.carlitlychangied indus1bry druven blV mobule and In from Ipres1ti:gluo~sawaml-g~vilrng alll'iidcompulation bodies Novelty a~bums such • . Armedlwd~.doublle Ibiy far t~ie most number amorll.vor<:llbll. stalrrecO!mis . a variety aSSOITmenlt of Nfl :iCflVa. a unrfa.r IMluiSUGndl:lhe: .Awut a as Willl~i.gliitalldistnilbulJion Aplpll..duany shiftungl UnlitO one: t~iat lilSdri\l\en onlliine tedhnologlues.e's IPop~'llalr iTunes Sungl's braadad memory business. Tomi GOnliZ::aga's Love Is..o's 25 Ihighlly sought Streetbnys' aloquu red onll une and e~si~y sh~lred. Bu:goy Drillio:nl's Pa:ano lDhe young:elr close shOIP'air mergie wutlh 1fo:r'EH'glnl labels whose m~:5uc IIlibrary previdasa wider rnasic seiliectu0ll11i5nd artists. artists Star and a !Records of h~glhly-talefllitedl composers.eld suocessfUl~ dlilglitalll premieres.rnusieean be h~ve dosed down. lD~at deillights Filllip~llI'iios. .2..whulle V1~ongl Navanro loca~ rncordilnlgl 111~bells have: O[ptOO to ei1D~er Let's' DI:lnre. mo:r.

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e 1Dhieymay IhlCllveadapted to the~r nl..alll1ldI~nso doilnlg ensured that it w~111 rr~dleoLlit dl~ffic~'llt g~oballl eoonOim~c: 'oonrdl~l:iions.g 2".e1Dhiatus d~:stilnlctly Fli~iIP~II1I.canada.Be~ng away flrolm home liis lili:Otan easy decisien.d theatricailis.16 mill~~on OVerneiaiS .. the. To ikee:P'tJhiem cOinlnsated to hi.alteilll~te antdl Imobile ii11111 ]apalll1l.i3ldhiliill1l.wrymen..m calll~tJhieir own. l1hle IRi iIP:~r. 'ClOmpelllllilll1lg lI1Iews. ABS-CSrNl G~obi3llexpi3rndled 1~lI1Illbo ether IPeglion-specil'ii:c duslbribultion platforrns. .O.d dliiStln~b~t~mlll wrategy.e to bir~ngl IRill~pi~noo am~ lI1I.rvices.5w~111 always be ooinlneated to hiolme allld .. e I . ABS-CBINI G~Ob81's f1lagls1h~ pOhall1llll1lle~. essemjjji!aliloveffieas se. Ollli. m lin its 151DhY8lalr.olme. call1llnow be accessed tlhmulglhlr s.ew enlvl~rrms. and s~rvuvilnlg unltsnse 1ii00ll1lelii are just some of tJhie sacrifices oUir aass COLilnlwrymem abroad .brilll1lglilnlg1Dhie glloballl Pil'loy:s doser home . and tlhmugli'llr mornc:alblle systems in . to tre..r>e rerneins a longl~nglf:otrwlhat theyc:. Realll~z~ng s tJhie .AHS-'OBN Gllolba~ focusedon deluverilnlg IIJllI1lmatdhiedoListomer :servlirCE!i tlhrou:g hil ilts irmf. Whill.d to aocompli3rnry tharn ~n 1Dhieur mey for a bettEir Iliife. .t and on be~nglatlLlned to thiie needs of 1Dhie overneas Fi~II~pl~no liimpFOlVu its by rllg aoquliiSiit~olllilalll1l. ..lLJilVu ~n a fo:re~glnl eeu nl.endure.Whilile tJhie need of jem our ov.etrS9aS fini:Emdsfor inS1P:~llilll1lg to~dh~llI1Ig and COill1lterlllt FOlVed to be lr>es~s1tantevell1l to thi.y 13°t'o.enabilled ABS~CBINI Gllb~~i3I~ grow ~ffiSilJlbsan~betr base b.dhi.e p greatest of reeessiens.e wotrlldl doser mgietlher t tJhimugh Ihleart-wanm~n.estmelnts in customer lr.wry. That is wlhiy ABS-ClBN G~oballl lilSthi.AB:S~OBN GllollJa~went b:adk towlhat it does l~eiSt.1F~i~p~nos wOirlldwide.ltsan.d ffii:em:lis..allil. ABS-CBINI G~Ob81 is oomm~ttoo to COill1ljjj~II1II~.alll1ld slPectacUl~ar on-qround evell1l.ere for them. l1hiese ·effortsenlsurred thi:at lFill~pin0.ellOirlIiFC. to mmuntdl 1Dhiemof tJhieilr molts. distalnlt from one's ng fiam~ly allli.e~ations1hl~p managemell1l.d~ffEmilll1lg lI1I.g stories..1:O ~ (::ihianllli.eedsof our overseas 'ClO~ n1i.

e O1ptliGnto alvai~ irnduvuduall chalnllnle~s o1f 1Dheir dhioice on top of thi.lhe aooo~ell'dlDiing prices of 'goods amil oorui:oos hav'e dr~ven IRiih piiino censumers 1:0 tuglhrten 1Dhleirbelts and stalrt ~oolkunglf:olr allili!elrlnlaltiv'eswithi.Omy peopille from allIIwall ks of Illif:ehalve startad feel ingl the p~m:lhi. ma Ike a marik.oWlnlur lilts pirem~um services.e.ew dhanmels that sOph~s1t~CClited.fiini1bi:Oinl arll.oth8lrl'iiirst iililltha CO~ nl1TIry.eXlCilDiing alnldim~st-hi!Ellve ca!blle chalnlne~s. ofifenllnlg 6 rnhps and 12 mbiPS downll~oad speeds. andl:lhe perennuall problem of ilillega~ Gabille conllnl.." AJllthi. nl. f SlkyC<lIMe has rnmaii nlledlJrue 1:£1 its commitment of beulnlg mOlr. upcsca~. .0. parlDi:oullalrillyamongl the YOUll'ilg.:.qpelliienoo wilth tlhe:oorui:oo .esubiScrilbeffiwo~ lid su mlly .J.enjoy W8Ir.ells sUldhi as tha DiISiCOV8iryClhanl'nlel and the History (::ihanllnlelwere aliso made alvai~able ilnl hi'ilglhi.e added to 1Dhie~ne-up ..allue or .edefiine cable W wu1Dhi thiie I~nltmduct~on of 1Dhie la calrte Gabille a dhianll'iliellSiLJlbsan~p1tuonll year...lC.!IS. In 1Dhie face of a hiluglh~yprice-conscious marnet. de. Ik. lH~elr.1 glame by Gons1ti3lrilltllyleadillllig liin I' ilnlnOlVat~or1lsand pmvudl~nlg ..ffi(ist~ngl last SkyCalb~.yiBmadbalnld S started to.ackage. To an ordinclll'Y Pilll!Jjr'.eW SlLJbscl'i~pIDilOinl tJhie OO'LJntry. more affum!ab~e cOimpetitlive o1iferilnlgs.e Filllip~lnlomaSCSe5. It also. tedhi-salvvy I~nlte:met mar1k!et~ orll'lly a year aTher its re-~a~ nch iinll 2008 . To oreate better vallllj.AJIUll. In 1Dhie breadhaad .e...even thaeest of s~bsoription services such as a cabll.e for urn.oonSlLJmetrS csn .current ipremuum Offi:!rilnlgS.eoommmlll:CClltuOnll OOm.ehas comfortablly staved off its eompetitors and kept its rnsrket IllelCltdielrShip I~n 2I[)i[)i9. m Sky hias trulv remainedto be aheilid of .wlh~ch Clfties1t:s its high qualuty COinllll1eatiiGn and o~rnt:alnldunl.eXlilslDiing pffiipaud! service.. II arena..e Irealdhiabilleto thi.pillnlIUeS."ij. i Skye Ie SlkyC<llbll.e IPos~paud su bsoribers are gUV8nl thi. To s'IJpp~ement lilts .g OLJstomer . thei r custerners nlieed.aflfc:nd!able pricing to Ibealb~..ecfuiIOnl!:.-=. SlkyC<l!bII.. SlkyBlroadlbanlid rnmal~rili5 to !be tlheOill1lliy bim.e to c01pe..ad bandooru~oe provider with the falstecst ~I'litemiet COinllnleatliGn.enjoy quallilty progillamm~ngi thrcm'gh mOire thi:an 2.)\elly younlger thalll'ill broadband he'<llVywe~!glhiffi such as those of the tsl.... I'· pir1QaII. ..A!midst oruroouruhy's firailll eOOll1l. beUe:r '\!. . boasts of a ]01% 'gmlNlDhi in subscrilber IbilCS€! we~ IIasa as 70% free trial 'oonlvernilOinl rate..eilll base p. SkY'calb~e ilnl1TIroduoodthe lowest-lever-priced pDs~paid calbll.e aliso eontinues to Ir.. PiJ""iemU~m dhiannl.e TV or Ibroadbarllid intemet hialve beoome quite a s1traiinl.Delivering premium service despite obstecies .oruglh lrellalti'.n.OUglh Iknl. StartHlnlg at only in J:l280 per mOlnltlh.

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Match Shoes and Ties She was retrenched t1mml her regular job...e esta blllshed her OWltlli btlsi ne:S. izi ngl [or hier start -u p bust ness.ess. a . Perfect . but tha1t did nolt stop her from looking for ether ways tn esrna livingl. she decided to sell her ttems on the iilt1lternet.allnlen'go Propr. Sh. In j!LJIIslt year's time.etr.S-CI!JIIS~Om brid all shoes. her business has ffllour~5hed.Nlalri lu.

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(}11' d:Otllllllg . San B AinmnuoaD'ld the' Paco Marl<!et. the Polytec~ln'lIuL Universi1ty of t)m.'O The Pa5:i~gl RnV1er sa 27-killlometE!1Ibody of water u 1Dhatraverses across Mletm Mlal'l'ula t arid connects l<l..iteline . said AIR Managi rig Diumci:orGilrla Lopez.. houses have been bu ul1t and mmmu nal faoiilitues Illik!e' nungl 1brai and Illi\l\elihood centers . Once a major transport route'. been ennstructed.. decades . Two decades of devello. KBiPIP inCllu:gulI:amd itsfirst offi:oiialll resetlilemfmlt site. KBP'jJ[P took on the dhall. Kapil: Bisig para :sa flog Pa:sig (KB!PlP) has far .enge of relocatingl tha info:rmalll settlers liilvin1lg .•basketball courts" and health centers have.partment of IElmfuronmEm1t and ri>JJatural Reoouroes (IMEIPI. Tagluig.. !lin 2008.Andtlhe R key to good relloca1bi:olrl agood resettlement is siirte..dl!eanthe P:a!5li'9 iver ils relocation . Mak:ati. A month later. AIFilland tha [)e.ems in the Phililippines 1tod!ay". Mallildaluyongr. envi ffil'l'ment~education and disaster manaqement. Pa!5i'9and San J Llan.e Phil ippines eampus. Ruza~..l.g ([inking Reviving Am1S alii ready h. To date.a UJ7-lheatarn5iite in tha .009.Pas~g Rj'IIAsr) the .The goall is m realm zero toxic liinpu1tnto the P'asli'gRuver and its trjbutaries by i con1bIlO'II~i pollllurtiolFlt its source.P:ul'iligcare allld respect for eaeh otlmr. AO'I:a.ass1tewamis fur fue ronment. sta. With liitssmcujfas1t response to childcare. liltis one of the most IPon uted and toxic riiver syst.of oW'" 1'IiabQ.saving tJhe Pasig RiiveL Ka piit IBisig pa ra sa I~og IPasi.erw.I R) 1Dhmuglhtlhe Pasli~gl RiV1erRehabillli1taltuol'iI' Commis9iorll (PiRRC) joi ned forces tn revlilve the Pasig Riiveu. The Pa5ii'gl n1Ig at ltiver has 47 tributaries lecated lilnthe cities of Quezon City. With funds from 'genellGusdlOirlors. ABS-OBN Foundation (AR) is now uIP'for iilts newest chalillel'ilge.guna de Bay to Mlaniila Bay. 936 farmiliies have been resettilled iin Ca~. a three-kilometer s1breochou:eek tJhatoonnects to the Pasig R:iver.eilped reduce solidwasta load to 1Dhe wat.. .Man kina.along Estero de Paoo'. source of wate:r and tJhriviilngecosystem. BaYifmijuan sa ca!a'Uan.aualnalrld un famil ies iunthe PiRRCsite iin Monitailiban. Informal settlersalse conl:lnilbute to the worsening of the Pasig Riirveras waste is dumped dilu:ectly into the waterways.ays I~.decades of service.yputl:!unglup iMlaterials IRecove:ry Facillli1biies (MlRFs) in Marldaiuycngl. "l1he key to . Mlaniilla. aseco pont Area. " In Mlay 2.5lubunosof Me1bIr'O Manila.

altal:63. bags.ence . .000 lrunners . eases na1bi.Ialiilty feducaticn 1tinmugh the o production of eduCClltiol1lal1TV (IEiliV) pmglU<:lllllS.I flood W<llt..owbeing implemented alll(lln'llg 1iJnestretch ..re residents whill.ta~ .. S~p lin f Kapamilya'. From mere distribution o.oPiportulnibes aln'lldmake Fillipin05 'glllo!baily ·oompe1birtivH. the fiund-U<:lii1siingand aw.Through donations a nd post-disaster .ein'llmlle. and otiner items firom Irecydab~lle materials .emEln'IIlt fur 1iJne new residents.Inspired by 1tiille SiUGOOSS of its pilot Ipn)glrams iln'll ssisti n'II.oondiuot of teaoher 1br. .. date.pamiJya has found ways to alilleviate the suffering!!> .S27 dhmldren. In partnership wi1Dhthe Metm Manila Development AuthOirity and the Armed Fornes of 1iJnePhiillipplines.scho!l!alrs. Sagip K. nad 48 mo.of Estern de Paco.. d..onwii:dle·.. ~lnl.g a :select public schools iintlhe developmen'llt of educational materials and faoulli1ty 1brcag ningl.areness[. wiirt..lst:llinalbl. wi1DilI total of 23. Bimemediation is also bein'll..d p(mvided willih food.oontiinu:es to provide remote and poor .!.of our disaster-stricken ·oountrymen.0' .e tJne ChiMIlrEiI1's HOlme iin Davao had 24.In .l n'IIgmodell schools .2009.onwiiide last Junie .3 schools nationwide.974 dillliildren. illTllmediateilly Imobililized and provided relli:ef to those vidimi2!ed by the flood.g dlo:n'IIe remOVH thH toxic chemicals found in to the waters of 1iJhecreek.'·I~t~=~' E-IMle-dia Pioneering in .Jjiidle ensure 1tiillatthere is hOjpe. ongoin'llg training and education for Illi\l1ellihoodl. receiirved aad acted upo\n'II1 .".26.e dhiliidren'll's ViiIlagl€..aJmpaiilgn Riun fur tiille Pasig River silJccessfiully unfolded at 1tiilleQuirino GU<:lndstand. distribution of video librcary and .of calamities. and wilill eontinue to.. rescued 72 children from abusive Eln'IIvironmen'ti:s..a alSIO worked to educate people en wha1t to do iiln times . Sagip . 6~. 2009 . with the aims .000rntiona'i television Salg iJIl IKalpailll iIlya . from as far as Bat:lnes in 1tinenorth 1bo ifawi-tawii in the south.of Iproviidingl a holistic proglram for dhillid-calr:e· and nurturlilngl. It has provided disaster risk reduction activities in the schoels and volunrners.owdingtimeiy response For more Ullan adlecade. disaster response team.ecOIlTlImunity. andwaste manag..... In November 2009.apamilya a 100 limplemen'llted rehilbilllit:lrtiol'1l1 projects in differelilrI alreilS na1bilo:m. AH's. E-Media has distributed ETV packagies to. further ensure lJ To BaUt 163'sacoessibii lily.Ka. In 2009. wem· Ilaunched.ers. TESDA tU<:lliiningl WClIiS. Siince its linceptil(lln'll.ainingl and 'WOIrrkshop. Ban:ffiy Bata.ted 432 childrr:en with their families . 'giirven'lll residents.emergencies Sept.of ildi ~cen.[.9 Bala 163. and oondu:ornd feeding Iprograms benefltJin'll.Pf..and plurmJbin'IIlg.. tn eommuaities .of 753.g S:.. ellectrical wiriingl. the dream of Elln'lljoyingla dean lPasig River has rneved a step dlloser wliithin reach. a to. peace and order.. water.It would have been an otlillerwilse r. (Child Watch) Upholding the righ:ts of the child AFlI's natiol'1lilldhliild-'CCllring IP:mgram.SChODls access to multi -medina leamingl in an ·effort 1bo equalli!Z'e educationsl .f lEiIiV packages.aJrlpen'll:1bry. S. Dantayr 18. It .otlhilllDg and other basic needs. To-date. An Ilaundhed an SMS-based hn!:line nalJi. E-IM'edia iies now expanding to other pQ.. a With the support of everyone. reach out and make' a difference.elaxiing Sarturday Q. Oull:-of-schooll youll:h <lil'1ld wOImen also did their part by oraflbi I'1Igand seililin'IIgframes. E:'_Medinais now rocuSiingl On1l1 bQ.2. 163' deilliveredl medical services to 4. Bantay Bata 16Ys legal services aS5iils. Bantay Balta J 63's sanc1buary for rE!SDueddhiildrren.nlskililis such as to '[. various dean'lll-up adivi1biies am n'II. . E-M:edia has. oomm'irtted tn assist ellementalry sonools iln'llills t alillevial:ion of q Q..errs nIDi11 rose to unprecedented levels brought about by the continulOIus rai n'IIS IMleitro Manliilla.5.. Realiziing tine i mrnense im. Sagip Kapamily..paat of preparedness illl av.082 t:i3lmilllies o:r more thaa 3 millliiO\n'II iln'lldiV'idua~s were served 2m.. To.lblllic schoo1lis nati onllWiidE'. Tn.ember ..emiuringl a sQ.d 344 .oiiding disast.

the' O~:IS North .

.furn ilzing finaneia I returns. three indepelilloenlit dir'I'N::<tOll'S Messll'S..ct. Millnuell L.ecrors alre inc:lependenllt of mana. <lml poli!ci. eleeted by sha reho~d!elrs du ri ng the 11i3Js1t n !tl!allStoclkhokier:s.independ!ell'llt direetors 0)1 are not durledors er offik:ers or SIJ bsl:all'lll:iall sroclkiholders of the Compa ny or its rellate. its Ma m..es of the Corn palilly.n:oe.!IJ!amnflicE of ull'llrerlest I with such directers.!'i!'S ancl ru les of ]Iulrisdlictionlsin whuchit operates.anidi the: com m u nily.ae 'I!l'il:h the SEC's. a survey of corp orate 'gov. Th rough values cascading w~th~n the 0 rga nizatro n r the Company h as identified th e core values necessary to gU9de its Ieaders and employees in forrnulatinq and rnekjn g business decisions.. part of thus as aln:alysilS.elilluor ma nagemell'llt lelrecu!Jiv_es.009 by' the Institute of Corporate Directors C Ic:D~) in their Chairpersons" C~rde event by naming the: Company as one of the top 1S hiqhest-scorinq cornpa ni es a nd the on~y publ icly-listed media organtzat[o. alndl free firnm all'lly r'ellatiollllshiplJhiat may illitelifere wi~h theilr ]ulc:lgmelrlt.ees. and espouses that there is no dichotemv betwee n doing gCtDd business and prscti Ding th e right velues. The Ci. Dy-·lia.2. S. the SEC.A. obselrvinig the lhugiheslt stendards of cOI1Porabe gover.' .. ECD further h ig h~rghted that the: top 15 oompa rues were at pa r wi1Dh corporate governance practices of companies in more advanced econ ornies. In rnmpllua Fl.s in I!he: gUlrVey.n:ee~or illlldepeiFldlimt direecor satisn:es the requirements of the ru les of the SIEC..md~he ..OOD".cia illnd Lly-lia.g:emenl[.ilnl enha nang stekeholde rs' interests in the Cornpa ny and th e Board of Directo rs commits itself to.ma.An Meeting". lopez:" IFedenico M. OSC1llr M" Lepee..hi3Jirrnallll<mdl Chief lEj()ecullbi'!. these directors alr. _.e. siJppllie:rs .slerv" ng hig h ethical norms.. These diir.g.. Ma" R)osalrio SalllltoiSl-Conlcuo.hi3Jirrnal'llalnldl Chief IExE:cullDi'!.oll'llof the srrategies. Fedi.c:ancie-s "1111 the lBoan:l be.!le: OflllC!er.elilldenl~ direeters on the IBoa rd.direct input ilill the: scr. Viae ChairmalrlJ.ies and tra nsparency..dated th e pa rtic~patio n of publidy-lijsted rompani'e.a nd indep. as a me-nded. The SEC rna n. treatment of shareholders. Ong.e .N N GOVER___CE .u'l(j assumes deaiiSuons~"!liin be ma.lllance and oO.. of mana.'008 Corporate Governance Scorecerd. The Boa rd it:se~f LIS respensible.A··.l!aI of Corporate Governa nee drl cornplia nee with SIEC Memora nd u m Circu lar 2.emIP~oy.g'ati:ons for inereesed s.ema n ee. A B5 -C BN recoqnizes th e. The s Boa rd strives to rieglu~ar~y monlulocw the .ABS-C. the B. 011'1 matters of rnrporailte goveilTla. ]1111 adldlu!tJionro hlllfilling its obllr.efVie~v end conc!. Series of 2002 w itha .e~lng~D~e Ila1.1NI BOARD E IHRECfORS Of CJniteliiamli Im:l!epend!em::e fOIi Independent IDiirectors The Boa rei assessesthe und!eiPemlenCE of eaeh direetor alndl of each il'lloivudlU!aI nlominal~edl fer electionte the lEi<oar.alill alndl Cl.eifeatirveness .dl alrlJin:d!elPen:d!ent direcoo[:. the principles of gooc:l corporate governance.oi3Jrd may elect directers to serve ILInllill the: next an n uel meetin g'. Prese'ntaciol'll L IPsin!akis. wihille~he Bm. AluglustoAllmedal-lopez. A BS -CBN'g cornrn ibne nt to ad here to best corporate govemanoepractices was recoqnjzed last April 2. unl[act as well as pl'lacedllJlrle.eenling pmce-ss" The fii [ja~ alpproval for the nominees as dureclloll'Sis ch::terminled by the: liu~~ Board.. indulClung op. ether thaln~e a'hairrn.ABS-CBINI lBoa rd of [)iretDtors (~he ~Boardi~)1 repr.olPerating Offiiaer atit:enldl Boam meel:ing·s on al reg!IJlllar Ibi3JSiis ven e tih>olUghthey are not membew:s of the: lBaan:!. Ci. nonl~e:>i!eiCIutuve.eselnts~e SEakehelders" iilFite'rest iinl PUlrslU~ll'IIlg a successful business.de lby theindependent lJli'rectors.e Euglenio ILolpez HI. trBlbegies.toclkhol deli'S. for screening uts o~vnl members aln:dlin f'ecomrnlellidill'llg them for e~ectiolill by the s.aad the: Chief .ema n ee practices emo ng 172. a nd boa rd responsub~~ity.fCUBJ. The Boa rill esta blishes the ol!o!'ell'<lll glD<lllls. publiclv-listed companies in llie countrv.dilel'valiUle<.twelen alnlml1aI stoekholder meetings.ooo. disclosure p'oli. !Mix ·offlD1i liectors There is a mil( of executive. input ilill any policy form u ~atiion end disGussul.ABS-CBN ANNUAL REPORT 20U!:) - CORIPORATE ·.ernoo IR". As an orga n ization.00p':I of the manual subrn itted Ito the: n Securitiea and Excha In g e Com mission C5 EC ) un th e same year.di corn pall'llues Th. 111-11MIISSION OIF THE . The lBoall'rl's: rnissioF1l is. The KD con d ucted the SILH'vey ~f'I pa rtn e rship with the PhDliipp~ne Srock Exch aFige CPS En).ude w!heltJ'her each nomi. Ga.ARD OIF l[}IRlECifORS service. Ju!Stiioe A Jose C" VitUlgl...g)ed in sUlch a WalY that wii~1de~uver this rlesul~t wihulle ad h..importance of corporate govema nee. Jr. Under the Manual~ of Corpoll<lte Govemance. By-I!aws. Gar. which un the end must always remain consistent with this mission and goal of if HIE BO.the lBoanl has r'eslPon!Siililillil[y to the Company's cusoome'rs. ABS-CBN reeff rrns its mission of boeing in the service of the Filipino.g'elmenlit:'s decusiions .!le: Offi:oell' lilJas.e elected. to en!S1J 1Hhat th e re Corporaltionl ilS m. The prjn ci pies fur corporate g()"lflel'na nee of ABS-CBN are contained in 'its Articles of Incorporation.n to . requirement to have independent dir. the Boa rd must r. and the Areneo Sch 001 of Law.]1IlI case of va.eclloll'S who are emplbyees iis wellcom:e: and expeeted unless thoe nssule' "n'!.hnef IExE:curtive Offi:Gelr . alnldl J ustiee VUItJLlg wer. lopez.toclklh:ol. They jiudg ed publicly-listed companies based on a questionnaire that: measured corporate governance pra ctices wh~ch include shareholder rights.m from dir. and Pedro N".ecoors '~vHtlh11110 mateillaill rlelaltJionshup willtlh the Company corn priisillig alt least 2001% oflJhiie Board.e~ecjul:i. the by-lawlS alndl the Mian ua~ of CoII'Porare GOlll.garner a score of 90~t~or h~gher in the 2. the role of stakeholders. 2. for the 'fealr 2:Q09 to 211lO.!lolves an a.o. ngel S. The Boa I'd consists of :11 rn embers.

IOOlT1pa ny's.fl~EZ II[ MA. related companies er . cO'm pi nam:e with Laws..e defiberates O'Ii1I the pro gtrammitng issu:es alndl strategies.m::lholde:rs (o~'her tha til as directors of any of the'rpl'egoing). alli1ldl va~ll:lIates . IFm:m J<lnlu!ary 1.yeles".any' of its slubst:al'!ba~ sthar'elhollderg.lle special reeerts end altrlJa I'ysis en certain issues. as m u:an as PQssiiMe. C Vitug and inederi:CiO R.are seven lBoan::l .tilli1lgiS.oonrtlpanliie. (iii are not 11::latl:iv. MOl" Rosall[io Sa ntosCO'noio alli1ldl edi ro N" Dy-ll. AUGUSTO . lDy-l. ('IlIi) IhaVE: not engagedl al'!d dO' not etngag'e iitn <In'll [r<lnsa.:.gs AttE!:flded B Percentage of Atteooaoce 10.. e BOAIiU) PIERIFO:RMlANlc. !Lopez". Atte.. ofthe trlJetwO'rik. suceessors alndl galPs in su eeessien.8Si:o:mPlla:mlilillJJg[ICotlll1lmtlliHee enlsulrles~lhait there is al p:ip.of AU!gUS'DO' Almeda-lopez i(Chalirnnan). ]t LS rompoiSed .JiaooO'.Gatl'"C~al. ROSARIO SA.ecord of attendance of the direetors atthe Board meel:itrlJgs. the BO'aI'd had 8: regullar mee. r(iilii) are not alcltiitllg as nominees O'r representetives . ether thatl'! tl[<lnsaotiolns wl1i~ch are oondudedl at arms length and a re ilmmatetlial~.eiPllilloemeli1t1t: Iplillli1lli1li1ng 1t. mat~etrs neqlulilrin:gt Board atltJbetntio:nand ..ehO'~dier of the: Com!I!'a I:1Y.aholn with 1llhe Compa ny 0'1[ willi allliY ofitts r. Justice JIOSil:l .or willi other persons O'r throlLIIgl'1l almnm of whuch they all[.. litis com pased! qf IReOl"O'NI. Itis cO'm posed of AlI'IIge~ s.organizatilO'Ii1I. of Beard Meetk. of its.E if1h. related companies er by anlY of uts s!JJJhsta[ntiai~ slharelhollders wilthili1ltlle: ~ast 2 yeatl~. e business oond uet.·.S. any recommetndat~lions . .. [)y-lLiaccO' do not possess atny of the di:sqILllilllificatiiO'ns.g eontrsets.a ppmvalL Any member of the BO'ard may ask m. OIi1Ig!(Cha~ttma n). of Boaro Meetk.e 'Co:lII1Ipe:msatiiolili C:om~lmitteefotr 1the 'Cbaili"lliIiIOiIIili a:ndthe CIllti1ef lE~ec!l!I1Dive Offiiceli" is. OtrlJgl nd Au:gtu!sto Almedia-ILopez.. The r.]lgUS!Do. 2009 to DecemlbeF3].. 011'110 (viii)! dO' not owtn morethan 2% of the shares of the Compatny andlm" ir!bsr.attendlatnlaem Board IlI'llee:lting[s. IROAR.s. l:O~EZ MAJNUEL L lOPEZ lFiEDER[GO M" GAIRC!LA ]lOSE ]lISTICE VTIUG 7 7 7 c.gIuludiellines fer matnagennenl:. 2009. lih ere are no. yea9'S.elattedl companies O'r with .s. subsiidlua ries.nded Arm~1 stockholders Meeting? Y Y 'f Y Y Y Y Y Y Y Y (YIN) 6 B 8 8 8 8 8 8 8 8 8 JR.esof atny diredm. IPtlima rUlly.~vhether lbylliemselv.. I.e pal'ttlnerg.any O'fits substantial shalrlehO'~d!ers.A!UMEDA-lOlPEZ PRiBSIBNiTAClO:NI IL. 75%..fl:le: oomp. (v) <Ire: not' retained as ~m)fessiiona~ advisers by the Company.ecooll'S 011' substantial shalrehO'lldie'rs. and d. ny-Lia.alli1l~ial shereholders. Gillrcia.ustiee J Vitug. enumerated! u nder SectiotrIJ ]:[ (5) of the Code of GO'rpol'ate Go¥!emallJoe and Section ]:[ (ID). 01'" any O'fits su biS'tatntila~sh. 100% 75%.or any of its related . lexamil'lles .JlAlCCO .d[ or Foolel'iioo 1M.orgalli1lizatno:n. 00 fOlr~heil' .gs AttE!:flded EUiGEINIrO l. to. Mil:'..3% 00% 88% 81'1% AJNJG:BL s. atnd idlentifies.oommitteeslliai[ ha.000. P The ICom~jlilensilti1o:1i1 COlil1li1i1illree rlevilew. The Audi1t C:Om~lliIilittee ~'"eVie~vsthe ~ f1Ial/lcial~reports alndl risks.atnagemlent to' gil'!. ofl%c:el' er substantial shalr.eiutnern !key posibions nnlthe . .e Board negtuiliatily meets mO'nthlv. and MI'".y of paymlents. set .e~abed 'oo:mlPalli1lies01" atny of its.a re suddenly vac:abed" It O'versees.es . ooG lFiEDEIHCO R. alndl J ustiee jose: C" Vitug".of a sutOsta ntiali sAa~~hollder of the Company. emp~o. appreve atny per~iitnent pllali1ls. .of SEC Memotl'<lnd u rn Circu 1.0%. independent Membeil'S of the !Boatl'rl each recenV"e pelr dnems almQlUlntilngl to' PS.alblle: ofthe . Giltl'"Cua.e not been empt'G)r'eciI in atny executive C<3Jpaiaitylby the: Compar:p{ e or any . alnrdlis.eiltheir persona 11'1" m"lJhiro!IJJQtht theilr ffitiTIlS. alndl thatthere illr!e readv replaeaments fotr any key positioli1!S that . Alme1d!a-lopez" li11i1. as welill as allliY measures neededlmmt~~ sueh gaps. 6 7 7 5 5 00% 00% 63% 6. hud'gets.011' No".gcuss any v<lJrnO'us.internal oO'ntml.iNfTOS-CONCIO OSCA!R M. (iv) Rav. the r. .[]d'it precess as we~ll as the..on if']c:enl~i\JIeschemes atnd issu!a niCiE: of s!Doclk optilo.a business stratreglY cemmittee.Jiaooo and AI. It is oO'mlPose. Ped!re N. The SiIII!lJCe. the a.a l'iIyf. other errenaements for remuneretien eUttlher hy wa. Series of 2002". com posed! of Au!gus!to Almeda-lopez t(Chalilrman). 16. PE[):RD Nt" DY"I. psmAKfS.GCO.ve beeli1l esta bTislhedoo address anlY issues req uiriitng the directers' atttenition" The IPirO<gratmm~ling COnllililnile.O'I[ ny. to' i'"evuew~he perferrrrenee ofthe CO'nnlPalnlY end its.. atny of ilts related cO'm penies 011' any of its iSUbiS!taiiltilall shareheldees withili1ltthe: ~ast 2.ns. a of its. alndlffi natncial~ statements. OIVlElrsee:. 01' oompalli1liies of whtuch they are dill'. subsr.) OOMMIIlTEES There . Alngel S.:.01' alllY of its substantial shalr!ehO'lldiers. systems. !LOPEZ B B No.. for oommiUee pa rtilcipal:io:n or 'ootnsull:in. met the req uinem ents efthe SEC of at ~eiilJs1t 50% attenidialllce::: Total No. fedieuicO' Mi".

