Ayala Corporation

The company began in 1834 with the formation of a distillery owned by Casa

Róxas, a partnership between Domingo Róxas and Antonio de Ayala. The distillery was

the maker of Ginebra San MIguel and was later acquired by La Tondeña, Inc. in 1929.

Ayala Corporation is a holding company that offers business process outsourcing (BPO)

services, transport infrastructure, education, healthcare, international and others. The

Company segments are Parent Company, which includes financing entities; Real estate

and hotels, which plans and develops residential and commercial communities; Financial

services and insurance, which includes commercial banking operations and services,

such as deposit taking and cash management; Telecommunications, which provides a

range of communication services; Water distribution and wastewater services, which

manages fixed and movable assets; Electronics, which is engaged in providing

electronics manufacturing services; Information technology and BPO services, which

offer venture capital for technology businesses and emerging markets; Automotive, which

offers passenger cars and commercial vehicles, and Energy, which offers a portfolio of

power generation assets using renewable and conventional technologies.

Ayala Corporation is the publicly listed holding company the diversified interests

of the Ayala Group. Founded in the Philippines by Domingo Róxas and Antonio de Ayala

during the Spanish colonial rule , it is the country's oldest and largest conglomerate. The

company has a portfolio of diverse business interests, including investments in retail,

education, real estate, banking, telecommunications, water infrastructure, renewable

energy, electronics, information technology, automotive, healthcare, and management

and business process outsourcing. As of November 2015, it is the country's largest

corporation in terms of assets ($48.7B).

CASH FLOW
INCOME STATEMENT
 FORMULA & COMPUTATION

EVA = NOPAT-(WACC*CAPITAL INVESTMENT)

NOPAT= EBIT(1-TAX RATE)

NOPAT= 43,089(1-20%)
=34,471.2

EVA =34,471.2-(4.25%*61,349.67)
=34,471.2-26073.40
=8,397.80

MVA= MARKET VALUE – BOOK VALUE OF STOCKHOLDERS EQUITY

FCF= OPERATING CASH FLOW-CAPITAL INVESTMENT

= 34,454-25,708.327
=8,745.67

FCFF= NOPAT+D&A-CAPEX- NET WORKING CAPITAL

= 34,471.2+12,297.86-25,708.327-12,876.133
=8,184.6

FCFE= CASH FROM OPERATION

(CAPITAL EXPENDITURE)
NET DEBT ISSUED
=62,126.53
(25,708.33)
53,771.87
=90,189.33

COGS= NET SALES* PAST RATIO OF COGS TO SALES

TAX = PROFIT*TAX RATE

COGS = 242,228*24.02%
=242,228*0.2402
=58,183.15

TAX=64,635*21.93%
=64,635*0.2193
=14,174.46
 FORECAST OF INCOME STATEMENT

(2017) (2018)
Actual Result Forecast Basis Initial forecast

NET SALES 242,228 X 1.12 271,295.36

COST OF GOOD SOLD (177,593) X 1.12 (198,904.16)
GROSS PROFIT 64,635 72,391.19
FIXED OPERATING COST EXP. - - -
DEPRECIATION

DEPRECIATION - - -
EBIT 43.089 X 1.12 48,259.68
LESS: INTEREST (746) (746)
EBT 42.343 X 1.12 47,513.68
TAXES - - -
NET INCOME 30.264 X 1.12 33,895.68
PREFERRED DIVIDEND (1,285) (1,285)
ADDTIONAL TO RETAINED 28,979 X 1.12 32,610.68
EARNING
ANALYZATION
 LEARNINGS
(Trina Anne B. Llagas)
 LEARNINGS
(Janefer Magistrado)
BALANCE SHEET