s that neqlllJli:r!e lBoalnd a PlPlmvali. eertitied i:nlformar!tionl systems euditers alndl.oSlaruoSanloos-CoIFliCio.alse Iiltas. Thene~\I\as no eVle'F1t in the PiCIS[S y>ei3Jffi.r<llit:e Gov.die1fiIFlies the rcles . the B01:mJl approcvei[iI the cn'~!i3llii'OIFil two of new corn mitteeste impml!o!'e cerperste gov.. Gonres..di.s.ementationl (]if this Code . strategi<c: prierities.Audit 'Oommittee's <llppmvall polliciies aln:dl procedures fer the ebove servi'Des kom SGV ..enrec!tiv. alFliGaSll<ess the .). 20Q2.e ~olil~lilil. OIl' pr'Ocedlulre" ESSlelntnal1 the idea of good i3Jnd.dim N".te Govern!alFliCemllea with the SEC . strategues end sys. Dy-ui3Joool" Ofticelr AI!lUlIT mh.a1tj]o:1iI and lEileCitJiolili 'CoIiI~tnliHee: wi~ I nevi. the: fl" SEC a . any maitJt'elr ne~atinQl tID aeceunti rig p~incupf.228. has belen the Go.e. GomlPi3JIlIY{5GV &.es iindie'pem:lient assulranoe <lInd aldivismy seilvioesltJottlhe 'Company's Boa rd of [)ull'"ecto. the lBoall'd of [)ir. Vie~ayo &.~)i) rnalnagle risks.alFlidthe QI.e<t:ilo lBellTlalrGO".7'9. UIFII <lIOoolll::la.r<ll~1El Gov.aIFliG procedures in the ellectien 03' r'eiP~aoemenlit of directers.elngiIFllee.ev. fiseal yeall'S~o.and effi:ci:elncy of the GomlP<llny's unllt:ernall conlitr.es or p'ra. <llntdl .eifeDtiven:ess Dr the Board's precesses . Regulalf audits ofthe 'Compa ny a nd its SlUlbsidialri. <mdl .[I!De ith the AllJidilECorn mitteew alppmv. ccnsulterrts.iSilnd i3JIilIYlDne whoaots UIFII the WII<lmeof ABS-CBN" Ass~:stinlg illl the disserninstien alnldlirn pll.Urrta ntsfo~"lJhe Ilast 5 yea rs. Corn plienee The: O1flliCierfOIl' Gmporabe GO'\I'ellTlallJOei3Jf!so.a. Co.enl!anre: a Risk r>-11a nagemeiFlit CommiittteealFlio i3JNominlatuon ami EI:ecbiDIFil om mittee. 20 HI. discussed unl S'ecttlion 7 of the a Compa ny'g INialFillualof COI'Po.or in wh~ch the emplovee OIl'the GomlPi3JnlYstands~og!au n IU nfalirlly frern alnl a nl'<lIFligemeiFllt..ra.ttlhie Intelmal Audiit [)u\lusuo. the sohedule . thrlea~s a mil I'ialbulliti:es".tems ~)i) be used hy 'Ilhie rompa ny .' Ongl (dhairmaWII).e!Va~luabelJhe qllJlalifieatiens (]if a!11persens nomimll!t:edlltJoithe BoalrG and ether appointmeifll[. lil:. or Th. Sipecia~ p alllJldlir~s re aliso IlJlnclelrta~eiFilas nieCeS<Sary" . o.necalrd for publiclv listed 'OOtmpalnlues" Con1lplliallfUJe To Iiltiglhllighit the importanlce of risk mi3Jnla:gement amon:gl the Compa ny's.rlked dQSlel'f~viittlhi the GO:rjnl~<my's ].olrsithill[ alr.ega.rate gov. .910 NOIlli-AI!I:d it IFees 5.ol sys~em. issues <In an n ulall oertifieatien otrlttihe oomplialnloe ofithe Board wutht~he GomlP<llny's 'CoII'Po. .elmEmt.a Inl 2Cl09. wlhidh is eomposed (]if cel'!tifiedl pu bl ic aooouintaints.oelrtifiiC<ll~lion of the Boa rd's oompllna nee wilJh the GOFinlPany's CoII'Po.The Corn palFII'f su bmitted to.n\!1es. the ComlP~iianoe Offioeir for COrpOII'<lte Governance is Mlr.ellTlaln:ae best practices end pmcvicie reeemmendetiensto the BOiCIrd I'm conlitJimmus i:rnprovementlbowams full Oo.utdiit SE(llruS IlJlpdiates. lit detailsthe (]ififelnses.MS-CBN ANNUAL REPORT 2009 [IFIIMan:h 2. wth.:l>Dtnoes".010.tedithtmlugih a preeess of vailiules casc. and r. J ustiee Jose COl Vitug .tatemenl[ dlisdoslu~'"e on" auditing seope or pmoedlllJlrle.en'~'55V &.ew alndl .nnIP~~<ltnOe: alndl adeptien of g IDibali best IP~':. The Gommittee he~ps l'iFIIalla:: deiaisions end datiify sta nds ilFil cases of personal OIl' prefessienal oo.. which fOCiuses en conlfllict-Df-nlntelrest sitllJlation!S.tolr R!elalbions and Corporate IPlallllnli:n:gl gmiu pi ilFilI'llrepanngttlhe 'Compaln:y'g responses to the 2009 Corporate Govem<ltnoe Soo. inclluding the revnlew. .n presented to the Audit 'Committee a.ct~vitie.rmu~<llltJionaln:dlestabllishmelnt of om enterprise-wide risk manag'emenlit sy:s.es~o.881 mhe . G ests blisihiilnlg an . emp~oyees. product alnldl service providie~'S.n a~so \iV..ecom mendation I'lo~icue:s" fr<llmewofks. Mia. IFiedienico M" Galfaa.r each ofthe ~1lst 2. ry eODIE OF eOINlIIlIlJlC:r The CompalFilY .e a=p~<lblle 01" nlot aocepitaMe withinlJhe . r'eiPor~sltJottlhe AJudut Comm il~ee.ethioall con:dlulct i:s the to.e a.o. alFlialysig. highluglhts.and IPe.emanae Mi3Jnual~Ilast JalnlllJla 26. It is eomposed of ElLIge!nio !Lopez m: (Cha~IITIl!a n].e principal aeeeuntents and external euditers of the CompalFilY LIS the eceeu nti:ngnlrm of Sy'cip'.observance of OOfPo. alndl J usti:oe Jose COl Vitug".vediby 1llhe Aludit Comm i:tbee.'ue">ll1ll'1lce pmceS<S.eman<De Mi3Jnuali.ctiiont.e fQllllmi'il-·up siystem on rei abed implle'Finenlti3JlJiloWII" The [Intemal~ Arudit [)iviisiIoIFII. mh. Go. certifiedi inbemal euditers. Go. ] 9. upho~dlin:gl of corn FiJ10neerporete aln:dlin:d'iviidlu<lllv<llue-s" which a re di!S<Semunla.rd to. Alh·. It is oomposed. The Gooe oovers aH directors.of Angle!1 S. rJectiveness e .of Conidulct" The Codie defii nesthe De!havi.rlelarttJionshi:p..St Co"' the 1E:l(rerlnal alllJidli:ltJorsl'. alndl p'nE:SeIFlitatl:onson Oo.rslJhmllJlglilt i:ts Au.elJhefo. versusthe aompall'1lY's or a person's p~'"(Ipe't"ity.cti:oes.organizatuon. <I ODele .r1TlIP~eredl am:! on-gloun:gl audit a.askedl to. Intterillilil Am:lliit mhe Internal .on September 2.of the different Ipeopl'e iIFllvo~">IIe<t:il lin disci:p~inary a..r1TlPi3JIlIY's ]lnGependilent IPublic AcOo.gg reg'ate: fees binedl~o A!BS-OBN alnldl u!ts slulbsidlialri.emmmem:lal~ionsfm' its impmcv.eotors crearltedl the Riislk rM'Iallil.of Con:dlulct LIS the Ethics Comrnitbee.Audit Divisi:onl pmvi.diit 'Committee by evallmlllJilng the i3JdieqlJi3Jcy.rs.ag:emelliit Com liIiIiUJee to Dl!o!'e~'Se.elopuntg nlecessary I'. ensure the: GomlPany's . Fbr 2009.nfiliot.of penalties fer ei3Jch offense aoc:ordinlgl ro its gra!Vility.tem..ed untemiSill audit plan. The .alGCOllJlnlitJilFlig 'of firm SGV &. The Internal Audit duvisuo.5.es a re oond ueted based onl a 3-'!(lealf audit cyde i3Jnldl annuel en alllJldli:t lan alPIPf'O.fimlinlcia~ s.dlinlgl.r prefessiona I services i'<mdiell'edl bylb'hie external auditor are as follows: The CompalFilY has alppo~ nted i3JComlPlii3Jnloe Offi:oelrfor Corporate Gio." andttlhe Compaln:y had allllY disalgneemenlt with r.CV'enni3Jllloe: w[ho isr.

ralre strabegy furm IIJI~atijo. am...of adlelJjuete.of Investor Relatuons.. the pr. net inoome i3J~. AIBS-OBN's Investor RielalltJions ..er eentrel S:Y's.operallbilng alntdi 1"1e... These requirements include dUle and proper IFlIobfiiC'alfuion for general~ meffiiWIIgs and IProvusion .y be fOlulFlidon IHSCl.O i3JSSU rnes the respolFlisirlbiliity of orversight for Enlterp·t1ise Risk Malnaigeme. In 2Q09.gs R1SiK..asa [e8IU It ..cknowlea!gied an dl addr·essedlin al tiFiflle~y and bi'<lnstpar·eiFllt lmIanne~. delirvelr op~imum valllJ:e~D i~s s~.lcs.eQlali requirementsthat enlfo.ewise provi. if1h.albilliitiie's end shia reho~diell'S' ·eqlu~ty. end its: Head .l'ilngs oo.e the Comp. alndl inv.maliyst and priess: brue.ttalik~ n.u ntirng S<ta[]Id!anfs.rs .veg.a~ysis Offioe1r. iiSiolfll i3JllJdl v dir!ec~on fer errterprjse iisk malnalglement by establishing end imp~et:iF1lenbilFlig inregrabed risk ma nagem'ent an fralrneworkro· cover all aspects of risks aeressthe Comp.ong oitJlers ..op.arid mi3Jnlag!em~l"It .a to. ClDmmulnlilty.es.lidabed finlancial SEalbemeiFlll:sp:mvitdie infoUTll!atiron OIFlihe l'inarllcuall contdil~on alndl resllJlll~s t of opelra.The'semlnla neial sttal~E:mlelnts ilFlla1lude detai~edl irlillfoll'1nationl .alFlid indivi:d:ua~ irlnV'esboll'"lll reeeived. As i3JplIJlbllirdy ~irsbecloo.ri3Jlm ~eader's!hiirlP.ecoor:S'IProvirdedl of oV'ell'SirglhiE onl Enlterp·nise Risk MalnlagemelFlit to ensure that OJ II releva nt risks ~lhii31[ mary imp!'IiDt the Compa ny's: hus~IFlIesSles.ous in\l\es:oor cenferenees thr. meet with representativ. IRE1LA"ifIm~S ABS-CBINI f. irnlDomplialrlloe w~th the SEC's.nce alndl. repo.lqlJliries frem ilFlistiitul~onall .of ABS-{:BN and its su bsidiaeies ..r business.ove.I[}eallii Ill.a rrd ~. assessed and monitored. address alllJYquest~Of']S that may he rairsedl enncermnq the GOI:il'lIPii3Jny"s . opeil'<lting .diled fo. ·capita~ e)ltpentdiir~ull'"e'-S i3Jnd..O. categmies and indu:dies. seg nnent irIFlirormal:i'[lln ~s lik.gs per shalre. OFfioel'" andits !Hlead of [IFlI'I. alllJdlCorpo.'Oalrdl nir.indiludirlng the SEC endthe PSIE. value to sherehelders.. Also. financiall..aII FiflIembeil'S.rs . costs and elCpenises. aln:dliFiflip:mveitJle Company's risk l:iI'lana.eho.a ny's or·galnirz<IIbion.of its eperatiens.rtporate P~a1"1nin gl. requirement full' sueh disclosure .n and reports . As parI!: of il~ s!:e1.n end business deci!Sion. businesses. report alny p·urchsse.GEM lENT AIBS·-CBN's 1B0aird of Dir·eato.elalboll'<lte OIFli lnrdl a oontex(uallirz.:u'!.ineitd!ent with fits qUla·ftedy end alnl!lJ!IJlareport I sl!Jlbmiss~onsthallt further eJ(plairIFll. ceneurrent 1..g overfremthe Audit Committee.g:emenllt Committee formedl irnl Mia rch 20 JI. anal~yze ..ta I assets.rs. if1hi. ABiS-CB·NI i!SODmp~nant ~nlsuhFil'l~tmilFlig timely s~l'Udu~'"ed! and non-stru ctlJlrled reperts and diselosu re filing required byitlhe SEC alndl the IPSE. Inl additien. minimir2!e.eiln plaeete prevent .lit the yealrfp. IllnaDci:alinful'm.1t:e P~anning are always present at these inv. ABS-CBINI maintains ani n.e!!.of i'l:'Isbru~i!OIFlialimres:rors and inve~lmenlt funds UpOni req uest anti at va'r'i.. SiHiAIREIHIOLDER. sa lie or dhanglein their sha reho~dlirn:gs ofthe Co.esEOI:. 170 com pl:emenltlJhiese: dirsdosu res. alna Iys:t <llnid press hriiemln:giSto.IIeSOOlr Relation!S end Go.. .a nd other risks. hiewirll providelJhie .group alllllo· holds regula r .eGo. replIJl~~ionali. tra nSpii3JI··eIFlit OjIFlld I:imely inlfQIITIlla. total li.Diiglirttal~Q:jIFllsumer Devuces. aln:dl EBITDA . ABiS-CB·NI's Chief Finalnce Offioelr.ess pmspem. sha re price pelifornFII<lnoe i3Jnddivlidencl hirs~my.lde.diell~ve.FiflItpi3Jnry·'s common shall'"eS 01' PhiTiP!I!}ine D8IPosiltary Rleceipts wiUi in five trading days."".s.ef Rusk Mana. IMAINIA. eanF1l~ [j.g·emellll[ reediness.!.rqualiirty CQIFlItelnl: cross a t:iF1Iullt~plle IP~i3llfurms and DOnlSeql[Jlelffit~y.. in Mlanch 20Jl.rtpor<llholn. shalreholcleilcs of ABS-CBINI alnd! bile nn~lnmiity irnlrerlest. endtothe extent possirMe.tin oome.r Relabions http::!Ii:f:.ro identify and assess.ougholl.ra. \ Compa ny's i3Jbii~ity~iD. assets alFlid lii3Jbii~ilfuies. the lBoalrd.of Dil··eato.e respeeted .S alndl IOlng-tellTilI p~a ns. and that all neoessalry poiircires alFlid oOintmll1 sylS1terns i3Jr.©1S11JI RES AINID IFIIN1AN:CIAILRIEPORUINIG AIEIS-CBN's I'iIFlli3JncHa I stetemeots ·oompl'l~vil~lhi Philippirne Acoou ntirng) Sta ndards and Pihir!iippirne IFirnJOi liilcial R.g:elmenllt Offi:oer.nVe8.ntain!Sinformaho.epoll1Ji g st.FiflIIPi3JnIY's ooll'Po.e hisjDry' and ltiu!Sinesses [ of the Compa 1"1'1'. ii111Secillriittiie5 ABS-·CBINI neqllJliirles. if1hi... As Chi.tential~ risks alnd the steps and costs nece-SS<llry to.of the Com palFlly applmvedl the appoirnl~ment of Mr..it hag. .albs-Q'bnl. olPer<llbilFlig~Income <llndl irn:oome before tax.ns~ biilities <lIS!Hle.an:: mindful ofthe potelFlitiia liFifllIPi3JCEOf(a rieus ris'ks [olihe.and I'iIFllii3Jncual' 'resu~ts:~ bllJ!sirn. .a6olflls wehsite that oo.!'Ilan:lshiip respo.or minimi2!e the QCClIJlrrenoe ofthese risks.and disclosu res ftled wil:h the SIEC OJ nd the IPSE.AJBS~CBN ensures that .FiflIi3Jkinig proeesses a~waysttalike into acoo.of ni rectors and principal offiicers to. lneg Id latony...n OIFlih...ils Chief R'esealrch anld IBIIJ!Sinress An.a.operal:ingl end finaln:cia~ results.. iits Bo<llml of Dirrlecoors and senier managemenlt exeeutives.to.nt. operalijlng perfermence alllJdlfiinanlcial~ eondition and results . alnldl the IPSE's.on the to. <ldoptedi gllolballl best pradiroes..!'IliitJl his respo.u 11'1" espects sharehelder r rights <lInd eernplies with regllJl~atory..r FiflIajo. inrormalti:OlFli sluch as rE:VE:nue. hy rlegul<llr m: ·el·ecbrcmic mail are also duly a. Ir. if nOE ellim irnIOlte.unlE po.j)O!rr.elnsuH~ that such iights alr.. AIEIS-CIBNI's Chief FirnaF}CleOffi'ClE:I.tionl due shalreholldiell'S . thie Audit Com mitree oflJhie iB.com webs~te ma.alFlidmihgabe FifIIal'iketr operalting. A!NID' II NIVESTOR.esoor relaltions eentaet ilnfurmatiron.ati:o.are pmlPerly identified.e RilSk Mana.tems irn place.r more infi mate a nd detai~ed discussions about the CompaIFllY's.nsnlb~i~ty andl ·oommirbmenlE to. ABS-CBINI's ].diep:recial:ioln anld almOlltiz:albion eXlPen!Sles. its Chief R'eseal'"Ch end lBu!sin:ess Alnalysis. ABiS-CB·NI i!Ssubject te r·e'Pm·~iiIFligequirements r prescribed by r!egulaloory alulitJloriities.a ny's..blii:lllJlt.tions of the bllJlsirnes:ses.such riisks .of the lBoalrd .rtiin:gl direcitJy to the Board of Dirlne~o. reven ues..anda rdsthat iln tllJlm conform n with [IFlitemallticma I Aooo. Business.. John 1"1'1 Sy es Chiref Risk Mianagement Offioer..eann IIJ!OI~ con!Slo.

d¥e:rIiSlng II'e.oo:ntri'hutionltt(l~oit.!l5 ~O ~ III COi\'SGiidatedl f'elo!eillJe<~ </ OIUll'ta:s.ns o.sales and Pi3:7..al§e mo.. Eamings berorle interest.S"OBIlIJ Broadcasting Cm'PoralJion (" AlBS-OBN OF th~ ~Compa ny~) diel ilver. fm~ late: Septemi:Jer U"m)luglh ea rily Oiatoi:Jer.e..eift.lra.ealr ended! lDerembelr 31.8: bi'ilion.SlldentCOrill2!o.and ill'llslPiring dramas.ecred '~amilies and corn munities th rough ABS-'CBN fmmdiationi's Sagip' l(ilprtmilya.ndoy ~'ntdll¥:p.illhe mlJemetal"l.fees Sale or Gemd'o> Ro!IIIO!nues before sq' c~'b:le Mal Sik. and is 7%.se of P2.a. the m!JJI~IJI-IP~i3Jtfurrn speeial coverage of typhoo.ty proglf"am ASAP' • .chil'lg 41... Broth~r DCI.eqlues:it for i3Jsnl!!-mtonlillh rare im:I'e.R'omances dlrama mini-series.of thieTop llO and fourteen of the Top 20 programs In 2009 were hom ABiS-CBNI.58 billl iol'1liln conlSU mel.May Bl!Jkas PoiJ.85 billien pDslJi~g an _incrlea.93 mil lien.g)ell'llems~ty alndl voIll. 37'l<b or P4S11 million highelr~lhan~he P].6..n:s~deratiloll'1lof Ibn gl§it.tJ.veml...~~: _~jil~ ~ lIL1 2.<IllIJes.. Despibe <I weak sta rt to.2. .lll'1lteerLlSm of~e~~ow IFilupinlos i3Jnidl 'oolrpo.25 million eeeou nting adjustrnent n:iIJI ired !LIn:dielrPhiiiiippin:e u lFinaln:cia~ lR!elPorting Sta nderd 3..l'1I'!lpelmingOi enga:ging eentent.aMe to shareholdess for 2000'9' welnt up' h'l 23% yea r-en-year OF P:3].ntributionl of Siky Calb~e.rlk.e~1lis~ll'lIgalrlJdlconsumer sa lies of P24. Ad!lfemsing Reve\l:i!Je5 EnlJ.SJuJ1wmz l'li'ews .ent TIl r::Iall'llcial~ mal1li3Jg:elrnenlltresulted iln core net' income readhif:lig IPL79 billion in 2009.S4 biHiOl1'll F 11.>634 '5U 5$1 8 lIL..3 52l 3.. F. a~ong with the: Iiong-nmning daily noentune shew 'Wow.8:. such illS the Precious H.7>0~ 2l1L.. Ih!ith sueh oo._~a.Sl billion.emwe!l 6.liJgayCl. despite a wea k first qU!alrtel..5 millien Ibe~tel'!th<m 2QOS IEB[mA of We enabled the nlatuon to.II II billien.n.y Cable ""..ABs-eRN ANNUAL REPORT 20(109 IIREVIEW Millnlagelmelr:llt's Dii5ClJlssiio:n illll'uilA!Ilillysii5 of IFiuiI mdalCondiittiion €I md Result5 of Oiper.nimetirne.ali revenues.ntriib!JJmedl P'3. . a nd enga.eclJed '~lhrou:glho.eviision in with ~'ealrt-'IIl!'amllnng . the 1'i11'S[ nd ~lne . 90 mill~ion:inl a~II1li me revenues..!JbleUp.en9 on OiJlf te~.trtiomsJor' 2009 Mianagemell'lltis plessedte relPortlllhat fur the calentdii:llr y.. from 2008's net un:oomeatlblib!lJltablle to sharehelders of P].ving ou r conmenllt:. Po. ABS-'CBINI sustained ii~s dOom~ll'lI<JJnoe: [Ioca I tel.%..72! 24". g loIb<l~ recession womies pmmpitedl mejor advertisers to redl!JJloetheir .ginglrea liIY IpmglfamlS inthe afternoens end onl p.31 billi:on posltedl unl 2008.Ba\l'iana Split.digit .elll aiS to re:l'ive end celebrate the spuriit of u nitv with O!J r speclill~ 'ooVle.gleof the walke: <In:dlfu n eral mriteg:e of former PU'"e.ted onl 'f!JJlrther impm.ld spen:din:gl affectun:gl rnall'llV of its subscribers loC<3JUy nd in major' .rls .~.an n uel <JJdlvertisi:ng budgets end r.es overseas a n AB.econ:omi.or P'40S . Kilmbai SEl' Uma.il50 5.di on mohil.<llndli:nglDusi ness relarltionlShiips. (//1'\ \\~ 'V 22:.gmwthin the :s!Ulbscriptionl busi nesses of AIBS.\I:i.3. ti.ed oo. (IEB~[)A) reached IP6.54.ealr.!E!!l C:~m5!llITfierSales -$aie or$ell'\l.:3. weakened! I-Hlluseho..f"S€. fle.72 bill uo.lJ:so~~d<llredl e\l\enluesin2!OOi9~vu~lh r dO!JJIMe.eilil" g ross revenue eentributien from Sky CalMe of P3.utWhe ha nm~vunlglordea[I. end Piinoy Big . weinve:s.:3011' 2.g experrses ami pmd.-CBN Globa I end inthe oo. KatCl. harness aln:dl ehannejfhe . depreeietion alndl amortiizati:on.. I~glht end ~IrnUS!lll'llgcomedy shews.rill~ions~mvard alfi'.% year~on:O yealr IndiJ!Sllve of liulll-y.and i3J si:M-month deferral (]if eirti me rare incrleaiSleS~)i) Aug ust . of oo. as we~~ as.:i:!l< 1:9.n Aquino un:AJuglust 2009'.owee all'lld S!JJIn:diayrn !JJ!Si'C<3J1 v<lrue.Tayotl@ Dalawa. . 2009.n:soliidaredl revenues fimrn adv.t-gmwing censumer s<JJ~Js..2DO'9.amJary 20009.railt)l)rUulrn. Niet inoome aUrub!JJlr. to PL70 b~~llio!)lI'1I. efter en IPSS.4.ev'isiO!)II'lI <mdl ril!duo n!etwo. Sky Ca hie oo. i3Jnd enabled !JJ!S to. kept the: public informed and oon n. . A.glht eentrol of olPeratin. the y. moul'rlJltog'ether aiS w. yi'elding all'll IEIBKilDA mi3JrgIn of 26% for 2009.which Wie grall'llted in oo. Ibusi~s:ses eontin ued to ralLlS1e their .

ABS-CBN ANNIIAl. groWing censumer sallies Ibuslnes. n:...dierivered 19% 9rowthJi I') sale of services in the fou mth q uerter of 2009" In pesoterrns.emnorni.ona~ quarter of expenses frem Sky 'Cable.sp.urast-.200'9.. .oS!e by P354. A!BS-OBt4 G~obarg eontribution shaee to to1lEl~censumer sales a meuntedto S L 'lib.gO 7 Ii '1 SCI '1 ~ '!lO6 45 '!l!1ii.~we weI"':: i3JMe to implement.:-dli:glit: grolJl'!lth inthe su bscrjption bUIsun:elSses of .!Db. IPlrior to Sky COlb:1:e'sronsol'iid!al:ion. from 29%.~ / 11\ _}.97 millionl or Jl6'l1b y'e'3Jr-!OIFl-y'e!aJrtto P'3.Gam to 12mn)" leaduIllig our nearest comp./ AIBS-C'BN Global a ndin the: contribution of Siky CaIMe:. wi'jh §orne:\a-dvertiiSlers le1.!V8%.2664. 'Calllli3Jdaandthe I A.Audii:elillce shares for the: period! inelblrUary to Dleoe!fiIlIl:Jer 2:0019 av. MianiJa !Rad~o alndl the RegiolFlal t4eMlDrk Gmlu I'}" fm the: liulll 'fear end by 2'9%.V.II I' L) " ~ I\It -~p~CII'.etwolrk Grou p g re~v by P4 71.lt9- 8<115 .463 l.eable Add: $lty cable consumerS!31e~ 'OI!IH~o:iidBte.e lalulncn of Sity BlI'.h1/.. Sky Cabl:e introduced ills low-prioed postpaid C81bi'e: \1' package at olllily P2S0 1 al [iflIOIllll:h-. REPORT 20 [)9 AIBS..52 billilioni or 13% y. pe!rce~nta.-CBN solidifted its naltJionali lealdership pOlSitiion based on Tay~or INI.I~~..> " pomr ei3Jorv'er OJZ~""ijI~J71!:_c~m petltm" . I rose by IPL38 billion or 8'l1b to IP1S..elabeo mcreases.e'l'lue oontl'i:o!lJltion 'of P2 .!!r':!1aIe!!l 1!i1.ckag:es ~~t7"'~'"~ ~v .ou~h. . ConslLlmelr sa lies unl 2009 rese by PL S9 billionlro Pl0. tofu rther emhiOlllllceutts proOtict porUo~r.J ~'\\ CG\~:!HJmle\l" ates S ~ "'" ::::::.o whille 'oomplemenl:ilillgits pDstp!aJid .6.>i:!I:7' 3. 170.' . .!lelill inareasuIllig tbeir .--. stJrucru~':EI1 U:s.alnldli3Jdlrn iinlLstfal:ive expenses (GAIEX)!" wi~h an . i Consolidated a. .39 billierr.ckedl hy SitJ"CH:l!g affunlJo~1I'I andl p.~vhruch sta rted in inelblrUary 2009".5 L Ibu~lliollllln the fcmrtnr qUia rter. " . an :18% rig.alse ofl\e~-edl the: cO!llnlJn/sfir:st prepaid eeble 1\1' pad::ag:es a ndl the rnlrst IRII) ca btl..4.'..~he most affmdable internetienal voicecall in gl service.oolilltributioni shareinereased to 34%. yealr-on-yealr in US deller terrns aiS it .Australia. Dui1.J _ Consulrn eir sa lies ulliithefom1:h qlUaf.es Otiher Wl~}rorrns t3~3~~ 14.e: sky .e. drjven mo.-CBN beyondl their comrnuitInents" The oO[ifllb~lllIledairtume revenues of Channell 2.ely.dlvertisulligi revenues g re~v by P95L'9'7' millien or 7% yealr-onl-yealr to P14..e HID.es NallJionali Philippi nes irelle'Visuonl Audienroe MeaiSU remellllt.ta expellllse:s glrew hy P2. A~S-CEM:\l1G~oba I's subseriptien .~eRIJ~ Consoildilil'ed "d".ith w '~.Ttli comfortalblle rna~lIins of Jl4 and U.elsonlSofr.stliy by highelr 'OOlSt of sales and semi:oes .seSj.su l1I1Ier sales eontributien.9%' 'in prime:time('o<pm bo t tpm) aln:dl45% fOlridtal Clay ~ (.~iIIIu:~d ".oClZ lL"S9-1.efS>DIIlIIllIel expenses a nidi ~'·'''. witth 92% OOI1l1l~lllIg 1'1'011111 Chalnllllel 2.".eTV I cerrtent with Sky Ca btl.es worldwild!. mOlSt~y limrn inereeses ~n cost of sales and sellvioes.'ge.rme!ls Or! en <I Iial ca rte basis. ol!olleu':EIll vie:~\IIer cou nit increased by 13:% to en estimated 2._.l1eilll StrOIFlg Iby G>oulble-dli:glit: sUlbscrilber gm~v~lh ~11lI the Uin~ted SffiliteS" the r-llididme:E'als[.'lalliy. I .~.:5M 6. .reFGT 200~~H.t.in 2009._~-.OJ rrd genleralll ..sha~~..nirnefime pmgram raitilligs a rrd au[lie~~ge.ust as recession eoneerns easedi.y. Mlalnlulla!Radio an:dltthe Regluonal N._ __ _ _.!l1i!1!4 1.io.:il '13. .46 buillion..kne tEyeml. Sky Gable's full~year cOllltJlibuliion of P'3.lje~ Il!!efere 5.e~. the fuur~lh quarter of Giam'al Olher ~ubsi~I~~le~ 'Oon:5UlHer l!>ale~ ~C6N 5...e~~I'siHQIRe¥el'llH!s ~2i4G16 953 13. lib i3Jdidlress the: c'aolle: enirerit:arunrmelillt n:eedls of . p. AIEIS-CIBN Globi3Jl's.ad>d!iitr.80 bunionl.hiin~ 42'% oroolFlsolidatedi neven~~' ilh' 201019. unl 20Q8~vith only three qUia rters of con. 00 bunionl or 39% morethan its~h ree-euarter f'e:v.e Se~ecit:" Thl'ou. A!BS-OBN posted! a SO% prjmetime <lulclfle'rice share ami 48%fm'toi:b1 !1i!l\VI~ i3J16 and 17 pereentaae _ ~ I dl {"\ <1'.e TV serviees.ellldi'iilg-'with ABS.:0ilJ.01 nd p:repaid cahl'..e cnra. lI)esp:ite: weallk: eeenemieeonditiees alnldl depressed eonsemer speilllduIllig iln maDiolr .alilld service revemne:s increased Iby ] 6%.SI!l 8. and Sky 'i.ealr-olllI yealr to P22AO billiorr._ 6is:i:Ol~eep cernpensatien Ipa. ollier~J('~e~ses" and frem gen:elt<ll and ad FiFl~lllIi:strarlbi\f\e: i:le. _~? W? _ iBa. .99 billion un 2009.4!7 million or ]5% to P2"72:.lJds ilia rtlf::u.:5a3 '6.Sky Cabl.(}'OI>dI'band... 170.ll'Qiiae. l:e~d. ilieur eontribution to tota I're4eni'uds irll:.ta expelillses.796 l. M I fif" /' ~ Sky Cable expallllded iilts product IPorttfoll~o wiithlJh. ri3ll:Er~l:Iiqj~a~~s~i~g.58 billien in 2008" in! P'a~ell~ aErl. The illllcre!aJse_ilillpersonnel @~:~r(jii!iEn~o CBA-I'.eu':EIlgled 4.ghi d~g~tOl~uz:aJlJion alnldl the roll-Glut of [ne Di:glioo'x" Siky CaIMe: is alMe to offer irs sUlbsaiiber's the option: to add mor.~he~OI:s't'est esidentiel r brcadband service Wllth speeds of IUIPto 12 mops.oo!1i.SlIL1 .etittof':i.l!i 'IlMl~Um.a breeder seg rnent ofthe mall-kiet._r 'ih®. Wlltth its fu II-y'ealr OOlllltributi:on:..e over 20018 eonsemer sales of P8.sua-Pacific.poi(!l~:S in prirnefime and! total da. .O~3 AdiVe~~l'sinl!lfe\".47 1l9S (109) 5!119- 15 (7) ~r.!5IEiB ~. Sky CaMe .e1lse.215 2. subseri pti:on and otther service revenues g~'e!.325 438 14.]6 million wOllid~vid!e hy year-end.D. wlh~~e Sky Calb~e's . [1fl peidE:~belr 2009. I"e'slpectiv.S:S: billien SUIO:salipbDIlI i3Jndlothe:r service ~-eveIlJUles is PI.y c'abie AIlkI~'$iky 'i!ible afi'~l'fiIe r.

'e!<llf ilillidl is 35Wa or P675. Tlil:e i3JddilitJionCl'f Im::.4<1 5.e~ li!lefore .2.90 Ibi:lliiion..:>.7S billiliollJ -.154 -'igS.e'aIfW P875. Other e.S. con!lro~iidi3/lJed GAEX illrn.889 1".ai~~and 9I!ft!"Hl:H beIorre Sky 't-mbl~1 AfI~: Sq. .57S ~?4 1i!.514 ~~~bal .5:12 56 'TJ"1 15 S 14. 37.t-m(~ C(f!.M~ 9.f) Costs Totall pmdiuctnon eests in 2009 rose by only PH]. za .dl sate~lli:te: transmissien costs.>:J!lenseg. ..:3'1~ I.j!'.1~ 2.es un Iline: with sllJlhS>aliplJion reven ue gromh.!l.8:1'4 wO< (l!:D} n (HI} 2 15 4.. AllIdl:'$l<.t or sale:!! MIl be1'o. {1I\Wme) IEl!:pens.29 biiilli:on..13 billion or 50% more than its P2.tri{1~jIllr~l:[Jj. Sky .. it .18' 5i~95 4.1(J!jm m.tolgje~~nd !ii!!II'IIkH Ccn.g.~~penSe!l e Co:sto~$ale~ ~oo Sel'V.te!l ~:"EX 2.e((pem~es Odler pl'ogram e:>.of Si3J~es and services of other su bsidierieste Pl.~S ~.~~H:t::Ii!l~i!o~:ss.of its.606 ~.33 <1<6~ 000 P7' 6415 2"lU 5<1. 4~246.a. alMl 5et'11lf:e!l 2.7M 1.5:6 .44 rn iilmion.alen~~'ee~ F'afiilliE!S~~ted.3<O rniilmion 01'" ll% in pesoterens well below the 'Qlmwth: .t of sa les .lower than 2008's iIFlcf. tQot!i3l~ GAlE).and services.lO billion. .6..S F1Fl~ Ili.6.a11.a~ Clost of sales and services I'elfS!llmel'eJqlen5e!>~ !.elr~lhlree qualrte:rs in 2008. isa ~.mhli!t'9l!Ib.abl. W'itlil: Sky Ca bil. :Sky Ca hl.~!dldaled ros.eJtpe~:5O!g Ulii~:B:f! 3.~$ 4. wih~le P6l.is Ialrge~y attribut. offset by ICI'we'r mercha.erS ~ulll-¥'e!<ll"eontri hution to. for the: ~u~11 ). .el expenses and !:alent fees ullicreaiSing by 1fI]9] .ers.e:xpa nded uts prelPillud cable TV illnid i:mJaldlbalFu::iserviees busiaesses.40 mull~ionl OIl' ]4% hi. ICI'wer alit of program Cost of Sales iJi'uiJ Services Cos.e's IP2. IbefQore Slky Ci3JMe:g~'"ffii'l!' y h OIlJ~ JlO% er P36'9. Ca-prod'smre.Cable f!!an"Ci!lsh GJil!.related expenses 11i:lkewiseuncreaiSled by onl~Y 7% '!(le<lf-OII'll-y'e!i3lfo Pl.1l1!1l 2.97 billion eest of sales and! services forthree quarters (2l1u::ioo 4th )in :WOIS.04 rn ullll~on01'" 2% to P6. 6Z4.ill~>!I :'I.i~Y-lPmd:u eed aOFil'lledly.and entertei n menl[ Il'IIe~vsp. reached PiQ. 4.7152 l..74 milhen higher than the IP1. rna.CI) 471 5~0 l!.eh is aittnilb~l:aMero ihuglher prcduetion an.870' 1'25 S:. Ad)d~ Sk~ 'Cablee~pense!> Total .11199 ::t. bumli:onexpense contribution ov.(8) 4 :lJ 133 ('0 Non-caslh IPII'Odiuoti:ol:'lcosts are also 4% P].gherllialnl i:1lJ 2008". 6. . If'ersElmmei xpen9!!l e and (N'0malions AIlI"ertl~ ~lInleS"rela~ expenses Conif'a~ ~eM~es "fo3:>:e~ and llioenses Entel'talnment.nidlisJe costs and terrninati:on cos~sfor rele:commllJlllJicati:on services..94 rni'll uon or .35 billion.~ 676 3\!1 .-CBN GI. of which P59Q..4.02 rn ~llIlnon are norr-essh.415 ~2:.. irCl'It".on 1'1" '% 7 yealr-on-yealr to P2. t ABS-CBN Globall's eost of sales rose hy P233.~iK5 4.'?4Ibi:!llioIFl. Ofil5tB t-on:s6lldiail'ed pifO{II. Cable !lost~' salesand se!!Ylce. Co. .t(!"sateg.OS bi'llluOon 18%year-on~year er Wlltlil: Sky Ca bl.645 :tI.e!aJseof 18% -.n:!!.. an inereaee of 1fI].illd!dliIJional~OlPeratinig expenses. .!"'Qih~:i'U. :lL"N5 '18.. 9] rnillien..elJo red u.m 19:.dra FiI'IIill. ameu nilledl to P753..or P132. I t EffQorl:s to conrl:<lin Cl'f tap:irlig d<llYs br'iJ... be1Gi<e~ky Ca!JIE! GAEl( before sq C'a!jl~.rre Sky 't-mbl~.9 (a} (l.P.oIs.olbi3J1 went up by only 4%.y Cable GJ(~!Ii: COI'II£dlida.900 1170 4.rad!ut.Sl~f5.71 billion UIlJ 2008" fa:ciTities.IZS l33 U1 14 lm rtDl1"I2S~~o:!.DII'IIo IP4.r~.a.5. 754 .40~.penses s~~IoIBI: Cash pi'~on _ NDm-~s~ pI'O!liWEtIOm.[dI0l1Ies rub~~: !ii!!triikH Sky C<lble'sful~l~year expense coooibuliion of P3A2: bu~lli:onis IP1. bip:F1e[rt:il'!g'fJ:.u~Jbl:bthe~i\II:Mt!Ci ICI'we'r by P79 .8:9 miHion are cash GAlE)..dreEllei!l~!ZIn 'O<tMer IlPemses B sub"l'otall: .Cash GAEl!: bemrre. 5.6i91!...8!9 S.01 goodls. al'l11usement am. sal~e:of sellvuoes . 97 '7'2l1L 15.s'~Ijf(:abil!.~s& 6.rograms iin the efternoen and prirnetime Modks resllJl~redlin p.5 billion cest of sal~es alndl services irreluded. Prcu:mctio..from P2:".338 1.S:l ~21 1~ SO ~O (2) (S) 25 15 90 63~.s't£ ::t.. cest of sa les OTAIBS.l~s AgenE'jlE(jI'llI'l'iI~.~3 IS 10 5 3 13 :f! 50 irlheB%..4. aOoming limm hi'gher eest of sa~.tiOm 'L'I!lStB General amd MllliIml5t!1all . t~Eenl!l\fe~81. as..:l~5<I '1/1074 3.945..): 78 (at) 189 (~) 7' 7 . In US dD~~i3JI" terms..2 4. Slky CaMe:'s eest of sallies and services eontributien ill'll 2009 is.e~'SonF1l.38 v'e~:l'r.8.5.(!ii!' ~.OIU nted to IP6". P776.cedlcai:JIechalrllnells program ri.t ~e1ol'e ~~ Ca:ble ".7'l9' l33 ::l: n2 370 l.g !-its amortilzatiion endfeeilities-related expenses. .34 bi:mli:on.• whi..2ll3 u 19. dueto lower amortizal:ioll'll rughts.'s8 millionl i:ncreaiSle intotal cost .

!".80 mililion.truQjjulr'e. payment loa.U Itiing from invesonents inl pruduetien equipment <lllJd broa... 1P600.31 mililiion of thei r outsta ndi ng debt.9. digital media asset an:hiving and maneqernerrt equipment. . \ S~.1" 2511 [)a. Total inl:ter. broadcast network infrastructure upgrade and expansion.t]lg. oftlhus amount..0. '00 PS84".. Ptr"7~.gnel deliivery' alnd brcadba nd services ex pension.INI borrowed P400 .oompa.ell'llt of 23% or P.est. -..gl of 70 da.-592 2l-':l.001 mumlOll alre short term bank Iloans with a bout 5Wo annual inll:ter. After deciu.00 millionl fer . ~a~~t.1. total I assets of P3i3)..cqlU"sihDns~for 8alance As SliJJee1i: {JCDun1i:!i. 1"400.8's neit'lnJiOme attributa hie to sha reholders of Pl: 3'8 billion.lidab~d~liarl.diown P'33S .s J. totali-coflsoli:dated assets.0 million n 'ow short-term ban k loa ns. Pl..Tl billion.349 1.alr]l ~m-~rmlern. .('ea.U .J14 billion . ABS-CB..63 million or .'capita~ expenditu res and lPalidl dowll iP212. . Film alndl p-rogram rig hts acquisitlcns wen1t downl by 2S"tD or IP198 . cable nletwork conversion to diglil:al~ si'. wlhi le Sky Cable "D.l)tillJgl 011'1 1P8S.lfldls fin.15 b-'illio-n..~:9.25 million a.e"ipenHls 1..u nts reeeiva bles et '!the end of 2008 .tllie Adid: rt.est-i:Jeariil'lg loans.a' experu Itures 011'1 ' m an .ccollnrl:ing ..:PI!IlSI!S III Sky Cable OIIngOijlds~d nQH"es9h .'00. cable ehannels.Al'll'lorlilizafltion went -dlo.ys sales outsta.wn hy 12% or IP142:1I::2 miUliol'l_ man 1"1 Iy alS a result ef reduced pmgram"a.amortising loans. increased bl!f ebeut P249.'IIell within the limits p:l"eSiCllibecl u nder ilm 10aWII cO"llellJants.o.olrnlwed 1P500..S2 oilll&o'n..eholdiers' 'e>[ju'ity stood at P16.:.34 .31 billion posted in 2008.fc}fI-c:ilsh Expe'flses Non-cash expenses. even as trade accounts reeeieables of 1P4 79 billion is . rnillll&on.93 billion ere bullet .cqll]ljsufiom. adjustment required IIJlnde'r Phiilippiin. or IP481 million higher than the Pl.earto P2 •. Depreciation inereased hy' JI. X:alPitall expenditu res Increased by P232.e.35 b-illio-n.e rieaeilvablies stoodl .93 rn illion oV'~'I~OO. r I x-. WIOliGi g capital needs . and Ylieildlll"lg an EBn. de-p'reciation amortizetion (EBIID'AJ reacfte!tPI6. taxes. just 9 P33::~Z3 million or 1% higher y. The remainder of about PS .ooverage reties remainl 'l. 1. rose sliiglhl:Jy by 3% or P6. Eamiings P405.2008.03 million or H'% y-ear-o-n-y.79 hi Ilion 'i1"1 ..40 million or 14'% higher thanthe M.rlffij1Ij{1I1 01.preduction equipment IJlPgrades and rieplaoement.1S biHiO:f1 shareholders' equity Oil: the end of 2'008. ~ or Capiita'i Expendi1i:ures .m3..l]Ii-~~ e:.e: lFinam::ial Repmtiingl Standard . . *'\ IfYT '~ b. as at [)ecembe'r 31. for. 2009. ill'll 2009 ammmteril to 1P2" 5' I~im(bn.//"J .19 billlon trade acco..and paid .dcast l'Ietworik: inf~<ls..- ---~.ys iis just 1 day lenqer than the 69 days. di dHI _.epilli!!!:laliDIi Amill'l~l[o" Irt_s:h I!iIpI!ft!IS IIetiore SIq]o e.2.st. Shar.51Ibill'i-o~...73.M falling due .13'% hi'ghel-I:han as ali the end of 20(}8:. V and 7% or e~_2'5 /D 0 ~ --.ndi 200\'3. 183 33 8 ~r887 8)11<8:. net ineome attributable to shareholders for' . The .5.~~s a.63 bililiolll are . ' In 2009. to 1P2..nr(s net debt-te-equitv rallJio improved to 0. before 'intere.2.3'% to 1P8.glher than the P15. blllllOn.00 muillion of lo... 37%.. et Deoember steod at P.betweellJ 20ll and 2'014.96 billion versus P8.70 billion".82 minionl ill 2009 man 1"1 Iy alS a result ef lower IPFogralrn acquisittions fer d.-*5 2M 151 (lo1~) (12) 607 3: Coil'i"q.174 2.ng-te'nmfi.ear-tOl'I-. hi.at P'S.. A 31./l.3 (relating to the recoglnlmon of amortised intangible assets relalDnglJo' the consolidetion of Sky Ca ble in Ap'ril 20(8)..n'A..59 billien.S58 . ~a for 2009.-II. debt an~dl.. Gore net 'inoome reached Pl... cable ebannels.01lbii~uon or 7%.. whilie P2. ._J. PL78 billion or 5:010" hiighel-1iIhan )l'eal--.5'% 1'"eS.009 ("ai't:er minorily inl:tef"est)is IPL.41>: at the 'end of 2008 as a result h i"gher cash and eash equivalents .~~ ~illion bet_te-r'~h¥l'~ 2008 IEI~l!QAl PG.31B. ~'w0gVBJm'. IJ.ndi'n.71lbuUUon aryear ag:o.35'>:rrol'll'l 0. The eornpanv's .

~nd "Hi) any fra ud that ~ nvelves managem ent oretner employees who.:ed use 0'" disposio}onr and U~lbillities are lieoogni:.ee and to its external au d irto. Velayo & co.ents submitted to.jfthe Com pe ny..: (~) a II to $~.!':ed.lra Uy a. alnd! report: flirnanclal datal. a EUG Chairman and Chief Execu!rv~ Officer DO P.olrd·an()e with gelii'f. process.ed the fina !ilciarl statements of the Company in~or.cceptedi. (ii) mat~nclll wE!:aiknessl1ls in the inrtl1!lfnalloontrolls.esirg'nor ap!i!lfaltion of ilnl~!i!lfrlallcontrols th at: .~ples iin tihe Pill illi pp i nes a iild Iill!fh~Clt: emou nts tihat a 00 based' on th!f. in iits repore to sto cknolcersa nd 1liheBoa rd of D irE!CU)!fS· nd stockholdlE!rs. Ganes. In thisreglard. the i~dep. assets n i[:Ire safegluarded a'gSlinst unautihon:.. m ~he IBoard of Dliredo liS reviews th eft nanOi·all starte meres before such $t~tem. mana'gement maintains a sys"tem of acoolJlnltingi ami reporting which provides for the necessa ry int!f.'Inclia IIstatem ents fur the yea rs ended December 311 2009 and 2008.l beset !i!stirnalt~s a nd informed ju d'9menc of m anagemelirl: witJhan alpp~l:l'li'r~are co nsideliatiQn to mete ria Ility. . d ha sexamil n.al controls to E! su Fe th at tnansaaii(H1S alre prop etly aUlth 0 riZied' and recorded.g Corpora1i:10 n is reslPolHli b llil f~)r a III info rmatiionand rel(!l!'Issel'1lt~tii'onsoonta iined in the~i ri!1. exercise ~5~'g nifica ~t roles ill'1l inltE'l al eontrels.endlent arl!i Iiito!fsappo intedl by the stockholders.lud ioiIii!'£lstalii!danils in the Phi~ippines and h as expressed rts opl nion on the faJimess of pre:sent!irtion IJIPO cDmple1tirolii! M such n exam~ martian. The mana gemellllt IHcewus:e d~:sc:h)iSes the Com pany's audit oommitt. lhefii GIlanda I statit!:1il1Iants h ave belen prepares ~ oonfonmiity with gl1mer-aUy a ecepted aocmmtiin 9 GIl prin(. a reepproved sind Sy'Cip.lflil.erici sncles i'n thE! dj. the steckhelders o.AI:lS-CHNANNUAL Ktf'OIu 2009 --- ADS CBN - l'he rna naglE!menlt of AIBS-CB N Bro:al~at StiiliI. VALDUIEZA.gnlificaat di.could a cjV!i!lrse~y aff'€!ict its ability to record..

of the in:terill. and.tors infulfilll irilg its oversighit responsibillitlies as a regards.f:ty Ass. j~ respcmsible f'or l€lxpl1essing ralr! oplin~Q'n on t~.e I!i1JiE:~cessaryeerreotlve and Ire~evant actions have ooen~alketliiamJ!dl irffiIPll!f!itrleirUed." li~}asedl from t~e~orlegIQr. the 9xJtemalJal!J!dTtor.the Audit Co:tiI1mijrnee r.eild~tlle Boardroom~ I~anp:res IB!iJI ~ldilili9.! revlewed jne repotritts .cy int.ees of~h. Ani AlJdii~ Comm mee Oharrter.€'sther.alil .ce in conducting oitheraudiit services. th.es ~he roles and responsiibiiiiUes of fleAl. We I~aveweviEfwedand .dlr8JdeqllJa. and .009sses.d!resp[msi~b~lities. p rdes ~'IL.acur. a non-au:drt~lrvjce provid~d by SGV& Co. All the Commlittee membersattended I the four meeti rngs iIi.tem::i:es 1!fIIleoessary 10 .e Phn~IPpline Ifina!1lrtia~ IFrle)p>oritingStal'lld1a.an(.e.d8[penden:cealil.1!rC~S 'COmlPE!.g~t ~he gl!)lCit as plla~ riH~'d.actors.~he Comparny':s Ie..xtel1ri1all . mI8n18igeII1llEmt lof fi:nl8irildal risks.andiall st~temle!l1!tswMh.l!oiitpilaF!~ oflhe Iintemal Au:d iit includingl the manpower l!ieS01L.e:l1llent" iinlt:emaJa'i. .rds.e IOOl'llltmm of ~hEi Company's illy 8Juditedl ffilrn.eilrann uall review 'Of ~he Com pamy's fifill8n11cials~alemeMiltsi3Jndl1e~r ~ndepende!1i.U1Irough discu:ssiran wil~h managemenH aJnd~he ~nrenllal .e Comlpalil!y's rriujeiPEwlden~ externall aljG itors.. Illnoom pliancew~~h~heAl~difl: Commiitlee Charter. we confirm for 2009 that • An independent Diil~eoto:r chairs tha Audit Cotllllrll1itIttee.and I(~Othat sev & CO'. . defiif'l.IIa diiSCUS$~d Mel approved ~hle IO\lllel!iaJIlllscopeaind aL.aJII .audi~ors and ensulred.eto. hc!!l.of ~rntemall' control env~ror1ltmeli1t:.dl~Soo$$ed~haalJi. in aocor(Jiar1lce wll~h standards.iIi1heA~d1i~: Commilttee: re(pll'es€:!1!its !nd assists~hEl Boaf1d of Direc. of a " ~he qU!aJIUficatiolils andlf.emalau:dit 'fUIilC1icUilISnd pr. and..Idlit Go. • We hal"'!. P€olro N. and subject to the liimitatiions on Q~ r an.au:(ffiitor:s.of Dir.r1Is !!Jlt1Idelr'itaken. po~icies and regullailoryr lrequil'le:melt'ilts teensure Un'atthe non"'\~'IlJ:ditactMl:ies willi be independient arnd will not be in co~flliclt witih its~unotliQ'ns as [independent . endsoundness .' We have ooVtle'!Ned and approved thre ~1n1l~OM"l31t"O:n 8.carry . rry-li1acco Clh!2i!ilrman . ~~. to the CampaJ'illll a!l'ld~ihe lrell:at:edf€.essrilts t~js Report~o tI1reBoard olf [)'ilrectors.r1I:g and the loollated disCI!JsSto. • Wfifi.at alii! trn.: • the integrity of t!he Comlpamy's ffJnlaJrlci!alslt~temlen~s" the eHiolency of nnaJl1Idal reportingl process. Irn.'~ Mr. " the ~1il.8J~dlito:rs.lal stat~ments of the Comlp9nyand its SutJ'sidiarlh!!lswli~h ~~e maJiI~g.mmiiiOOe.spcmSible mr~ihe reom p8!tiI~l·s flin. as approVie~1 Ibymhe BCaird .es:sm9ri1t.JI(jlirtorsand extemall audJiwrs wiU~iin tie oont~xj (i) tnai Iffianagiement lilS nll.tjiH!&d arnnuaJI fi!l1!.a!rldregularuory loo:mlplllf!ii3'fii. • Four mee~ing$ were heid dUrlril'Qi he yeat .aJl'lloial tatements s andl the relrateo~t:emle!1t~ of financual !oQrildlitf:cmand results offop8ira~io:nls:.Q.ce.

ing aocolJrvti!'1lglesti mates thaJ ar~ reasonahle in the dr(lum$"!anc~" Ai!l!l!dlltors' [Iii!esponslb'm~v Our responsi'bilUy ts to express..de.1 statements.& CD" 671:10A~:alll Avenue 1226 Mak8i1i Ciliy PhllipplnM Pile n e: {632 ~ B9<l Q3lD7 Fax.il and f". ·and their financial performance and their cas h ~Iow$ for eac h of lhe Mlree y~ars linlhe period ended Dece moer 81 i' 2008' in aroord". Pm audit also lncludes evalualilng the apiPra.el1it$and plan and petform the audit to obtain rea:Ml"lable assuranoe Whether ~he ·liil'lan-cM.u:di~ in""olves perior'ming proced ures tQQbta'in i!l..ir pre$eilll:aliioil QI th~e fil1lailld81 stalelfl1lel1it$ lin8ccordance \iil:h tPhiilipp'inre Fi nanciallR. 20090.hese flrlMolal sl2itemenlS based on our audits.!res selecled depend onihe aJJ.. 2010 so . 201 0" Malkaili City March 1t.86735 SEC Accred:il:ation No.p(Ie<nn~mti and mlaintain~ng iirvternal ng corUrol relevan~~ollhe pr'ep.. SYCII[P GOIFtRlE8 VIEILAYO 8t CO.~ion and S<I. as well asev<ilu<lJtin:g the overal'l presentation or the financlla'i stel:emeflils...ernefli!sorrinanoial position 00.nce with Philippine IFlinancial Heporllln.ODI'1'1.. 2009' and .... 2087399'.eporlling Standar.!l h '80AIPF! C Reg. We oOfidooted our audil. tOlheenltity's p~eparB!tlon Mdlalr presentatlonoi the tl nanctal slatemenlS in meier W de$.. The proceGl.g StMdards.iIlot for ~he purpo$e af e-xpressling anopi ilion on tine eriootlV'Elne55 or ~he en!iily'5 intemal oOon!rol."11111..tne financ~al poslilfiol1l QI ABS-CB N Broadcasiing Corporation and 8u'bsidiariies as 01 Dooember 31.s: desiglningl" lim. 1294$3·768 PT1R.s ~n accor·dance \vilifl I?hillippine Stanaru"ds on Aludi~iin:g.. eenselidated stai"emems of comprelnenslil. the llIU:dlilor oOtlsidercS.p~ialeness or ooooUlntlfl:g pclleles lk'Sed a!'1ld~he' rsasen a.le income. a. in all mal-erial respeGW.do Partner CIflA Certificate ~o.dih~(s j'udgll'll:ern.bleness of accounting es~ijmates made by rnanaqement.. January 4. :2009 and 2008" and thie' consolidated statemen~5 of irJcome'. oonsolidated statements of changes ineCjuiiy and consolidatoo statemenlsol cash Uowslor each or ~he three yea~5 lin the penl00 efl:d. {632) B19 0B72 .ds. an opJnlononl.. MM~9@ment is· respoil$ible fOl the prepara!lio.i!OCOimpanyiillglllinanclial $tatem@iIllso~ ABS·CBrN Bro<.ed I)ooember 31..ign audit pr·ocedu!re$ that an..clud. In ouropinlion. itnernal Mflltm!1 rei evanl.ncial $1:atemen~:$.ing the assessmeru 01 the !l5!kiS of mla!erial mis$tal.em:el1llol tine fin".l. ~o. and mal\.11111111111111111111111111'"' ' 1 I 3J ERNST $GV&CO & YOUNG SyC (ifl Go iii'85 V~I ayo .~~V. in.~lidated financial$taternen~:$. present fairly.he oOonso:ltda:too stal.d~:$!idiarie$.e~s and Ule Board ollJ~~ec~or5 ASS-CBrN Broadcastingl Corpmatio!'1 Vii@ have audited Uw ..: approprliateinllhe cirGums~ame$i' oul.aration :.$"IJanaar·dsre'[ ulrs tlnat we oomply with g~:hical reqUlir'elfl1. hich w comp~isel. and <I soumrnary of signiticanl accou !lIiing polioie>s and other e_xplanatory notes.!d~asli I1IgCorpor".i ilgl~ho$e ri$ik as$~$men~:$.md fair present81tionoflinanciial $talem:en~s thallllre heefNJm materlial mli$$:l:atemen~i' whether due to frau:do~ error: seJlecting and appJJyingl ~propriate aceou mung pOJicies. This resp0!lisibillity incllu. Those .iIl NQ.relree hOlM malerlal misstalelfl1lent An ". Cer~a.2008.. \vnether due' lo fraud or errOL lin 'iTla1o.1M oon::.. at [December 31.. Qo1·11hA~·2 Tax Ildellilifi(:<'!liio. NQ. Ald~in M..IIditeviidence abou~ the amou ills anddis>clQ:$ul"¢:$ in theliinlllncial state'!'Iletl~5. 000' SEC At<tradi1a1ioo Nil_ 0012'-FRI-2 111t4ID:EPElt4ID:ENT AU D'ITO RS' RIEPOFrlT TIlle' S~ocktl:old.

30®1 '1II86. 14 and 19} ~6.958 2141 7.324 1 5" Total E9liiiy otm..876 890.026\ 183 l~i.gain on a'l. i 1. 11.849.906.9i) O~her nonCll.60n ..l$ C.2 132'.W03. '79®\218 791. 11.119\532 9<1<9'.046 S1 .583 72!:l.399~. 67'..(An1IOL!llni~S ~n Tlhousarndls) CU~I'~~mJlt As$¢.8135 l~quityAl1Jrl[blJla~ble~Q Ili1iqlWl'iil.I!il~~S Air:.783 1.7ffi4.4.19"1 '642. 21 and 28~ fota'i NQrmu~rellit Liabilities ~!om. 3:56.265 96!'l..626 489'.9G®1 '6~Ek28®1 ~5...136.838 14.75.439.301ll (136~602) 779.:524.338.es (N ole 2.' 719~.e!s(Nate 2'9} ...12.299' 2111.nll..:arnelax p~yable .y HQ!lldeli'$Qf~jlilie IPI3:~eltl CQmplilml¥ Capital 51.bi:lities (Note$ 4..10114 5.856 37t. assets . a.2~3 ~5. 14 and 19} ObllgaiJions for program riglhts • nei .te 15) Dele~~ootax a5:s.1'6.310 ffi4l.e a.968 1.131..751 5.(101.net (N Ole$ 4.4i2®1 14...:258 420\465 4®\9'71 1 2~170.Iilll.2:59 2.nd other payab~les (rNates4" 18 and 23) .063.4.~~fjem!rt 1 n.~165 189'.884 (376..351) 23.119' e.:2:11~1 8.AIBIIL.. Liabi!llilies I rd'ares1-bearingl loans and bO!TOWiin:gs.1511 :3..:llDEjQUlm'!i' Cur)je.554 t.o~her nonCllmen~ 8S$~ (No~e 1 6) ifata'i Nonourrent Assel:S ~!O!...1631 63..lestmerns (No~e 14) IPielai ned eal1i11ing$(Nole 22) IPhllll.lailalble-for·sale in'l.n:dOlher imangiWe.llrrerU Ili".2~524L.~_sh and cash ¢qUlivalents (N Q~e 6) Trade and other rooeivables • nst (N oi:es 7 and 23} Il1Ivemori@$ (Nolie 8) IProgmm Inlglh~5.040.!Ci~ ufjE!rn!J1: ssets A e3.621 151.273 1.14 4:].'5.current portion (~oles Obliglaliions for ~rOll~am riQlhbs• current porhon (N o[e' 2Q) T ota'i GUJrref1lt Llabillities.oo:k (Note 22} Additional paid·~n c<lf)ital Oumulla:t""~ ~ratli5lation adj us~menl'S (~ole 33) Unreal~zed .Gurrel'1lt (N ores 4 and 13) Othercurr~n~ assets (N o~es 9 and 33) fota'i Current AS5~ IPrOperty and ¢qUlipmem .nat oi cur~em portion (No~es 10.lfle' d o:sl~o~ rooei i1.276 2. 19 aM 31 ) GooctWilli (Notes 4 and 17) Irwedm~mt prq~erlije>s (~ote 12} IPragramrliglnW ando~her i("dangible OiIS$¢tiii-nOifilcurr:eml (rNlol~ 4 and 13} Availab!le·for-I$·ale ~nveslfflen~s (rNlotesM and 19') I riVeS~iTlenw in aiiisOGii~le$ (NQ.3(n 603.276 (193.1 39' 225.6Em 1.Irueres!-bearingl loans rult:! bO«O\!'!iiln:gs.562.583 725.21e 98.994.337.:254 5..:t!11 66.9136 632..7$5..of current rrorlion (N me 20) ADcrued peillsion obil~ationl (rNo~:e $0') I)elierroo tax ~iab'llltl.053 3. conver~ible to common shares . .m: Llablmies frad.12].

"~ing.2:3 and 28) [F"oreiglneXChange .l 3.lS\..·~20 (:i.2..AN D SERVIICIES (N Q~~ 1] .102. 10'.70H 4. BIEFOIl1lE l~caME.27" $O<'ind 31) [Hnance costs (N'OI!E~5 19'.117) 90.G32l~75 ~~rib'~!tab!~e· to.'0!3~2!7' (6.5191 5.te 24) ~Ef R ~VI~t\IIUe (Notes 11.IES .360.30 and ..286.:604 2.866 197.776.~rative e~:pense5 (NQ~~ 7.13and 31 } Sale of glOOOS Licen$e~ee$ (Note :.3$0) (5...gal n ([loss) .. 13" 23.COINSOUDATEn ST Al"IEMIENTS OF INCOIME (Aniiloilllnils in TlholIISillildls" IEx.:235 986\.133) 5.298) (581.291 90~n9' (2.443..676.372 512.:237 91 3...021 BasiclD.464 6\237 1'!'1.787) 19.2$.239<. :23. 6~2 (6.604.501 22:.3061. 1 0....Uuled ~arnil~}i!s pe~' 9!hal'1e.ses) 'o~ assooliates (Note 15} Othier income . 1]. 868...... ItIl:CENIIVES CO-PRO([!lUCERS' SIHAAlel (No.'ROVIISIO~ FOIR I NCOM E fAX ( N(lte 29) 7. IEquity holde~s of~he Parent CompIOlny (rNote34} Mi nOini~yin~er€$:~$ e1..95B 9~865~296.746) 17.481 489'.859') .9194· 133.'055.12a 9 1$..:hl!S.4.794 2~:2S 7..pt~er Slhare' Amol!Jllilts) GfiJOSS R ~V\elMUIe:S Airtime (rMOI:e23) Sa'ie 0:1 serviioes( Notes .s(Ios. 23.7~9') t912~911) 93. 13.OSS PROFlli General and ad minll... 28 and 33) IInleresl ineorna (fliJoIes 6.319') (72:2..9~!6< SSl83..397 56.Imet (rNQ~i6S. .:298.9189' "'1.266. 16..IAX .:383...744. 30 and 31) GII1i..470 2~421. t.net IEquity in net ear.630:.1:2.46..31} AND' e·~.572.~1 '~..064 524..729 (5.51 O'.oe.153.<rtlribu~aJble ~Q E91uitilf Hd~l:h~r$ the Parent (!Qrnlpalmlty (NOlte 34) Qi~ S2 .587 (6".159' 548.218 22.25.185 (6. .441 '684.t92 . 26.8(6) 'RiClD~:CTilON {:061'8 OOSl' OFSAI.:1') IILIESS AGiENCY CGMIMliS:SIIONS. 2~:h·31 and 33) INC'OME..869 2.19. 521.553 11.

s on ~raJ'lt5llaJtiorl tlme.N:SIVEINICOMIE (Aniiloilllnils in TlholIIsilrndls) fIllEllNCOMIE O'THEFI COMIPREIHENSIIVE IINOOME 1~X(:.HE.hange diilfe~etloe.AL COMPR. 127 e1.E.:27Q.348 e]. 88.761) 131.COINSOUDATEn ST Al"IEMIENTS OF COMlPR.igltl ope~aJtiorttS o Unreallized fai~ value .833~551 81 53 .765 ion.154 T01"..·interesls NET OF TAX.gain (110010) availlab!Ie<·for-sale investmenis on (NQ~~U4) Cashllow hedges (N me 33) Iincome 1>"':>: efl~ Am:o!lliization ~f initiaJ cU!'lllulalii\'!e~ra!lslaitionadjluslme<n~( Illrllcorne I{'I:>: efl~t Note33} el . "1M (11. 171.IINCOME. M~ribl~~:li'Ibll!e·110: l~qiUity holders of ~he Pan..E HENSIIVE.mt Company Mi noni~·.

egu~iti(!(11iS oj PDR!:i (S.35.838 74. 2006" and 200'{ (Amo~nts hlll nousali!ds) Capital SUlek ('Not~22) Adld'i~ional Pald~iI'!i! C:aRi~al e725. 2009'.109 9'35.599 (11. [liN EOUITY F'O'R EACH[ .1) 5S.lary 1. 1'Or·Sall:e ImrestmentiS (No~e 14L 11:!2!).ND'En DECEMBER.ri!9 l!i!1iI1'19ali2l!ld'Gairnl Oiifl AfitaJulable.76~) P725.293. 2007 Total Mmprernensive irliMme (Ioos) Decrease ~n minority irliterest$ Cash dMderJds doola:roo Acquii$i(iO:lli$ of PDR$ II$smlll£:~ o~ PDRs At 1:J.105 14.i!Gt5 At JarJ11Iap{ 1. 31[.32a) (~~4.A.27fjl Total co:rnprernensive irliooillie Doorease ~I'! mlnQi'~W itw~re$1S .047 (~17'9.OIF TIHE YEARS E.e!i!ll:S (No~e3m (e19B. At JanIUl¥Y 1.494 S4 . (No~e 4) C<JSh dMd€lnd$ decl<J:rw .(tiJOI>e 4} Cash dMdands dG'Cla:rG'd Acqu1tsilio:l1iS Ol' PDRs Iissuances o~ PDRis.!ilitlula~ive Trnnsla~iolfl A<llusl~m.NSQUDAT'ED' STAT[EM[ENTS OF CH[AN'GES. 2008 Total co:mprernen!:iive irlioome (lOSs) Iincrease lif! mlnQ:~W iitllterests.132) 1'?21.et:ember31" 2007 11'!7Q6.46Q) 100. 2009' Cl.271S At Jan1i.CQ.

081 .300' le15.304.14.9a9 e115.304.300.046 5El.123 Eilft.•1U.915 (643..464 (643.000 1iI'5.2.l27 (~t.0126 55.156) (52.005) (11l3.057 t.561 (613.123 ('1rS.094 1.951 1.i5otO (20.357) ~1 5.S23) 11.4n.9Hi IiIH.4(l2 llB9O!.026 U.744 (350.090.812) (18:2.S21. ~34) (35(}.049 14.258) 55.710.894 6.91..S23) 1.171.iji 22) Total 11.tli27) 1E!'67.614.02~ (21 .156) 9'14.OQ7 ~13.~37 14.106 .912) (162.o.app~.000 95.356 9'45.266.a~ 2) (162.J2?) eS.'677.141 .33<1 Fteceipts(PDRs) CO!ilfl!l\ertlble to CO!!lnlllnollllShares (M~.Hi6) (5~.478.prlatedl (NOl!.7.357) (~37tM24) ~4.057 55 .167.141 4.621) 1'?13..B56' 1.383.349'.45.1M) 1.1300.$ rilllilililQpin!l D!ilP'O!Sii1iOry iotal Equilj!_________ U!ll.812 (ENS.081 .258) (1'?177.(350.258) 35.:sg7 1.o.Mlilil:ollii1y [1'I1!~erE'-S'I.oa.894 .2 1il8.3oo.165.l.860 1'?63.

) U7'.generated from operations N e1 casn provided by operating <'Wliivities ~2'.435) fl'*~M37) (2.486 (111. 186) (35.2) 1.98} (11Ul66) (1t.440.. received .eres~ lnoorne (NG~e 28) ICqluity in net 1106665(eamil1g6)o~ associiales Gai n on sale 01 property and eqlUlpmetll Mark"-to-lilllarl'::_e'I loss '0[11 dle~ivruliye inslruments • .919' 123.371) (284.2$3 t.973 1.490 (1.752) (685.lul!i) 01' inveo~Qry IDecrease( I nO~OO5.330' 1) (90:.015) :21...4(04) (954.el urtr€:allizedforeigne'.:298) (385.2)310) (2'40.202} (38.pen$e (fNIcte 3D} O~her employee berle-ti~s iD'eclinle in va.es O~her curreat assets Oec~ease in: Trade and Qtmer pa:yab:les Obliig<lliio.Imeresl.2::21 2H3 (309'.887 (205.3199 1.591 (59.880' (177..:795.257.:354.022.f: lP~opet'ty and eqt!ipmern Ill1vestmenl in band$ ..4.497) (1 .7619') CASH FLOWS 'FROM INVESTiING A.194) (26.d 35) lP~og~am .5.2 135.2::.'188 102..e( Mote 28) N.057 (92]A60l 21.ch1il_rl:ges IPm\{lislonsfor: Dotlb:tfu~ acQotlnts (rNJote27} IPeill$ion ~).0(m...120.658 2..455 (694..:270.986 44.~ 7'9' 4a.. assets Long-term ~eceivatlJ&slrom ~eJlated parties IPrQGeecl$ froml $a.841.:4(1) 350\.320 (1 .debt (NOIe 28) Illncome belQre worki iIlg c~pihll .656) (154.342 108.COINSOUDATEn ST Al"IEMIENTS OF CAS.2..ns fo~ fm:lQ~am .) (5.361.67.964 30.o~her Imangibles (Mote 13) Oehlmed chaJfQles (Note~ 6) Debt ii$$uec:osW (fNIole 28} InlereSIe(:(perus.994) 348.558 4..44®~ (93~291) (1.H FLOWS (Aniiloilllnils in TlholIIsilrndls) mceme tax paid CASH FLOWS IFFlO:MOPERAlltll:G1 AClllViITllES IInCOO'Ie belme income lax AdjuiStlitl1eflt$ for: IDeprecia~lon an:d amortization (N o~e5 11 and 12) Amorliization (If: IProgmm Inlghts atlid .lisiililon 01 minority inte~ests (N me 4) Dec~ease (inmease) in: O~her nonCilmetl!.406 (366.190 1.o..1:29'..409'.0.218) 'Ml15.401 ]95.235 t.030') 5.:210.) (98.286.325 (193.) 267'.687 672:.108 (108..e)11'1: Trade and othe~ rooeivabl.838 111.74 :23.405.le o..487 40.213 5.2167 102~101 ....663 14.6S3) 16..10175 862.073.2:5~J12) 33...41'...charllge ~OSs(9ailtt$) Im.742) 194..541 261.806) 242.tes :26) Loss on derecognltlonof .~OB.9:316.d e~chanlge of debl (No.cflVlrfiles Additiorlslo: IPrOperty and equlipmeflt (Nio~e$ 1]~Jl.904.) '6.268) {2.N e~ cash used in inv&stingl activii~iies (2.712 (122.232 ~637.282 44.064) (3.882 S6 .r~Qlh~s o~her irnangible assets (N'mes 13 and 25) and C$h acqu~r~ ~rom bUSline$$ combination (N o~e 4) AOQll.123 8914:84 70..righ~s O~hier nOMurren~ Ili~billitie$ E!Y1menlS of aceruad penslonoblilgatlon ( Mote 30} Net cash .17) P'05.107) 29..060) 836\657 (1 .1®64) (~1.39H ~967.~'®' 31..net (~o~e 28) Gain on~cquii$itiolfl8J1.

161) (52.!58) 181)'..CASH FLOWS IFROM FI~AflJjCIING A£ifIVlrJiiIES Pwceeds fmm: L(.:..2'90) (39M80i) (1.llive6 (NOlte 33') Iisslianoes olIPDRs (Note 2~} IIncrease(doorease} ~nnl1in:o!lny iirlterests IPao/:ITi\l!n~IQr~h~' termination of crlQS$·Cl.497) (307.778 57 .AN D 378.$27) (2.523) W4..'704) IEFfiECTS Of EXCtFilANGIE R.565.de~iva.990 M23 1 (t52~S20) (1812. (!AS!H EQUIVALENTS ..9BID~ (2~911691) (11S'.357) 1 ) e.280...656) (277.476 CA..000 (452.498 400.859) t903~(I95.Jrrlijncy $W<IIp$ and int~res:t rate SWQjpS (Nole 33) 1 (347.te 22:) 8ettleme!1l~ot .S m:ANSLA 'F110N A!DJ USTMENlS O~ CASH AND..ATE OIAN'GIE.487) (176.8aID~ Lml:g-temll debt IFinance llease AoqlU15 1111otl ollPlhilippine depository' receJpts (IPDFts} (No.lItg-terml debt Sank loans IPao/iTlent$ of: I meres! eSOID\liDOID' 400.869 (203.005 (5.60®t) ~6a2.2~895.896 7061.500) (627.'000' e2~049'.) Bank loans IDiivideMs (7S7.486) (387..SH AlND CAS'H EClUIVALEiNTS AT BEGI NNIINGOF YIEAR 2~145'.250 (580.

exce~ when ot~erwl se irndicaited. 20019: I~ Amendments to Ph iii p.J)f rematiJID P The consol idlaledlfinamcial ::.z. vld~eojaudio post produaion.pa ne Acoounti n9 St~nd!aJrd (~AS) 1jPr.DIsci otSures arlld Plfes.y.ecomirllg and diSltlributiorll. 20110. lts sulb<sidiall'iesand asacclates ar.:. IB_. Esg uerra Avenue.e producl:iorll.elfseas. The aeecm panying consolidated fi nancial statements we weapproved and au~:horizoo tor issue by the IBoard of Di rectors {SOD) on MaJrch 111. Other activities of the su!bsidiarl es irnclud!em e'!i"Charildisingl.a.v·ail.N and all its subsidli aries (collectiv~y referred to as o "the Com paJny") have been prepared on a historical COS] basis.a:..al instruments and .iS.altementst ASS-CIB.ese.eJ!senfatiort of Financial Statements These amendments if1twoducea.eso. audllo r. Charngesl n Accountl ng IPlOlici. STATEIMIENITS (Aniiloilllniis in TlholIIsilrndis Unless Otlherwi:sQ :Speciified) ro ABS~CBIN li3roadcasting Corpor. exceiPtfor the adoption of the fall owi rngamendedl PFRS 'Which the Company adopted SiMi rngJ1arlluar-y1.e Involved in the follQVIII g relatedl bus~nesses: calb!. I The common shares of AIBS-OBNwere the Phlli~pjrlle Stook ExcMnge (PSE}" Ilsted beginn ing JluIy 8. except for derivative fi ~anci. l~e ComparilY e·lected to S8 . 11946. The Pamn~ ComparliY's core buslnsss IS television and ~adio broad~ca$tingl." Entities may ohcesete present ~II items lnone statement. 1992 and have sl nee been traded in The registered orfiiO€ adldmss of the Parent Com palny is Moth®w Ilg.alue.ecommunlcatlons services ov. sep.rgta!tlon of the sta~:eme'rIIt of firaancial po<siMril and oWll1ef's equity as well asaddlitional disclosure's·. movi.e n and dlrecHo-~ome {DThl) televislOrll distrl butionandl tel. or to present 1two linked $ta~:ements.on City. whiic~ Is the functlotilalandl pr.ent GomparilY. The oonsolldiatedlflnanClal sta~eme'rIIts ar. ntemet and m o!bile se·Nioes and publish Ing.able-fof-sale (AfS) lnvestmeots flat have been measured ail fair v. All val ues ·alre IfOU Me<d to the nearest thousand. 11Mse am e'Mments also pms:cnlbe additional reqUI~emenil:S i rII the pr. new S1:a:tem ot comprehensive income that com oi nes all items eflt ot lneorne and expenses weoognized inthe pwfit or loss togemer ~th "Qther comprehensive lneeme. Que.e p:re'sen~ed tn PhillppJrne P.c:ds.aJrate Inoeme $ta~emerlltandl a staltement of compreherllsive inoome.tatements of ~:heCompany were prepared in com pi iance with Philippi ne Fi nenel al F%eporiling StandlaJrdis (PFRS) issued by the Ph ilippi ne Finardal Ae)po!1ing Standards Oouncil.mJ8!cia Sh'\®el corner Sgt.es..Al.enla~iOrll Thie Go:mparllY's aoooun~1ng pol iCles ·ail'eecns: stent with t~ose of the pnwious fi rIIanclaJ year.a.ese'rIItaUon currency of the IPar.INOTES COINSQUDATED FIIINANCI.aJtion f"AiBS-C:BNI" or "lParerllt Company") is inoorporated tn the lP~ilI~pine's on July 11~.andlfilm dis. StalElm'e!nLQLCQmJlJ~iruJcOO The consolidatoo fi ~anci.t~lbution.

The amendments alsa clalrify the requi rements for Iiquidity risk discloslIlre. In~roclluce en~anced disclosulfes.e incoms. prioe'~ 'Nith "rai r val us Iess to sell. Theadepfion of the followi ng imprevsrnents to PFRS rssu Iteo in changes in aoooun~i ng policl es but did not hav:e lm PEIICtOril financial position or pertom1lanee 'of the Company: the I~ f'AS 16 Pr::operty~.tomer Loyarty Programme. inputs) {Level 3.ment of inccmeand statemen~ of comprehemsiv.aym~nr . Jointry CorMroUed Entity or Associate . The amenalment\S to IPF IRS j mqui m fai~ \I'.s.. Impairment o.ns . Gus.fielfS lbetween levels in t~efan r value hieran:hy. The fi rIIanclaI s:t8!temen:l.ermifle whether an en~lty is aell ng as a p:rinclpal orasan agent. snd PAS 27.Amefldm ent to IP'F IRS 2.and EquJpment~ repl aces the 'term "net sel nng. Share-bas8d . w re I~ J\!menaments.@dilby amendmenrts and ere pr.fai r value measuremen!l:S is requi~oo.[valble ma~k!et diata {Urilobservable. {3.sk. (2) ~as Inv:entory ri..present two IInlk!edsltatemen~$" a selperate st. to f'F R~~a7"r Finanoia} ' Financial Jns.y. In .andl liqu Idil[y Ifisk.).about f'ai r val ue mea:sur.~ ot suchr items. eithe.®sentedi in Not.dlon the I'ow'€!~ lev e.rdllrectly (as prlces) 'orrInd~~eC1ly {d~e~lvedfr'om p:floes) {Level 2).wfl as revenue.. . and PAS 36. The I iquidity risk disdosuJre.tiof) Am enldm ent to IPFRS 1. Finanoial instruments.urrent Assets Held loW'Sareand DisconUmJecd OperaUOoo.truments Instrument5'LI~ Disclosures . Oash payments on initial Jrecognitio. Hedges of a Nst Investment in 8 Foreign Oper:arion Philippine.addlltiorilI' reconcl Ii atl'on lbetween tM begi nningl 81M endi rilg Ibalanoefor Lev. the stat'ildalld) to d!et. ~roceedso.P.s Philippi ne Interpretation IIF IRIe 16. j COSTS • PAS 1:8.f Asse~s.dljlu.e-:vel hleraJrch. as wella$ sl9r1iflcarllt tran:s. ~['€! pmpafOO under the Irevlsed .ed to i~ventoJry when we~tal ceases and ~hey are held tor sale.1 1 that are observabl.8~Tr:ans'fels otAssets from CtrsJomers Impmvements to PFRS.SCIO$LJ requ Irem ernts.enti~e!l. the Adopti onotthe followi ng new.tentwith PFRS 5.A.quoted prices incl uded In leve. Item s of p:roperly. . ~nterprela1iion IIFR~C 1.Plant . rev iSled and! am ended P fAS and Philippi ne IInf:elrpreta1iionsfrom ~ntema~im~al Fi flanoi aI F%eporting~ flte~p:retation5' Com miUee (IHUG) did net have impacton the I Oompany: II I!I! II II I!I! Ii II ~ PAS 2.Vesfin{j' Comillion$ and Canemlations P fAS 8.y: u {a) quotedl pnees {urila.s. 0pflraUng Segments Philippi ne Inte'rpreta~ien IIF IRIC 13. pi arlit and equ Ipment lheldlfor weflltalthatare routi flely sold inthe owdinalrY course of business after rental .arre trarHsfen.e 32.s with respect to deriv:8!tive transacdons andfinardal assets used for liquidity managemenrt Ilhef:8!i r value measur.ediin Note 33.t. The I. . Nono. 59 .alue measur.lof w IrIIput to' t~e Ins.tedl)In active ma~k!e'tsfO'r Id~entical assets or liabilities {Leve'l 1). Theteatures to consld~elfalfe w~ethelf U'ne e'riitity (t) has prl m.Borrowing Cosfs (Revis€!d) Am endm ent to PAS 32.s SLoout These amend'men!l:S.di.3.improvifJ{}' Disclosure.emen~s for each cl ass 'of fi rilandal I nstruments to' be'ali sci O'5ed1 by the sou~ceof irnput\S".entaJion.f such sales are subsequently sho.el S.iar lnstrum'eints and Obli:gatio.iaJ Statem~nts ~ Puttabfe Finanr.e-:vel ithl n wlhiclh thefailf val ue measu~ement Is caltegolfizedl mu~ Ibe ba$e.s alre net sign ificanlUy 1mpac.alfy m~ponsl bl lityfo:r previall ng the goods or selrvlce. {b) irilput'Sother than . alld ~AS 1.rlsing on Lfquida.emen~ . FirsMim8 Adbprion of PFRS.. the cash receipts from rents and subsequent sales are all shown as cash fl ollNSfwomoper31tingiactivities. and (c) Inputs for the asset or liability that am not based en obse.8!te. sl ng t~e foll'owing! thme-I." to be corHsis.efor tMasset or Iiab:!Ii'~y.twumenfs valuati'on tMt is sl9r1iflcarllt to thlefal r value m easu rem erilt In its . RevBnu8 adds guidaflc@ {which accompanies. Consolidated and Separate Ftnanoiar StatemS'nts .emenrt disclosures alre prese nlt. Presentation of Ftnanr.) has 1.· Pres.Cost of an InlVestm~nt in a Soos/wary.

aR1ffilng s~ces Cable> aM.exd ude plan adm inistrati O'fli cests if they have been inel uded if1! the aetuari al assu mpttens used to measure the dienfledllbenefit obi iga1iion.s or companies.es€:~t:artionof its eonsol idlalted statement of incom e to present gmss pmfit The 21008 and 2[)07 consolida!ted sta~ements Qif income were r€vised to contorm with the 2. Amend'mentsto pians ti1aJt wesult ina reduction in benefits related to futu re services are aooounted fo'r as a cl!!1ailm ef1!t The improvement also revises the diefi ni1iion o.stment Property PAS 41" AgYicUUu." • Other im provements to PF~S that did net have impact on the aecountl ng poll oi es." additional disclosuJr@is Jr€quimo about UUl: discount r. Invest.ments in Associatecs !PAS 29 Financia~ Reporting in Hyperinliationary Economies ~AS 311.re l 1 .f "short -jerm" and "ether long-te1rm" em ~oyee benefits to focus onthe point in ti me at which the Iialbility is due to be seUI ed.mpo~al\lon AlBS"C8N (.asis of QqnsaHdaOO!!1 The coni5olidated fi f1!anciaI statements inel ude thetimmcial statemerns efthe Parent Compa~y and its.flnanclal pOi5i1iioncw perlermance of the Oo:mpaf1!Yare as follow: • I~ Iii 'ii • I~ Iii • I~ Iii !PAS 1. revises the de.Assets. The Comparlills pension cost and Ilabi lity \iVE!'ffi com putedbased on the fowegoi n9 revl Sleddetinitions.f ~reilum on plan assets" to .dlscr.:. 2[)09.C>9s ~UiSD) Great E!!ril~jf! IFloU'ndi {ClSP) Japaoose Yoo (JPY) ~OO. Foil owl n1gis a Ilst of nne subsidiari €.Go've\mmel1 t Grants anti .$of an e'riltity'sciBipital stock..ti'On irII es:tabliShing prices. fntangib. which .elVice costs" to I rIIcludle r.rfIC.0 lOU.eductions irII benefits reletedte past services (~nega1iive past service OOiSI1S") and to exclude reductions ifli benefits releted to tUlttulreservl cesihat arise from plan am endments. ittu rther revl sesthe det! fliition o. IreiVemueanrarllgements against these criteri a.o. 2J008amil .f S1a~. Contingent Uabiiit~s and Contingent Assets. 1 .esrequired when the discounted c:arshflows are used to estimate ·''value it'll uss.PresenJationot Consolidated StatemenJot Inoome.fir1Iitionof "pasts.rimproyee Ben'etits.1 is norm a! Iy evidenced when the ~'aJfe~t Cornipa~y OVlI'rIIS" eitMr dir.em9nts F'AS 20~ Accou(Jlting lor . PAS 36. and (4} bears Ulie cmdlit Irisk. ~~ 1 {A8S--C8N Japan} . The revenue Irecognition policies were updated according Iy.Assets !PAS 39 Financial Instruments: Recognifiofl .ami M~asuremBnr f'AS 40~ InllVe. Iii PAS1! 9. provides tna!t when discou nted cash flowsaJr€: used to €stim:arte "fair value less cost to sell.' G'overnment Assfstance PAS 23.Iobal Utll HOkiing oolfrlpalilY FlNlc~mnl ClffrooCY Ulillitad 8!8188 Dol18r 110D\JO' 1100!!CI1 ~'AB&OBN(3Iobal) (II) QJ M6S"CBN EW·Olle LH:L {A8S. . mere than 50''/. impairment of .a!te. Pmvisiooo.~ ~FQrW131d~ lOn!n 100'.D09'[p:resenrtation. 60 .re .2007: Place> (11' lI'Ic.:ndsa~e!lile pJ'ogr.e.Interests in JOiA'i Ventures PAS 38. The Com panyassessed Its.Diso/osures IQ.of tM voti ng ri gl~t.r Finam::ia. Change in . subsidiaJries as ot December 31' each y'ear.U lOn!n 100'.CBrN ~ropQ) \III~H~ AJBS.AIBS-CSNI Gontlrols as of lD€oetmber 311. Pres9ntation o. IB. sal81~I!Q pr<D~alfrlminQ aeIVi. IIn 2009.0 lOU. the Company chalng1edthe pr.U Cable a.tency wiU'ii PAS 37. Co ntlfo. Sorrowing Costs PAS 28. It else del etes the reference to the recogMi'On of conti ngen~ liabilities 1''0 ensure conSis.cOnlsistenlt with dli@cloour.. .CBrNJapan.ectly or irlldirectly.

100.oes Cabla andl :satQiil!e.isloo $Br¥ics8 $.D PhiIDppine Paso USD Philippint. 79.iees .arn8.0 100'. 110M.G8N Mi(jjle East lLG ~ ~I E-MolE~ IPIu-S.g Serv1coo • suppo:rt Cooten! d8"!.U AouslI'allall Dollar {AU!)) ~OO'_O' 110M 1100\!CI.Djppar i:lig.PO'I.\c1ing ..o Pe:.l Peso Philippine Pa~D Phil~ppin".)' Ctlble) {s. !~. Inc. 79'.OO!llOffi~On l"oJ AiBS. tdJ m Phliippint.'<lJ.a~ed {SCHI~ III TariM Gable T.CBN SnaJ"scl Servlca Ce. !sIEi¥isioo $Br¥ics8 C8IJle IslewsiOO $8r¥ics8 Cable le!:e~sioo serWoes Hokling 'OO!i1lPany Gabl".o Peso Peso.l Peso SlnqapCill8 DollaJ" ~\SGD} Pllili.nter PTiE. ~OO'_O' 98.0 100yQo 1100.~ 7'9~9.oflt Co:r." 39k~ 4'7'.i. 10n!n '1100\!CI' '1100\!CI' 10n.o~. !sIEi¥isioo Cable Islawsioo Cable le!:e~sioo Cable le!'ewsioo Cablt.a 65"8 65"8 65. [)$Siglil. Philippine Holding cern PaJiijY !J8D Cable andl :s1Ue!me pr'o~aJnmiin9 sec""'. Inc..0' 98. iI! (0) IjJI Clfaaliys' PrQg~.9..el:e'oisloo s. Inc.eQ' Mo!e 4) etlg'ht Moon Gablt.art1ming st.. Cable a:ndsa.a.vs!ems.. Inc. 62!D- 60'. Peso Peso Per. !nC(l'lpo:r. U9D Ca:nadlS_ll1[ld!!a. ~I AIBS.moliley remi1. (S1J1dio 23) Tlls' 8i.ires Services. !ric.o Pe:.3 65.ID ~n Os_Ole Hc4diftgS. W HM CATV.o.oi08s [)igi~sl' iilmslfOOiwng 8:tIdi Cerlt>ra]1!HbffiIy. ~ &JnvisiQn Oa. me.CBN OS_I'lfIOO.ro~. M6S. lnc.) .aR1ming st. ~j HCilfII.oices IrI~GmlMlale 11c. Inc.0' 100yQo 1100\!CI. Inc.sJiOll'! W HM Cs_ble· t'4e~o~!!s" !ric. Uti ... . (.oooction Coolienl dGmopmQffi andl pioI:I(JISlfriming 8eJ1. Piac:e 01 !noo. I9l M6S.. loc...eMeQS 1100\!CI' 100'. ill Ga"'. UJ [liseomtel~ Cable" lne. Inc.o~essional Se!"\iiees ~O:r Television & Radia..!'83opnlslfl1 :3J'ItI: fN. 11fI¢.CBrN Global Mel11tl'l'lands 8'\/.PPin$S 98.art1ming SQ1\oices Telec_u!fjca!iD1\S.a 7g. flt!i!lppines. Peso Pl1i!jppine PfllIlppint.pt:otslioo ·tt SlIb~ban Oa. Peso. 1100\!CI' lOn!n lOn!n 100!. 65.ll. ~oo.C8rN Canada) OH~I~I' AiBS.6 61 . ~ I$Is. Pi'lilippinoo Pl1i!ippines. IjI JMY Ad . Ne1liiBrlan& Gamomi8J.. P'hil~ppin8S Phili.ftl. 110M.~nes Phillppin$S Philippines Ptii!ipplnes Phili. ft.b!e.B~ !ritemaliooa]1 ~ 1'1 AiBS.pbM prol':iuicliiolil Cable le!'e'o'isioo seiVloes Cabl(.ppine Paso' F11i!ilppine Peso Pl1ii~ppin9 Peso flt!i!ippine Pes-o.g .5.oduClioo and'disll"icUli:Qn M!1ISic publishing Coolienl dGmopmQffi andl pi\I:I(J1Slfrlming 8eJ1. 7'9(9.itaIGoIfl1!$'flt &. Philippine Phi!ippine Pl'ii!ippine PfliI~ppi@ Per.. Inc. IABS'CBN MLiI~medla) (h] AlBS-G8N Integ.l Peso Phil~ppin".0 100'. p.0.n Camilla AmSLerd!!m.fN. Inc. S.l tGle~sloo s0rJces Cabl(. Phil~ppinoo Pl'iiiippinoo Pllil~ppines Pfint pub!ist!i!l)'J Ptiffi pooli&iir.1iQn ~ Cepsill Goosulla. !nc.a 7'9.E!m.el~. {AB&CBN Interac~~) M6S.slil1a'!je CCIi. UAE [)tmail.01i\.S.a 65. {Roadnrfln!$'i) ~ CaJile OO!lpoffitlion Wk.CBrN A~1falla IPty.b!e t'4e~O'Ik.m.3 65"8 79. 10n.oices Hsling U9D 8ar'!lic8$ .0.Jce Inc.:li8J Philippine [ligilsJ electr. Pl'iilippinoo Phili. ~ABs"CBN PlJiblijshing) Cil'lIMr)' Publlca1ions. HUliilgary Camo~i8J. Star Fteoordi~" Inc.U 9M' 9B. Roatll11llnner NiSI\!liJlik. Phi!ippine Pl1i!ippine Phil~ppin".HW!"!)((D AlBS~8N Cslil1~r for GolfrlmulflicaliOO ""'ItS. Inc. 1~1. Ca.Inc . USA Philippin$S flt!i!lppines.gls8Iais. Pl1il~ppln9 Peso Philippine Pa~o ~OO'_O' ~OO.7 46.on!c content dislflblJil'ion R.ftl. ~OO!.wCil'k.. ~6i9 [lipp~l) TV IFood COOl's.CBrN Film Prcduclloos..erwcs8 serWoes serWoes s. CPIO ( Pf. Udl ~A8S'C8N AuslI'. o~O!'l Doom. M6S-CBN Pub!ishif1g.le Cabl".9.oi08s ~dio and video fN. Peso Pf!ilippine Perlo Pflllippint.tsisti 8Jm::! 1rralsgic S Proparl~ HOltiin~.3 65.s_rrnm!in9sen..3 65. S1udio 23.O' ~OO'_O' 110M' 100~Qo 100yQi lOn!D- lOn!D- 1100\!CI' 100'. Philippin".erJCQS Gabl".~nes Philippines Phil~ppinQ<!.j 65"8 65"8 98:9' 79'.l Pflilippln9 Phil~ppin".!B.3 79'. flt!i!ippine lOn!Oo lOn!Oo 1100\!CI.~e!lile pJ'ogr.0.0 70~Qo Philippint. !sIEi¥isioo $Br¥ics8 Cable le!:e~sioo serWoes Cabl(.~.satelli!e pJ'ogr. ABS-CBN GllobaJ Hungary IKft {A!Bk~CBN 1911i1l!}aJ"~'~ Inl (el1U A!6~H.a !!~.3 1'9. {A8~C8N Films) AlBS. 9B.int8n3. 10M 110M.lpa Cabl~.a 7'9~9. me. 7'9.G8N Telsccm iNorlh Alfrisric8J..nc1soo MSMg. oomerlt !ioensingaoo !ransmissloo Services· restauran! and !ooo $Br'!lices . lJSA Cabla al'ld'. ~nc.~nes PllillPpine-s Philippines flt!i!ippines Philippinoo 98:9' 65.c.ULC {ABS.n 98.~nes Phi!ippines Phil~ppinQ<!. 11fI¢. fIla. 10M 10M 100~Qi 100yQo Stm SOtl(ls.AiBS·CBN Mi(kjl(.aJiaj OH'IIIII AlBS. Inc.II~e.CBN (~Ioba! Os_ruo.G8N Interl3!t1i1l8.o.n 11001. 98.l Peso.sJioos WlDllon carner Me>'I1eprocluclioo USD Paso' 11001. OH'lton) .aOO iiMncing OIJR'lpalily 5slf!.l Natwct'ks. ~I {F'ot . Philippin~ Phili.lfrIoney rsR'li~:3..r {CAll) ElJircvean MO~81aJ"y Urfijlil ~EUR) U. Isle¥i~ioo sar¥lc8E Gabl". Philippin~ S:inqap@18 Pllilippin$$ Pl1i!ippines.7' 7. {A8&C8N Ne1liiBrlanli$} (O~!II (<0 AE:S-GBN CWOWJ FtE!!niti.0' ~oM' 100~Qo 100~Qo Ser'!lices . 100. 100~Qi 100yQo 1000!D- 1000!D- PflII!ppint.CBN Mu!1ime(i!a.O' 110M.l East FZ·ILLC {ABS·C8N Middi~ IEaSI)PO)(1) AlBS.\Is¥i~i!litlINBtw9rk.)] Satellite 03bl'~ TV.0' ~OO'_o.ls_"lee EducaliQnaio1[aining Noo·vesse! qpe'l. ~I Homa-t.ll..rPQl8. lO00!n 10M lO00!n PhiIDppine Paso Phi!ippine Pefio.TIcs. Sanmaook N~ N9'I. Csols' TV. Peso Paso' Per.n 10n!n 98".3 i'9.l tGle~sloo s0rJces CBbI".l Peso Paso Pes-o. lnc. LlAE Philippines Bltidapest. 100yQi 100yQi Phili.

All sign Ifica~t Intra-gro'up !balanoes. transactions.lS [)aWQ GsblElWfirlti rNetwmk.nfjil ~W:Jsldtary (In) 8ubs1r11~ry . As a re'sult of the eorwerslon ot the eerwerti bl e note if1! Sky Cabl e In 2008. 72':2' Ma0tan OATV ~~k.. IMinority II te~ests. ~ ~ I'i {IF) (oJ Inc.the rei ated accounts of Sky Cabl e and subsidiarl es have been Inel uded In the QO'flisolioatedti fliancial statemenv. (paMi.liaryc1S0H! (I) C()m.fNf!mf:rcreJ opf:nWor!s if! 2().~ 7. Inc. 2008 (see: Note 4). This irncilJldi€sthe equity int€lr€'sts iHI ROi8drunn€lr amil Sky Galble8lndl its subsidialf'ies. ~)~) ~I Cable le!'e'oiisioo ser.m(iil MQotjns8. Inc.) T'el0010ndlaJ Hc4cIi~s.::).a ss.1'nr'llT.company Cablt.®d out of the Co:mparny" The results of subsidialf'ies aoqui red or disposed of ouri ng th€ yeaJl' are incl uded irnthe Dornsolid:tlitoo statem ernt of inccme from thedlaJt@af aoquisition or ulPto the dlaJteofdli sposal.9.l Mewsloo serwces Cablt.lC.urope lftC~led a!'!Gl' Sl~r.oJ FCC HlmfJlfll1f T1J~ Subsidi allies are fully consolidat€dfmm th:€ da~€ of aoquisition.l:irOlJgll AoSS-OBIV Gifobw i!J 2f'J()8 . Phi!ippine PeriO 39'_2' 59'-" 4U S9'A· Wnh br~flCl1i19S J'rt r!J~ PMJippJiJfj'Saoo T1Ir"jJgll.erwcsS FIJI!ctiooo! CWrer!cy PhlllPpil19 Peso PhIl~ppln9 Peso Philippine Pa$D' 7U 79'. I~. the diUerence betweefll the fair va.<j..(I) Pl1i!ippines Pl1ilippin~ Pi'lii\ppin&1 Philippines Philippino.~'. «I ~I SlJn Cable S'ySlems.ftiJJg !IJ Thrwgh Sky CMle ~ SUQsJr.~ 2()O"l IP9 !qJ ~Vim .l !el:ewsioo serJees G8Ilie Isle'o'i~ioo :s.Eiclive ~~ ThrD.iJgh A!i!lS-06N HIffl!J8f)l' if! 2()@.a 65.~: !iD~S.8 First ~ocandic. ioc.!ue of the oO'flisideration and net book val ue ot the share in the flI'et assets aequired is presented as goodwil L 62 .$ fa rtro romlTI6'fGi~ aperalioos in 2009 ~W!tr. U rillreialilied gains and leases are elimina'~ed w1lless costs cannot be mCOi!lemd. separ. lnc.ABS·CBN ~I !'J fill MJnstock[J<WiJersNp .ubIi~.~I Cffiu Os_Ole T ele~siGT!.zed in assetaand Iia!biliti. n IMinority inte~es:ts mpmse rIItthe portion of prOofitor loss and net assets not ~eld Iby the COompany and are p:re.oiSion. ~I~II'I Phi!ippjnes Pl1il\ppines. 65. "I Im:. ill ~I.. ~. 7U 7~-~: 65.t IIt'J Through ABS-CBN lr7tef.gh ABS-CBN P...?. roc.oJ ABS·C8N ltll~l!<l'lk1iJal {tt'J {IJ~ ~Viflj bra~$ ir'lll'a~jt and SpSo'n SubsidiaryMABS-CBN E.1: Gsbls' T. j Consolid:tlition of subsidiaJries ceases wh.es.3 {.3 65. Acquisition O'f m InOlrlty interest is aooo'untoo fo. The fi flIandal statements.a 59l4i 4'.l !el!e'o1siooserJees G8Ilie Isle'o'i~ioo :s.!p transaenons that are ~eoogni.sen~edseparately in tlheoor1lsOolid1aJtedi statement of ineem e and within the equ ity section of the conf$olidated staJtemerllt Ooffina~cial position.erwcsS Pl1i!ippine Peflo. [laNaQ. ID 00 Pl1ilippin~ Phiilppin&1 Philippino.ls.entity extension method.iioes Hokling . ot the subsidiaJries awe p:rejpared for the same reportl ng year as me Parent Com pElny using' consistent aocountingl po! lei es. Corntlf'ol is achieved wh:®n the Compan¥ has the pow..Id_rJ as f()r.m.1I regiof!fI/ operafif!\'} he. inceme and expenses and profits and losses resulfi flig from In~ra-gro'l. as aPlP:rqp:ri:tlite. PhlllPpil19 Peso PhlllPpln9 Peso Philoppine PaEiD Philippine Pa$D' i'9k9. wheweby. t.ately from equity atUibutable to equ ity ~oldiers of the Parent Com palny.(qtlarlef5 in the' PMlippines ~J 8ubs1r11~ry (oj Through AiBS-06N PtilcHfc . b€i ng th€ daniEl n which the Comparny o obtai rns control. eUecttlve IMarch 115.s.r. TiliiwaiJ Cable le!'e'oiisioo seMoes Cable le!e~sioo servioes Phi!ippine Peflo. lnc.l CATV.r usingl the parent .€r to gOllJem the fi nandal and operati ng pol icies of an entity SOH to obtai n !benefits from its activiti es.a Cable.u. a~e el im inatedl inJuli on censot id1altion.(!9 Tflro.Piliploo Oat!l~ Cor~m11on (PCC) Blsay. TQiewsioo NeLwork.€n control is tmnsfen. ~I~I PaciMGATV.lS Cablt.03' brarten in L[I~d\!}r:g ~i#et/ ir'l2008 and .

tthat the minority s~areMI dle~has til ndi rr. The funoti o'~al eurrenci es ot the foreign subsi dliaries are disclosed underthe Basi S o.golblIglalion to. which is the Par:ent Gompany's functional and p:resenrmtion curreney.0 n the ~mnsla~iom are takerr. Each entity deti€wm ines its own funeti o~al currency.ents and ci rcums.ther assets or Iialbilijjj.are acoounted f:o~a.y . of The funoti o'flal currency of aU me su!bsidiari es. wh ich is the euIiIre~cy th:a!t best r@nects the economic subsitanoe of the undl€wlying ev. 'except foreign sulbsidiari es.and Is atll e to.r and . Wherre goodwill 'fOm1ls part of a ca. the assets and Iialbilities of fo:reig'~ subsi dliaries eretranslated ~g into the pmsenta~1o~ currency of tfile Company (t'~e Phil I~plne Peoo) at the ra!te of .comeare transl a'~ed at the' weightedaverag.untingi method .cludu g future restructu ring) of the aequ ired !business at fai r ~ value.€vant to lhalt en~tl. me diHerence be. As of fi ~anci aJ wejporn date.mit Is di~po$OO of.e excharr. tfilei~ stat:em ents of irr.Arr.f Oonsolidation seetl on.ener.lhis are invo. bus! ness combina~ion is initially messured at cost.solida~:ed:su~bs!diaJry excess of the mi rr. Any additional Goodwill acqui red ina.atirlig unit'S) and pan Of the OiperaMn within that i. Goodm 1.giedegai nst Ulle m Ino~lty irr.ss oif the COiSt of tlhe Ibusiness comlbhl:fl!tion over Une Companry'g interest in the net tal r va! lie Orf Une acquinll!e's iden~ifiaible assets.ati~g unit (or . dll~posal of the opelraM~.~ is.pi5.!sine~ OJlfllbi n~tk!n oodLG'!:lod~ II.s separ. m inonity shareholder in a corr.mits·or glrou. t un its.atirIIg u ~it r.cial position.tive Qf whether a. When sulbsidiari esalre sold.! is!h~llt€m@nts each entity are measured usl ng that functional currency. all oeetedte each otthe Oompany's. Each un it or group ot un its to wh ichi goodwi II is allocated represents o the lowes!t level wi~hin me Com pany at which goodwill is monito'redl tor internal m amagement pu rposes.unctiona.tanoes rel. di~eC'lJ to y ~Exclha~ge differenceso~ transl a~io~of foreign operationeS~ i ntlhe consolidated statern e·tilt of com pmhenslve income and "Cum uIativ.glffiup of cMhi-getiler.ge rate's tor the year.and! items i ~d uded in the fi nanci a.tween the selling priee-and the net assets plus cum ulative trani5laltion adj ustments and goodwi II is recognized in the oonsol idat:ed s'lialtement Qf lneeme. cashgefleralti ng units or group of cash-g'eneratingl un its that are expeetedte benetlt from me synefgies ot the com bi ~ation.y IOISSeS SiPplicable to a. goodwin is measured at cost less any aceum ulaJt.f the aOq!uisition costs. Followingl i~iUal recogl~ition. Business com oi!TGlltioni5' accounted for usingl the purchase aooo.e '~mnslaMn adjustments"aCCOll mtwith In the equ ity sed:i orr.1 disposed of in th IS oircum stanoe' is measured basedon the relative va! uesot the operanon disposed of and the portion of the cas~~g.abilities and conti ~ge~t.ate steps. Upon disposal of any of thesefoml 9'~ sulbsidiarl ss.terest to the erxterr. c acqui red share of Inter. The minowity lnterest is measured at the proponlonate share ot the aoquilree's identifiable net assets.lransactionooi5!ts diwedy ailributable to t:he acquisition fO!fmed part o.losses" For impairment te~i ng. the gooowl. iwrespec.shi-ge~er. 18USinecs.rrenc:y. liabilities. 63 . .e assets) and IialbiIities {includi fllg conti ngent liabilities and e.eviously unreoognized! in'i:3ngibl.oriiy i r1I sh!aIl'EM'nolder"s equity ir1I the sulbsidiary are chaw. The exclha~ge differenoes aJrIsing.etained. The censol idialed fi nanel al statements are presented i~ Phili~pine PieSO.llasoociaJtedl with the opefationdli~po$e'dlo'f is i~cl uded In the carrying: amoun~ of the opelra~ion In detenmi ~ingl the gal n or loss orr.of the oonool Idatedl statemen~ offinarr.som til nations aoh I€!Ved in stagecs. goodwi II aJcqllin'lld irJia business oomlbi ~ati o.estdloes not affect previously moogn lzed goodwl II.excMnge ru Ii ngat fi ~ancial repor. Ii.IBJ.edl impai lim enlt. F. bei ~g the e~ce.tion Cu.x. from the aequ isitl O'rJi date.tingld1aJte and. is the ~hilippine Peso.lves· weoognizingl iden1iifiable assets {includli ng pr.esof the Com pany are assig!fled! to these !. makegoodl of the losses .Presenta.

trU.~available. in nne same imlslrumen'l: air based Oml at vaJua!tion technique whose variables include omlly d1aitafrom oibserv. highly liquid inveslments s tlhat are readu Iy cervern Ole to known amounts of cash with orig~mlalma!tu liities of three months or less and thatare wbj:€ct to amiinsig mlificanl:liiskolf change in IIalue. All fi rIIanclall nSltlrumenil$ are irIIitiallY recog1rllizedlatfal r value. loans and reeelvsbles and! AFS iniVestments.. i rII afomign currency are tlrarllslated usl ng the exclharllge rates at t~edlalte w~en U~efa! r val ue was determ ined.andl otMr lI'elevall1tvaluaMril models.FaJ:rValue. rNJonmonet!.ElI~k!et.ments.ognizes the difference between the transaedon p:riceandfair value (a Day 1 prom) in the oOmlso. INonmonetawy items measu~ed at fair value. Date-of Reoognftfon Fiflan!Ci I lnstrum ents are wecognized in the consolidated statement ot fi flanci a! a pOlSitiem when the GompamlY becomes a.quoted irII an aCl:ive m. held-to-m atulrit:y (HrlrM) investm ents.1 glrllCU~encyall'e t~arllslated US!rug the exc~ange rates at the dates of the initl al trarilsacM~s.evalualtes such desiglruationalt eve'[yfinancial reportirllg date" Determination of .anized!tinafldal mal1Kets lsdeterm ined !by ref. the Company roc. When eu IfIf'lll<nt amidask! ng pnces are bid no.tlhe defii!lrred cum uiative am ount reoognl.alt inlti a! recogtrllition and..eign . The Company classifies its financial assets ifl thetollowi ng oatego'n'es: fi flancial assets at FVPL.lransactions i~h. lDeriva1ivies are r. ~he price OlfUn€:: most recent transaction is used since it provides widemlc€:: Orf cUIflf'lll<nl fair value as longl as 'l:her.ilated at the tunc1ional currency closing exchange rate at financial repolrting date.entity will be Ireoogn lzed irIIthe consolida~ed st:atementof inoome. t Inma' R'ooog'nitirm ot Financial /f}$.zed in equity relali ng to thaJt pani oulall' for.Marllag.Jr'eign currencies ere initially recorded in the fu nctional currency ecx:ci1ange rate ruling' at the date of the transactions" Monetary assets and Iialbilities denem lnated if!! foreigr~ currencies ere Irewam.lidated stai:emen1 64 .discourlltedl cash flows analyses. Day 1 .able malike'l:. Alldli.Profit. except tor securltles at fair valuethroug'h prrom or loss (fV~L). Whelre the transaetl O!f!! rice if!! a non-active market is din'er'ent from the fal r val ue ot p other observable current maJrke'l: tranlSactions. without anyd!educti on for tlf'amlsac'l:i coats.termined! by US! fig a~p[roiP:riateval uatlonteehaiqoes. Cash equiv.emen~ I detelrm Inss the class!fl ca~ion of its irIIveS'lmems . (Ibid prioe for longl pOisi'l:i and ask pri ce tor short. Such tecnniques i!lei ude usi ng reference to similar instruments tor which observ. finaf!!cial liabll ities are classified! as either fi flanci aJ Ii.ecoglmliz.all'Y items th:alt are measured In terms of hi storrical cost In a fOll'e. U'naJt ens on ere active at th®:close arf business a!tfinanci.wenls aJrlll<hort-tenn.e~e~cesall'e' taken to the consct id1aJtedi sitatemem of income.abilities alt f\Wl or other fi nancial IialbiliUes all amortized! cost The dassificafion depends on the purpose tor wh ich UlIe inveslmems were aoqui n~dlarlld whether they am .edomlrade da!te aecou mlting. Foreign Gurrency~denoo1inated Transactions. of the instlf'Ument. Purchases ow sal es of financisl assets that requ ire del ivery of assets: with in tihe time tram e establisihed by w€gula!tion or convention in 'l:he m arketpiace are reoognized using trade daJte accouni:i ng . positions).ehas not beeml sign ificant changie in economic cil'Cum stances since the time of th®:transaction.a1 If'€]porting dalte. Cash and Cash Equivalents Cash inel udes cash on hamiland in !bank'S". The fair value of financial instruments traded! in org.ElInd a~p:rOiP:riate. fQf all othertinaflc!aJ insnurnents net listed if!! an active ma~kertjthetai r val ue is die. party '1:0 'l:he con'l:ro1l!ctualprovision:s. wi!here allowed .m·.. The initial measurement of fi nancial instrum ents ifldud!esttranSac1i O'fl costs.able prlces exist.ewlll<mlce uoquotoo m aliket bld prices air dealer pri ce quotations.".

es held for urading andfinam::ial assets and liabilities desig'rnatoo UP0nl initial trerogn iti onas at tV PL. FinanoiaJ Assets and Li. Fi nlanci 8J assets and ll 8!biliu.ot inoorn e.anagement has the 6S .ing the [)ay1.yment has. The assets . Quotedl nO!fldefivative flnanclal assets.gtnizinggai ijS or losses on them on a dliffere:nt basis.e INote i'). lnterest earned air incurred is recorded as interest lneeme o'r expense.es ar.a documen~:ed risk m arllag.aJnsamil treceivabl€sam inle!uded in currentassets if m a~lItrity is with in 12 rnomhs from fi nlanci. profit amount. .tedas .paraJtely recorded.e~ HTM ifJ'tVestmS'nts. cashandl weoeiv. Loans and Receivables" Loans and receivables are nOijderivativ€fi mandal asseta with fixed or de.termines theappropria. less arlly allowance tcr Impail1ment Gainsandl IO\$seS9lI'e recognizedl In the oonoolid1atoo statement inoome when UlIe loans and reoeiv.FS irIIveSlmems or HTM inve!stm ents. Iiabil iMs or oo. ~ Finarllcial . if any of the followl ng ClrltNia are met: • The designation el imi flatesor significantly reduces the inoonlsistenlt. Iii I.e cl assifi ed as hel dtor lritdi ng if they are aoqui red fair U'nepUlrpclse of sellingl in the near term" [leriva1iives are also cl assif ed under fi nancial assets or Ii6Jbili'lies at FVPL. eachtransaetlon." as. with fLx.ables (se. the as®ets or reoo. ng This cartego~y includes UlIe Company's. or whef1!the rigl~M of pa. loansandl receivables am su bseQuently caniM at aJmlortil!ed cost usingl the effec~ive ill1l:e~el$tm e'Ullodi. After irIIitial measur..ed as IHTM irnvestmenrts when the Company's m.ement. which is not oOslervabl e.ive. trestm ent that would o:thetMi se ari sstrom measuring.al tr€:po:rli date" Otherwise.es may be desl glrllated Iby man. iLo. been establ lshed.telrmInable paym ents that are not quo~:ed in an active ma~ket They am not entered into with the irntenll10nof imm ediate' O~ snert-term resal e andl are not classifl ed as at FVPIL. while dividend income is reoorded as ciher inoome aooo~ding to me terms Qf the contract.A.oo or determ ineble pa!ymems and fixed m.. the diff.te method of Ireoog~iz.emerRtstraltegly.d~esigna.eweflice between the transacn on price and model value is o'flly reoognizedl in the eonsol idlalted statement at ineeme when the inputs become oibsewable Of when ~:he instrumem: is der!eCO'glfli. with IiUle or no analysi s that it would nO'I be s€. respectively.lated on atal r value Ibasls In accordance with .assets or liabiliti. The OO'mpany!'s. unless they ere d!esigna'IJed as hed~gi g instrum ents in an effective hed~ge.aturities are classifi. unless the emb€ddoo dletrivative does nO'I significantly modify the cash flows or it is dear. FO'r the Com pany d!e.>:)ed.embedded derivative instruments are classifi<ed underthis ooltegowy (see Note 33}.th which are es managed and their pMOl1manoe are eva1L.agement at initial Ireoogn IMril as at IFVPt.ecogrllil!ed or im paired.abili(ies at FllPL. In cases where use is made of data. these alre cI asslfted as nOflcurrent assets. or The fi nancial instrum enlt contai ns an em bedded deriva~. cas~ €lQulvalerilts (see ~ote 6) and! trad!e and oth. IFinaflicial assets or liabi Iltles at IFV~t are recorded in the consclldsred statement offinaflcial pesitl on at fair value" Subsequent changes in faiwvalue are wecognized directly in the eonsolldaied statement ot lneome. IFimmcial assets and liabilities ail fV ~t i~clud!eti f1!ancial asseits and Ii8!bilitj.and IIaJbilH:I am part of a group ot f nancl alasssts. weH as ~:hrough the arniorli2aMn p:roooss.ablesare der.

ether fi rnanci aI !labi Iities am su bSlequently measured at amortizedl OOi5<l using the effeotiv'e interest m ethodl. The Oompanry's AFS iflIvesimenrts includle inveSIDmenis in olrdlinaJrYcommon shares (see Note 14)" Other Financial Uabilitif)S. IInv. Otherfinam:ial liabll ities ar. .e to a related party and cust'Omers' deposits {it'llcludled under ~Other noreurrent liabilities~ account} {see NOll€ 21) .ai n or Iass prey iously n5port€d in the other comprehensive incom €I is ind uded in the oonsol id!aJtedi sltatement at incom e. OthrelMlse.. obligaJtionsfor p:rDgr..€dam ount aJI1d1he maturity amount.reoognizedl owimpaiwed.. AFS it'lIvestm.r inlti al measu rem e'rllt. r ExpendlltUlres i neurred in connection W'i'~~ aVa! Imell1'l:Sof long .ssu. less allow.a:t!on precess. as \lVeH as through the amorlh:. at wh ich time the cum ulativeg. AFS imteSlmen'!:S are Incl uded irII CU rrsnt assets if m amagem e'rllt intetilds to siell t~esefi rIIancial assets 'iMthin 1:2 mo~tlhs h"Omfina~cial repomtingdlate.mlbeddedldierivatllve ar.pOlsitive inte.assified under other tirnancial lialbiliti€s ar€ trade and other payables (see Note 18). a CI.r '~~eterm of the loam$.e would meet ~:~ed!efi rllition of thedielriva!!ive.any difier'€nce between the ini'li. IIFITMilmte.e irnitially l'1ecogniz. Iessdli r€c<tly aUriiblUtaib!€ transaction OOiStS.€d atfai r val ue of the consideli'B!tion rsceived. tJraNisact.:. these am classified as rIIoncunent assets...at FVPIL upon UlIe irIIceptlom of the Ii albility" These irIIeluds liabil Itiers arl slngflromOjperaJtions or OOlrrowings. inThetre..s!t~bearing loans and bOlnrDlWings{see INote1 9).oed cost is calculated !by taking into aooountany related issue costs.ally l'1ecogniz.e rIIettedagal nst t~e ~e. After initi al recogn ition. diseeu flit or prem iurn.epaV1rnen!l$ .• plus or minus the cumula:l. financial liabilitiesaJre cl assifi.. T~iscOlst is com puted!as th.ioncosts and all other premi urn sand disceunta. .mtion and ability to hoi dl to maMity. as well asthrouglh the amolrtizati O'fli process. Amorli.iv€ int€::r'€st method of .iv€amoiiilizaJti om us! mg the eifeC'l.tments am m easu mdlat am ortizedl cost. Gains and losses are reoog rdZied inihe consolidated statem efl!t of income w'hefl! the lnvestments are de.ed in this category if these ar€ not held for t~adi rIIg Olr mot designa'~edas . witlh unr€alizoogai n1S or Iosses Ibeingl n500gn i z®d as omer com prehensive incom €I urntil 1he investm ent is del'iecoglfllizi€d or determined 1'0 be impliliiwed.Afte.e costs ar.term debtarre defe'rired and am ortized usl ng . and 0( c) the ~ybri 0101' com OJ meolin:Sltlrurnren~ not rnsasu red at FVPIL. (b) a sepail'a'~e instrum erllt with the same term s as the emlbeddedl derlva~iv.s.ents are m€aJsutnlK1at fair value. is 66 . AFS !'rnre'stme!Tts.EmbeddOO [)eriva:!jYI~§ AflI embedded deriva~ive is separatedfrom the host contract and accounted for as dielrivaltive if all the foUOViIlngcondlitiorliS are met (a) ~:he eoonemlo clharact:e~i$tlcs and Irisk:so:f the e.e amou mt initially ~eoogn lzed min us pri mcipel r.1'~ed IOrllg·telrm debt allocated oonespond:1 ngly to the au rrre'riltand nOrllcurmn~ pomon.ance for imp~irmenrt t Th is cal eu latton includes all fees paid or received ibetween patties to the centract that ar'€ am inrt€gral pan of the eff>ective imter€st ralte.eff:ecWe In~:elre!stmethod ove. After initi al m easurern ernt. Gai ns and losses are wecognlzed i~ the consolidated stltemem at i noorn e when me Iialbilifl'es are dereoognizedl. AfS investm ents are those nonderlvatlve f nanci al assets that ere designaJtedias AFS or are not cl assifi ed in amy of the thwee p:nlloeding Cal€gotri€S. Debt i.am rigrhts (see Note 210)and dlu.e not cl asely Irelarted!to tIM econem IochaJracl:e~1sii c of the hOrStconilract.esl:ments imtendedl to Ibe ~eld for an undefined period are not incl uded In this category.

the reoolV.es carrl ed at amOrl1zed cost.. the extent e~t that the canyi rngval ue of the asset does not exceed its amorf zoo cost at the r. Impaired debts are dierecogn ized when they are assessed as.ZOO not incl uded 1 a coil ective a'ssessment of impai rment. or colloc1ively fQr fi nand aI assets that ere not ifldividlually sigl~ificant If it is.amount and the present value of e. 67 .sc. if in a subseqllent year. L.tiv.The CompafllY assesses whether em bedded derivatives are requi red to be separated from host contracts when the Com palnyfirst becomes party to the contract.tim ate:d impai rimlent loss increases or decreases because of an eve~t cecum rng .rigi~al effective interest rate ettheasset. The caJrry!1!gamountefthe f asset is reduced either dhec1:ly o. that g~oup Qf Ii nanei al assets is collectively assessed and for impai rment. the . wh ieh was alfll'ived . Any subsequent e~t reversal of an impai rimlenrt10iSS is reoognized in the eonsol idiaited s'l:a:tem of ineorne.er perlolfm ing the regular review of the . changes in pl9iyment tenn s an d other factors that may affect abi lity to collect payments. A provlsion fo'r impairment is made when there is olbJective evidence (such as the probalbility ot inso. Assets that are iflidividuaHyasse's:sedi for impaiwmern and tor wl1ich an impairment loss 1 or co~ti ~ue's to be ~ecogn I. to.tiher ign iticant or net. s are rII ~f tlh~~m.aJr should have no provisi on for im pairment but accounts o. is iflcludJed ina gwup oft! ~anci. the amou nt of the e.age andl status of the im:iividual aooounrts and po. .oanes and R'eceivooJes.e. determ ined that no objective evldenoeot impai mil ef1ftexists fQr em individually assessed financial asset. ~m Ifm €wnt Financial As~ts.rite-off is la:ter rseovered. it was.ther with the other assets that are not i~dividually s sign ificaflt and were tl1us net ifldividually assessed tor impai rment.ff ag:ainst the carrying value efthe im paked j ~eoeiv.tog'e.sevidence that a n fi ~andal a8s~t or group of fi ~ancial assets is impailroo.stimat.eversal dati€). ILikewise. the amount Orf the loss is measured as the diffielre~ce be'l. Interest income cont:in ueste be accrued on the reduced carryi flig amount based on the o.eryis reoognized in the oo. If a future w.rdyoccurs if there is a oha. etthe ocntracrthat significanmy modiifies the cashflows thatwou Id otherwise be requiredl.flge in the terms.'weern h the asset's calrrying .rthrouglh useol an allowamce acoount and the amou~t of the 10i5sis !recognized in the oo.established that accounts oLJtsta~dinglfor less than a ye.8Jt am mtized GOiSt as been ineurrsd. the previousl y recognized impai rme~t loss is i ncreassd or rlllO uced by adj lIstingl theallowa~ce aeeount..~solioaJtedsta'l.lvency or sigfllificalnl fi nsnel al difficulties of me debtor) therthe Compamy will not be able to coil oct all of the amounts due under ~:heoriginal terms of ~:heiwoi ce. Provisi on tor i~dividually no~~sig'nificant bal anees was made o.aI assets with 5imil ar clredit rl sk eharaeteti s'liC:S.ivabl. the Company 'first assesses whet:her an olb}ective evidence of impai nnent ex i515 indivioually tor fi nanel al assets that are iflidividually significam.after the im pailrment was Irocognized.ectiv€< evidence that an im pai rmem IOiSSon lcens and recelvebles earrled . ~e-assessment o.ed future cash flows (excluoi~gfutme clredit lossesthat have not been incurired) (bcau nted at the fi ~ancial asset's migi ~al effective inielr€'iS!t Irati€) {I. if i~ ease-the rece'ivabl e has proven to have no r'ealisUc prospect ef futu re r'ecove~y a~y allo~famce provi ded fer such receivable is wif'iUen o. wf1ie. Forr loans and rece. unooll ectilble.fhe carryingl amount of the rooeivabl e is reduced t:hwoughuse of an allowance aecount.utsta~dinglfor over th ree ye.aJf's shou ld have a 100% provlsiort. also .rtfolio/group at aooounrts Irelalive to histori cal collecti ons.~ a portfolio or group bssi s ilift. pal oif The Company assesses at each fi nam:ial w8[porli g date whethslr t!here is olbj.'em of incom e.~sQlid!atedstatement ot lneeme.l is 8JiI obj.effective interest mte computed at i~iUal wscogrniuon).able. the asset .s.aitafter assessi ng individually sign ificant balances. for other receivables.

Fm AFS investmrents.to receive cash flows from the asset and either (a) has.elrred its rights to receive cash f 01N$ 'from an asset and has neither tneome.aMn that thle Com pany Gould be Ir€quired to repay" Financial UabiliUeoS.or J . Finanoial Assets" AfinanciaJas5!ert (or. Increases ifiliai r value afl':ewimpai rmenrl are Ireoognlzed directly lnoiher comprehensive income.new Iiabil ity. the Com pany assesses aJt each finaijcial Ir€iPorting date whlethe.Assets Carried at C-ost ~t there is an o!b~'ective evidence thalt an im paiwmem loss on an U ~quoted equity instrum erilt that is not carried at. 68 .eplaced by a~olhe~ hum the same Ie'riIde'rQrrllsubstantially different terms.!ue cannot be r.ansfe~oo COriltlrolof the asset.altemenl of ineeme. transferred Sll.zed when t~e o~bHgation under the ll alba is Iiry diseharrg:ed. reltains the riglht to receive cash Ilows from the asset ~ but has assu med an obi iga1iionto pay them infull without materiel del. Iess amy im pal rment loss :0 n uhatfinam::ial asset p:reviously reoogniz€d in the eonsol idal:ed stau:elmenrU income.delriv. whewe ap.a.p!icalbl'e a.atrve asset that.d~elrecognition of the orig~~al liability and the recogr~ition of .cancejledor has e. or on a. IImpairment losses on squ ity inveslmenls are net weverr8edthrough uhe eonsol idated s!tatement of incom e. the amou flit ot the loss is measured as the differenoe between the assail's canyifllg amount and the present valUre of estima~ed future cash flows discounted at the current market rate ot return tor asl milaJrfi nanei al asset.ence irIIthe r. but hastransferred cO'flItro!elthe asset translerred nor r.s:tan~i y modufi. the asset is recog. or the terms of an exis:tirilg liability a["'esultJ. is removed from the other cornpreheneive income and Orf Irocogn ized in the con:solidal€d s'i. and the diiffer.~u. is linked to and must be settled !by dielivetry :Of such an urilquort:edequity instrument has been ineu fired. Conti n LJi rilg irIIvolvemern that ta!~e$ t~e form of a.ay to a th irei party under a 'pass-thwugh' arrangem e.f the asset.ed.r tMre isa~b}ective evidenoe that a.aUthe ~isk:sand rew. m easu red as the difference !between the acquisition cost and 1he current fai r value. Afinarilcial liabil ity isd~ell'eoogni.. such an exchrail1gleor all mcldUficaMn is tmatedas! .eliably measurred.etained substanti all y . or (Ib) has neither translened nor wetained subs!tanti ally all the rl sks and wewaJrdsof the asset. con~inUlng invah"em e'rlt in the asset. part Qf a financialasset or pM of a group of simi Iar 1in:ancial assets) is d!ew€cognized whelre: I~ the (Jompan~.riIized to U~eexte'rlit of the CampanilI's.fi nail1cial asset orr'groulP of fi rilancialasserts is im pal redl" ~n case of €quity investmerats classified as AFS.all'dlsof the asset nor tr.lai r value because its fair va.!ils!tanti ally all the risks and rewards o.espectivre canrying amoures is ~ecognizedl in the COriisolda~ed sltatement of i Where t~e Com pany has transf.xplred Wherre an erxiS'lj ngfi nail1ciru liabi lily is r. an objective evidence of impairment includes a sign ificaijt Orrprol QrnJged dlec!ine inthe fai r val ue oi1the investm enrts below its cost Where the Ire is evideijce oi1impai rment. guamn~ee over the trarilsferredl asset is measured at the lowell' of olriginaJcanryi ng smou rIItof t~e asset an dlthe maximum am ount of conSider. the cum ulative IOfSS.~ the Company has transferred its wights. AFS Investm8nls.

0 trealize th€ asset and settle the liabi lily sim ultan€ously. lsss ·any impal I1me~t ngi tn value. These are chatr'g:ed to expense uponal riflig ot the rei ated program or epi scdes.~iMn c[-iteri·a ar. or '1. and only if.ecog.sand suppli. there lsa curmn~ly enforceable legal rlg:rnt to off'set the rerogn ized amounts and there is am intention '1. movie and aLixiliaJrY €quipm€nt" aooount) and deprsei au:ed over a period no.e met Iba~d Isstatso alt eost.zoo inte'lfesU" ~xcludd rIIg th. erxcept land. net basis. Includingr matewla!s. Subscnloer's initial InstallaM~cos. prl ce in the t ordhnary cou rse of business. movie atndlw>::jliary equipm e'nt OUller .€s lhalt al'lefor sale is th€ s€lling. whl chr Ind udss i~i~. rNj. Uni ssued spare lParl'. Oosts r. represent costs ineurred pri cw to. wejplaoement if the reoogniti Olfllcriteria are satisfied.al posltlorll if.rtizatiO'fll are computed O'fll a sltraiglhHine methodoser the useful lives at prope.eciaMn.elaled! to previously teped eplsedes determ ined net to be ai red! are charged to expense.0 seUh5 om a.e costs ofd1ay-'to·day sellVici ~g.S. longer than the d!€pl'I€ci. less the cost of m ameti ng and distlributi on" INet real izalb!.otri nO'I held tor sal.rty and equip:men~.amount elthe property and equipm efllt as a. Such cost Inel udes tM cost of IrEljplaciIIg partt of such prrOipel1y and equipmen~ when tMt cost is r incurred If UlIe r.al pu rehase prioe and othercost d~recti y attribu~abl e In lorrl rIIg such asset to its work:ingl condlition. radio.€ is the curreni tr€p!acement cost IJrnwealizable inv€motriesaw€< written! off. radio. the aiwing' ot the proglram s or epi sedes. Ialoor andOiIJ'e[lhaad costs are c~pitalizedas part of di striibuti o.epr'ecialtedllbut testedter impaiffillefllt until these become available fOlr uS!e. es ~reWJQctlcliQln EKR. equ follO\!lls: land improvements EluIIdllngs and im provemenll.€ parts Ih8it can be used only in con neeti on with the distri bunon equipment.€:trealiz. The useful lives of the Com pany's properl:y ·a_ndl Ipment ·aJe. Unis(m€d sp1aJr€: parts and su~p! ies tr€p:rl5'8€ntmajor spar.wer of cost or net realizable value.alued at the Io.es are not o. Cost is detelflInin€d using weight:ed average method.a!tion period of the distrilbiuti on equipment The OOiStSof subsequent disoOflineetion and recon neetion al'l€ chaJrg:€d to eu rwent operati ons. These COSTSinel ude tal ent tees. ot arti S1:sand production SltaiU and ether costs diwectly attribuf. relevisi on. are cani.OUsetll rIIg Fi rIIancial ~nS'l:ruments lFinarlicial assetl!s arlldfinancial liabJlit! es are offset wiUn UlIe netamount reperted in UlIe conooHd!atedi statemen~ offina~ci. lessaccum u Iatedld~epr.e val us of inrvenr'l. ineluded undler "O~hiercurrent assets" aecou nt inthe oonsol id~ltedistatement ot fi nenclal position. This is not gen€rally the case with master netti ng ag'reements.entin value.e v.§ ~reprod!uction expenses.€s are pres€ntoo gross in the consolid:a!too stau:ement of fi mand a! positi on" i Inventori es Inventories ar.ed at cost (i~cl uding capitali. Property a~d Eguipm e~t Property and equipmem.abl e to produeti Ofll at p:roglrams. amOlitizati o~aII1dl im pal m:J.erti_Sgl'.These are included! in the "Other equipment" aocount When each maj:of inspeetl o'n is pertorm ed.abl€I value of inventori.esUmated as. Depreciation and! am o.ts.3 to ~O 69 .equIpment 5 to ~O ~O to 40 10 to 15 .n equipm ent {ind uded in the "T €Ievi sion. its cO$1:is reoognized! in the carryi ng . and the rei au:edassets and Iialba!u.

Construct' o~ in progress is not dep:reeiated u~til such ti me tM!t the 001ev ant assets .lhe Comparw acc~lerat€s am ortiz:atiion o:f thl1l' 70 .clu~n!!rrrt Cllassifj:ca~ioliil whidhever is S:h.ent Wthemevelr'~~er. and :a:dljiuste:di appropriate. 'G~anges in t~e expected use1fullife O~ '~~e. irnaJrlgitil e assets w1t~ finite lives amamorUzed over the useful eeonemlc life and assessed for impai[m.1s Inta~gible assets acquiwed separa:tely are measured on i~iti.l:lle Inta~gible assets with inoe-finite usefu I lives are tested the ca.awyof 'the poll oies a~pl ied to the Corn pany'sacqu ired int!:angiblEl'assets is as flOliows: 1'l1I1Ilpainnelli1lt I.eated o~ as chianges in aoooun~ing as'limates.Y and squ ipment is detroc.s is Irecognized IrII the (. The u5!eful life ot an imang i~:e detennlne whether inoe-tinite life assessm ent useful lite assessment from indefinite to finite is.amorlh:ation tor each siglfllificam pari: of an item of property and equilPment.!cti o. at each 1inancial y€ar. ~:hechangle lnthe made on a. iis lbased on license tsrm initiall est~nnaites. Such ifltangibl es are asset with an indef nite life is reviewed anflluallyto continues to be supportalb!:e. ~fnot.~ and is sla1iiedat cost which includes cost of construcilen and other direct COSltS.The Oompany determ ined depreciatl en and . prospective basis.ait€::das the diffetremc€:: !betwe€::n the net disposal p:n:loe€::dlsand the calilryingl amount of the asset) is included in the conoolidlait€::d stal:ement of income in the year the asset is diewoc.flt'S e'mlbodJ.'s resi dlual va! ues. useful lives and method OofdEliP:reci ationandl amortizati om are r.s!h-generati ng unit level.expected paUe'li1rl f cOorilsumption of future eeonorrac bene.ast at eaeh finarllcial yeialr·.l~ge except CPI. Amo!i1iizalio!ii! Melhod U!5ed IReco~erab1!e Arnoliiltlit l.onsolida~ed stElitementof income in the expe'rilse caltegOIrY CQorllsiste'~t ith the w funC'lio~ of theintangilble asset lotaJlgi.ogni.aJrldl rlly aocumula~ed impail1me.aJrising om d€::recogtnitiom of the: asset {cal cul.rerlliainilng expeGtoolbene1iit period lis shorter than tM Compan. and tr.estiiiilgi If he' . F 0011 Qi!Ni rIIginiti al recoglrllition. eX:GeP:t ~'or Based on the eSltiinnatedl year of I.endl. Any gain or loss .Asset iUsefullll. Thie amorli2aMn on intl:aJrlgilbl. i~tangilble asse.evi.!ives F~nite~Iioel'llseterm Or ecol1lomic IHe.aJrlyaccumulated amOrllza:tiOn in l the case of intarllgible' assets W'iU'nfinite lives" . wliiiCih.ewed. A sum m. asapproprialte.!cti o'n in ptrogwess represents equipment undJerinstall ation ano buildi ng under consltn.en no fuuutre econornie bem€::fitsare expected from its use or disposal.ogn izoo upon disposal or wh. tor impai rment ann ually either iflidividuaJly or alt not am ortizedi.edin o the asse't isaccou ~tedlfOorby changi ng the am Qor:tiLa~i pelriodl or method.rat.tstlwe carrl ed at COSltess .sse. Am it'€m oi1 P:n:lP€::rl. T~e amorlizaMn pelriodl and m e-thoo ter an i~tangilb!e asset with a firllite useful life is reviewed at Ie. The propertyandl equipm e.zoo" A.al recogn i1iion at cost The cost ot i~tallgilble assets acquired in a business eomblnatlen is the fair value as at the da1iieof acquisition.Orl€~') prog ram Ir.e assets with fl ~ite live.·end" if Consltn.ights of C'PI! whichilis amQrtized on a straight·1Iilil€ m€~hod over the Ilicense Amoril)izedem the baSiisof pmg~am usage.aJre completed and become availatll e' tcr ope'r'atio~al use.esting! Ilnltangilble.~t losses" The llsleful a I iveSOof'inta~gibl e assets are assessed to Ibe eit~er finite O~ IMeti nite.eIS an i~dica~iQo~that '~~e intarllgibl e asset may be Impai red.y's Cwrf\ent ami Non.

(see NQte4) A.lhe CompSlrw e~MlimaJtedl ear of y u~ge Based en the ac:c~lerates OOiSl.lry.lillle basis over the e$~imaJted ou:soomer servi:ce me: If~hei remainling expeotedl bene~it period lis shorter ~haJ!lh~ Comp. whi:ohever fi~~t) A.the asset iis wl'iiUefli down to' il~s Iffhen~mai expeoltool . Vlidreo Ri:~mts and !Reoord M!aster comes Fiinit. Non. Iir<e" Whidhever ils $!horte~.e" . the Comp~ny a.e (silx months m 10.moniizedon a straighrt".cc~lerates amorIi2:atio<n' of ~hi1l' cost.) life If~he' rerlliainilng e)o:~peotool enefit b period lis shorter ~li'!an ~MCompany's iniliall est~nnate. reoog nized SIS €)(~peose tlpon s!hQw.*"lhe Comp1l!ny aooelera~e$ am orlizaJti:on ~f~he recoverablle srncu nt. eqt!alilly ove:r th~ Illextfiive YeaJrs)" 1'li1IIlpainnem J:esUng! [Reco~erabl:e CliJlrf\ent ami Amo!l)lrlit 1.a:ny's t illiitial] restimate.sis of nlUtlI'Iberro1 w(pies wid coot.estili1lQI purchase price or license~e~. period lis sherter than the Company's ilililiall es~ii!in<i!t.Iln[tangible .nureeconomic benffiits 8!rs expec4oo1to ~llow hom~he asselS.s.is less[h>arll the: f·air value (llf the: fi Im.ingI If the ILGnammtizc€d Based] 0111 tliie est~tlI'Ialted year of usage mm eost . MlUsia ·Slnd lP!ulbilicatlion IRiigh'~s F~nite (use1ul ecenern i:c booe~lt) Amo~ized em ~he basis Cif~he I!Jserlul eoofllom II. I~ilrool program rig hrs arerlully ammli2ed on ~he' date of exp~ry.s.000 oo.idll1lodiscs and tSiPetS. IlJflIaired progrsm !jig hts \I'I. 71 . !Program ri:ghts 1JJm Wl'iiUefllo1W when no h.J'.pies$Qlld of v. am orliz:atiion o:f thl1l' Fiinite No 8!nnortiizatimll.CIune!i1lt CllassiiJh::atiolf'l S~i.ith IiIO deli nita expiiratiOin daJt~ are amor~i:ed <lIfter 5 years hom acquis<i~ion dSite (il. C!Js:~om~r Relli31tiOinSihips.Asset Amoni~atlo~ Method U:sed term or eoo1nomi:c.mortiz-€d (m tliie ba.

I'lilillpai~meliilt 1.aci partotsn ng exis:tin1ginvestment property at 1ihetime the cost is ineu mreo if the reoogniti on erlteria are melt. FQf a transter from Inv.e~·occupation.esUng! Amoli1iizatioiii'l IlntangilbleAsset Cabl€ C!h:an nels· CPI UsefiulllLives Method Utsed IRecov>erablle Cl:llrr. Pm associate is ani enltity over whiclh the Com patny has sign ificant infl uenoe but not oOnltm!.yIs permail1e'~tly withdlraw~ from Ursa and no futUlre .a'tes The Company's investm ents in associates are accou nted for U n1derthe €quity method of accou ntingl.lnveslmentJlroRe!di_e.lhe CompS!oy <loc~lefates am Glrtizaitiion o:f ~he OOtSt .1ists Cilassifiioatioliil Plrocll(la~iOfllS!ndl DisMiibutio!ii IBusiiness ~ Middle lEast Amlol'li)ized on a sU'aigtU·'li!ii€ basi$ OV€f the per~od of 25yeS!rrs Ir~he Iremainilngl €KP€C.lopme'riltwith a: vieewto sale. Transfers are made to ifllves1ment property wihefl. not amo!1ized.clharlge In use. .Alny gains or losses on Une retilrement or dispolSal ort an inve$ltm €<rnt pmp€trty are rocogn Ized irl the consolidated s'lialtemeliltof income i n ~iheyear of ret! rement or dispoisaL IImres1ments in AsS()ci.evldenoed !by eornm eneement of owner-occupation or com mencemernot deve.estment property to owner~oooupi'ed property or inv€<f1!tori!es. carried illl the oonsoHdated staltemem of fi rlandal position at cost plus post -aequ Isitlon ohalllgies irl t:he Com pany's share In net assets of the associate.§ ~nves1ment propertl es.ed by 1he CompanlY as an own. land is stated at cost less .m<::l!tes. the cost of prope.edlate of c~ange In use. there Is a change In uSle.er·occupieo property becomes an investment prope l1y.tedl ben€fi~ pe[iod 'is s!horiter ~hS!n~he Compan~ls i!iiitiall esti. GoodWi II rei aUrlg to anassocl ate Is ililoluded inthe oaflrylng amount of the Il1iVestm and em is.economic be'~efit is erxpected frcrn its disposal. and only when.fheoonsol idated staltemerItof income reflects the share onthe finaneial 72 .alue. and only when. oommenoeme~t of an OiperEliti~g lease to another party or endllng of constlrUc1io~ or d!evelop:ment Transfers are made frern lrwestment property when. i~cludllI1g transaction costs.gienerally accompanryi n1ga slhareholdi n1g beu'W€:enl O'f 20% and 50% of the votingi liights" Undletr the equity method.'o. Ilft~e p:ropel1y occupi.mty'for subseQuem aoooun~ing I$I it'Scamrylng val ueat th. are measured alt cost. less accumUlatedd!epreciaMn and a~y imlPallimen~ in value. T~e carrying amount i~clud~esthie cost of we. there Is a.p!.y-to!-day servid rlg ctan Investm ent property.en1: a!iild NOn~I. except land. evidenced by e~dingl of own.I~lfeiirt AmOllJllnt lestimgl An n ua!lly and mOire frequently when an i!iidi:catio~ of impa!irmern 6. and exel udes d1a.any impai[me'rlt In \!'. the Com palily aecou ~ts for such property i~ accordance with the pol Iey stated under "~ropertyoodl equipmenf' acceunt up to the da'~eof chiange in use" l Inves'lment prope!1j'es are dlereoogn Ized whefll either mey have been dl Siposed ot or when me im/estmen~ p:ro. Investmelilt illl associ ates is.perl.

impai rment of ~pecific nonfinancial assets: Goodwm and Cable' Cnannefs.e amoun~. Such reversal is r. A previously recogl~izedl Impairmen~1 O<$S reversedl orilly I'fthell'e has been a cha~ge in the es.atic basls over its r. Inel uding' any other unsecured ffice·ivabl es.prog ram nghll:sand other intarllgibl eassets w1t~finite live's" and tax credits may be impal red.solidated s. unl ess the asset does not gerller. II assessi ng vallie in use. on a system. If that Is t~ecase. ari sing from the transactions with the associ ate are eliminated to the ecxtent olthe interest in the associate.e amount is the highe·r of an asse·t's or ca$h·genelra~lng unit's fair v·alue le.ess it has Incurred obi igiationsor made paymeni!:s. annually or chang'ss in elrcurnstanees ifldicalte tha:t me CEllrryi ng value may be impai red lrnpai rm ent is detelrmi flied!tor goodwi II and cabl e ehannel s by assess! ng me reoorverable amount elthe casih-genewati ng units.any indi cation that p:reviously w€cognizl€d im pairrn emitlosses may no longer exist or may have decreased.e pe'nods to allocate t~e asset's Irevised catnylng amount.e amount is esti mated.est)rIIgfor an sts asset Is If'equill'oo. net!: of deiP:reclaM~ and am Miza~ion.es.emaln~~g useful life. . i~vestmenl~ p:roper~i.term Ined tor an i~dlvidual a6Se1. date as to wihe1hetr tlhere is .timate· of '~:~eassefs recov.clhfi rIIanci·alIrelPorIlng date w~ethe~ there Isan indllcaMrii that IP:rOiPer~y and eqUipment. The i~ctreiased amount cannot exceedl ~:t1ecartryinglamount that wuuld have been deterrl1lined.. ~mpairme'rIIl of !Nonfinancial Assets The Gom pa"ny asse·sse's alt ea.sscosrtrs to sell and its val ue irII use ·andl is . less ·all1yresidual value. ~352 are al rreoognl.alte cash inflows that am Iargely indiepe·~de·rlltof those fromo~:~er assets or groups of assets. u ~I. An asset's Ireoov. T ax Cmdli~. the asset Is com.amount of the oash-generalti flg un it {O'f glroup o. nne es'lim:a!too future c:a!shflows n are aliSCQunrt€dto thei r pre~enl value usi ng a pre-tax discounlt rau€ th:8it refl €lets ell lfIf'eijt market assessments of the 'lime val He of money and the ri(fIks..penlOlrmance of an assoctate.specific to the ass~t.e amolmt . the carryingl amount of tlheasset is increased to Its recove'mbl..zed i rII the books upon actual aill'ingt of govemment co:mmelf'clalsandladvel1isem ents. T~ese are i nd uded und~elr"'Othelf' no~curffin~ a6se·ts" accou m i n t~e con.1 or when arllnual impal rment t. when 8IPplicable. The reportl flg dates of the associates and the GompafliY are identi cal and the associ ates' aecou nti ng policies oOf~fowm to those used by me Company for lilke transactions and! events in si mil ar ci reumstanees.sinee t~e ISisti ffipairment loss was reoogn lzed. Unreal ized imercoffipany proms. the deiP:reclaM~atndl amor!izaMn am adljlus.rNJ's.'~:~eCompany mak:esa"n es.ecoglrilil!ed ln the oonsolI dlatedl stateme'~t of income. Thefollowi ng eriteria are also 8!Pplied in assessing.svemsor 73 .s Tax crooits from govennmental rtime saJ. After SlJC~ a IrevelrsaJ.esavaii ed under Plrecsiden~1 D:ecre'e (PD) INo.idemdl lm pai ffidl and is written down to its l'1ecoverableamollnt. if arlly such Indication ex. on be·~alf of the sssoclate..tedlin futur.ABS-08.tima[es is used tlOd~etermIne ~:t1eassef. in the consolid:a!ted stau€ment of changes in equ ity.s recovenalbl. Wherethe recoverable . II pal rment losses are m w€cognized in the consolid:a!teo statem ent oif income in those expemlle categories consi sl€nl with the funcli on of the impai red asStll<t for assets €ixcluagng goodwill.ew8!b!. Where there has been at change rocogn i.die.elf'albl.zed ditrectly in the equity of the associ al€. !If such indicati On! exi sts.AI8. had no impal I1men~loss been reoognizedlfor tlheasset In prlor years·.equals or exceeds s i~'S inte['€!st in UleassociaIe.en!llble amount. hall'e of losses In an associate . to wh ichi the goodiwi II and! calble charmets weiates.i cash-generating units} is Iessthan the ' more freqJJen~ly if . an assessment is made at eachf nanci ru l'1eponting.tatemen~ of fi ~anoial pO<$3tio~. When .. Where the carryi rIIgamount of ·an asset exceeds ii!:sfficOiVem!ille am ount. the Com pany l'1ecoglnizes its sihare in afilY changes and discloses this. GoodlNlll arid calble channel S are revi'ewed for impakment. the recov.S·GBNI's do es not Ireoogn lzefu rther losses.

e adj ustsdtor aglency eemm Isslens. th€ Com partly cal cula!tes the amount of im pailrm€nt as bei ng the diff.ubscri..e 8!Ppli.. the Company determ lnes whethelr it is rnecessary to recognize .oH ows: OTH Subscribers and Cab~ Opera.ccou~t i n nne eonsol idat€d statem e~t offina~dal positi on.rimy additional impai limen! loss wiU'n respect to U'ne CompanlY's net inlvestm€lrri:in the associate. Subscr!pUon fees are recoglnizedl as f..ption Revenue" Subsclription revenue from subsclii!bers of Din~cTV who sulbscribe to U'ne"The FIlipi no Channel" is recognized i rII aoooirdlaince W'ittn the !Delal IMie. These ar. perlormed.·ori eflted content and pIrOg mi nlg is received in advanlce {incl uded as uDefenroo ram weveflue" under "Trade and omer payalbl!e's.glreem ents.m'01r3r11du m as discussed irIIINote 31. Subscription Revenue from ASS-CBN Now. uflills) to which the !goodiwiII and cabl e charmels has been . Pay Ibefore broadcast fOlf customers w1U'n of creolt terms al'1€cl'1€dited direotly to "Trade receiva!b!. irIIitially r. irIIaccordance with the tsrms of ~:t1Je :a.enue and the re. $ulbscrlption fees awe recognizedl und!elrthe accrual basis. Sub5ICr!ptio'~revenue from onl lne stream ing services of Filipino.€rem::e b€twe€n th€ Ir€roverabl€ amount of inves1Jtlllent in associate and the acquisiti Onl cost and recognizes the srnou flit. These are r€COgnized as incom €I orn the dl8!testh€ adiventisem€nts rilll'eailred.r11 rela~ed r.€s" under u1ilrad€ and other l'1€ceivable.glreements.solidated staJtemsnt of Ineem e. melrchandli se or seNi ceare irIIclud!ed In ailrtlme rev.inlgdlate wh€tlher there is any objective 'Elvidem::ethat th:€ iflIves'iments i n associates are imlP~ired.11 Iooalted.statement of fi rIIanCI I positi'On. Share in DirBcTV S. In'lVestments in Associates. CabJa SuDsc.r '~mnsactions from adve'~ising tim e excharllgedfor proglram materials.lhe Company assesses its revenue alfTalF'lg!ements ag:ai ~st specific criteria in orderte dsterml ne it it is acting as pri nci pal or ag1ent Ai rtlrne revenue is reoognizedl as income on t:he dates the adverf sem eflts are aired.canyi ~g emountot the cash-ge~!ewating unit (or group off cash-generating.r appl ioa1iionot the equity method.ecoglrilizedl as IIalbility andsre a. in th€ consolidatoo sta~€ment of incom €I" Revenue ~even ue is r!ecoglflizied whem it is probable thatthe eeonomie benefits asscelated with the transaction will now to the Company and the amount of the revenue can be measured! rel ialb!y. P. The CompanlY det€lrm ires at each financial Irepor!.e:ver1lue. Impairment losses relating to will cannot be reversed tor sulbseqvent inereaaes in Its rscoverablesm ount ir1I future pelrioda e Com pany perfortns its anrllual Impal I1men~ te~ 'of goodwill and cabl e' clharllnels as of Deoem belr 31 'Ofeach year.ayments rooeived Ibefore broadicast {pay befOlre' broadcast) for customers wlth'out clredit term s are ir1Iclud!edas pari: of "Defe'r1red revenue" under "lIradle and otMr payable'S" account irII UlIe oonsoHd!ated .~account in the oo'~solidated statement ottinaflciaJ pOt5Wo~)and is deterred and reoognized! as revenue over the peri od dwi nlg which the servi ce is.1 a~ed aooounts.able uponailrlng and reoognitiQ.i'8" Su!bscri pii ornf€€!s are r€cogn izoo under the aecrusl !basis in aocolrda~ce with the telrm s 'Of the a. The tal r va! ues of baJrte. Subscnptionfaes blll.rioo.ed ag1alrIISlt a ~eoeiv. irIIcen~ive's arlld co·produoelrs' snare tor prese'rlltatlon irII the con.s~ a.rors.ed or collected irIIadivarllce arediefened and 74 . Such revenues ar. AUe. an impai rm ent loss is reoognizedl in the oOf~solidated statement: of lneome. lfthis is the case.

-linebasis over the Iease term.r of subscription eernract term or the estimated customer servi ce life.agr'e'ed rates wlth the ether pos~M~.e~" I ncomefrern prepaid card sal es fo~ whic~ the Irelated services Mve not been rendered as of 'flnancl al mportl ng date. net of t:heaf:er shares. retums and allowances. e.shown as "[)eferredl revenue" undlelr "Trade and oU'ner pa. Imerconneenon telecornm I..tedland reoogn I. if any. Short-m essagi flIg-sysltemltext -based revenue.geme'rilt aglmemen~" 7S .ecogtilized upon rendle~ingl of ser!/ice based on t~e te'm'ilsof the aglmement and is reduced to the extent of t~e shail'eof the com pose'rn orco-pulb! Is~ers of the songs· p:roducoo for o~iglna! sou ~d il'eoo~. b.f income.es~ aocount (under "Def@rred! revenue"}.nmiUedIto be pulb!IcJY showrll as S11 pulaltedl I n the ag1mement. are recog!nized when ~he servlces are rendered" IMarilagiemen~ fees.es"accQurBt tn the. Inoome from p:reipald p!horAecardaare mal ized based on actual usage hourn or expl rsnon of thle unused val ue of t~ecaro. for each miglraled subscriber that will remain for 14 eonsecudve months from the date of activation will be recoglnized on the 14th month {(flee NOlte 311). in the concSolidaJt€dstatement of financial pooi~ioml. s has been oompleted .m1izled hen earned. ILicencS€. c.f "Othe'r income" acceunt in the consol Idlatedsltatemen~o. sale of news materials and Oo.e of goods is recogrnized when delivery has taken place and transfer of wi ks and wewaJrdls.zed raltabl y over UlIe IOrllge.zed as [we'rllue when service Is rendered. onthe dates the films are shown.ionof the DTIH :suosclribers of ASS·Cl8N Intemational to lDirocTV" The additionallicernsefe€'. incl udedl as parto. These are stated net of tlhe share of w theother teleecmmunlcanons earriers. Con nection/reconn€c~i on/dliscormecrion fees" ind uded as pal1 of ''Otlher incorne" acoount in the consolida!ted sta1isment of incom €I. Royalty Income.unt if1l the oO'f1!soHdJaltedl statem efllto.mpany-produoed programs incl uded under "Sal e of services" aooo.ana.! nicati O'f1!Sarrlers. under existing correspondence and lnterconneetlon agreements.yalb!. Sal. Tel scorn m uni ca~jons reven ue is rl€cog. am reCQgl~ilied based on tt'iJeterms of the m.s. lnocme from film ex hilbition is weoognlzed. respectively.dli ng. w~ic~ever comes aall'li. Includoo as par~ of ":gale of servic€!'s~ account In t~e cornsolidated statemen~ of i~come. IS presented as "Othe. These aJI'€: presented as pari: of ~Other nonculfIf'€<m1t assets" account (und@r "Deferred charges") and ~Tr. is r.fhe5!e are stated net of sales diseeu flits. c fees and charges are based on ..f lnoorne are weoogni zed upon dielivelry. Income and related costs pertaining to irllstalla~on of decodlelrs and set-top boxes which! Ms no stand alone value.r payables" uMer "Tradeand other payabl es"accou rIIt i n thleco~sol idated sltatemenl~ of fi ~andal Clhamlnel lease revenue is l1ecoglniz!€das income on a s~raighrf.~:dleand! other paiya!bl. oonsoHd!atedi statemen~ of fi nancl al posltton and n~oogn I. fees earned from OireeTV is noc:ognizsd upo~ mign~rl. without 'the subscrl pti O~ revenue are agg~egla. Incomefmm TV rights and cabl e rl9h!ts are mcog rAilied on the dates the 'film s am pe. d.

agai net the consolida!ted statement oif income.2~). Capital lzed Ieased assets are depreciated over the shorter of the estlm ated useful life of the asset and t~e I.' Sham These' repmserilt deductions fll'Om gross . Lease payments ar.ai rtim e reve'~u~ in the consolida~ed statement of income. i 8. ot~er tlharil 76 .yment discoLmt iis recogtfliized upon payment. are recognized as expense in the consol idat€d st:a!tement of income on a straight·line basis over the lease term" Company as a Lessor Leases where the Company retains substantially all the ri sks and benefltsol o\lvnership of the asset are elasslfled as eperaf ng leases.ang. I.ease term. which represents di soountg lven to agenci es and advertisers as a resu It of early rsquest for telecast order.aitions in the yealr these fees are ineu tnrOO" ILstas_flS. Early pa.cemem di soount. are capimliz.emen~ is dependent on the use of a ~pecific asset o~ the arrangem emt cOrilveys . is Jreoognized upon ai ri flig.rIIi~1rns o Co~ and expe.sit the remaini ng balance of 1h€: Iiabil itl'. is no rel9$onable certa! rilty ~hatthe Gomparily will obtai n ol!Nln€!'r'slhipy the b end of the lease term.ed at ~he iflic€:ptiOfli of the lease at the faitr val ue of the leased property or. if lewer. at the present val us arf the mi tIIimum lease paymenrts. Agency com missions ar. Company ssa Lessee finaflic€: leases.ang. or con~ainsa.gency Com misf:ions. which transfer to the CompanlY substantially all ~he risks and benefits iflicidenrtal to ownlewship of the Ieasoo item.emen~ is. paid to the Oom pElny's account executlves and cable operators. Chanlnel Li cerilse Fees Chanlnel license fees iflic!uded under '''Cost of sales and services" aecou nt ifli the eonsol idlrilitedl statement of incorns air€< chatrgoo to o[per.~ewmi orn wheths'r an . Operating lease payments.esta!b!shed.an.f the .ease is based on the sulbsltanoo of the riI~l!t1 armngem arnt at t~e InoepMr1I date o:f w~ethelr the fulII 11m emto.lEl'rIISe Hecog. EaJrlypla.are trecogni zoo when the shareholdess' rig ht to rec€:ive payment is .lDividlendls. Fhnanoe chaJrges alre charg€:d Ofli diwectly . Irilcen1iviElsarild C()·produoen. Cos'l:andl EXt.e apportioned belwe~~mthefi tIIanoe charges and rscuctlen of ~h€:lease liability so as t'O achieve a constanrt rate of inrt:ewe.cCOLJnt!ngt pe~iod in ~~efOm1l of ouUI O'!N$ erdscrease of assets or lnou nrel'rllceof liabilities that re'sult in decrease in equity. The de. If the~e.a"Irigl~tto use the asset.rnses am decreases in economic benefits dUlring' thea. Incentives inelude eaJrly pa. Initial direc1 costs lneu rred ifli negotiati ng an operatingi Iease are added! to the cawyingl arnou flit of the Ieased asset and recog'nized over me lease term on ~:hesame basis as rental inoom e.an.e trecognlzed at a standard wate of 15% {s€<eINote .ymefllt and ealfly piaoem efllt di sccunts as we~I as com missions.

becom e ve:sl€d.rllil. Borrowing costs consist of interest and other costs tn:flJtan enUty incurs ln connection with the bOjrirowl tIIgof fu nds. If such agglreg'alte is negativ.t:hod.!:Is:f.eLBetj rem. U the: iben€fits. areal ready vesl€d imm€dia:tel y foUowing th€ introdueti em of. ssoci awed with the re. where ilippropriate. conSlttructlQorll produC!1on of an asset that Olr nooessari Iy ·takes a subs!tan~ial period of time to get roodiyfor its irIItendedl use or saIe are capitall. All other iborrowing costs are . 8£s.f money is maiterial. Customers.p€nsi om plan. ~e_nSiii:lj"l C.e.abilities" aooount inthe censol idlaitedlstatement of fi ~anci aI pOi5iti n.estmethod.those relati r1Igto diSltlrl ution to eQuitv parlidpan~.egal or COntS.eda.tiwement ot an item at property and a equipment thalt resulted from the acqui sitiorr.~ pensi O~ pian" The cost of prev id~ beneflts under the defined benefit plans is ng determ ined S!eparately toreaeh pian usi ng the projected un it oredit actuarial va! uati o'n me.' [)eoosi1\S.z€d as an expens€ on a.!S!Cog..awies) etined benefit pension plaos.f Iegal obi ig'altio!l!s.ecogl~ized at fair v·alue.'edver the expected average wemaining VII'Owlkingl o lives of the employees palrt!cipati rIIgIn t~e plans" Th€ pas!t service COSltis nllcogni. it is p:rolbable mat an outtlow of resources embodyi ~g eeonomic benefill.zed as part of the cost of respectiveassets. includ~ed as pM of "Other rIIoncunre'rllt IiabJlItIe's" account irII t~e consolidated sta·~ement o:ffinarllcial position.::. These gains or losses are recogl~i. Actuarial gal nsand losses are r'ecoginizedas income ow expense when the net cumulative unreoognizedl aotuawialg!ains and losses for each indlividual pian at the end of the previous Ire)po!1ing year exeeeded 1oPk of me hi9lher Oof the defined benefit obligat:ionand the fair valueo.ney and. exeept fer ABS-CiBN II uernatlenel.al pOi5iti . reduced by past service OOtSt ot yet reoogn lzed and the n fair val ue of pian assets out ot wh ich the dbl ig'altions are to' be settloo diwooMy.s de'fe·~redrevenueandl amortized oil/elI'the estl m.swill be required to seU:1 the oibligati o'~ and a r. Cost and erxpenses other than those with ~pecific b pol icies ·a_lI'e recognizedl ir1Ihe consolidated statem e·rlltof income In i~e year t:~ese are ineurred.~ (I.enUJlbligOO:Qrl The net present val ue o.e} a as wesult ot a past event.lhis is i~cludled as pan: of "Other noncurrent Ii.s The Com pany's pension pians are funded (Parent Com pany and Sky Cabl e) and u~fundled (other subtSidi.tlructiv. the asset is meMU red atthe lower of such agglreg'alte orthe agglregale Qf cumulative 77 . provisions are determ ined by disoountingl the expected futtulre cash flows at: a pre-tax rate thet relleets cu we~t market assessm ents ot the flme value ot mo. which has a deli ned d r contributi o. The rel ated asset retlrement Clost is o capital ized undler "!Property and equipment" account in the consolidated stalement of fi ~anci. oonsnuctlon or development and the nO!1malcperatlens ot property and equipment is reoognized in the period in which it is ineurred and a reesenable estimate ot me obliga1i1ancan be madle. present obi igati o.e In~tially r.. Customers' deposits. owchange:s t'O a.eiiable estim ate can be made of the amou ~t of theolbligati on. over the aVlerage period until the: iben€fits. Where disoounting is used.~and ls bel ng depreciated on a straight -Ii ne basis.~due to the passage of time is reoognizedl as an interest expense. The discount is f. the increase in the provisi o. the risksspeclficte the liability.€xpense:d itil the period they occur. past service cost is recognized imm €diat€ly. ar.f plain assets at that date.ated rem ai rillragt. straight-lin€ basis. o IBonowing Costs IBonowing! ecsta eli reclly attnlb:utalble 10 theacQu Isltl on. I' The defined !benefit Iialbility iSo theaggreg'a:te efthe present val ue of the defined !benefit obligation and actuaJrialgai as and losses net recogn lzed.effeClive irIIter.enmof t~e deposit usl rIIgt~e . e ~t the effect at the ti me valueo. t 1P'lfovisions !Provisions are reoognizedl when t:he CompafllY has a.

thod.a!ble profit.rIIs. Is r. :aJfflecits o fleither th®:aocounting! nor tm. the definoo oo!ntwibu1iiO'nension plan is composed ot the co.f:erred Tax.. the net extent 'that It is. hOiwev1ew.e that sufficient tutu m taxalbl. :aituhe Ii me 0 1the tlraflsacli Ofl.rate' income tax {MGIT) over the regu Iar eorporats Ineeme ta::( {RClll)andl urIIUSOO ope'raIting loss canryover (rNJOlCO).e~ at each f rIIanolal repol'tl ng date and wElducedto the extent that It is no longer probalbl. The tax rates and tax Iaws used to computethe amount are th05lethat are enacted or substantively enacted! as at: fi nanci al reporting date. defemred inoom e tax IialbiliUes are reoognizedl e. o.unrecognized net acluarial losses and pas1t se'N Ice costand t~e pmsent VallH!! of arlly economic be'rilefitsavailabi El'irII'the fo. 1 Deterred! income tax liabi Iities are ncr providedl on no'~taxabl etemporary dilferenees asscelsted with i~vestments in dem esdc sulbsidiari es arid associates.'!<8!bl€ p:rofit will allow the def€n.r11 temporary all diUerences at fi nanei al reporti ng date be1i:weeflithe tax bases cf assets and Iialbilitires and thel r canrying amounts fO'W nanei aI reportl ng pu rpcses. Delfem!ll~ incom e tax assets are ~eoogn lzed tor alld!educti ble tem po~ary diHe.en!mces.Aimerican fu~ds.vs.e profit will be avail aJble to allow all 01'I'M of tlhedlefermdl income tax asaet to be uti llzsd.~ of p ABS-OBIN II ternetlenal Of empl oy'ee (or bo'~J~}to' me employee's individual aooo'untlheS!e n con~rilbutiol~s generally are invested on behalf of ~he emplO'yee through . The amoun~ of the Gompa~y'$ oontrl bution to t~e defined contrl bution pension plan Is Irecognizedl as expe'rilse In t~e pelrlod incu rrsd.efundsfrom the' plan or ~oouctiOns in i~e fut:Ulrecontributions to t~e plaos. to.evi.€d irilcom€ tax to be recovered. 1i Deferredl irIIcome tax liabilities are recogirilizedfor all taxable tern polrarydli'H.renoes and carryfolVl!'aro berllefits of unused tax clrooitsfrom excess minim urn co.. Employees ultimately receive t:he balanoe inthel f aooount. The canyi ~g amou ~t O'fdleferredl irIIcome tax assets.m1Iof r. With respect to' inves'lments in ciher sulbl5idiaJriesand associ ates. usl ng the liability me. Current Tax. Drefenroo income lax. ifllVestment gains or losses. The value at each account wi II fll!otua~e due to ohanges in t:he val ue of ifllVestmer.~twibutio.[po. wtlich is based on oontrl bunons plus Qr minus. not reoognizoo is wh€ n it ari ses from the initial wecogniti on of an asset or liabi lity iflat 'l:ran~ction that is not a busi ness com blfl:a!ti n and.. Current incom e tm.xcejpt where the tim ing O'f the reversal of me temporary dinerenoe cain be eentrcll ed and it is probablethat the tem porary differenoe will net reverse in the foreseeable future. Cunent tax assetsand Iiabil itlss tcr t~e cunent and pnor periods am rneasured at the amQunt expected to be recovered from or pai dI to the taxeutherity. U r11l'eoogn lzed defenroo Incom e tax assets ari€ messured at each financial weporlingdlaite alnd all'e reoognized to the €::d€nt U'nat it has become p:roibable th:8it suffici€nl:futuwe ta!. few AIBS-GBN Intemati onel. probable~:Mt sufficient fWu~e taxable profit will be' avru Ialbleagal nest w~ic~ 'the deductible temporary differenoes and calilryforwaro ben®fits of uflus®d tax clredits from exo®ss Me IT over RC~Tand unused NOleO can be uulizi€d. 78 . irIIC! ng asset udl revel uatio. D-e. risl:a!ti to items r€coglnizl€d di rectly in equ ity is weiCOgn ng izoo in equity and not in the consolidaJted stat:ement of incom e. DlJS!fienedIneem e t8iX Is providedl.

esa~d the deferred! taxes relate to' the same taxable entity and the same tax autilo. Reven us.p!y in the period when the asset is real ized or the liability is settloo.attrilbutab!. if a I. the tax authority is included as paJrtof ''Other curren'l:asse'l:s~ account or 'Trade aijd olther paya!b!.shaJres are cano€lloo or r@issu€dl..ems mrogn iz€d outside profit and loss is recognized in correlaticn to the un!deiiJyi g transaction either in ether comp:rehensive incom e or di recti y in equity and nO'I in the n consolidOil!too sta~€ment of incom e. 79 .etainoo earn ings incl udes profit aUribut:able to the equ ity holders of the !Parent Company alnd reduced by divideijds on caJpital stock. in which case the tax is recognized as part of the cost of acqu isiti om of th€ asset air as part of the expense item as applicaol e. with ·any aJ t excess beirllg mfleal!edas "Additional paid~ln"capltal" account ln the oonso!I d1artedlstatemerllt of fi rIIanrCial positi Orll.sin accou nti nlg pol icy as may be requ ired by the standard's transitlenel prwisions.mpany has issued par value capital stock ~:hat is olasslfled as .t exi stts to onset current tax assets ag ai!list current tax Iialbll i1ii. based on tax rates andtax laws that have been enaeted or substantively enacted as 31ttinafllcial repcwUngdate.rlty. Varu8-Addsd Tax (VAT). Where UlIe Company purchases its capitalsltock: {recordeJda:s "1P~ili~pariledepository mce·lpts.8 pu rehase Oir asS€im or services is not w€C0verable 'from the tax authority.€to the equ ity ~olders olf the Parent Company. irllcludirllg arlly direcllyaJtriloutalb!. eaid-in GaRillQil.e increme'rlltal costs (rlletof ~pplicable taxes) ts cleductoofrom equ It.®s" accou nit in the oonsol idated statem®nt ()if fi n!anrCiaipo!SitiOn!. except 'Ii wi1:€welhe tax incu rred on .ccou nt in UlIe oonsolidlatedl statem ent of fl na"nclal posmon). lFIetain€d Eami mJs The amoun'l: inel ud@d in r. convertibl e to common shaJres~a.ay also inel ude effoclt of C!ha~ge.apital stock" account In the eonset Idlatedl $ta'~emen~af fi rIIanrel po<s~MrIIo the exten~ of UlIe par v·alue. and The net arnou nit of VAT recoverabl e from. is includ:®d in equity . net olf any di l1€ctly aUriibuta!ble irnc!f'l~mentaltransaction costs and the rei au:edtax . lR@tain€d @amings m.elating.fhe proceeds shall be eredited to the 'Io. lnerementsl costs directly attri butabl'eto the issue ot new capital stodk are shown in equ ity as a deduction. !Deferred in!com€ taD< r. netol tax. to it.egally enforceable figi1. The Oo. the consideration paid.enects. or pa. Deterred income tax assets a~d Iiabi lilies are offset. from the proceeds. any considi€rati On!r®ceiv€:'. Where such shares are suos®queijUy reissued. .of VAl.Deterred ineom e tax assets and Iiabi Iities ere m easu red at the tax ratesihat are expeetedte ap.y <Mt:[ibutableto the equity holders of the Parent Com pa"ny urnll the.di.yabl e t:o.equity. When ihe Company issues its par val ue shares. expe~ses and assets are Irecogn ized net Orf theamou nit.

e ad] ustm e'riltsfor arlly stock divide'rildsandl stock: ~plit.enl:.yl!Holders of the PaJl'emt ompany C lB. PAS in (R.meocu rs. .aJreriltComparilY for Ule year Oii. appl iedl ~etro~peClivel y sub] eC'~ to eertal n excep:~ons. 20(l!9).naL S€gm ent Reiporti ng For m aijag:eme:nt purposes. CcmsoNdated and Separate Financial Statements (effective tor firllanolal yeaws begirllning on or after Jtuly 1. and futu~e reported re'sults.e.unted tor as an equity transaction.00 inflow of eoonom i C benefits is probable. OJ Iuted EPSam ounts we computed In Ule same m. clharllge' In ttle owrll. with rmroactiv.e to. Dividends torthe y. Ful1tlenmore. the Companydioes not expect the .f conilrol ota subsidiawy.alter fi fllanci aI reportl ng da~:eare deaH:with as an ~v.es IrIItlroduced by PFRS 3 {Rev Ised) m ust Ibe a~p! I00 prospectively wh IIe PAS 27 {Revl sed) must be.aUe.e aoquisitionsall1dl tramsaC'l:i a ons with mi rIIorlty irIIterest.on (lQ!Iil_mQ!!lJ3I1:W!Jf~s gUhe PawJP:rlLGoU!lP)ili!J!j( Dividlendls.lglh!tedlarvemg. such! clharllge wi II have no Impacto. . Such business seg ments are th€ bases upon wh ieh the Compan¥ reports its operatingt segment inform aden.r of common shares ou~Mandllng tM dtHi rIIgthe year. fi nancial infermatlon on segment r.r11 firllanrCial pooitiQ. These w111 rfi. As the Com pmy has ijodi Iul:iv®:portenti aI common ehares outstan diing. Eam Ings Per Shawe (~PS}aUrilbutaJb!.elr we. 'ii PF IRS :3 {Revi sed). PfRS 3. j 80 . and PAS 27 {Revisedl).A" oOijting:ent assert is net reoognized in the eonsol idali€d fi nandaJ statements but disclosed in the notes to oonsoHda:tr:edtinarJ!c!alsrtate:ment. nor will it give rise to a 'glaln or IOlS$.e~sh!ipIn~e~es.Med starllda[usandl irIIte~p:re''l:aJtions Mve slgnificarllt im pact 'on Its cOrilsoMated to finarllcial statements. .asic ~PS amounil.rfinarlicial repo.r fi rIIanclaI reporti rIIgda~e thiat ar.rlivigle!ndi5.e numbe. BUSiness Combinations. with earUer . the Company's op€rati ng !businesses are orgaijized and managed s€par'a!tely into tntr€o€bu siness activities.'s ar.on common shares are weoognlzed as Ii albiliW and deducted from equity when a~p:rovedlby the BOD of the P3Jrent Com pany. ~ve'rilts afte.swhen .rting date.€d in the Gom301 idaJte:df nanei al sta!tement:s".sirll Aoooun~irllg Policies Thle Com pany will adopt 'the foU'owingt s1:aJndlalrdsnd Intl!elrpmtaMrils enumerated bel'ow wtherll '~h!ese a become effective. effect 'of any portential common shares.rting is preseeted in ~ote 5.t'of a" subs~diaJrY IS acco.e cal CU~EIJtedl dlvidl ng the net Incom e' aUrilbutaJble to. the am e.Med $rtandard chianges tIM aoooun~:ing fo. consolid1atedl fi rIIancial sta'~emerlts.equity hoi d!eJl's'of the Iby P. Th€ Company aper'a!tes in th tree geograph ical area where it derives its reven ue.!'.r11goodwill.r losses lnou nred b~ U~e sulbsidiary as well as the loss o.epo.efor..ectfutur.ents are disclosed irIIthe no~es to. basic and oi Iuledi EPS ar:€ stated at the sam €I amount Conti ngenci es Conti ngenr11 iaibiliU€s are not n~rogni:z.anner. wtlen mate.adopti'on af these newandl am e. Except as othelrwise indllcated. the reported results ifll me period i~ which an aoquiMi o.e not adljlustirIIgev.~viesedl)requirelS. Future Clharllge. Thes€ are diselassd in nne notes to consol idiatedi 1inancial stali€m ents un Iess the possi oility of an outflow of resources em bodyi ng economic bet'il~fits is remote. $upe~sede the exlsti ng PFRS 3 and PAS 27 res:pectively. The chang. the EJquit.ear that are approved . {Revi Sled) introdluces a nu mlber of clharJ!ges inthe aecou flit! ng fQr busl ness combina1iions mat wi II impac1 ~:he amount of goodwi II recog:nized.~verllts after finarllcial Aeporlirllg IDawe ArilY everltafter fi nancial reportl ng alate tMt provides additional irIIfol1ma~1 aJbout the ComparllY's o. thata.applica11ionpe!1mittoo. adj usted for the dilutive.r11 firilanclaJ IrEliPortlng date (adjustlrlg everlts)alf'e reflected In the consolid1atedl a~ fi rIIanrCialstatements. Th!er.

how to measure it and me asooda.e Issued primari Iy with a view of rem 0!!. or ilnvolves renderi ng of servl ees.ns~ clarifi es 1:hat the 81 .r Jarlluary 11. 20(19). The diselesure reql. • IPhill~pine' Iinrueq)mtation ~FRJG iii'.eforfinarncial years b€git'llningl on or after Jluly 1" 2ij09)" clarrl'fias tha'~~:heOOrlltlrl bunon of a.pine Iraterprret.1! flg iflco!ltsistenci es and clarifyi flg wo. T~e omrilibusamendme'rAts to PIFRS issued tn 2009 wer. provides. C()n~fructf()11 Contracts.etion.uremenJ.pine I rnterjptreta:tion IF IR~C 15. :excep:~w~en such con~ract Qualines as: oonstrucnon comraet to be accounted for under PAS 111. Am@ndment to PFR:S . I~ f'F IRS.rlltity is.l!tionof inrl a~on as a hedged nisk or the portion In parlicular sjtua~ions. businel$$ onform a'Uonof a joint verlltur.eCOglrllil!edbased on stage of comp1.@'ttI(f). .!irerneots ot other PFASs only apply if specifically reql. andwlhe~todereoog!l i ze me assetand IiaOlIit)!'. 201 0).i8' fnstruments:Rer:ognJtio.r Real E'slate {eff€dv. Share-based P~yment -Group Cash-s. I~ f'hUip.Jlafluary 1.tifJf.roingl.rar'dof aWrllers:~ip.1e.!'ed ope IratiO'f1!S. 01 annes the scope and the aJooountingl fowglmulP cas~~8eUled s~al'ie~basedi paym ent transacnons.r " Eligible Hedged items (effeC'liv:e for fi rIIandal !le. The Oompany has not yet adopted the following' amendments and antiei pates tha!t these chianges will ha.e and comlbina~ions U ndsr com mon OOrlltrolarre not withi rII the scope of IPFRS 2: :e:~/>Eln thougl~ the-y we out of soope of lRevised IPFIRS :3.Iii Amendment to PAS 39.( Non~cashAsse(s to Owners {eff>iS!ctivefor fi flancial years beginn ing on or after July 1.cJcJ'e·dClertvatfves and jp'AS 39 F~nana_ial fnstrumenU. Share-based PaymfiJ'nt (eUocuv. disclosures requ ired if1!respect of non-current assets and disposal groups.utiollcS 0.tedlasset. 20(9). 01 asslf eo as held tor sal e or di soontinued eperatlons are onlythose set out in PF~S 5. are tlrarnsfem~d to the buy.Edion IFR~C 9~ Reassels'$'ment of' Embe.d hare-based P~yment S Transactions {effective fortinandal yeafS begi flning' on or after . lNsrrit.s.efor fi rIIandal years IbegInrllirIIg on or aHe.alrs begi rIIningi on or after July t.Embedcied Derivatives >( effective tortl nanda! y'ears begi nning' on or 8!fter J lily 1.2.2010.yof a fif1!ancial or instrumentas a.thiefW"ise stated.teentraet when the enltity reel assifi.a. permitted to. designate a portion ot the fair value cihaJng!es cash flow vaJriaibili~..~ su!bcontraotO>fS. hedgedl item. guida~ce on how to account few noncash distri budons to ownelrs.sets Held' . requires ani enltity to assess whether an emib@dldediderivative must be s€'p8!raltedifmm a hOl8.20~ 2).e the rlsk:s and re\l'l.n and JL.': and Meas.as.s with the cons:tlrucMrII malterials and wtler.. • • lP'~iI i p.J'fWl OperatiQ.tedl expe'rIIse's by entities tha'~ unden:ake t~e conS'lUlction of mal .etion.elr on a continucus basis will also be aceouoted tor bas€d on stage of com pl. in which case. dawlfl es thaJt an e.es a.for Sa~e and Dlsoo.n. covers aoooun~1nqtor ~ev:enue and aSOOCi.rll.estatedn recti y or throug.ve no material effect on its fi flanci aI statements.. 20(9). The am endm ents are effecUve fo'rtinafldal years beginn in9 on or afterJlafliuaJry 11. Contracts Invoivirllg provislorll of service. This also CO'I/>E!IfS desl g.!ired fer such non-eu rtref1!tassets o'r dliscontim. 5.urem~n. Flnanr. clarifi es when to reoognize a liabi Iity. Improvements to PFRS (2009). Agreements f'Orthe COl1struc#on o. except aso. TIM Inte~preta~ion ~equir:es tha'~ revenue oneonstruenon of r'eal e'sta!te be Ireoogn lzed only upon completion. PFIRS 2. revenue is r. hybridfinam::ial asset out Q1f the FVPt caJlegory" 1. !Vorl-current' AS.

8. daJrifies th:fl!t if an inrtangibl. that the scope exempti o.s pr'€:Sie ted for deteliffi ini ng the failr value of i~tangib!eassets acqu ired ina. leases 011 land were 01assifled asoper. 20(19).f'l. beginn ing Q~ O'f after July 11. Prior to the am endment. . that a pmpaym snt eptlon is censl d~elI'ed ooely rela~:edto. speclfle . €lxpliciUy state. ifl its se1i:l1 ernent by the issuance ot equity insnu merits at t:he opti o. lbiusiness n com bl ij:fl!tiO~ tlhataJr€: net traded in active maJr~ets are on Iy exam pi es and ar€l not restri etlve on the methods that can be used.aJrifi s that the vaiuati O~ e tech~ique. and not dlewivative contracts where fu ~her actions !by either party are 5tilito be take~.• PF IRS B.~ torcomraots between an acquirer and .ibte.pine ~nterpreitatio!rD IIFR~C 91~ Reassessment of EmbedcJecJ De[iva'lives (effective for firaanciaJ years begi nningl on or afli€lr Jlu!y 1. clarifi. .zed asset can be cla.e8Sset acqu ired in a bus! ness combi fl:fl!ti n is id!entifialb!e on Iy with o anotlher intang ibl €I asset.~ !PAS 38.€d whe rII~:~osea:s:sets anid Iiabil itiesa_lI'e inel uded in m easurss thaJt . Oper:a#n!} Segments. on classifyirng land as. the host ccntraet wlherll tfile exercise cl pri ee' of a pmpaym ent opti o.sult. • Phil ippine Interpl'1eit:fl!ti II 'RIG 16.ii • I~ ii PAS 3 6 Impairment ort .ef operating! deci sio.Assets (effec4iv'e ferfinancisl years. the acqu irer may wecognize the group~)if intangible assets as a. darifi es thait segm e~t ass€<ts and liabilities need emly be n~jporl. lease.ecast cash flOI!N$affect profit or loss" I~ f'hilip. to embedded detrivativ:es in contracts aoquin~d in a.teS'lmen!~ rII i 82 . PAS 7. Inta:ng.recaslt tr·aII1sa.ra'tion {@ffective o~ F f'olrfi rIIanciaI years beginn ing on or after July 1.n o{ Financial Statements. It also d. cl arifies ~:Mt the terms of a liabi Iity that could Ire. vendor i~ a busl ness com OJ flati o~ to buy or sell an aeqeiree alt a.rIIm a%elI'. StaJemoot of CasJJ .es tMt t~e larrg.mbi~ati en.Flows. at any ti me.rtingl purposes.8Jting. 2[)09). PAS 1. La.~ ot the cou ~terpa!1y do not affect its classiticati on. bus! ness oo. singl€l asset p:rolVidoo the individual assets have simi Iar useful Iives. busi ness com OJ ~:fl!ti betwo€en enUties: or businesses undlew common control or the form:fl!ti O~ of jiol~t o~ venture. states· that irIIa hedgle O'fa ne·t im. futur'e daf}e appl ieso'~ly to oi nolngl fo.sthat only @xpenditulre that resu Its in a Irecogni.P~senratio.ctionth. and that gains 01I' looses en cash flow hedgecs of a 'fo. 2(09). leases. f'AS·~ 7~ leases~ removes the.Assets. " aoqui red! ina.e$t unit pelrm i[ted for allocati rIIg goodwill.lVaro contracts.rIImi mlourses the Ie·rllder up to the ~pproxima~:e p:re!sent val ue of lost inl:ere!Stfor tM remainingl term of U'behost contract.guidanoe. is the eperatl n9 segment as defined in !PfAS 8 before 1 aggwegation for repo.at sulOSE!q entl y resu Its in u the r.ssified as a ca'slh flaw from infveS'l:ingactivities. Thearnendm e~t mm requ ires that leases of Iand awe classified as €lither 'f naoce' or 'operati ng' in aecordence with the gen eral principles oif PAS 17. Hedges of a Net Investment in a Foreign OpB.alI'eused by the c~i.oofor. cl arifies that it does not a~ply to possi bl e reassessm ent :ail the d:fl!te of aoquisition. .ecoglrlition O'f afinarllcial instrum Gmt 01I' on easlhfloW' hedges of recognizedfinarllcial instruments shou 101 be mclassified i rII the periodl that the hedg.

CAD.n ot ruoctfonal Cu.a foreign operati ONi"qualifyh'ng h®dg ing instruments may be heldlib.tn The Company's consolidated finam::ial statements prepaJl'oo under PIFRS require m.rate. ope.s.rrel1cy~l1he ParemrtCompany anJdall other subsidiaries and associ ate. Aril an'3ngemem is. the :accounts of foreigrn subs!dialries wel'le trnns!.1 i. J PY.ivenessrequ irements of PAS 39 th:aJtr.v ~hat mainly Irilf1ueracesthe sale of goodsaoo seMcee as...uma~!es to chang'e.per'BItingleases whenJ the Company . substarllce. atparrl:rom tlhose involving eslima:tions. which have the most signJificant effect on tlhe amounts f Ireoognized inJ tiheoon8olid~tedfinl!lJflici aI statements: D:eterm..as a lessee. has det:erminoo tihat the lessor l1®tains substamrtial rri~k'Sand ibenJefitsof owil1®w~iP olf these properties.pt forrOfel grnsubsidnaries.ooagement to make jud~gments and! esti mates that arffeot amou nts reported in the consol idialed fi nsncial statements.ii • 83 .. and n~'1ted notes.e. the Company l1®tains suibsmntially all ~h® wi ks aJnd ibefliefits of oWiI1€irship of ~he assets due to the following s circumstaNices:: 1111 the lease term is only for a limited number of years. Eaoh foreign suibsidiary determ ines its functional cUrln5 m:y (i .discount as of date.of JlildlgmslIllls arndl Estima. Futu re events mayoocur which will cause the judgments and assumptions used in a 3. also l~ecurre'm. documentation and @if€C'l.l1!oOr1lomiC of envircmm. or eentsl ns a lease when the fultillmem ctthe aJrrangemem depends on a S1poofic asset or assets a~d the .inatio.. maJnag€im€im:has made the fonowing joogm€inl:s. i Lii3SecS.are accoumed for as o.e. including thefor.ent in which t~e Pare'rllt ComparilY and all other sulbsldial'lesaoo associates" . the OO<5ts selling of such goodlsaoo prO\!'iding sueh sE!{Nioes.stimatE!!'sare COrllt!nually e-valuat:ed and are.wed tOo be reasorllabl e' under the oi mums'tanOI1!S.based on hi S!'Olrioalexpelrienoeandl Oottner factors. Inol uding expeotatl Oom:.y any entity owerntiti@swithi n the group. Judgmenrtsandl e.arrra~gement oolnve'ys t~e lright to use. The e:valuatio:n of whether arllan'Emg:ement oontains a lease is Ibasedl on I'~'$. or SGD). lessee.IJSID.®d" Ma:rnagemslIllt's Us.exceptfo:r forelgrll subsidiaries. have dete-nminoo Ulla~ r functional cunrE!\ncyis this! Ph~li~pine P'esOo.of'fU'lu~e. The lPihillppJne Peso is. as long as the designation.applying ~he Company'saccow'ilti fligl pol ides. AUD. EUR. .. of conSGnd~tion to the AlI3:S~CBrNJ Group's accounts. well as. Thus.®late to a net investment hedlge are s8Jtisfi. anivifli9 at the es. Such comraets . theasset. events thatarre be. anJd as a lessor. Judgmenls In ~he process of .The t~el Phi lipplrne PesOoIs t~e CUfr'erilCY ~he primary .at®d io Philippi ne Peso for purposes. The Oompamry has €ril~el~®d into lease anranQememrtsas a lessor and as a. ~)(ce. andl the lease payments represents so~elyoompeflisa:tio:n for use of asset Irather ~haJnfor pu rchase of tlhe asset:s. GB!P. lease Is re-ne'Walblebut there Is no plH'C~ase opli(m ata sign~fical1~.®ign op®ra~iONi itself. The effecJts of any changle in jludgments and esrlmates are refl eoted inthe consol idiatedfinafliciaJ statem efllts as they become reasonably deterrn inabl e.

too in an active ma[ket Is the detemil IrIIaMrlloril w~eM1e:rqflloted prloesar. and to 1~220minion as of Deoember 31.ecognitio:n pol ides r€quilre the use O'f estimates aoo S. amorllg! oM1€l\rs.e are dete'm1iIriled sulbseQuerilt tofinarllclal reipo:rI]rIIgl. cur~rently a purchase optiorll a~ a s!grllificant dl sc:ourn wt'iJic~ the Company Is liklJS!ly erxeroise. The duffet~en:oo between the emount irilitially INlloogriliz€d and aotual s€!llIl€1memltor actual billing is Ireoognized in the next period. fair values are assessed 'ro 00 t~e present value of ~mated fulu~. Such esti ma~. For oertel rIIflna_nCliaiIm~tJrUmernswhldh are rIIO'~uoted q in an aC'b~vemark/et.irb years.Comparny initially estim. there is no assurance 1!h8!tsuch uS€: of ~.full econom lc ~ife.egula[lyaV'aiiable.ffactors and actual results may dlfter. and w~eM1e:rtMse prloes represe'riitactualand reg.ne.sult in ma..stimates wll! rilo1w~.e periods. The Company's 1€I€:COm mUrilications reverilue r.atedl 'ro i9iPproxlmate tJheircanrying:amou rIIts. at each financial r~porti ~g da~e to assess whether an allowance for impai rment should be recorded in ~he oonsel idated statemetm of lneorne. t~e finMciaJ instrumerllt l The fair values of Ii rilmal assets alndlliabi Ii'li@ssre set oui: in Note 33.ates theamOlmts based on hi story of sharing.1 roes at eslimatio:n a~ the financial w epo!1ting date.e ~. judgmeflft by managem'ent is required i~ the estimation Qf fle amou flit a~d ti ming of fuluve oashtlows when determining the level of . ilncludnngl U rit':Nlloo receivables.'edIto mOrllth!y r.equires t~e use O'facoourlltl rIIg estimates"llhefair val uss of 'hnancial IrII$1irum€l\nt'$:f sho~Henm na~une arldl tMse tMt am subjlec'l.esare based on assumpMons .SsumptioriiS tlhat m. iEslim8!tes The key assumptions oo:noeming fulure and other key 001. Fair 'Valoo 0.dlale.ve a significant risk.dietenminedl ~at it Ibears. wh~clh r.ength basi s.ar1ldlreceivables. SUC~ co:nt1f'acts al'e' accounted for as finance leases wlhen the Company has . substantially . Thus.enue Is staredl net of ~Ihesherre of the othler ~el..t€lrial adJuslm€1m:siriI futur.( Fimmciar Instruments.eadiIYEl1oo ~.allowaJrloe wequired!.nne Company has also ente'red into lease ag!reemerllts roverl rIIglcertain prqperty and equipmerllt.w~e.es.flhelr the asset is quoted or not in an active ma[~t. The Company reviews its IOians. fl i R8'V8nua Recognition.ularly OCCUltlng ma[k:et transactions Orllanarm'g.ecash flows. ~nparticular.epricl ~g.I.about!a numbe~ o. OO(]l9aoo 2008.all ~he nieik:sandl benefi~s IrIIClderiitalto ownenslhlp of said prope:rlies due to the followi rIIg: ~ Iii the lease term represents substantially 'this.ayaffecl: the ~portedamOlmts O'f revenue aMI ~ecelvabl. lRev.. PFRS Irequir. Ariow:3noo l:or DoobtfMlAccounrs. of causi ng a material adjustment to the cQIrying amounts at assets and liabiliUes wiWhi the next financialltear QIEldiscussed below. the. dl's. ~e.e'111).eco:mmunicatio:ns canie:rs. Iinciudedl in the evaluation Orll wMt~er a financial asset isquo.oountoo at Mk~free mtes i9iPplcable to. IHowever. The oartryi~gl amount of pJOpertyai!1d equipmem u ndlerfi!la~oe lease amounted! to 1~155 mill ional1d Financial Assets not CJoorro in an . olile asset under lease: the lease is. IresultlrIIgin fUlU["echange's in t~e allO\illariloe.that ha. wespecmveJy(see INot.w-a'bleandl '~ere is.es that ceirtainfinlllirncial assets iimdl liabi Iiues (including deri\!"atlv:e Instruments} be carried! at fal r val ue. but '~~ediefiniteamotmts of the net shar. 84 . The Company cl assifif)S financial assets by evail1ati rilgl.are o estim.Aciiv:e MafflBr.

whldh. Ibw not limited to.es the Co:mpanry also makes a: collective impal rment allowance against ID:JlO'sures.e fOlr use. 2009 a~d 2008. Estima.zauon for amy y€:alf'. Trade and other recelvables.experierllce'.mify acOOUrlits be provid.escerilce and legal or other lim ltson ~:~euse of these assets.fl o! the accurate valuation irIIthe IInancl al records. it Is possi bl61'that futu refinarllcial pe.roo Usetul Lives oWPropB.. the ~ge andl status of the reoeivables.rtormanoe cou Id Ibe m ate~1 y affected Iby c~anges in the all eS'ljm ates brougl~t about Iby clh. pthyslcal detelfior. A reducti on in! the es.ed to be obsolete . may not be oo!lec4ib!'e.alllOOagal nst iMyv Idually slgniflcarllt recelvabl. An increase inailowance'fo:r doubtfu~ account'S would irIIcmase t~e ~ecoro'~edl qperaJting expenses and decrease current andl nonc.ely (sele Note 27). changes in customer parymlet'llttenms and other 'faC'~Dm tha~ mary affect t~e (.eassets Mt~fl nite life. 1. Estl ma:tionfo:r prope.aJrdl 0 the p:roperl.f December 31.rty and Equi:pmfjn. In 1hese cases. respeotively.es..andlUIl1Uable are w[IUen off and cha['ged as .r and Intangible AS8G'tS. imemal tec~nical evaluanon and expe.edlaffects.timated useful life: of an!y pmpelrty and equipment or intangi!b!. 2008 and 2007.d~efault. the COmpany uses j udgm!elnt. mill m 2008 and 2007.:s.720million and ~5. The us®ful life {)if each item of ~~e Corn pany's property and equ Ipment and irIItangibleassets wllhfinite life is es. The amounts and timi ~g of wocolrdii the depreciati On!and amorti. the amount estimated. obsolesce'~ce.ective assessment of iMus'l:ry p:faC'lice. The If.ew"E!d0111 a rregular basis to ~e.The CompMy evaluates specific balances where mafNlg'em!ent has information tha~ certain amounts.l'5.asset is revievllied ng pe.'0 income in the form of provision for doubtful accoun'l. teohrllical or commercial obsol.oo VIIlthallowsrlloe.alt~oLJg~ not specifically identified as reqfIJl ing a ~pecific alh)'!.~ and n ~:226 milllo'fli as ot December 31.aMn.ompanry's ablUty to collect pa:ymerllts.es.l'1 69mill Io.have a gma:te:f risk: of default than w~erll migl rIIaJly r gmrllted.l'2'92 IO'f!! I' 1f. Ihe amOlmt and ~ming of reeerded expenses for .rienoe w1t~similaf assets wh Ilefor Intang Ibl. lFIow'ever. physical wearalldl tear.Jstedas addatlonal IrIIfo:rmaMril reCelv.l1~metMdologl. 0<i0 mill IO'f!! as o. T~e estl mated useful lif:e of each . re~pectively (see INote 8).chall1g. re-evaluatedl aMI adjll.e assets wou Idl inerease the: recorded expenses and dectrease nancy nrentassem" 85 . rProvision fo'v doubtful aeeeu ~ts am cunted to 1f. 2009 and 2008.rtyall1dl equip:men~ Is based on a coll.estImatedl life Is basedl OrllUlle life of ag~eem ent OOi!J'e~1 such Intangilbles. respectively (see Note Allowance iQf do'ubtiul acecums as Qf Deeernber 311.riodically and updlatedl if expectatiOns diff:e~from pn~vious estimate's due to.with reg.unrem assets.vallable facts and ciroumS!ta~ces.varllce. Ir1iven~'OlfY e items identifi. amounted to 1f. net ot allowalnceior doubtful aecou flits.e-:view made by maJllagementOril a cOrlltlrlluingbasis to Ide. In price level s or oUler causes.ooUection expe~I'Emcearlldl past loss experierllce. . This oollective allowance is based on historical .evalue wtIe~ev€lr net rrealiza!ble value of Inrvento~ies becomes 10W'e'rthan ecst due. respecUv.arllges irII the storem 6!\l1tioned 'factors. to dam ~ge. II vento'nes at net real izable value amounted to' J. n Ner ReaUz:abie Va1u@ ot in'llffmtories" Invenu'Olriesarl€ carried ait net Ireaiiza!b!. ~n addition to speolflc allow.. .fent Judgments or utilizedl differe. is to These spedfic reserves are. and elrcunstances. Tlhe allowanoe' aooounl~ Is ['evi.timated based Orll the pe~iodIOi!Jelr which theasset Is e'xpectedl to Ibe avallabl.2009 and 2008 amounted to 1~531 milllo'~ and ~440 million.~ and 1~'1 02 mill IO'f!! In 210091.l'1195 IIIIo. s Provision for decl ine in! valu€: of inventtory amouoted to f!5 million.anryperiod ilol'llOUldl differ if the Company made diffe. j The allowam:e is €sta!b!ished !by c!harges '1.y and equipm erllt ng 1 and intaJngible assets would be affected by changes in these fadars. re5ipectively (see INote?). based on a. ouli1l'en~ economic trends. alfld a wevie'!Nof 1IJhefactorsflat aJfoot the oollectllbility of the accou fIts including.expense in U~eyeat such losses are ide'rlltified. f!22 mill ion and R15 million in 2009.

alue in use: 8iPpro.1 nlflcarll(" genEl\rally as 2QP/o or more of thle o:rlginal cost of inve$'lment. and restorl ng leased prepettiestc ffiheltrofiginai condition.llemble amount is computed usi ~g the v. for the cas!h-gienerati ~gl u~it ~Dwhich the asset belongs.and discount facto:rs for urnQuotediequitie's. The fa..2.492 11. lRecoveir. investm en! propetrti es and intangibl e assets duri ng the year. 86 .2 5. es.rnever thle carrying amount of an asset exceeds Its.336 R14. The Companly assesses impaitrmenlt on nlOrlifinanlcl assets aI {en umeratedl if1!he table below) whenever events or du:mg'es iij circumstances indkare thiatthe cawrying t amount of a~ asset mail! not be recoverable.ab1e amou mlts are . M@et m1iremernt oblig8Jtionamou nled ~o~'18 millkmas of !December 31.share pricefo:r q~oted equl~es and tne future caslhflows . Thed:etermina~ion of wMt is '\sigrnificant" or '''prolonged'' ~eQuitr.Ot5 492. The Comparny ~. the carrying value arnd R.. .I!Jch . if it is net possible.20G8.27e 816.2009 and 200S.vera:ble amount The Irecoll..554 .2.259' 35. (see Note 21) .3 1.377. 011 AFS investments amou nted 10 R42D mill lon Asoot Rir!ftjrement Obligation. In additiorn. [)eteti1lilIming asset retlrem. g anld ''proIOtIlgOO·' s greate.830 '6:3. respectively {$€I®< Not@ 14). reoo.4113 108.s.rthan 112 months.rlods.d!edlID:lpe..li in-prncess e Stolry..iom riglhts Video rights: and record master 814" 714. slgnificarrt or prolongedd!ecl irne in the fai r value below its cost or where t~e.There is no cl100gie in the estima~ed usefu I lives of propetrty and equipment.4([)8.estimated for individual assets or.es joogme:nt The ComparilY treats "s. As of Deoembeir.420 2.tion and dts!tlribuuon business _ Middle East Iitwestmenrt prcpetties _ net IMloll. 2009 and ._net iP'mgtram rights Customer rei auoll1ships _ net iP'mduc.313 7. including a t!lOrmlaJvolatuity in . While it is bel leved that the assumptions used ifl the esti marjjo~ of such costs ere weaoonable.9M 66.2008 iP'mperty 8Jnd€quipment .re' is objective evide:noe tha~ Impairmenl: exists.371 million. 12 andl13): . sig'f1!iticant chaf1!ges if1!these assumplicms.96. mus:i c a~d publica1.m~e o:robligation in fu!um pe. The carryi ng val ues ot property and equipment. im/eS'Ilment properties and intangible assets with finite life are as tollollNS (see Nlotes 11.735.ent obligation requires.2 .4(6.Bfl4 538. 1 impaIrment of Nonfirrancia/ Assets. amd I~ significant negative induswy or eeenemie tlJyends~ The Company reoogrlliz@'.577 99'.timation of the eosts of dismamling installations.ctors that the Company considers imporitam which oould ~rigger an impaiwme~t wevi.san Impailimerl'~ !OISS wM.eartsAFS investments as impal ['E!dwrnernU'Rerehas beern a. the Compamy evaluates O'Ilhe:rfactor. may ma~enally affect the recor.0919 fmpafrmemofAFS fnv~stments.EWIi' include the followi ijg: • significant changes in the manner of use of the acquilred assets or the smrategyfo:r oveirall busi ness.

aJoo200f.735. Sky COOI.554 2. wiWhirJItinite lives.ectedi to increase aJt a. 6): ~roperty and equipment.&009 . The Comparny performs impainme:i1ttte'sti rIIg annually or more frequently when there ere indications Qf impakmef1ft for good~n and intangilble assets. The impaim1l.27'6 4~1'04 ~n2(lOS. si ngl. operati ng expanses were proj.e1I.o)" INo impantrmerntloss for nonounrentt assets was ~ecogni£edl in .681.Middle Eas!t Inves'lment properties . have an inti flIite life.964 43.of GoCJdwifl and Cable Channels..0111 538. Operatingt Expenses On the average. ()i·5%..:3ries if1ithel r re5lpective industries wi II be nat on the assumption mat the industries also gwow at par with the economy.rjcally. A.fhle·y.ent ()if the suosidlaliies oov€:wing a. b.ear period. suitabl e discount rateto caku~ate the present value at ilose futur'e cash flo\l1fS. petrpeW ity growth ~ate was assum ed at the end of ~hefive"YE!laJrforecast pNiodl.T~e canyi rIIg v.alues Of rIIo:ncummt assets ~lhatanS!subJ/ectoo to impainmerl'~ testing whem impairme:ru itooicators are' presentare as fOIlQ'iNS {see INotes11t. cash"g. 'The ~ey assumptions us®d iij fie impairm€wlIt test of goodWill aJijdcajole chanlmllis ars as fonows: a.swith tax cwedit certificates (f()Os) ~rogtram rights Customer reia1iionships . The Company has idemified ~ihat calble channels of e~~j ima~gibl'eas5!ets.301 3. Hiisto.alue in use calculatiorll of using cash flow p:rojootions which ware based on financial lbudg:ets 8!PpmlV€diby senior man!agem. The r.1012 66.055.41'3 108.!.eet ootrrelation with econorn ic g~Cl'With.e-dig it growth Irate and aJt a s!ower pace than Ireveijue. Impafrment .779' 492~517' 9'9~8S0' '63~259' 4(I'~9711 2008 ~ 14. Estimating the value i~ use reqUlires the Company to make afl estimate Qfthe expected future cash flowstrom the cash-ge~efaJting uflIits and to make use of .net Inves'lments in associ awes MO!!.ectedlcash flows 'for five yeaJrS· am:! ~lhe present val UE!' of ~hetenminal value computed urncfer thediscourlted cash fiow method. Impakmenttesti ~g' requires afl esti marlio~ at Whevalue i~ use at 1Jhecash-ge~erarjjng units to which go 00wiII and the cable channel s are allocated.1j e ia-precess En 4~71I4~420' :2~5611~200' 11 ~467.enerati rilgt unit.net ~rodiuction and distwibu1iionbusiness .1! 5 am 1.ecoverable aJf11tount the. Gmss Revenue On the averagejgtross reven ue olthe subsidiaries over the next live years were proieeted to grow in Iifie with the economy or with nom ina! Gross Domestic ~rodiuct fhi s assurn es that the market share of the subsidi.185 1.net Tax credit.ento:n~he goodmll arndlcaJble ch!amlleltSis delenminoo by oompafing: (a) ~M carrying amoom of ~Ihecash"g.3. aMI (b} the present val ue of theanrilual pro~. ~3.eneraMgt unit has beerlldB'~enminoo oosed on a v. aoverlisif1ig5lpendi~ggtroVl!l:h had a dlif. 12. 87 .eprovided arll impai rment IOtSSfo:rtax creditsamOUriti rig to .3100milliOrll (tSee INO'I.

WACO was based on the appropriate weights of debt and equ ity. It is possibire. 2n09 and 20018.tent wi~:hthe expected e:mploy!ee benefit payout as Qf fi nanel al reporti ng date >( see NJo. reS1peotively.. 2009 and 0008amrourlltedl to 971. Present Vail. There wer'e no other impaiwment losses recogrlized in 2(')09 and 2008. The Company cUlrmntly does: not believe these p:raceedi ngcSVIllI!hawe a material adverse €fiect em its eonsol idatoo financial position aijd perfmm. lReoognizedld!ef... ~e-spectively {SEl.38%.te30). :respeCl:ively (see INote 29).able prom will be available to . Irespective4y.t~e preserllt value of the perilsEono!b!igatJo.idiaries as of Deoember 311. Contfngmof.2008 (see rNJote IG). The assumed disoount rates were determined using the market yields on Philippine bends wi~h terms contSis.906 milliorll as of December 3~.eff€ctivene.63%. which were m u~jjjplied with the assumed COSTS o. ifli 2(')09 and 21008.enM tax assets of sulbfi.f I'€tun'non plan assets.es. The OompafliY is cl!lrrently invelved in various.icm of .029 million and 9'943...0 alflf'iv€ at tlhe present v.torical preml urn on plain assets.andl eS38 million. r€!'spectively (see Note 17). Unreoognized net actuarial lossamOlmtedl to ~3i62 minion as of [)ecemlber 311..wanoe for impaifITilef1t 105!s in 2007. e~IP€'Ctedrates o. 3 R:ecognd..Th€ d'isoounri ral'€ used '1.21()09and 2008 amoun~ed to e1l. Goodwill pertaini ng to an investm ent in a sulbsidiary amounti ng to ~23 million was fully provided with an allo. 1 T~e carrying amount of goodlw'ill amrourllted toe2. and future salary increases. The diseeu flit rate ap. and 10. The canryirllgr amount of t~e caJble channels amourntoo 9460 minion as of Decemlber 31.se mati:em and is based upon an analysis of potential results.9 million . legal proceedings.alue alf futur.. million.rII of the ComparilY amounted to e1. The oanyirllg amount of deferred tax assets is re:viewed a~ eac~ financial reporting date and reduced to the extent ~ih8itit is no longer probalble that sutflcient futuretaLx. however. 200r9aoo 2008 (see INote ~3). The cost of deii flied benetit o~igation is detewminedl us! f1ig' actuatri.ened tax assets as of [)ecemlber 311. ~G09 andl ~G08.esin the esti mates or in the .ss of stral'€gi:€s rei atiflg to these proceedings (see Note 36).J such estimates are sulbjeot 1"0 uncertaimy. 2009 wfili Ie unreoognizedl nel~ actuarialg.pli!ed to the cash flow proieetions were 9.::OO. /162 million and 13569million. 135 milliorll andi31 . 8S .Deferred Tax' Assets.i3S79 milliOrll as of [)ecembe'r 311. aibout discount rates.ai rII amounted to . Unreoognizedld!ef.e of ~h€se plans.eNote 30).f debt and equity.h:wn invowes making assumptions.al valuatio:ns" The actuarial Ilaluail. Due 1"0the long-term mrtur.ance. that future fi rnaJncial pelifa:rmarnce could be materially affected by dhaJng.e cash floM was the Company's Weighted . The Company's esti mate of the p:rabablie costs for the m. The expecWed rate at renirn on plan assets was based on averagie his. As of Deoem be~ 31.Average Cost of Capital (WACO).le orfPemswn Obligation.so!ution of these claims has beern devlElloped in oonsultation wlth outside counsel handling defernse in tihe.allow all or palmQf the deterroo tax assets to 00 utiIi.

Based on t~e provislons of '~:~eNlo. and Be·rnpr.[)T Group) pursu. 20(l!8.8218 Sky Cabl €I shares.te.200S. accrued imerest receivable and! advances to. Sk:y Vis!on is contractually bound to issue the PDRs to the· Parent Com pany upon the issua~ce oif the u~derlyi mg Sky Calbl.ave·rntof a pulblic offering of the tssuer lbefore maturity date. 2(lP/o discount of: (.. The pri fJ!dpal and accrued intewest as Qf m a~:urit date ism afldatorily converted into common shalres of the Issuer. tnc.'Ompamy. 65.645.e.ect G se to eertal n other conditi ons.elyextendedl urntil th. the Parrent Com pany didl not eorwsrt the Note at tlha'~'tIme 'lNit~out such val usnon.ed capital stock o.3%· effective intewesL On Deoember 23. 2(l()1.499 millon to Sky Vi si Of~ ln consider·ation of Philippi ne IDEliposltory Reoeipts {P [) IRs) conrvertilble irnto und~elrlyinglStky Cabl e sbares to be issusd by Sky 'Vision upon a:pproval by the Phi Iipp:lme S€culriti es and Exchange Com mission (SEC) of the increase inthe autiho<riz. 2. whl ch in tu m d€lipends. based Orrn pr.the Note arnou ~ting to~'1. eHecmve March 115. n~iP:resenli '65. in t the.2007.glreemen~. (b) t'~e valuation of the shams by an indlepe·rnderrllt t:hi palrty ~pprai.008.20. Conversion of INme and Advanoes On June 30.a)rhe mar.iompar!Y.ation (collectively re·fened to as Benp:res Group) and IPhili~pine long [)istarnce Telephone Companil/andl Uediaquest Hloldurngs. at a convelrslom p:rice equival erllt to a.rny cash ( dividends or other cashdi s'l:riibuti ons in respect of the underJying Siky Cabl €I shares alre received 89 . . no itmewes!t as charged an®wJu ne 3n.2008. aclouMl'loogoo the fainness and weaso~ablen:ess of nne val nation for Sky C8!ble effective IMarch 15. Iinc.y" Thus.. The convemion date was €!'Hectiv. Pu rsuant to this Assignment A.on the valuation of Sky Gable by an Irnd€lipendentth Iro pan. to .Assig'~m@ntAgr€ement. as am erllded or su~pl. A. and the PLOT Group. the Pamn~ (. Sky Vision Go~polraMm {Sky VIslom)rand Sky Cabl €I @ntered into am . Thus. the delivewy of Sky Calble shares or the sal €I of and delivery of the proceeds ot such sale ot Sky Oalble shaJres·. thus.ser that lsa mcognized Ibanklng fi 1iTIiI. The Note was sulb~'ectto interest of 1. 1 ro The INote does nO'Ispocifi call y state that interest shall accrue aft:ewJune 30.f Sky Cable.e fi rnal valuation O'f Stky Cable.® note {~the NOlt:e~)to the Parent Com pany amou ~ting to US$30 .if.0mill iO~ r(R': . . 2.lhe ~[) A may be exerei Sled at any time by the lP8Ire·riIt.2LOO!o oo:mpoundled amllually and matured on JlufJ!e3 11..ket value of tIM shares.20014to Jlu~e 30.ant to tfile Master Consolidation Agmemen~ dated JUly 118. (collectively ~efenred to as Pt. wh®tr€by the Parent Company assigned the Note.. accrued interest on the INote from June 30.2006. the conversion priee of the Nbte had not yet been determ ined.aJreflt Qf Com pany with a. On Mary .5811 million). ng Consequentl y.evailIng tIM to lP~ilI~pine· Peso exchange rate on matu nw date.58 ~ mill ion.31% efiocuv. .006 in the event that the rNJot@ net cOrlfVerTed a~y treason.emented. Sky Gabl e was considered as a su!btSidiaJrY the ~. 2004.2006 amounting. tM conve~sl Orrn the INota cannot Ibe oompl. Bas®d on th is final valuauon of Sky C8!b!. S!ky Oalb!e totaling' to ~2..es. securltl es undlerwntelr or one of the bi91tt1J~ee intemationalaccou rntinglfi rm S or tlhelr Ph~ ~pineaffiliate joi rilly ~ppol nl~:ed Ii by LOipez. upon paym snt of t~e eXrE!lrcl prl ce and sulb~. IHoldings Corpor. The IPDH wi II glrarntthe lP8Irernt ompaniV the ["ight.® interest in Sky Cable. Sky Cable {~llssueli") issu€d a cOrilvertibl.®sharss to Sky Vision .etedl 'lNit:~out ~~e of de·telrmInaMn of the conve'mion pMe.for fi ~ancial repotrting pu rposes. is for w As· of [)ecemlber 311.006.a. the Benp:res Group. pmviding potenti aJ vO'lIng right'S to '~~e Pamn~ Company. 2.!459'millio~ and ABS~CBIN's advances to Sky Cabl €I amounthng to 1~459 mill iom can be eorwerted into 269.

657 Cash and cash equ ivalents Tradeand other receivables ~repaid expenses and ether cu went assets ~roperty and equipment Customer reiationships Other nOrllcurmn~ assets Tradeand othe.3% 1.by Sk:y Vis!on.79i3...abilities based on the fah val ues all conversion d!a:te.441 million and revenue would have been ~25. 2008 \IVO!uld have been ~1 .E')st.addlitional colrlVe'r$ion of ~'1.186 4.582)(61: 4.91!9...798 million loan! to Sky CaJble and f!90(] mill iOn! a..270} (674. on acgui siti Oril 3913.63!O (2.3%.r of the sub:sCtriptioril to thie 65.es a Defermdl tax. Sky Vision shall distribute the preeesds to the lPawent Compliliny.urndEl.378. 2008 Sky Cabl!e has eontributed ~:29 million to the net income of the Company.81 6 3. the net income of the Com panytor the year ended Decemlber 31. the Parent Company has the eeonom ic interest ()'I...ebruary ~9.469.868 miUio'n.921 603..49!9 million was allocated to the identifi alble assets end Ii.696 There is no Gash outflow on the acquisition.5~O} (2 .es ter the manriltenall1ce of the PUR struenne..2009.e 110). €!IffecUve inte'rest in S!ky Cabl €I.r1yi ng Sk:y Cabl e shares. 1 90 .588.582): (2t3"A5~): ~ .rthe.657 3913.3010.828 Sky Gable shares welre' issued to Sk:y Vision In Oct'ober 0009.965)(2113. 65.ecogrdz!ed Q~ Acgu isiti o'~ ~8316.9119. Accordingly. effootivl®ly. T~e lPa~Ellnt Gompa~y will have U'nevoti n!g rights upon ex. eeoncmlc benefits O:V'El.lhetai r values of the id!entifiabl!e assets and liabiliUes of Sky CaUe at the dste 0'. Ane..186 1 Carryi ng Val ue ~8316. the effective interest of ABS~CBIN increased from 66..er.71 '7 ~. Hlow(!velr.45~): (2.rd~educti rilgadmi rIIis:tlrativ.958 ===~=48"".327.. as of IMarcht~.552.r curmn~ liabilities ILorilg-telrm debt Due to Ire.562.<69 pelf shawe {see rNjot.2"". The 2169. j On F. 20~ 0.dv:a:noos.814 Sky Cable shaJr€'·sat conversion pliice of R9.58"". fromt!he date of conversion ot me Note up to December 31'.1tedl par!i.921 60'3.lhe voting' riglhts remain wit:h SIk..!'IeJr underlyingl shares by the vi ttue of the P DAS..ercise of the PDRs.sihip interest INet assets aequ ired Goo~willaJrising. The conversion was cons:id!€lfed as :a:cq]uisitiornof minority int.e eXlPem~.171.166 ~.645.03!Cl (2 .Upon corwersion of the fOlregoing loan and a.275 1.d"".3% to 79. the conslderetlen of 1~:2. tfile P [)lRsof SKY Vi siOrilhav..Ii ablity Other nOrllcurmn~ liabilities INet assets Acquked owner.y Vision as legal owner but ~:he Paren~: Com pany has.=. ThE) conveJrsi On! of the NOll€ is oO¥i1sideredas a busi ness com bi nation and accounted for usingl purchase method.55<0)- 60'7.54'7. WMe Sky ViSlon is the legia!owne. ~tthe oombi naition hadtakem place at the begi nning' of 0008.dvances to Sky Vi siOn! to PDRs coveringl 278.210)(674.959. t~e 80 [) of ABS~C8IN a~p:rol!led the . conversion and the correspondi ng carryi ng ameu nts immedia:tely before the acquisition were: Fair Valu'e A.e not yet been lssued to the lPare'riltComparilY.

2J010.exchange fQrraddlitiQrr!al common sMres in ABS·Cl8. . val ue oif the m inowity int:ere. S!k:yVI SIOom aglreed to issue A8S~C8IN PORes.2009.®increased from of 6<5. the Parent ClOmpa~y as:signed its :2 shiare in ABS. payable arising! from the tlf'. The difference betM!entihefai r value of the considerflltion transfe!rred and IiaJbility assum 00 and the calilrying.rtionalam auntl ng to' ~228 million was Irecognizedl as goMwi II in tlhe oonso! Idatedl slta. POe. Ms no II n Impact on the con. became a wholly owmedl subsldllary of Sky Calbleas af tMt da~e. II [)ece'mlber 2009. 'for financial reportingl purposes. the effrE5cltive int. II co n {Ba.23.deratlon for t~e aSSlgnm ent.248 mill ion andl an assum ptlonof tIM outstandli ng loan obJiglaMn of Tel emondial Holding.!I3rNJ ~elrna. is recogmized as goodiwill {(fI®eNOI~® 17)" e l c. Consequen!lly.r'i of t~e Par.st in poe.On March 2.rllt Ag~eeme'mt. Acquisition at Mi ijoritry Interest in ~CG On IMay 23. The current porf om amounti mg to R92 mill iom was presented as part olf" !Due to related parties' in the "Trade and other payables" account (see INot.As a oons. CQrmseque.AIBS·(. In~e~e'st tn ABS·CBN IlntemaMnal to If US$6 million (E!2i1 millio~)r w~ichi is payable ovelra pelriodl of three' yearn beginni ng Jlamuary 20~ 0 U nti I Decemlber 201'2 or as maybe extendedlfor a. Tlhe.ams anoJor . As of MaI'ch 11. eo-branded mar'keltingl andprcrneti Q¥QalcaJmpaignsj and . % 91 . sponsQ!rs!hip iij various ABS-CIEHj'~-produoed progr. On Malrch 2.r 2009.rtible In~'OS!ky Gable s~':llf>es.3% to 7'9"3%..ent Corn pany whic~ may Ibe availedl by Ba..whiclh shall be conve.e 18) while the noncurrent portion amounting! to R1185 mill iom was pr. rQr~ !Decemiber .·OS.es also agr.. other media-rel at!ed proj eets. 2008. wh Ich in tum O'WriiS the mi ~oriW interest itil PCC.solidat:ed financial startements. G ABS·OB. This ass~gnm e~t.excess Qrft~e DOnSI ielfaMril ovelr t~e carryi rIIg value of t~e mi ~ority imelre'st in ABS·OI3·rNJ d Irntema. A8S~C8N assigned t~e e 1. As of Dec@miber 311.errE5st AlBS·GBN in Sky Ca!b!. Tlhe pMi.·CII3N InteliTnatiQrr!altOo n ABS.eedl that the P. Irilcorpora tedl {SO!FI~}for a cash paymentOof 1.lve net ye~t ibeeij issued to the P. Siky Vision assigned all its common snares in SCH I tD Sky Ca!bl.AISS-GSNI-owg:anizedl special events.mtly.aJI1sadionamounted to R277 mllllcn.798 million lOranto S~y Vision.s" I no.dvertisingl airti me for Bayentel 's products and services..rNJGrloibal. b.abilities" aecou flit r( see Nlote 211). The terms of the agnH~ment are sim ilar to the Assignm®ntAgreement aliseussed in the foregoi mg.ya~tel du~ingl the payment '[e~m: ces I~ I~ I~ I~ com merei W !i3. (THlI) In theam aunt of E!~ 00 minion.ammmting! to ~558 millioNl. Acquisition of Mi ~oritry interest in ABS-OBNI II temational n In [)ecembe.®sent:ed as Pal't of" !Due to a rei ated palfily~ in the "Othew nOijcurrenrt Ii. S!ky Vision acquired the mi mority In~e1l'esltn PCC t~lrough the purc~ase of an I tlhe common shEiJrE!'S inandl convertible rIIO'ttesandladivarllces of Sun Cabl e' l!FIoldli ngs. nne additional P!DlFls of Sky Vision ha.epuwsuant to this :a:g reement.aretilt Com pany s:~all have tM opMrII to pay the QOr~sideratiOn Iby way of threfoilowl ng products and se'n. 2)009'.rtement offinamcial position (see Note 17)r.rNJ rlo~balin . Iby virtue ctaseparate ASSignme. Sky Visionandl S!ky Cabl e aglreed that suc~ shams anddebt sMIl be transf. .ed to S:ky Cable. the Paren~ Compa~yacCiu Ired from Baya~ Irel €loomm unl cations. longlelr period as ag~$ed Iby both parl:l es.elrr.20018.tional.aI'emt Company. 20(J9. SrCHI owns THill.rNJG Iofbal became the 1 001"/0 ow~er of . On t~esam e date.ya~tel} Its 2%.

e{see NOiU:e}.. cabl €land sat€1lite. . Segtment..br'Oadcastingr. it ope'mtes In th['ee major goograph Ical areas.2000 and JUnie 19. wesult 'Of m the conversion of the INote in Sky C8!b!. In D'ecemlber 20[)l9.On JaNluary 7. wI1 ichi are ifltendedi to conduct the management ot ether busi ness enterprises withi nthe ASS-OBIN GJroup..2000. Althoug hi tM Com PMY Is o[r99[l1izedl In~:o three busi ness act [villes. 2009.enuefr'om sal.€a. US$81 mil IIOrllequity rIIote and the assu mption 'of an .€ and its subsidiaries in Metro IMianlil. Its hom e counl[~y.e of m3!tlOrlial nd ~egionalad~'e.sin the Phil i~pines. Europe. 00% owil1ers~ilP inte·reS'! in ABS·CSIN Inte·rrnaMrilal to .AB8~CBIN Hungary was incorporated to Ibe the holdunlg companly of certsln int. ~nthe Phi Ii ~pi riles.ast. Iinfoirmalion 18usiness 8®9m ents For manageimlenr1 purposes.aand i~ cernain pr'Ovinidal ar.em:a!tionlalsulbsidiaries. Austlf'alia.1NJ IHungary in exc~angefor t~e Issue of a.€ and sat€11 lte op€tra'l.r.i e 'Onlei evi sion sta1ions. . 92 . and 'Other businesses. II the United Stat€s snd in other 10cati'Ons {which includ® n IMiiddl€I E. IMarilaglemen~ monitors ope'mUngr results of i1$. ASS~CSIN IHungary became the new Mldll ng company for ASS-C8NI II temaMnai as 'of [)ecembe·r Si[. Segment pertormsnce IS· evaluatedl based on operatir1lg profit or loss and is measured consistently with ope[ra~lng profit and loss In thie oOrilsolidatedfl nancl al statemenil:$. 21009'. Canada and .~ • IBroadcasti ng segm ent is prj ~cipally the tel evl sion and radi 0' broadcasting ge'rlleractesrecv.volvedl In broadcastl ng. n 5. the Compa~y opewau€s its ca!b!. t. . o IDter-ooqment ''frarusamiom Segm ent revenue. Ibusines:s segm ents separatel y for tlhe· pu[rpose of makl ngdiecisions about resou~ce' allocation and pe~fOlmanoe assessment. ABS-CBIN Hungary inoOliporatoo ASS-OBIN Nletherioodis and estalb!ished a branch i~ Luxem oourg. respectively.existing[ US$5 m llnon rIIote Iby A!i3$··Cl8.tising' time" a activiti es which Cabl €I and satell ite business p:rimarily diev€:lops . On May 19. segment expenses and eperaf ng resu Its i~d ude translers amo~g lbiusi ess n segments and among goograph ical 5!egmefllts.ABS·Cl8.i ns to bring. . Geog[rapihical Segmen~'S. 1he Com pany is organ ized into th ree business activit!>€s . This s€gm e~tation is the Ibasis upon wh ieh the Compl1l!ny treports lts pri malry segment informati on.1NJ Global transfe'rred 1t$1. cabl €I operati ONiS and other IblLlsi neeses. i~d udi ng del Ivery of tel €<vi sion progrram mi ~g outside the Philippines through lts IDTHI sa~€11 lte servi ee. COrllseque~tly.as a. In .fhe translers are accounted for at com petitive market pri ces charged to unrelated customers few similar servl ces.and produces programs tor cabl.€ u:elevision.elevisi on program mi ~g outside the !Phili~pines.JaJpan).AISS·ClS.20018 .• the Compar!Y is In. the cable and satellite business includes 4 cabl €I u:elevision services of Sky Ca!b!. cable tel evi sion channel s and blocked 'l.[NJ Hunglall'y. Such transfers are eli mi flIated upon consolidation.

2008 and 20(Ji': ConsOlidated EBI1DA lDepreciatiloo afild amortization Amoritization o:f irutangiblle assets" F~nSinae oosW·· I nOOfest tneome IPiroviision for lneems tax Consolidated O~~ . net of related tax e.i53} 2(l(l1 131.r:cord fflOil~~~!: 93 .513.® shows the nllconcili. Con!! net Ineome for the 'Y·earIS measUlroo as co~.464 131 . 2009.306.245) 90..t!bIic<JtiOfl rigllts.an.rfgh. 93~2'91 ~684j055).019.fI$$ 81.solidated net Ineom eatt~1butabl e to equity hold~e~sof the Paren~ (... ...210.and' 'VW!.of tlhe PaJrentComparilY fair years ended !December :3 1.ation oif uhe core net income to eonsol idated net incom €I attriiblUtaibleto equity holders.i neome atb1ibuWJle to eqru holders ity of the P.535 (17. Net income tor the year is rneasured con 5is~entwith consol idau:ednet income aJttrilbiIJtalbl·eto equity holder.787).amin!gs betore irnterest.190) ('l.liJdtng OIfflOmzo.rs OIndr..2008 and 2007: Core· net i:noonne PfRS 3 s'dl'ustments: DepreciaJtiion and amortiza!tion Amoritization of eustom er relaJtion!$hips Galin on aoql.257 ~g68) (1..108. taxes and depreciation and amol1izati On! {EIBITD.244.997 (2.120 (1 .474 (1M.266.681). 2008 B6.266.On a con®olidlatedlbasis.gi€: of dli1lbt Inl:eres~ Iincome Ineom e tax deal Consolidated netlinoQme a!Uj1ibut:albile~oeqrl. of the Par~nt OO'ffipa!llY ln the co!ltsolidated fi fllanci a! s'i:a:tements.!ity Ih.~$- fI10~ . fflU$ii.107 i (30.332) (986.n of $tol)'.841.470) 111.o. . ali'I Ing 'from t~eacCiU IMlo~ of 8!ky S Cable" The fonowing talbl. (863.geS} (68.ind P. gain on acquisition and exc~ange of debt and el Im Ination of inte·res'l:Income pe·rtainl ng to the accretion of recelvalb!·e ·dli scount.ff·ect./44 81..287)· ~45. U1eCompanry's pellfotrmance is evaluau:ed based on con!solidatoo net income tor the ye.137.032.679) 131 .383.003) (566.836)· 121.352 {1.744 30 H.266.Gore net income.lO' .879 {44~5~O)· 2(l08 131.a!renrtQomipSiny 2009 86.Olde~$ of the IParent 0ompl3!ny 2009 (153.075) (1.iompa~y befom adj ustments mqui redl undler !PFFlS 3 wh ich relate to theamortizaJtion of customer IrelaMnsihips and d!epreciaJtion andl amortization of fai~ value I ncreass in properlY and equipment.055.383.!ti.866 ·Exc.973} 2007 85. EBlllD·A margin pertai ns to EBI11D·A dividedllb:y Qlross reven ues.720) 36.715) (696.744 Thefoilawl ng tabl eslhows the recorllci Ii amonof the COrilsolId!ated EElilinA to consolidated ne·t irIIcome aUributa!ble to equity holders of the lPaJre'rllt ComparilY l'Ow y·ears·e·rllded [)ece·mlber 311.aJr..A) and EIBIIDA margin.. 2009.. ··Exc/Wjng bank $(i!1'Vfo~ chOll'g./23 (1.li$itlion Md e:o::dh.464 .frJ·proc. e.

~ ~~ ~ ~~~ t... .::.. '" ....101 m ..l ~ ~U:Ji J. -....~ ~ 'U1-.J~ru(D ~~~.')2 g "'''' oc aco ~ffi 0>- -..~ ~...DO . .. !t2 ~g'(j -:"""wm'hi I ~.L I~ i.! I I Ttl • "I I~ I Ttl .m :::. '" '" I~ I~ '" I. .M ~W~_ '" '" .." lI=I bJ ...... . 01 "..'" '0 I~! .'. o. c > '" :~ ~ i I~ ~ I ~ ~ ~ I~ ''" " <> SN ~ !~~ . 0 I~ ". ldi I ''"' " ro <> <> I I I ...

~~ ~~ CI) ~ 'N .'0 ~ .'I' U1U:! ~~"'F eo o o " .... '" " " '" " o o . ~ . TIl ~~ ..'I' .

396.656.63'1627 293.8&1 194\.83.765 27'3. 2008 Pir'OVi~io:ns (s.793 {329) (U'63.893 ~1.814) 28.ebook d!epolSit rates.684 99:2.127. 106 Trade r.pectil'(.79'7) 93.048 117.217' 18:5.09'2 11 t3i17't8OO' OtMm Less allowarncefor doubtful accou nts 6.743} U48.2510. Tot:a!11 1.84.903 3113.270 18.of!s arne C4ihers (13.. Jan~¥y ~4.7119'. employees and tal.270 1'?318.786 (24. to employ.47.de and O~li1er Reoeivables .ear..103 ~.eceivablecs .532 123.808 '158.6811.49' 5311.2--45 4(4i(].47:2 (2Q1.47.1'22) 39. 2006 281..086 93.2 11'8.029 32.563)77S} (~53.1 ng to due from JI'e.8.ents Due from rei ated pawliss (see No'~:e 23) 183~170'~267' OtMm 7MIjS33 408'17.AOO' ~:2. 2!008andl 2007.513'} {161 .1311 11.39>1) 34.100 292.216 (0..3'19' 1E.0.352 1'?31. Int€H'est eaJI'nedfJI'om cash and cas~ eQu ivai e'rllts amoun~ed to 11293 illion. 51 60million and m 1 ~7j' million I rII 2009. AdivanC€!fs to.. For terms and condlitiOriis JI'e.79<t 1.s. 2i11~3i18 ..specWely {see Note 28).ee Nate 27) BalanC!l al D~e:mb~r Balance' al.t~er IreceivaJbles are usually seWed within one y.2008 Trade: Airtime Subscriptions Adv.50 to 90d1ays term upon receipt o.866 :5A~OO.ents and o.eesandl ~al.87E 55.f!ectof business cambilf'latio:f'I Note 4) (see Wrll~Or'~S and OIihers P1FQVi$iQ:rt$ (s@~ Not~ 27) Wrile. and! €lam interest at the respective short-term placement rates.EiJre nonintemsr·be.ance. wh ieh are made for vaJrying periods of up to th ree monlHnsd!eperndinglon the imm.36~) 1.193 (35.528 f1 .54~ ~.6" Cash and Cash EqUliiV'a~elilts Cash on hand and in lban'ks Cash equival ents 18'11.101 00.7. reter to ati atedl INote 23..1 parties.6'90.647 96 .$ to suppliers Adv.elrs.461(~ Cash irnbarnks €lams interest at the res.274 1'?61.464 31. Cash equ ivai e~ts are short-term placementiS.f irIIvoice by t~e customer.7'29) 440. :suppll.600' 20~)8 ~'~. re. 7" Tta.18S 13..537.ance.ediat€l cash requirements of th€l Company.64:5 1 .942 3.06.ail'ingl and are gene'lfallyorll .

Ai rtlme receivebles incl ude u~bill,ed al mme ansi ~g from a.dverbem ents which have been ai red duri I1g the year but blll ing or aoceptanoe !by the customer has been delayed due to ti me lag in eempletl ng all required doeum ents, IInvoicing ~ormally takes arou nd seven days from ai ring!. SUbscription recelva!bl,esi ncl ude urnbilledl subsCII'ipMn, whe~e revenue has beenaccwed based on tlhe rates in the sulbecri pti ornagreem e'rllte multi pl I ed Iby ~he e's,tim.atedl number O'f sulb<sclfibe'mbased on the latest report frcm the cable provid:elfS. Bini rng has been delayed due to 30 to 60 days lag In ~:t1Je sulbmission of actual $ulbecrl bers mpolftfromcalble provldle~s" The o1g I ng analysis O'f ~:t1JerIIbiliedl mceivables fOUQVJIs: U Less than 30 days 311-60 days B 11-90 days

eS93,7.65
146,215 15,502

.2008
j;!705,345

12:0,088 63,779
j;!B89 ,211.2

8. Iinventoli11es
.2008 At net realizable value: Material s, sll~pl i es and spare pails lMien)handise i nV€<rlfto,ry OUke sll9P1i es e95~8116 lea~568 4.7115

~46,849
177,143 1,.668

IMlate~ials, su~p! I es and ,s:pare parts. com prise m at:elflals arlld su~p! tss O'f the Pamn~ Gomparny, cabl e, concS<tndiO~ and install ation suppl ies of Sky Cable. Merclhandise inveijtmy consists m al nly of records and other consum er products held for sale by oither sulbsidiari es, The cost oif ilnveijtori,es earrted .8!t net realiz8!ble value .amoun!t.ed t.o ~:367 million! and RMO million as of Dooember 31, 0009 and 20(]8, respectively.,

.20018 Prepmduc,tion expenses Cmoitable withholdi ng and prepaid t:a!.'K.e.s. !Derivative assets {see rNJote3:3) Prepaid expenses. and others

e4t2,110
366,534

j;!374.,348 287,32.8

304,5211
IEn.10a,116i5

11>6,,22:3

21.2,4\111
~890.3110

97

On September .20, 21007, relaJtoo to the acqui siti On!!by the Parent Compan!Y of e6% of Sky Cable De'.bt from th ird party cred~tolf's as discussed in Note 19, Sky CaJb!,eissued lVlilOProm issory INotes to the PaIf'€:n!t ompan!Y in the .a.ggn~g.ril!tem ount of R1,798 million th LIS, making the Parent Companry the C a eventual lender on record of Sky CaJbl,e..The loan! parys monthly interest at 3m PDST·F' plus 1,Iyo with at fi n!al m atulrity in September .2011. as am ended on IF e ~b:mary 21, .2008 {see NOiU'e19). The Prom issolry INO'tesare tu!1hergovemed! by the terms and! eonditlens of the Facility Agr!eemeflft dated July 2, 2004. In 2008 and 2007, imerest ineeme amounted to' ~ 13, mi IIiO'fli and! ~25 mill iO'fl, respec1ive!y (see Nio'te 28). In 0009 no intelres!t lnocme was aecrued slnee the longlcterm receivables were already eenverted to Sky VisiO'n PDAs.
1,

Th is amount of 5UPPO'rt ot the Com pany to Sky Oalble was i~ oomlP!iance with the Senior Cn:loit Agreement (SOA) and the Fi rst Il.imendm ent Agreement daf:ed Septemiber 14, 0007 be1i:weefliam:! amofllg the Parent Company and the relevant pElJrti of me SOA, wl1ich inereased prevlous threshold es of adv·aII1cesand guaJI'srilteecs that can be e:xtend:ed by the' Pamn~ Gompall1Yto Sky Cablefmm ~400 million to l82,2.50 million. In Decem ber .2000, the Parent Com paJny purchased a.ddlilion!al Sky Cable D,eht for a consid€ra~i On!oif ~~ 03 million or 55% olf the pri rilcipal amount of R18:8 mill ion.. The IrooeivaJblefrom Sky Cabl e pays monthly imi€lresl aJt3m PDS1~F pi us. 1% with fi nal m a~ulritry n September 20 16. i The long:·t.erm r>eceivabl,esfrom Sky CaJbl,ewere initiallry measured and r>ecoglmiz.ed their fai r val ue at aJtinception daJte.. !Disoounts, which r,epresen~ the difference !between the nomi nal val ue andrai r 'Value of the 1f'000h/abl,es,amoumt!ng to RB5 million and R374i million in 20GB and 2007, If'€'spectivelry, aJr@ accreted over the term ot the reeeivebles usi ng the effective intelrest method. Aoolre1iion O'f the disoo,unts, included as part of interest income, amounted to! ~91 m illiO'n and !~10 million in 2008 and 20137 respectively" see Nlote 28).
j

~n 2008, UPO'flleenselidatlen ot Sky Cabl'etO' .AIBS-CIBN,the long'cterm reooivaol esfrom Sky Cabl'e totaling ~1 ,546 million were ellmlnsted and the dijffe~eflice bet:weefl the cawyingl v,alue O'fSky Cable's debt and the canyi ng val ue ot AIBS-CIBN'5·IO'ng-tem'! recelvablestrom Sky Gable amQunti ng to! ~30e million was recO'glflized as gain (see INote 28). As discussed in Nlo~e4, on Februa[y ~9, 2(l09, the BOD ofAIB8·{:BN ~pproved the'COrllversion of the 9~ ,1'918 million loan and 9900 miliiorll advElil1ces to 278.,588.,,8114 Sky Vision PDRs oovelringl 278,588,81,4 Sky Calbl,e s~aresalt a conve'[];ion pnee of eg!A59 per shall'e upon conve~si onot the fo~egoing loan all1d1dvsrllces. a On MatCh 2,. 2009, by viJI'tu.e of a sepamte Assi g,rIImen~Agreemen~, A8S~CBIN assignoo ·~~e ~'~,798 mill iO¥~ loan to Sky Vi sion" .As a consideretion for th€ .assignment, Sky Vi siOn!a,greedl to issue to ABS~CBIN 1B5,'662,775 P DIRs wh ieh shall b€ converf b4,€inrio ~B5,e62,715 Sky Cable sihares.. The terms of U1e aglr€:em€:~t. are similaJrto the Assignm erntAglreement d~scusg,€d in thefor>ego! n!g. The rem al ni n!g Ion!g4elrm receivaJb~e from Sky CaJb~eas of December 311,2009 of R1113mill iOn!was eliminated upon! consolioaJtion of Sky CaJbleto ABS~CBN.

98